I’m resigned to America's debt ceiling not being raised. America will default on her debt. Our credit rating will tumble, and the dollar will take a running jump toward losing it dominance among currencies. China and the Chinese stand to gain as the makers of the world’s future high-value currency.
America will transfer an additional trillion dollars to lenders’ hands to pay for her preexisting debt, because of the fall of America’s credit rating. This will make it more expensive for America to raise money. Obviously, we could have used this wealth for better purposes.
I became resigned when I saw House speaker John Boehner respond to president Barack Obama’s televised speech on July 25.
It reminded me of something that happened in 2000: the Camp David summit between Palestinian Liberation Organization head Yasser Arafat and Israel’s president Ehud Barak. To win peace, leftist Israeli president Barak made painful concessions. But Arafat rejected the best deal by far ever offered by Israeli negotiators. At the time, some people expressed that Arafat was perfectly happy to reject any deal, because refusal to compromise would win him the admiration of his constituency among the Palestinians. So peace floated into the ether, and Arafat let it float away.
John Boehner is playing Yasser Arafat in these negotiations. If the debt ceiling is not raised, because he insists on getting everything he wants and conceding nothing, Boehner becomes beloved of the hard-core Republicans who would hold the debt ceiling hostage to prevail in their position that only a minority of Americans share. Their position is that the long-term debt should be overcome solely with budget cuts, not with additional taxes on the wealthy. Republicans reject a ratio of budget cuts to new revenue of 83% to 17%. The new taxes would fall on the rich, who have benefitted disproportionately in increased income in recent years. Some of these very wealthy persons pay taxes at a lower rate than their secretaries.
So the government becomes dysfunctional.
Of course, Boehner wants it both ways. He won’t compromise, but he blames Obama for the coming debacle. This is from a party that lost all credibility when they proclaimed that the Health Care Reform Act had death panels. (Will someone please show me the death panels in that legislation? Because what was claimed to be death panels was only a provision (now removed) paying Medicaid doctors for doing what they otherwise would do for free: counsel elderly patients about advance directives for end-of-life decisions. That’s no death panel. If the death panel is something else, would someone please point it out?)
As Boehner blamed Obama in his speech, he told his story that there was almost an agreement, but Obama changed the terms of the agreement, and the summit fizzled (actually, Boehner walked out). I don’t believe him. I’m predisposed to disbelieve Republicans in Congress after the death-panel lies. And I watched Boehner closely as he told this particular story. I saw a glint in his eye as he told it.
That told me that Boehner is not only Yasser Arafat; he is also Lord of Facts. He arrogates to himself a godlike power to create facts in his own image.
This upsets me deeply. I shouldn’t be shocked; this is only a worse incarnation of what I’ve seen before. It’s playing politics with our future; it’s lying to play politics.
Maybe this is the moment of America’s final decline. Maybe this is the moment where ideologues in the minority rob America of her economic recovery and start the slide to a weak, dysfunctional republic. It sickens me. It disgusts me. It literally robs me of sleep.
The Republicans act as if they believe that when America capsizes, only Democrats will get wet. That won’t be the case.
A metaphor: in Greek mythology, Cassandra was the daughter of Trojan King Priam and Queen Hecuba. Apollo empowered her to see the future, but, when she wasn’t sufficiently grateful (in a particular way), he cursed her with the fact that nobody would believe her. She foresaw the fall of Troy, but she couldn’t convince anyone that her prophecy would come to pass.
I feel like Cassandra. Never in politics have I felt so frustrated. I foresee disaster brought about by corrupt practices. If Republicans are going to wreck the economy, let them at least be honest about their willingness to do so. House Majority Whip Eric Cantor was at least so honest when he said that the Republicans would not compromise on the budget, because they believe that agreeing to raise the debt ceiling was their compromise.
Remember that, and lay blame accordingly.
Showing posts with label Debt Ceiling. Show all posts
Showing posts with label Debt Ceiling. Show all posts
Tuesday, July 26, 2011
Wednesday, July 13, 2011
Capsizing
1. Ships that can’t be righted.
A large capsized ship can’t be righted.
As a wave pushes a ship over, it’s crew might hold their breath in mute terror, waiting to see if the ship reaches the point of no return, the point when all is lost. Sometimes the ship returns to upright to take on the next wave. Sometimes it doesn’t.
I say this because the right wing in America risks to capsize the country. It risks this for political gain. The odd thing is that they seem to think that when they capsize the country, only the Democrats will get wet.
2. Capsizing the economy.
So with the debt ceiling.
The dollar is the world’s premier currency. It has rivals in the yen (Japan), the yuan (China), and the euro (Europe). China, particularly, agitates for countries to "balance" their foreign reserve holdings with other currencies aside from the dollar. China hopes to start a trend that ends the dollar’s supremacy.
China has allies in America. They aren’t moles in banks who cut secret, treasonous deals for their own enrichment. They are the Republicans in Congress.
Congressional Republicans are holding the debt ceiling hostage to their own uncompromising position on debt. They use the vote to raise the debt ceiling as leverage to get their way -- and get their way 100% -- on the budget.
The debt ceiling is the legal amount of indebtedness that America can have. If we reach our statutory debt limit, we cannot borrow more. Then, we cannot pay our debts. We’ll default on something: our sovereign debt (what creditor countries lend to us); soldiers’ salaries; social security checks. The damage from this will ripple through the economy.
Ripple might not be the right word. Tsunami might be more correct.
The Economist is a socially-liberal but fiscally-conservative magazine ("newspaper" in British English). They champion debt reduction. They have criticized Obama for not doing enough about debt. Even this week they said, "Mr. Obama had been deplorably insouciant about he medium-term picture, repeatedly failing in his budgets and his state-of-the-union speeches to offer any path to a sustainable deficit."
But here’s what The Economist says in an article in this week’s magazine called "Shame on them."
The Obama administration proposed an 83%-17% ratio of cuts to increases. They basically said Yes to the Congressional Republicans’ own proposal. But The Republicans wouldn’t take Yes for an answer. They walked out of discussions.
The New York Times speculated that the Republicans might want to exploit, for political gain, the economic turmoil that will come after a debt-ceiling default. That might be. They might stick to that plan, unless they can get something better. If they follow that plan, then they are making all of us – all of us who aren’t rich – unfortunate pawns in their grand strategy to rise to the top.
3. Capsizing political debate.
The Russian-roulette game over our economy isn’t the only way that the right wing gladly risks disaster.
Political debate is in recent years sullied. But Republican leaders and Republican media reached a new low by whipping up fervor against "death panels" in the Affordable Care Act ("Obamacare" to its detractors).
Nobody can point to death panels in that bill, because they aren’t there. The closest thing to that was a part of the law (taken out) that paid doctors to do what they have been doing for free: advising patients about end-of-life choices.
Most people don’t want to be irretrievably comatose and on a feeding tube or a heart-lung machine. Advanced directives that come from these doctor-patient discussions keep a patient’s children or spouse from being burdened with the guilt or expense of making that decision without a clear statement of the patient’s preference.
Accusing the Democrats of legislating "death panels" to "pull the plug on grandma" so poisoned political conversation in this country that I don’t know that it ever can recover. It went far toward capsizing political debate.
4. Capsizing the legitimacy of the Republic.
And Republican media and Republican politicians take aim at the Republic itself. Republican governor of Texas Rick Perry talks about seceding from the Republic. Here’s a guy who literally would fight to keep "under God" in the Pledge of Allegiance; "indivisible"– not so much.
This attitude has trickled down. On Facebook, I have seen a post that compares democracy to two wolves and a lamb voting on what to have for lunch.
It’s funny in its way, but it’s more frightening than funny. After all, democracy is fair, and fair is the opposite of wolflike-ness. It’s the ultimate way that a government can have legitimacy. Democracy reflects the will of the people – or at least most of the people. That’s right and just. It’s more right and just than any other form of government.
And there are safeguards against the so-called tyranny of the majority. Under the Constitution, majority rule is subject to checks and balances. The Supreme Court can declare laws unconstitutional – as might happen to the Health Care Reform Act, which will one day come before the Supreme Court. And before a bill can become law, it has to pass in the House of Representatives (where congressmen are elected by districts that have roughly equal population to each other – this give more power to large states); and the Senate (where each state gets two Senators – this gives more relative power to citizens of smaller states). Then, usually, the President has to sign a bill into law (but Congress can override his veto).
This is the most perfect (but not perfect) form of government. Other forms are less fair.
And we have a vigorous press in which all opinions can be expressed, And, compared to most of the world, we have little official corruption.
But the right wing is revving its chain saw at the base of the living American tree – disputing the fairness of our democracy – because they aren’t happy with political outcomes. When they do that, the right wing risks much to our Republic. Because when people dispute our Republic’s legitimacy, when they urinate on our Constitution, they weaken the Republic. But the right wing seems willing to risk this capsize.
5. Capsizing justice and political restraint.
As much as the right challenges the legitimacy of government under Obama, the real scandals of governance have taken place under Republicans.
In the Bush administration, U.S. Attorneys asserted that they were fired for partisan reasons. David Iglesias, for example, refused to politicize prosecutions. He said under oath that Republican politicians directed him to target Democratic officeholders because they were Democratic officeholders. When he refused, he was fired. The U.S. Department of Justice Inspector General backs his assertion.
An official from the Bush administration asserted her Fifth Amendment right not to incriminate herself in the investigation of the U.S. Attorney-firing scandal. After getting immunity, she admitted to feloniously using political criteria to fill non-political Justice Department jobs. She also testified that many Bush-administration officials had lied under oath about the U.S. Attorney-firing scandal.
The Wisconsin Republican governor and the Wisconsin Republican legislature passed a law to weaken public-employee unions. Now, there is in Wisconsin no counterweight to corporate money. Other Republican states are following.
Under Bush, America was Ukraine. And under Republican governors, Ukraine continues among us.
6. Capsizing freedom of speech.
A former ambassador investigated the charges that Iraq had sought uranium yellow-cake from Niger. He published an editorial in the New York Times that accused the Bush White House of knowingly lying to the American people. In fact, the Bush White House did not know of his report; the report didn’t travel up from the CIA, which had sent him on his fact-finding mission.
But that’s not the point. The point is that high Bush-administration officials swiftly retaliated against the former ambassador by disclosing to several reporters that his wife was a CIA employee –Valerie Plame. Right-wing columnist Robert Novak outed her. In fact, Valerie Plame was a covert operative who specialized in nuclear proliferation. America became less safe after she could no longer do her job.
7. Speak up!
Some of my right-wing friends are adamant that Muslims must renounce the terrorists who share some form of their own religion. Where are my right-wing friends when their political brethren threaten our welfare and disparage our Constitution?
Unless you hate Obama more than you love America, speak up.
________________________________
Selected sources.
A conservative columnist for the New York Times says that Republicans should shake hands with Obama and declare victory on the budget. He says they’re nuts not to:
http://www.nytimes.com/2011/07/05/opinion/05brooks.html?partner=rssnyt&emc=rss
A neutral referee discusses so-called "death panels" in the Health Care Reform Act. It’s hogwash:
http://www.factcheck.org/2009/08/palin-vs-obama-death-panels/
Governor Perry wants to lower Old Glory in Texas forever:
http://www.statesman.com/news/content/region/legislature/stories/04/17/0417gop.html
U.S. Department of Justice Inspector General report on the firing of U.S. Attorneys. It says Rove and others wouldn’t cooperate with investigators about the firing of U.S. Attorney David Iglesias:
http://www.justice.gov/oig/special/s0809a/final.pdf
See, especially, p. 186-187; 190
U.S. Department of Justice official Monica Goodling invokes the Fifth Amendment in Congressional hearings.
http://www.washingtonpost.com/wp-dyn/content/article/2007/03/26/AR2007032600935.html
Monica Goodling admits using political criteria to fill non-political Justice Department jobs:
http://www.washingtonpost.com/wp-dyn/content/article/2007/05/23/AR2007052300728.html
The outing of Valerie Plame (Book):
James B. Stewart, Tangled Webs (The Penguin Press 2011)
A large capsized ship can’t be righted.
As a wave pushes a ship over, it’s crew might hold their breath in mute terror, waiting to see if the ship reaches the point of no return, the point when all is lost. Sometimes the ship returns to upright to take on the next wave. Sometimes it doesn’t.
I say this because the right wing in America risks to capsize the country. It risks this for political gain. The odd thing is that they seem to think that when they capsize the country, only the Democrats will get wet.
2. Capsizing the economy.
So with the debt ceiling.
The dollar is the world’s premier currency. It has rivals in the yen (Japan), the yuan (China), and the euro (Europe). China, particularly, agitates for countries to "balance" their foreign reserve holdings with other currencies aside from the dollar. China hopes to start a trend that ends the dollar’s supremacy.
China has allies in America. They aren’t moles in banks who cut secret, treasonous deals for their own enrichment. They are the Republicans in Congress.
Congressional Republicans are holding the debt ceiling hostage to their own uncompromising position on debt. They use the vote to raise the debt ceiling as leverage to get their way -- and get their way 100% -- on the budget.
The debt ceiling is the legal amount of indebtedness that America can have. If we reach our statutory debt limit, we cannot borrow more. Then, we cannot pay our debts. We’ll default on something: our sovereign debt (what creditor countries lend to us); soldiers’ salaries; social security checks. The damage from this will ripple through the economy.
Ripple might not be the right word. Tsunami might be more correct.
The Economist is a socially-liberal but fiscally-conservative magazine ("newspaper" in British English). They champion debt reduction. They have criticized Obama for not doing enough about debt. Even this week they said, "Mr. Obama had been deplorably insouciant about he medium-term picture, repeatedly failing in his budgets and his state-of-the-union speeches to offer any path to a sustainable deficit."
But here’s what The Economist says in an article in this week’s magazine called "Shame on them."
This newspaper has a strong dislike of big government; we have long argued that the main way to right America’s finances is through spending cuts. But you cannot get there without any tax rises. In Britain, for instance, the coalition government aims to tame its deficit with a 3:1 ratio of cuts to hikes. America’s tax rate is at its lowest level for decades: even Ronald Reagan raised taxes when he needed to do so.Here’s more from The Economist:
And the closer you look, the more unprincipled the Republicans look. Earlier this year House Republicans produced a report noting that an 85%-15% split between spending cuts and tax rises was the average for successful fiscal consolidations, according to historical evidence. The White House is offering an 83%-17% split (hardly a huge distance) and a promise that none of the revenue increase will come from higher marginal rates, only from eliminating loopholes. If the Republicans were real tax reformers, they would seize this offer.The Economist expects serious damage to the economy when America defaults on its debt.
The Obama administration proposed an 83%-17% ratio of cuts to increases. They basically said Yes to the Congressional Republicans’ own proposal. But The Republicans wouldn’t take Yes for an answer. They walked out of discussions.
The New York Times speculated that the Republicans might want to exploit, for political gain, the economic turmoil that will come after a debt-ceiling default. That might be. They might stick to that plan, unless they can get something better. If they follow that plan, then they are making all of us – all of us who aren’t rich – unfortunate pawns in their grand strategy to rise to the top.
3. Capsizing political debate.
The Russian-roulette game over our economy isn’t the only way that the right wing gladly risks disaster.
Political debate is in recent years sullied. But Republican leaders and Republican media reached a new low by whipping up fervor against "death panels" in the Affordable Care Act ("Obamacare" to its detractors).
Nobody can point to death panels in that bill, because they aren’t there. The closest thing to that was a part of the law (taken out) that paid doctors to do what they have been doing for free: advising patients about end-of-life choices.
Most people don’t want to be irretrievably comatose and on a feeding tube or a heart-lung machine. Advanced directives that come from these doctor-patient discussions keep a patient’s children or spouse from being burdened with the guilt or expense of making that decision without a clear statement of the patient’s preference.
Accusing the Democrats of legislating "death panels" to "pull the plug on grandma" so poisoned political conversation in this country that I don’t know that it ever can recover. It went far toward capsizing political debate.
4. Capsizing the legitimacy of the Republic.
And Republican media and Republican politicians take aim at the Republic itself. Republican governor of Texas Rick Perry talks about seceding from the Republic. Here’s a guy who literally would fight to keep "under God" in the Pledge of Allegiance; "indivisible"– not so much.
This attitude has trickled down. On Facebook, I have seen a post that compares democracy to two wolves and a lamb voting on what to have for lunch.
It’s funny in its way, but it’s more frightening than funny. After all, democracy is fair, and fair is the opposite of wolflike-ness. It’s the ultimate way that a government can have legitimacy. Democracy reflects the will of the people – or at least most of the people. That’s right and just. It’s more right and just than any other form of government.
And there are safeguards against the so-called tyranny of the majority. Under the Constitution, majority rule is subject to checks and balances. The Supreme Court can declare laws unconstitutional – as might happen to the Health Care Reform Act, which will one day come before the Supreme Court. And before a bill can become law, it has to pass in the House of Representatives (where congressmen are elected by districts that have roughly equal population to each other – this give more power to large states); and the Senate (where each state gets two Senators – this gives more relative power to citizens of smaller states). Then, usually, the President has to sign a bill into law (but Congress can override his veto).
This is the most perfect (but not perfect) form of government. Other forms are less fair.
And we have a vigorous press in which all opinions can be expressed, And, compared to most of the world, we have little official corruption.
But the right wing is revving its chain saw at the base of the living American tree – disputing the fairness of our democracy – because they aren’t happy with political outcomes. When they do that, the right wing risks much to our Republic. Because when people dispute our Republic’s legitimacy, when they urinate on our Constitution, they weaken the Republic. But the right wing seems willing to risk this capsize.
5. Capsizing justice and political restraint.
As much as the right challenges the legitimacy of government under Obama, the real scandals of governance have taken place under Republicans.
In the Bush administration, U.S. Attorneys asserted that they were fired for partisan reasons. David Iglesias, for example, refused to politicize prosecutions. He said under oath that Republican politicians directed him to target Democratic officeholders because they were Democratic officeholders. When he refused, he was fired. The U.S. Department of Justice Inspector General backs his assertion.
An official from the Bush administration asserted her Fifth Amendment right not to incriminate herself in the investigation of the U.S. Attorney-firing scandal. After getting immunity, she admitted to feloniously using political criteria to fill non-political Justice Department jobs. She also testified that many Bush-administration officials had lied under oath about the U.S. Attorney-firing scandal.
The Wisconsin Republican governor and the Wisconsin Republican legislature passed a law to weaken public-employee unions. Now, there is in Wisconsin no counterweight to corporate money. Other Republican states are following.
Under Bush, America was Ukraine. And under Republican governors, Ukraine continues among us.
6. Capsizing freedom of speech.
A former ambassador investigated the charges that Iraq had sought uranium yellow-cake from Niger. He published an editorial in the New York Times that accused the Bush White House of knowingly lying to the American people. In fact, the Bush White House did not know of his report; the report didn’t travel up from the CIA, which had sent him on his fact-finding mission.
But that’s not the point. The point is that high Bush-administration officials swiftly retaliated against the former ambassador by disclosing to several reporters that his wife was a CIA employee –Valerie Plame. Right-wing columnist Robert Novak outed her. In fact, Valerie Plame was a covert operative who specialized in nuclear proliferation. America became less safe after she could no longer do her job.
7. Speak up!
Some of my right-wing friends are adamant that Muslims must renounce the terrorists who share some form of their own religion. Where are my right-wing friends when their political brethren threaten our welfare and disparage our Constitution?
Unless you hate Obama more than you love America, speak up.
________________________________
Selected sources.
A conservative columnist for the New York Times says that Republicans should shake hands with Obama and declare victory on the budget. He says they’re nuts not to:
http://www.nytimes.com/2011/07/05/opinion/05brooks.html?partner=rssnyt&emc=rss
A neutral referee discusses so-called "death panels" in the Health Care Reform Act. It’s hogwash:
http://www.factcheck.org/2009/08/palin-vs-obama-death-panels/
Governor Perry wants to lower Old Glory in Texas forever:
http://www.statesman.com/news/content/region/legislature/stories/04/17/0417gop.html
U.S. Department of Justice Inspector General report on the firing of U.S. Attorneys. It says Rove and others wouldn’t cooperate with investigators about the firing of U.S. Attorney David Iglesias:
http://www.justice.gov/oig/special/s0809a/final.pdf
See, especially, p. 186-187; 190
U.S. Department of Justice official Monica Goodling invokes the Fifth Amendment in Congressional hearings.
http://www.washingtonpost.com/wp-dyn/content/article/2007/03/26/AR2007032600935.html
Monica Goodling admits using political criteria to fill non-political Justice Department jobs:
http://www.washingtonpost.com/wp-dyn/content/article/2007/05/23/AR2007052300728.html
The outing of Valerie Plame (Book):
James B. Stewart, Tangled Webs (The Penguin Press 2011)
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