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President Obama released his federal budget proposal Monday. The proposal includes an 11% increase for education, but also possessed a large number of cuts across the board – including caps on funding for the war in Afghanistan. The Republican response from the one they tout as their budget guru designee, Paul Ryan, was a bit too quick not to involve posturing. During the next few weeks, Congress with hash the details with the Administration, but some noted economists are up in arms over federal fiscal policy this recession. The EPA gets big cuts in either case, while the security state is alive and well. Though Obama does criticize the Republicans for not investing in infrastructure and education, school superintendents in the state of Texas are about to face the largest cuts to education since World War II. The Republican cuts are so targeted and so draconian that some wonder whether this is all part of a Republican ploy to ensure that Obama fails? On a side note, other nations such as France and Germany, who spent a good deal on investment in infrastructure to get out of the recession, left the recession in 2009. We will discuss the corresponding lack of stimulus and investment in the US in a piece coming out later this week.

There are new protests across the Middle East today, in a “day of rage” in Bahrain, the fourth day of protests in Yemen, and crowds were dispersed with tear gas and possibly hired thugs in Iran. In Egypt, rifts begin to form as the military asks workers and students now protesting for higher wages and the right to unionize to disperse while Hosni Mubarak now faces the challenge to pocket his cash and run before European banks are able to freeze his assets for repatriation to Egypt. What is a dictator to do? The Middle East is not alone as thousands of Italians, especially women, protest Premier Silvio Berlusconi after a sordid sex scandal, involving a 17-year-old girl.

NATO ships have seized a major pirate ship off the coast of Somalia, a libertarian paradise. And in Ecuador, a court rules that Chevron must pay the nation $8 billion in fines due to the massive environmental harm done by Texaco, a company now owned by Chevron.

The day after: How did you celebrate your Valentine’s Day?