Tag Archives: debt ceiling

Political Rants

Good fight?

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Well, so that’s it, then. You captured one of us, threatened all of us…

All right, I couldn’t resist channelling Captain Pike for a moment, even if it does make for a non-sequitur type of opening. Still, there’s something in the tone of that speech that reflects how I feel about this government shutdown / debt ceiling revolt by the stark minority of hayseeds known as the tea party. Sure, I’m relieved that they didn’t upend the global capitalist system they profess to adore so much. And yes, I am heartened by news that hungry poor folks will be getting food assistance, and sick children will get treatment, and veterans will get aid, etc. That’s all important. But relief shouldn’t blind us to the rank selfishness that caused those people to lose their badly needed benefits.

Often wrong, never in doubtThe fact is, the minority of House Republicans that make up the “tea party” caucus, led by their Senate mentor Ted Cruz, caused about $20-25 billion in losses to the U.S. economy. Much of this is irretrievable, as it represents lost contract fees, lost purchases by government employees (i.e. lunches, cups of coffee, etc.), and so on. And it was done pointlessly: nothing was accomplished, for good or ill. We could have had the final deal on the first day, but it was never brought to a vote.

It mystifies me, though, how little these people understand the core principles of capitalism. For god’s sake, folks … the whole house is built on confidence and credit. Private enterprises need credit to do business. They rely on short term loans to make their payroll. If there is no confidence in their ability to pay back the money they borrow, credit is withheld and they collapse. Same thing with government, only our government presides over the primary reserve currency of the entire global economy. That reality, from which we benefit greatly, is based on confidence. The shutdown and the debt-ceiling hostage crisis have seriously undermined that confidence.

This will likely happen again, I’m afraid. Until, that is, we manage not to elect to government people fully intent on destroying it from within.

luv u,

jp

Political Rants

One way out.

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Let me preface this tirade with the admission that I am no fan of bipartisanship. I agree with Chris Hayes (@chrislhayes) on the notion that nothing of any great value has come out of it in recent decades; in fact, quite the opposite. The Iraq War, the USA Patriot Act, etc. If that’s how sausage is made, we should consider eating something other than sausage.

That said, we are faced with some fundamental problems with respect to our rapidly eroding ability to govern ourselves at the national level. A handful of tea party House members, maybe 40, from heavily gerrymandered districts have become the tail that wags the Congressional dog, in essence. They have every incentive Discharge petition?to continue and even enhance their extremism, as that is the only way they can please their hard-right constituencies back home. Around that core is another probably 40-50 House republicans terrified of being challenged by tea party types in the next round of primaries. Boehner needs these folks to maintain his speakership, so he goes along as do most of what remains of the GOP caucus. Hence, a list of demands is attached to a 60-day continuing resolution – not even a budget – with the same treatment threatened for the debt ceiling vote in a couple of weeks.

What’s to be done to keep us from toppling over a more dramatic precipice than the one we encountered in 2008? I think it’s time for a coalition government in the House. Get a majority of Republicans and Democrats to support a centrist or even a center-right candidate for Speaker, one who will agree to advance the following objectives: (1) keep the government open and funded at whatever level; (2) raise the debt ceiling well in advance of each deadline; (3) negotiate on a budget deal to cover more than six months to a year (i.e. plan ahead).

This would not be a progressive coalition by any means. But given the current make-up of the House, it’s hard to see how else we can keep the lights on and prevent the collapse of our financial system. We need to put the tea party minority in a box; to wall them off from the levers of power. If we don’t, the current crisis will continue and will be repeated again and again. And given the fact that the best we can hope for in the CR debate is the continuation of sequestration-level funding of federal programs, a centrist coalition hardly seems like a worse outcome.

Though I’m not happy about it, I think this is the way out of this mess. Let me know what you think.

luv u,

jp

Political Rants

Faith and credit.

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Kind of tired, so these will be brief.

Cruz Control. Here we go again, lurching from crisis to crisis, the federal government sputtering along on fumes once more, its lifeblood of funding drying up. We haven’t had an actual federal budget plan approved in years, just a series of continuing resolutions and last-minute deals. And now, as the federal deficit has shrunk (thanks in part to the blind cuts imposed by sequestration) to nearly half its Mohammad Mossadeghsize one year ago, the party who rules Washington – the tea party-fueled G.O.P. – has decided to drive us over the cliff once again, only this time it’s about ideological, not budgetary, complaints. We must kill Obamacare (and fulfill a long list of other reactionary desires), or the economy gets it.

Ted Cruz is working the reps in the House, but really … the reps should know better. How can you call yourself a conservative and support playing chicken with the debt ceiling?

Good call. Iranian president Rouhani called our own president today, and they had a 15 minute conversation – the first between leaders of these respective countries in more than thirty years. You may not like to hear this, but the reason for this is more about us than about them. We overthrew Mossadegh in 1953, imposed the Shah Reeza Palavi for 25 years, supported Saddam Hussein’s savage attack on them, imposed sanctions that have starved them, sickened them, and prevented them from living a decent life for decades. Small wonder they’re unhappy with us.

Our government’s criticism that they support “terrorism” is ironic at best, cynical at worst. What worse terrorism is there than that which we have practice on them since 1979?

luv u,

jp

Political Rants

Six of one, half-dozen of the other.

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Consider this an open letter to the Congressional “Super Committee,” or gang of twelve – whatever you may wish to call them. (Keep it clean out there!) While you are considering how best to shaft poor, elderly, and working people (employed and unemployed) to bring greater benefits to our nation’s rich, I ask – nay, demand – that you consider these items:

How we got here. I’ve heard a lot of people in Congress, as well as various talking heads, putting their spin on the orgy of ignorance that led us to the creation of your Committee, as well as the series of missteps that led us to Standard and Poor’s decision to downgrade the nation’s debt rating. The factual answer to those questions is simple – the Republican party, a wholly owned subsidiary of corporate America, was driven by its most radical faction (the so-called “tea party”) to manipulate the once mundane process of raising the debt ceiling for political gain. S&P’s judgment that our government can no longer make rational decisions about its debt is based on their recognition that, from now on, raising the debt ceiling will involve a similar political standoff.

The decision to politicize the debt ceiling legislation – really just an authorization to accommodate borrowing already mandated by Congress through the budget process –  has done perhaps irreparable damage to the faith and credit of the U.S. But even more importantly, it has backed us into a political process that is practically guaranteed to deliver to the G.O.P. precisely what they want: the gutting of Social Security, Medicare, and Medicaid.

Who owes what. I’m not happy with president Obama, but the notion that he and the Democrats are responsible for exploding deficit spending is ludicrous. As the New York Times reported recently, based on figures from the CBO and the Center on Budget and Policy Priorities, $1.44 trillion of the national debt can be laid at Obama’s door; more than $5 trillion is attributable to his predecessor, including the FY 2009 deficit of $1.44 trillion, set before Obama took office.  The Bush tax cuts have contributed $1.8 trillion; unfunded wars in Iraq and Afghanistan have pitched in more than $1.4 trillion. How is this an issue of “entitlements” … unless that term can be used to describe tax cuts for wealthy people?

Seriously… (and apologies to Barney Frank) … are we going to ask 90-year-old ladies living on less than $20k to do without cost of living raises while allowing those who clear more than $250,000 a year to keep an extra $30 per thousand? I think not.

luv u,

jp

Political Rants

Barry’s hand.

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The ongoing debate over raising the debt ceiling has dominated another week’s worth of news coverage. Now Moody’s has put the U.S. government “on notice” – something I thought only Stephen Colbert could do – that our debt rating may be downgraded if the current impasse continues. As I mentioned in my last rant, this is a manufactured crisis. It’s a standoff not over debt yet to be incurred, but debt already booked by Congress by virtue of budget items already agreed to. There is no reason for this threatened default other than to make political points… and yet it continues, even though the downside risks are substantial.

How substantial? Default – or even near-default – could cause a global financial disruption on a scale that would dwarf that of late 2008. At the very least, a downgrade of the investment rating of U.S. Treasury bonds would be not only unprecedented but extremely costly, making service on our existing debt far more costly, blowing an even bigger hole in the federal budget. If that alone were to happen it would be bad enough. But these facts just don’t seem to register on Capitol Hill.

It’s often been said that, in a Democracy, we get the government we truly deserve. Last fall, the American people – by voting or by abstaining to do so – sent to the House of Representatives a class of Republicans that amount to the American version of the Taliban. The core of this class are fanatical believers in their own delusions; they see reality as a nefarious socialist plot. Fueled by tea party faux-populism, the new G.O.P. goes beyond their party’s traditional obsession about cutting taxes. Anything – anything – that brings more revenue to the Federal government is to them an unacceptable burden on the American taxpayer. (i.e. rich people. They apparently don’t consider burdensome the enormous costs displaced to workers, pensioners, etc. as a result of the massive cuts to Medicare, Medicaid, and other programs they demand.) That much is a given. The only wild card is in the president’s hand – what will he sacrifice to appease them?

This is what we voted for, whether we realize it or not. More likely not, since the Republicans did not advertise this part of their program. (It was going to be jobs, jobs, jobs, remember?) While it’s far from the only thing we need to do as citizens, it’s obvious that voting is essential… just as it’s clear that we need to hold our leaders – namely Obama – accountable when they give away the store.

luv u,

jp

Political Rants

Fighting ground.

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Okay, let’s get one thing out of the way at the start: very few people enjoy paying taxes. To that I can only add my own personal observation that the people who seem to complain the loudest about taxes are the ones who can most afford to pay them. They have an excellent means of making their complaints heard, too – it’s called the Republican Party. In fact, in service to those who would pay not a single dime more than the historic low rates they’re paying today, the G.O.P. is creating a default crisis out of whole cloth by linking the authorization of additional borrowing to the conclusion of a draconian budget agreement that will gut the essential social programs they have always sought to defund, privatize, etc.

The two things, of course, have nothing to do with one another in the real world. Raising the debt ceiling is merely addressing financial commitments that have already been agreed upon. It is something the Republicans have gladly passed many times before under their own presidents, as well as under Democrats. They have seized upon it because it offers an opportunity to, in effect, put the entire nation up against a wall until we give up on the idea of not spending our elderly years in penury. (That’s sooooo 1960’s of us.) The Republicans see an opportunity here to realize what they could never accomplish during George W. Bush’s tenure – privatization of Medicare, pirating Social Security, and locking in massive tax cuts from now until perdition. And they sense, perhaps correctly, that the Democrats don’t have enough fight in them to stop it.

I will gladly crib Bernie Sanders, Keith Ellison, and Dean Baker on this – Social Security is not – repeat, not – part of any budgetary problem. It is fully self-funding for the next 25 years with no changes whatsoever. How many programs can make that claim? The G.O.P. and spineless Democrats merely want to pirate the fund to pay for extending Bush tax cuts for the richest people in the country. Regarding Medicare and Medicaid, they are single-payer systems dedicated to the elderly, poor, disabled, and stricken amongst us. The rest of us – those who are relatively young, fit, and almost never need a doctor – are reserved for the profit of private insurers. Single payers systems only pay for themselves when everyone – sick and well, old and young, rich and poor – participates in them. If we want to solve the funding problem, we need to decide whether we can continue to afford contriving a profitable market for companies like BlueCross.

In short, the deficit hawks in the Republican caucuses are blackmailing us into funding tax breaks for wealthy people – including the fuckers who caused the financial crisis – by crippling our already inadequate social safety net.  I say, call their bluff. This is ground worth fighting for.

luv u,

jp