Our Contrived Fiscal Crisis and the President who buys into it …
Posted: April 13, 2011 Filed under: 2012 presidential campaign, Barack Obama, Breaking News, Catfood Commission, Economy, Federal Budget and Budget deficit | Tags: budget cuts, Budget Deficit, Federal Budget 44 CommentsFederal deficits always go up big and automatically during two events. That would be wars and recessions. We have 
had two wars going on for about 10 years now and we’ve had the deepest recession since World War 2. Getting rid of the two wars and solving the residual problems of unemployment would eliminate any potential future fiscal crisis. Any economist will tell you this. It’s not a secret we keep from the world. Passing huge tax cuts and laws that remove nearly all capital and all types of businesses incomes from the pool of revenue sources only exacerbates the revenues problems you get during recessions and expenditure run-ups that come from running wars.
We’ve had excessive war spending before. Our country was born with a lot of money borrowed from the Dutch. The Civil War and both World Wars–especially number two–placed our federal deficit and debt at astronomical levels of GDP. Did our country crash and burn because of the actions of John Adams, Abraham Lincoln or the spending during World War 1 or World War 2? Did you feel that life in the 1950s and 1960s and the children born then were oppressed by excessive debt?
Of course not.
Federal Debts and Deficits are functions of the size and health of the economy underlying the obligations. We have plenty of taxable assets and businesses making money. You can tell how risky the market for our Federal debt is by looking at the yields on Government bonds and Treasuries. The current yields for Treasuries are listed right here. They are at near historic lows and they are still selling. Nothing in that market indicates any reticence by any participant to buy American Debt obligations. The ability to tax and raise taxes as well as print money is a unique function of government. We can do both. If we’d have let the Dubya Bush tax cuts just expire we would’ve closed the deficit gap and reduced the debt by more than anything than is on the table right now. That would include the disingenuous and malfeasant Ryan plan. It also includes the the one that will come from the White House today at 1:35 est.
We need to put taxing capital back on the table. That includes dividends, capital gains, and vast inheritances and trust funds. We need to remove tax loopholes and subsidies to corporations. We do not need to remove the last vestiges of safety nets standing. There appears to be no one brave enough in Washington DC to say that but I will join the bow tie set in shouting just that. It is time to stop subsidizing incompetent business owners and time to invest in the country and its people. Washington DC has the nation’s priorities all wrong.
The White House provided no more specifics on the four steps to be offered in his afternoon speech at George Washington University. But an official said his plan would “borrow” from the recommendations of the 2010 fiscal commission that Obama empaneled, but whose proposals he never fully embraced.
“The president will make clear that while we all share the goal of reducing our deficit and putting our nation back on a fiscally responsible path, his vision is one where we can live within our means without putting burdens on the middle class and seniors or impeding our ability to invest in our future,” the official said.
Republicans–as eloquently stated by former budget Director David Stockman–have a tax fetish. Republicans are refusing to put any taxes on the table. Rand Paul is considering filibustering the increase in the debt ceiling. It appears some of these folks are so disturbingly ideological and economics-disabled that they will let the US go “bankrupt” in the only way possible it could do so. They will allow the US to default on its debt obligations. The Republican Party seems ruled by insane people at the moment. The Democrats, however, are ruled by folks that appear to be playing into right wing memes to appeal to some independents. So, why are we only left with poisonous choices?
Some of the Democratic base is finally waking up to the truth about Obama. He has no core Democratic values. We’re about to see a Democratic president put the cornerstones of Democratic policy on the bargaining table in an effort to appease some folks during the re-election cycle. I’m wondering if it’s all not just a little too late. Ever since the real economists left the building, White House Policy has grown more and more Republican.
Key liberal groups, which helped elect Obama in 2008, are raising concerns that he has given up political ground to Republicans, allowing the message of reducing government to trump that of creating jobs and lowering the unemployment rate.
Seizing on Friday’s deal, which would cut $38.5 billion from the fiscal 2011 budget, activists on Tuesday threatened to sit out the 2012 presidential campaign if Obama goes too far with further cuts.
“The fundamental problem in our country right now is unemployment and a jobs crisis, not a deficit crisis,” said Deepak Bhargava, executive director of the Center for Community Change, an advocacy group for the poor. “It appears the president is fighting on the wrong terrain and is conceding that the only thing we should be talking about is how to bring down the deficit.”
The clash over government spending — coming as Obama prepares to make a major speech on fiscal discipline Wednesday — is the latest example of the frayed relations between the president and a broad coalition of union and activist groups.
The details of the budget compromise as well as the way that the Health Care Reform act was rammed through congress have shown that Obama is more than eager to get something, anything passed than to fight for reform that would actually reflect either public opinion or traditional Democratic Values. Poor black women from the District of Colombia were nearly the first ones thrown under the budget cutting bus. Which previous US Democratic President would have sold them out?
To get the trade-off on the policy riders, Democrats had to give on spending — to the tune of the largest budget cuts ever. There’s a $1.1-billion cut across the board for discretionary spending and dozens of nips and tucks all over government, from Justice Department programs to subsidies for co-ops in the new health care law to the Pell Grant program for low-income college students.
I am going to watch this speech. I’m only hoping some of the disgruntled chat coming from real Democrats materializes into something substantive after it happens.
DeFazio said Monday that Democrats haven’t put enough pressure on Obama.
“That’s what the House did wrong in the last Congress, and in part why we lost is we never pushed back, no matter how wrong he was or how off-base he was; we never pushed back,” DeFazio told MSNBC.
“There are a number of us in the caucus now pushing back very hard on our leadership,” DeFazio said. “Who knows where they’ll end up, but maybe we can take enough D’s with us to make them uncomfortable and to make them stick with making the president act like a Democrat.”
The Democrats’ frustration with Obama is hardly new. Liberals were furious in December when the president caved to GOP demands that Congress extend tax cuts for the wealthiest Americans. More recently, many liberals have questioned the wisdom and constitutionality of launching military attacks on Libya with prior approval from Congress.
Behind closed doors, Democratic leaders are frustrated that Obama hasn’t been more involved in the big policy fights of recent months, including the spending battle.
The way to get to this President is through his re-election efforts and his ego. Hopefully, a few groups will stop facilitating the cave-ins and start fighting for the country’s interests. You can watch the President’s speech on CSPAN at this link. I have my bucket o’ Nerf balls ready and I’m warming up for the first pitch of the 2012 presidential campaign season. Join me as we share the pain and none of the gain.
peej
Carissa
bostonboomer
ecocatwoman
mablue2
peggysue22
quixote
skydancingguestblogger
Mona (aka Wonk the Vote)
Sky Dancing 
“The way to get to this President is through his re-election efforts and his ego.:
My first campaign was for Gene McCarthy againt Lyndon Johnson. I do not see anyone in the Democratic party showing any interest for a second candidate.
The time is now to set down the parameters for continued support. If no one takes up the cause, we need to be prepared to sit the next election out.
I’m a bit worried about what the Republicans will come up with … I’m mean right now there’s this tie between Huckabee and Trump! That’s a completely unacceptable outcome. I’m just distressed about those alternatives. I’m looking at a job in Basel Switzerland right now. I’ve just about considered that being an expat is the only option at the moment.
If you go to Basel – will you resume down hill sking?
yup, I sure will!
If we support him I can almost guarantee in 2012 he will kick us in the teeth again and he won’t have the specter of re election hindering him to go after Social Security and Medicare. We need to primary him yesterday and if that fails launch a write in.
A leopard doesn’t change it’s spots.
I’m just pissed off they did not do this budget stuff when the Dems controlled both houses.
Why is it every time I hear him give any speech it does not take long for me to fade out? And then it starts to sound like Peanuts…when you hear the adults talk…blah blah blah…
And no, that is not meant as a comment on who is the adult in the room.
His speeches never really tell the entire story but I am looking for some sign of how eager he is to privatize Social Security and Medicare and to make us retire well into our years where a lot of us really can’t work.
at least he criticized the Ryan plan
CNN says that he was supposed to be more critical of Ryan(according to the draft of the speech they got) but left that out of the speech he did give.
I really hope that Obama is going to keep that promise about the Bush tax cuts…
has he kept a promise yet?
nope!
He says it’s just going to be on the rich again. I’ll believe it when I see it. He caved in December.
I’m thinking the theme of “let’s have a conversation” isn’t exactly inspiring leadership.
I’d be okay with a “conversation” if I could believe a single solitary thing coming out of the guy’s mouth.
He usually does the opposite of what he says. Championing choice means throwing women under the bunch. Being a constitutional scholar means continuing Bush legacy on Guantanamo, and indefinite detention.
Being for a public option and against a mandate means holding people hostage to the private insurers.
Being for transparency means hiding behind secrecy and holding meetings with lobbyist across from WH.
The guy talks a good game but at the end of the day I don’t want or need a gameplayer, I want a leader that fights for me and my family consistently. He ain’t it.
Highlights via TPM:
sounds good.but his speeches always do. 😆
That is because he isn’t writing them, nor does he plan on executing anything he says anyway.
Hillary 2012
I applaud all here that can actually stand listenning to him for more than 5 minutes. I remember that is how it was when Bush was in office. I listened to the major addresses because as he talked, my blood boiled. Same with Obumbles. Asshat.
Dak, you made a comment above that being an expat might be the only solution. Last week, I seriously started looking for work in other countries. Health and Safety for an oil company in Africa or South America are my first choices. I figure if I am going to live in a third world, it may as well LOOK like a third world country.
Or Hillary could win in 2012.
Hillary 2012
Wow, that would be a big move rock…but I tell you, sometimes I wish there was a way for my family to expat ourselves.
Desperate times call for desperate measures. It is very painful watching this man dismantle all that makes America great week after week after week. And for what? His own personal glory?
Asshat.
Hillary 2012
BTW – How are you feeling? Any diet changes to go along with increased iron intake? Get better soon!!
The GOP is on talking back … what a bunch of loons! They’re still in trickle down, voodoo economics mode. Don’t they have any economists left to talk to them or they all in fairy tale land like Michelle Bachmann?
Eddie Munster Ryan is talking now….
Here’s a list of what’s gone because of the Boehner/Obama ‘conversation’.
This is the list of education/young people friendly things:
Can you believe they defunded the special Olympics and Teach for America?
Shameful. Just shameful.
How can he say that education is one of his pillars when he cut so many education based programs? How do we compete with the Chinese, Japanese or the Indians when their graduates are so much smarter than ours?
Shameful.
So many of these programs are such a benefit. That cut to Special Olympics really makes me mad. That organization helped my brother so much…
Stenny Hoyer is not speaking on Dillon Ratigan. All over the place with no ecomuc facts, He did say the Republican’s do not want to pay when they buy.
Easu to buy, seems to be the mantra. Need to start paying . Ratigan went after War. Energy, Health, Education and Banking efficiency it gad and creating the debt.
Hoyer has a lot of issues to cloud the discussion.
Some one said the White House said his speach was a framework for discussion. I would say, where is the priortized list and what is he going for. Looks like more of the same obfuscation
Courtesy of Wonk…what Anthony Weiner tweeted before the speech:
I love Anthony Weiner. I wish he were my congress critter. I would send him flowers daily for saying things like this.
I wish Anthony Weiner were my congress critter as well. We have the incomparable idiot, Elliot Engle, whose idiocy knows no bounds except when his financial interest are at stake.
Thanks for posting that, I wish Weiner was my rep too. All we have in Georgia are those damn Republicans.
I got this in an email today. I posted it at TW and will paste in here also. Seems some Dems are waking up (?)
http://act.boldprogressives.org/survey/survey_obamamedicare/?akid=3783.1066102.mCERnC&rd=1&source=e1-full&t=4
I gladly signed the petition.
I’m glad they are waking up, but I don’t feel sorry for them. When do we get to say ‘I told you so?’ They, with open eyes, chose a neophyte with no convictions over a true leader with a lifetime of experience.
Asshats.
Hillary 2012
Oh Rock I don’t feel sorry for them in the least. I mentioned something over at the Widdershins about this possibly being a coup to get Obama out and la-t-da said “no, the coup was in 2008 when they took over the Dem Party.” I agreed and said okay, counter-coup then.
Amen to that. They stole my party with gangsters and thugs from Chicago. I really do want it back….
Asshats.
Hillary 2012
Oh and by the way, here is what that real leader was doing when Bumbles was speaking. Any wonder how his national addresses always coincide with Hillary’s?
Hillary 2012
http://www.voanews.com/english/news/Clinton-Rejects-One-Size-Fits-All-Approach-in-Middle-East-119755534.html
I just filled half my gas tank on $20.00. That’s half!
I probably shouldn’t complain too loudly since I was charged $3.89 a gallon when some areas on the map are up over $4.00.
Jaysus.
Yup, it’s $3.70 here and I have two oil refineries fairly close. It’s expensive and suppose to go even higher. All that speculative money has to go some where.
From Bloomberg:
http://www.bloomberg.com/news/2011-04-13/crude-oil-rises-for-the-first-time-in-three-days-before-u-s-supply-report.html
I saw this headline on drudge and thought it was a joke, but I guess it isn’t. Joe Biden Falls Asleep | Biden Asleep During Obama Speech | Video | Mediaite
I listened to POTUS this afternoon [made myself late for a meeting] but I listened. That was a true performance. The only concrete thing he said is that he would refuse, refuse I tell you to extend the Bush tax cuts.
Hello! He said that before, and then extended them anyway. The rest? Vague, nonspecific, all the buzzwords in place.
The man can talk the Democratic talk but he doesn’t walk the walk. He’s going to use the Cat Food Commission as a guide. This is snooker-time all over again.
Sorry, the man’s a liar, despite what he says or how pleasant he smiles. And that smile? That’s a crocodile smile.
Tee-hee: GE got had!
http://theyesmen.org/usuncut