Captains of Contrived Chaos
Posted: July 27, 2011 Filed under: Federal Budget, Federal Budget and Budget deficit | Tags: Financial Crisis, Republican Party Meltdown, teabots 19 CommentsIt’s started. All you have to do is watch the stock market and you’ll see it. The unbelievably contrived debt ceiling nonsense is taking hold. The republican business big guns are out and they don’t seem to be able to stop a group of very determined crazy, freshmen congressmen that don’t have a clue about government or economics.
Here’s some headlines you may want to check out.
First, it’s obvious Boehner, the Chamber of Commerce, and even Wall Street minions don’t have control over the teabots.
Boehner: ‘A Lot’ Of Republicans Want To Force Default, Create ‘Enough Chaos’ To Pass Balanced Budget Amendment
House Speaker John Boehner (R-OH) said today that some members of his own caucus who are refusing to agree to a compromise debt ceiling deal are hoping to unleash “chaos” and thus force the White House and Senate Democrats to make bigger concessions than they’re already offering. As many as 40 House Republicans, especially Tea Party members and freshmen, have demanded nothing short of changing the Constitution to include a balanced budget amendment before they would vote to raise debt ceiling, even though that has zero chance before the U.S. faces potential default on Aug. 2.
A balanced budget amendment is one of the most insane laws a government can pass. It lets them spend all they want when revenues come in and create depressions during recessions. Pretty much what they’ve been doing the last 10 years. Even John McCain says its crazy.
McCain To ‘Foolish’ Republicans Demanding A Balanced Budget Amendment: ‘It’s Bizarro’
In exchange for not sending the nation into economic ruin, a swath of Republicans are demanding to pass a Balanced Budget Amendment (BBA) to the Constitution. By forcing government to actively slash spending in the face of falling revenues, such an amendment “would greatly damage an already-weak recovery,” “mandate perverse actions in the face of recessions,” and is considered one of the worse ideas in Washington. Nonetheless, as House Speaker John Boehner (R-OH) said today, the fringe contingent of the GOP is aiming to create “enough chaos” to force the Senate and the White House to accept a BBA. Freshman Sen. Mike Lee (R-UT), sponsor of the Senate’s BBA bill, actually wants America’s “house to come down” unless he gets his way. But today on the Senate floor, a more seasoned senator schooled the freshman contingent on economic reality. Though an avid supporter of the BBA, Sen. John McCain (R-AZ) stood amazed that some members actually believed a BBA could pass in the Senate. Such a belief, he said, is “worse than foolish. That is deceiving.” Taking heed of numerous economists’ warning about the Aug. 2 deadline, McCain said that Republicans who are holding out on raising the debt ceiling for an impossible amendment is “unfair” and “bizarro”
Here’s a list of the Republicans and which side they’re on: CIVIL WAR: GOP Coalition Splinters Into Open Conflict Over Debt Ceiling. Boehner’s signed on The Chamber of Commerce, crotchety old Fred Thompson, Nasty young Cantor, Nutcase Allen West, and the presidential candidates that aren’t Michelle Bachmann. She’s out in front of creating the end times, as usual.
Margaret Carlson–yeah, i know–is even calling Boehner the Gang of One.
The resistance came from the right. At least 60 House Republicans have declared that they won’t vote for a debt-limit increase — for any reason. Although outside experts were brought in to explain the potential consequences of default, including a “death spiral” in the bond market initiated by a loss of confidence, many of the Tea Party intransigents didn’t bother to attend the lecture. In any case, they preferred a potential catastrophe to a deal that would provide political benefits to the president — even if most of the policy benefits accrued to Republicans.
When Obama called for increasing the revenue component from $800 billion to $1.2 trillion, Boehner had his excuse. He pulled out of negotiations, leaving Obama to complain in an impromptu news conference that he had been left, once again, “at the altar.”
It’s hard to know how much of Obama’s lament was genuine and how much of it was designed to give Boehner bragging rights about how he had bested the president. In any case, it wasn’t enough. Boehner merely gave his colleagues dramatic cuts in spending; what they really want is for Obama to fail, painfully and visibly. For that, higher interest rates, a devalued dollar, cratering stock markets and another recession appear to be a price worth paying. They don’t want to govern; they want to stick it to the man.
It’s obvious today that the markets realize that the confidence fairy ran off with the high priests of voodoo economics. Things are starting to crumble. That’s the live link to all the red. Here’s a mid day recap. Notice that credit default swaps (argghhhh) are on the rise!
Stocks fell for a third day and Treasuries and commodities slid as a stalemate over the debt ceiling pushed the U.S. closer to default and durable-goods orders unexpectedly dropped. The dollar rallied.
The Standard & Poor’s 500 Index lost 1.7 percent to 1,309.87 at 2:31 p.m. in New York. The cost of insuring against a U.S. default climbed to the highest level since February 2010 and 10-year Treasury note yields climbed four basis points to 2.99 percent. Coffee and oil lost more than 1.5 percent and gold erased earlier gains to drag the S&P GSCI Index down 0.9 percent. The Dollar Index rose 0.8 percent.
The dispute over plans to cut the U.S. federal deficit has stolen investor attention away from an earnings season that has produced higher-than-estimated results at about 81 percent of S&P 500 companies that reported so far. Shares of industrial companies helped lead declines today after a Commerce Department report showed durable goods orders fell 2.1 percent.
“It’s a tug of war between the headline risk of the debt ceiling issue and earnings,” Matthew DiFilippo, who helps manage $1 billion as director of research at Stewart Capital Advisors LLC in Indiana, Pennsylvania, said in telephone interview. “The volatility may create buying opportunities because corporate earnings are coming in strong, and the market does appear to be cheap compared to the underlying earnings power.”
Wall Street really doesn’t care how we pay are bills. They only care that we do it. There are plenty of revenue sources out there. Most of these guys don’t subscribe to voodoo economics at all. Republicans and most likely the President think that they’re all supply side-oriented. Most economists and financiers don’t buy that at all and a lot of them have been calling for increased taxes. They just want a plan that reduces risk,
What Wall Street, and the ratings agencies are worried about is not whether we can pay–we can–but whether we will. A lot of Republicans seem to think that we can secure our AAA rating by showing the agencies–and the markets–that we’ve made serious cuts. But if you achieve this end by holding the debt ceiling hostage, what you’re really demonstrating is not a tough-minded commitment to entitlement reform, but a political system so broken that it has trouble taking even simple, obvious steps to keep the fiscal engine running. Our AAA is not at risk because our current fiscal path is unsustainable, but because ratings agencies know what many GOP freshman and party activists apparently do not: that doing the unpopular things required to get the budget in balance is going to require both parties to hold hands and jump together. Otherwise, whoever forces through their unpopular plan (huge tax increases/massive spending cuts) is going to get trounced at the next elections by an opposition party promising to undo whatever it is the party in charge has just done.
We are not broke. We can pay our bills. We can meet our obligations. It’s just a bunch of nutcases in Washington DC aren’t going on reality. They’re off playing Professor Chaos and General Disarray with our economy because they hate the Washington Insider Kewl Kids.
Why Did Republicans Shut Down the FAA?
Posted: July 26, 2011 Filed under: Republican politics, U.S. Economy, U.S. Politics, unemployment, worker rights | Tags: FAA, Federal Aviation Administration, Labor Unions, Republicans, shock doctrine, unemployment, worker's rights 27 CommentsSomehow I missed this story on Saturday, what with all the other horrors that have been in the news lately. House Republicans have shut down the Federal Aviation Administration, costing taxpayers millions in uncollected taxes and putting 4,000 people out of work immediately, with 90,000 jobs in jeopardy.
…House Republicans refused to pass a funding authorization bill, money for airport improvements has dried up and construction workers at many airports have been sent home.
Republicans grounded the FAA because they want to take away Democratic union elections for of aviation and rail workers.
Congress could have passed temporary spending authority for the FAA, as it has 20 times in the past without controversy. But like their tactics on debt ceiling negotiations, Republicans are demanding their way at any cost.
Not only is the FAA shutdown costing jobs, but it’s costing the federal government $200 million a week in uncollected airline ticket fees. That lost revenue is added to the national debt Republicans claim they are so concerned about. On top of that, instead of reducing ticket prices, the airlines are pocketing the fees.
The shutdown is putting construction projects on hold all over the country. In the San Francisco bay area, for example,
About 60 employees of Devcon Construction were set to show up at Oakland International Airport on Monday to continue working on the airport’s brand-new air traffic control tower.
That is, until they were told not to, until further notice. “We were informed Friday to stop all construction activity,” said Dan Anello, a project manager at the Milpitas-based company.
That was when, the House, in its infinite wisdom, refused to reauthorize the Federal Aviation Administration’s operating authority, resulting in the partial shutdown of the agency, the halting of funds for dozens of similar projects nationwide, and further additions to the nation’s unemployment rolls.
If you Google, you’ll find lots of similar stories. According to the Washington Post, the shutdown is not going to end anytime soon.
Though planes continued to fly unhindered nationwide, a dispute about service to a handful of tiny airports crippled Federal Aviation Administration operations for the third day Monday, costing the agency an estimated $30 million a day.
With House Republicans and Senate Democrats apparently in locked positions, and compromise an elusive pursuit on Capitol Hill this month, no one was ready to predict when funding might be restored to the federal agency.
“Don’t hold your breath,” advised one Senate staff member, who spoke on the condition of anonymity.
the $30 million per day is from lost tax revenues.
The Christian Science Monitor confirms that the dispute involves Republican efforts to hinder union organizing.
Democrats said the real issue is that Republicans are insisting Democrats accept a host of controversial provisions added to a long-term FAA spending bill approved by the House in April. Among their key differences is a GOP proposal sought by industry that would make it more difficult for airline workers to unionize.
The Senate passed its own long-term funding bill in February without the labor provision. Democrats insist the House must drop the provision. They’ve also accused Republicans of tying the elimination of rural air subsidies to their extension bill as a means to prod Democrats to make concessions on the labor issue.
The transformation of the U.S. into a third world country through the Shock Doctrine is certainly moving rapidly these days. The shocks are coming so quickly you barely have time to catch your breath before the next one hits.
Tuesday Reads: Heroes and Villains
Posted: July 26, 2011 Filed under: Labor unions, morning reads, psychology, religious extremists, U.S. Economy, U.S. Politics, Violence against women | Tags: Anders Behring Breivik, David Kemp, Groundhog day, heroes, marcel Gleffe, misogyny, NFL football, Norway, Robert Kraft, terrorism, Utoya Island 52 CommentsGood Morning!!
Well, the President gave another speech last night, and it frankly put me in mind of the movie Groundhog Day. I think Obama’s handlers should be told to keep him under wraps until such time as he actually has something to say. I’ve had it with this whole debt ceiling mess, and I’m not going to say anymore about it in this post.
Instead, here’s an inspiring story that Dakinikat called my attention to: German tourist rescued teens during Norwegian island massacre.
A German tourist is being hailed as a hero for rescuing at least 20 people from a gunman’s rampage on Utoya island in Norway, according to media reports.
Marcel Gleffe, 32, was with his family Friday at a campground across the water from the island when he heard gunshots, Der Spiegel reported. He and his family looked out from the shore, thinking it might be fireworks, but instead they saw a plume of smoke and a girl swimming frantically in the water and screaming.
Gleffe got into the boat he had rented and set off, Der Spiegel said. He was the first person to reach the island where Anders Behring Breivik gunned down dozens of youngsters at a summer camp….
“You don’t get scared in a situation like that, you just do what it takes. I know the difference between fireworks and gunfire. I knew what it was about, and that it wasn’t just nonsense.”
We need a lot more people like Marcel Gleffe in this world. And what do you know? Via The Hinky Meter, here’s another hero: David Kemp of Beaverton, Oregon.
Kemp knew something was wrong when he was jogging on the Seaside promenade Saturday and saw 6-year-old Hailey’s face as she struggled to get away from Knox when having a Fantastic Race on a group of people.
“She was scared to death – terrified,” Kemp said.
He asked Hailey if she knew the woman and she shook her head in horror.
“I knew there was a problem at that point (and) that this is very, very serious. This child is terrified,” he said.
He knew he had to do something, especially when he heard what sounded like a death threat.
“She kept telling Hailey: ‘I am your queen; I am going to take you to see our king, our Lord. I am taking you with me.'”
Kemp broke the woman’s grip on the little girl, and when the kidnapper tried to get away, he chased her down and held her till police arrived. This isn’t the first time Kemp has been a hero.
In 2004 he rescued a woman who was injured by a hit-and-run driver and left lying in the road. Then he found the car which led to an arrest.
He’s also chased down and caught a shoplifter running from a store and another time he caught a robber who just held up a Hallmark shop.
Finally, there’s Robert Kraft, owner of the New England Patriots, who was instrumental in ending the four-month-long NFL owners’ lockout. At the press conference announcing the agreement yesterday, Kraft apologized to the fans.
“First of all I’d like, on behalf of both sides, to apologize to the fans that for the last five, six months we’ve been talking about the business of football and not what goes on on the field and building the teams in each market, but the end result is we’ve been able to have an agreement that I think is going to allow this sport to flourish over the next decade and we’ve done that in a way that’s unique among the major sports that every team in our league, all 32, will be competitive, we’ve improved player safety, and we’ve remembered the players who have played in the past.
During the months of the lockout, Kraft was going back and forth between labor talks and his wife Myra’s bedside. She was ending a long battle with cancer, and was buried on Friday.
It’s difficult to imagine how trying – emotionally, physically, mentally – these last few weeks have been for Patriots owner Robert Kraft, as his beloved wife, Myra, was dying of cancer and difficult negotiations dragged on between NFL owners and players over the terms of a new collective-bargaining agreement.
[….]
“He is a man who helped us save football,” Jeff Saturday, the center for the Indianapolis Colts and a member of the NFLPA’s executive committee, said Monday after the league’s players joined the owners in approving a new collective-bargaining agreement. “Without him, this deal does not get done.”
Kraft previously had made it possible for New England to keep its football team when he bought the Patriots in 1994 just as they were about to move to St. Louis. Kraft is proof that people can be wealthy and remain decent human beings.
Randy Vickers, America’s chief of cybersecurity has abruptly resigned without any explanation.
The director of the agency that protects the federal government from cyber attacks has resigned abruptly in the wake of a spate of hacks against government networks.
U.S. Computer Emergency Readiness Team (US-CERT) director Randy Vickers resigned his position Friday, effective immediately, according to an e-mail to US-CERT staff sent by Bobbie Stempfley, acting assistant secretary for cybersecurity and communications, and obtained by InformationWeek. A Department of Homeland Security (DHS) spokesperson confirmed the email was authentic.The DHS has not provided a reason for Vickers’ sudden departure and the spokesperson, who asked to remain anonymous, declined to discuss the matter further. Vickers served as director of US-CERT since April 2009; previously, he was deputy director.
Current US-CERT deputy director Lee Rock will serve as interim director until the DHS names a successor for Vickers, according to the email.
Was he forced out? Maybe we’ll learn more about this today.
David Neiwert is an expert on right wing extremist groups–he’s written two books about them–and he had a post up yesterday on Crooks and Liars about Anders Breivik, the Norwegian terrorist/mass murderer. It would be hard to choose excerpts from the story–please read the whole thing if you can find time. One important point Neiwert makes is that Breivik is not “crazy,” he’s just a right winger with connections to a group in Norway that is similar to the Tea Party here.
Scott Shane had an excellent article yesterday in the NYT on the connections between Breivik’s sick ideology and a number of American bloggers and media personalities. Of course Dakinikat has been writing about this for the past couple of days also.
The Guardian UK has an in depth article about Breivik, his appearance in court, his threats that “more will die.”
The rightwing extremist who confessed to the mass killings in Norway boasted in court on Monday that there were two more cells from his terror network still at large, prompting an international investigation for collaborators.
After Anders Behring Breivik pleaded not guilty, despite admitting that he had carried out the attacks in Oslo and on Utøya island, officials said it was possible he had not acted alone.
Prosecutor Christian Hatlo said Breivik had been calm in court and “seemed unaffected by what has happened”, adding that the suspect had told investigators during his interrogation that he never expected to be released.
“We can’t quite rule out that someone else was involved. This is partly based on the information that there are two other cells,” Hatlo said.
The prosecutor said he could not discuss whether Breivik had organised the cells or whether he was working alongside them. Police have said they have no other suspects at present.
It also emerged on Monday that Norway’s police security service had been alerted to a suspicious chemical purchase by Breivik in March, but had decided not to investigate further.
Norwegian officials have lowered the number of deaths from the attacks to 76.
At the Daily Beast, Michelle Goldberg, who wrote about about right wing Christian fundamentalism, discusses Breivik’s hatred of women.
Conservatives worried about the Islamization of Europe often blame feminism for weakening Western societies and opening them up to a Muslim demographic invasion. Mark Steyn’s bestselling America Alone: The End of the World as We Know It predicted the demise of “European races too self-absorbed to breed,” leading to the transformation of Europe into Eurabia. “In their bizarre prioritization of ‘a woman’s right to choose,’” he argued, “feminists have helped ensure that European women will end their days in a culture that doesn’t accord women the right to choose anything.”
This neat rhetorical trick—an attack on feminism coupled with purported concern about Muslim fundamentalist misogyny—is repeated again and again in Islamophobic literature. Now it’s reached its apogee in mass murderer Anders Behring Breivik’s 1,500-page manifesto, “2083: A European Declaration of Independence.” Rarely has the connection between sexual anxiety and right-wing nationalism been made quite so clear. Indeed, Breivik’s hatred of women rivals his hatred of Islam, and is intimately linked to it. Some reports have suggested that during his rampage on Utoya, he targeted the most beautiful girl first. This was about sex even more than religion.
It’s a fascinating article with lots of psychological background on Breivik’s misogyny.
That’s all I’ve got for today. What are you reading and blogging about?
Live Blog: Our Fearful Leader Speaks
Posted: July 25, 2011 Filed under: just because 93 CommentsOh boy, another Obama speech! What will he say? Will he explain why he wants to cut every federal program that helps the poor, the elderly, children, and the middle class? Will he tell us why he wants to hand over our Social Security funds to Wall Street? Or will he do what everyone now knows he can do unilaterally–invoke the 14th Amendment or tell Congress he’ll veto everything except a clean vote on the debt ceiling?
I’m expected some passive aggressive whining, and of course multiple lies. But you never know. I could be wrong. Maybe tonight will be the night that President Obama at long last decides to do the right thing. I can dream, can’t I?
Bloomberg has a pretty good summary of the Boehner and Reid plans as of tonight.
Boehner’s plan would require $1.2 trillion in spending cuts in the first phase and up to $1.8 trillion in the second step. A committee would be created to identify cuts, and Congress would be required to vote by the end of this year on a constitutional amendment requiring a balanced budget.
{sigh…}
Under Boehner’s proposal, Congress could face a replay of the debt-ceiling drama early next year if it didn’t reduce the debt by at least $1.6 trillion this year.
Won’t that be fun? Another round of kabuki in just a few months!
The $1.2 trillion in spending cuts over the next decade would be achieved through statutory caps on discretionary spending. If the caps were exceeded, there would be across-the- board cuts.
The measure would tie the second installment of borrowing authority to enactment of a deficit-cutting package that slashed up to $1.8 trillion from the debt. If the debt-reduction plan stalled in Congress, Obama would face another debt deadline in February or March.
Now that’s a really bad plan!
Reid’s plan cuts $2.7 trillion and raises the debt limit by 2.4 trillion, giving Congress and the President until after the 2012 election to get ready for the next battle royale. Cuts will come from defense and other discretionary spending and leave Social Security, Medicare, and Medicaid alone–for now. The plan also includes the “committee” to identify further cuts (i.e., Catfood Commission II on steroids).
Supposedly President Obama has endorsed the Reid plan, but if he is true to form, he’ll cave and give the Republicans everything they want except for the ridiculous balanced budget amendment and (one would hope) the idiotic spending caps.
We shall see. Please use the comments to document the atrocities if you can bear to watch and/or listen. I plan to listen to the speech on the radio for as long as I can bear.










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