Friday Reads
Posted: July 8, 2011 Filed under: abortion rights, black women's reproductive health, Catfood Commission, Democratic Politics, Economy, Federal Budget and Budget deficit, fetus fetishists, fundamentalist Christians, John Birch Society in Charge, morning reads, religious extremists, Reproductive Health, Reproductive Rights, Republican presidential politics, right wing hate grouups, U.S. Economy, We are so F'd | Tags: Christianist extremists, Debt, Debt Ceiling, deficit, planned parenthood of North Carolina, Rick Perry, warren buffett 51 Comments
Good Morning!!
It’s hard not to be be completely discouraged these days. Our Washington deal-makers are permanently stuck in opposites day. No amount of reality is going to bring the lot of them out of whatever place they strategically reside. This Reuters piece stands as a hallmark to the current lunacy. We shouldn’t have any financial problems. Social Security is solvent and it’s not part of the federal budget are deficit problem. Why am I reading this then?
If Treasury were to decide to delay some payments, one option could be to postpone a disbursement of more than $49 billion to Social Security recipients that is due on August 3.
It would be a politically explosive step but one that could allow the government to temporarily pay bondholders to try to avoid foreign investors dumping U.S. Treasuries and the dollar.
The administration has warned that any missed payments, including those to retirees, veterans and contractors, would be default by another name, and the Treasury team still has concerns that any contingency plan would prove unworkable.
Steve McMillin, a former deputy director of the White House Office of Management and Budget under Bush, said Treasury has options but most of them are “pretty ugly.”
If Treasury were to decide to delay payments, it would need to re-program government computers that generate automatic payments as they fall due — a massive and difficult undertaking. Treasury makes about 3 million payments each day.
Do they figure that seniors aren’t going to riot in the streets effectively like that episode
de of South Park called Grey Dawn? I can pretty well imagine that they won’t stop payments to their corporate bosses. After all, that option would soothe the bond vigilantes.
Here’s the issues under study now according to that same Reuter’s article.
– Whether the administration can delay payments to try to manage cash flows after August 2
– If the U.S. Constitution allows President Barack Obama to ignore Congress and the government to continue to issue debt
– Whether a 1985 finding by a government watchdog gives the government legal authority to prioritize payments.
The Treasury team has also spoken to the Federal Reserve about how the central bank — specifically the New York Federal Reserve Bank — would operate as Treasury’s broker in the markets if a deal to raise the United States’ $14.3 trillion borrowing cap is not reached on time.
I’m teaching an MBA Corporate Finance seminar this summer. Every single asset pricing model that prices securities, bonds, loans,options or whatever basically uses the US treasury bond as the risk-free asset. I feel like I have to asterisk everything I’m teaching right now which is basically the same thing that was taught to me back in the 1980s. It’s like these folks are purposefully trying to tank the financial markets and bring on another crisis. If they manage to raise the debt ceiling, then it appears likely to be done by ‘austerity’ measure like $4 trillion dollars in cuts. Start your backyard gardens now. The next depression is bound to be a big one. I have just have no idea why they’re trying to blow up our economy. It’s just frigging unbelievable. Of course, Orrin Hatch wants us all to suffer more, because after all, people that aren’t filthy rich are obviously defective in gawd’s eyes.
So, here’s a nifty graph on the left from Ezra Klein showing the mix of spending cuts vs. tax increases the last few times we’ve had these debt and deficit discussions. Looks like the real practitioner of voodoo economics wasn’t Ronald Reagan but is Barrack Obama. Just more of the alternate reality forced on us by media and politicians that make up news, history, and economic theory.
As you can see on the graph, in each case, taxes were at least a third of the total, and in Reagan’s case, his massive tax cuts were followed by deficit-reduction deals that actually relied on tax increases. Today, tea party conservatives would be begging Sen. Jim DeMint to primary the Gipper.
Bush also included taxes in his deal, and Clinton relied heavily on taxes in his first deficit-reduction bill, which passed without Republican votes. In 1997, when he was working with Republicans, he actually cut taxes slightly while passing spending cuts. But of course the economy was in much better shape then, and Clinton had already increased revenues substantially.
The one-third rule doesn’t break down until you get to the deal Obama reportedly offered Republicans in the first round of debt-ceiling talks: $2 trillion in spending cuts for $400 billion in taxes, or an 83:17 split. And that, if anything, understates how good of a deal Republicans are getting. Tax revenues and rates are much, much lower than they were under Reagan, Bush or Clinton. And next year, Obama is pledging to extend most of the Bush tax cuts, which amounts to a $3 trillion-plus tax cut against current law.
Meanwhile, the polls–like this one from Pew Research–show that people overwhelmingly want to maintain social security, medicaid and medicare and would support tax increases to do so. So much for government of, for, and by the people.
As policymakers at the state and national level struggle with rising entitlement costs, overwhelming numbers of Americans agree that, over the years, Social Security, Medicare and Medicaid have been good for the country.
But these cherished programs receive negative marks for current performance, and their finances are widely viewed as troubled. Reflecting these concerns, most Americans say all three programs either need to be completely rebuilt or undergo major changes. However, smaller majorities express this view than did so five years ago.
The public’s desire for fundamental change does not mean it supports reductions in the benefits provided by Social Security, Medicare or Medicaid. Relatively few are willing to see benefit cuts as part of the solution, regardless of whether the problem being addressed is the federal budget deficit, state budget shortfalls or the financial viability of the entitlement programs.
Jim DeMint is one of the people that should be the first in line to be charged with treason and gross stupidity. Where was Senator DeMint when all the votes were taken to spend all this money to start out with? Plus, all those irresponsible revenue cuts back in the early 2000s when we basically had a balanced budget? He was a congressman from 1999-2005 so certainly he must’ve tried to stop Dubya Bush from all that spending!
Sen. Jim DeMint (R-S.C.) said Wednesday night that Republicans should maintain their hardline position in the debt-ceiling debate even if it results in “serious disruptions” to the economy.
“What I’m advocating here is, let’s use this as a point of leverage, give the president an increase, but don’t come away without real cuts from real caps and spending, and without a balanced budget,” DeMint said on FOX Business Network.
“We’re at the point where there would have to be some, you know, some serious disruptions in order not to raise [the debt ceiling],” he said. “I’m willing to do that.”
The president pushed the economy into “crisis” mode, according to DeMint. He said the president has been “burning time” with the deficit negotiations led by Vice President Biden, when the looming debt ceiling and budget deficit could have been addressed last year.
DeMint, well-known for speaking out in favor of limited government and balancing the budget, told host Andrew Napolitano that if Republicans and Democrats couldn’t vote in “something permanent” that would limit government spending, “we’re going to continue to spend [until] the total country collapses.”
Warren Buffet says the GOP is Threatening To ‘Blow Your Brains Out’ Over Debt Ceiling
Republicans are playing a dangerous game by refusing to raise the debt ceiling, according to Berkshire Hathaway CEO Warren Buffett.
“We raised the debt ceiling seven times during the Bush Administration,” Buffett told CNBC on Thursday. Now, the Republican-controlled Congress is “trying to use the incentive now that we’re going to blow your brains out, America, in terms of your debt worthiness over time.”
If Congress fails to raise the borrowing limit of the federal government by August 2, the date when the U.S. will reach the limit of its borrowing abilities, it will likely begin defaulting on its loans.
Buffett, who according to the Washington Post has helped raise money for Democratic candidates like Hilary Clinton in the past, has been highly critical of the actions of the Republican-controlled Congress. In May, Buffett stated at a Berkshire Hathaway shareholder’s meeting that if the Congress failed to raise the debt ceiling, it would constitute “the most asinine act” in the nation’s history, reports Reuters.
Other political news is equally disheartening. Most of the governments in the states are as crazy–if not crazier–than the US Congress. Planned Parenthood in North Carolina is suing the state over budget cuts designed to cut access to much used and cost saving preventive health care.
One of North Carolina’s two Planned Parenthood affiliates filed a federal lawsuit Thursday to invalidate part of the new state budget that cuts it off from federal or state funds for family planning.
The budget, written by Republicans in control of the General Assembly for the first time in more than a century, states that Planned Parenthood and its affiliates are forbidden from receiving any contracts or grants from the state health agency. The lawsuit filed in Greensboro’s federal court by Planned Parenthood of Central North Carolina contends the group is being punished for its abortion-rights advocacy, saying that violates its free-speech protections.
The organization is barred by law from using public money to perform abortions and uses the government contracts to provide family planning or teen pregnancy prevention services, yet is being singled out because Planned Parenthood supports abortion rights, the lawsuit said. Efforts to cut off funds to Planned Parenthood affiliates in North Carolina are similar to those in Kansas and Indiana, which were also met with federal lawsuits, the group’s attorneys said.
“Their sole purpose is to single out, vilify, and punish Planned Parenthood as a particularly visible provider and advocate — even though, ironically, the eliminated funds have nothing to do with abortion, but will only deprive low-income people of desperately needed health services and teen pregnancy prevention programs,” the lawsuit said.
Planned Parenthood of Central North Carolina received $287,000 in federal, state and matching local funds in the year that ended last week for teen pregnancy prevention and family planning programs that provided contraceptives to poor women, according to the state Department of Health and Human Services. The non-profit operates from locations in Chapel Hill, Durham, and Fayetteville.
Some of the most extremist pastors are signing on to Texas Governor Rick Perry’s Pray-a polooza. Talk about a hater-thon. Remember, Perry is supposed to be the ‘electable’ Republican.
And we already knew Perry didn’t care much about including, or even not offending, non-Christians: his personal letter announcing the event calls on the entire nation to pray to Jesus Christ. But the news, reported by Right Wing Watch, that a radical pastor named C. Peter Wagner has signed on as an official endorser of The Response deserves more attention.
The Colorado-based Wagner, who is featured on the website of The Response, is the head of Global Harvest Ministries.
His brand of evangelicalism, known as the New Apostolic Reformation, is characterized by extreme hostility to other religions. In this passage from his book “Hard-Core Idolatry: Facing the Facts,” Wagner praises the burning of Catholic saints, copies of the Book of Mormon, voodoo dolls, and other “idols”
Yup, welcome to the new surreality. All we need is Rod Serling introducing the morning reads today and I’d say that would be about right.
What’s on your reading and blogging list today?
Saturday Night Frights: What the Future of America Could Look Like
Posted: June 4, 2011 Filed under: 2012 presidential campaign, abortion rights, Democratic Politics, Domestic Policy, Economy, fetus fetishists, fundamentalist Christians, religion, religious extremists, Reproductive Rights, Republican presidential politics, U.S. Economy, U.S. Politics | Tags: Christian Coalition, closet cases, Faith and Freedom Coalition, John Boehner, John Huntsman, Marcus Bachmann, Mich McConnell, Michelle Bachmann, Ralph Reed, Sarah Palin, Tim Pawlenty 13 CommentsFor the past two days, Republican movers and shakers have participated in a conference in Washington, DC, sponsored by the Faith and Freedom Coalition. The Faith and Freedom Coalition is the new face of the religious right, but the same old faces are behind the new organization. It is chaired by evil grifter and former Jack Abramoff crony Ralph Reed, who once led the Christian Coalition and is now supposedly experiencing a “political rebirth.”
Just as a reminder of how utterly slimy Ralph Reed is, here is disgraced super-lobbyist Jack Abramoff expressing an opinion about Reed.
This dishonest, repulsive man is one of the kingmakers of the Republican Party.
The Caucus blog at The New York Times had a brief writeup on the Faith and Freedom Conference and what the 2012 Republican hopefuls had to say to them. Here are some samples.
John Huntsman
“I do not believe the Republican Party should focus solely on our economic life to the neglect of our human life,” Jon M. Huntsman Jr. told the audience of several hundred after citing antiabortion laws he signed when governor of Utah.
Tim Pawlenty
opened and closed his remarks with biblical quotes. He said his top four “common-sense principles” for the nation were to turn toward God, protect the unborn, support traditional marriage and keep Americans secure.
Michelle Bachmann
reminded the audience that she home-schooled her five children and ended with a prayer that asked a blessing for President Obama, whom she had sharply criticized moments earlier.
Bachmann also promised to repeal Obamacare.
Mitt Romney tried to convince the audience he believed in the “sanctity of human life” and hated gay marriage, Newt Gingrich didn’t show up, and Ron Paul talked about reinstating the gold standard.
Before you laugh too loudly about this parade of loons, check out what Howard Dean told The Hill today. He’s warning Democrats that the “P” woman could beat Obama in 2012. In face Dean thinks if something isn’t done about the economy and unemployment, anyone who wins the Republican nomination could win the presidency.
Dean says his fellow Democrats should beware of inside-the-Beltway conventional wisdom that Obama would crush Palin in a general-election contest next year.
“I think she could win,” Dean told The Hill in an interview Friday. “She wouldn’t be my first choice if I were a Republican but I think she could win.”
Dean warns the sluggish economy could have more of a political impact than many Washington strategists and pundits assume.
“Any time you have a contest — particularly when unemployment is as high as it is — nobody gets a walkover,” Dean said. “Whoever the Republicans nominate, including people like Sarah Palin, whom the inside-the-Beltway crowd dismisses — my view is if you get the nomination of a major party, you can win the presidency, I don’t care what people write about you inside the Beltway,” Dean said.
Personally, I think Michelle Bachmann is scarier than Quitterella. And potential first lady gentleman Mr. Michelle Bachmann Marcus Bachmann is even scarier than she is. Here he is discussing homosexuality.
This is Marcus Bachmann swishing arriving at a radio station for an interview.
These are the kinds of people who could be running the country if the Democrats don’t get off their duffs and do something about the economy and jobs instead of playing footsie with Mich McConnell, John Boehner, and the rest of the Republican freakazoids. This is no joke, folks. I realize this isn’t a particularly politically correct post, but I do not want to be at the mercy of a bunch of self-hating closet cases and hypocritical christianists who are obsessed with fetuses and throwing old people to the wolves. Democrats need to wake the f*ck up and smell the unemployment.
Monday Reads
Posted: May 16, 2011 Filed under: 2012 presidential campaign, Economy, Federal Budget and Budget deficit, fundamentalist Christians, Global Financial Crisis, income inequality, Medicare, religion, religious extremists, Republican politics, Republican presidential politics, Team Obama, The Bonus Class, The Great Recession, U.S. Economy, U.S. Politics | Tags: Debt Ceiling, End Times, evangelical Christians, Harold Campaign, Mark Thoma, Newt Gingrich, Rapture, the plutocracy, Timothy Giethner 52 Comments
Good Morning!
Are you reading for the end of the world next Saturday? Nope, it’s not 2012 yet and we’re not talking about the Mayan Prophecy. Harold Campaign has convinced a group of evangelicals that the date is May 21, 2011. I wonder if any of them would like me to take care of their left behind pets for all their money? You can read more about the man and his end of days wishes at Salon.
The self-appointed harbingers are not tied to any particular church — they claim organized religion has been corrupted by the devil — but rather to Internet- and radio-based ministries. And their lone mission is to tell anyone and everyone that the end of days is May 21. That’s when, they insist, God’s true believers will be lifted into heaven and saved, during a biblical event widely referred to as the Rapture.
The finer points of Christian eschatology have long been the subject of dispute (not to mention the inspiration for movies and books, like the blockbuster “Left Behind” series). Though mainstream churches reject the the notion that doomsday can be predicted by any man, fringe scholars continue to work feverishly pinpointing the moment of the final, divine revelation. And one such man — 89-year-old radio host Harold Camping — has been at the game for decades.
In the early ’90s, Camping published a book titled “1994?,” which claimed judgment day would arrive in September of that year. When confronted with such a staggering anticlimax — the world, after all, kept on spinning — Camping chose not to be discouraged, but to learn from his mistakes. (He hadn’t considered the Book of Jeremiah, he says.) A civil engineer by trade, Camping went back to the drawing board and continued to crunch the numbers, before arriving at the adamant determination that Rapture would come on May 21, 2011. He began to spread the word through his broadcasting network, Family Radio, in 2009, and quickly built up a fervid following.
I guess it takes all kinds. That’s what my mother used to tell me when she was alive, anyway. Speaking of that, MoJo has a great list of Newtisms that will take you a trip back in time with Gingrich’s greatest tongue trips. Here’s some of his earliest hits.
1978 In an address to College Republicans before he was elected to the House, Gingrich says: “I think one of the great problems we have in the Republican party is that we don’t encourage you to be nasty. We encourage you to be neat, obedient, and loyal and faithful and all those Boy Scout words.” He added, “Richard Nixon…Gerald Ford…They have done a terrible job, a pathetic job. In my lifetime, in my lifetime—I was born in 1943—we have not had a competent national Republican leader. Not ever.”
1980 On the House floor, Gingrich states, “The reality is that this country is in greater danger than at any time since 1939.”
1980 Gingrich says: “We need a military four times the size of our present defense system.” (See 1984.)
1983 A major milestone: Gingrich cites former British Prime Minister Neville Chamberlain on the House floor: “If in fact we are to follow the Chamberlain liberal Democratic line of withdrawal from the planet,” he explains, “we would truly have tyranny everywhere, and we in America could experience the joys of Soviet-style brutality and murdering of women and children.”
What is it that Republicans put in their formula that turns out people like this? Newt was on Meet the Press yesterday where he mouthed off on a number of subject’s including Paul Ryan’s Medicare pogrome. This is the National Review’s take so read with caution.
Newt Gingrich’s appearance on “Meet the Press” today could leave some wondering which party’s nomination he is running for. The former speaker had some harsh words for Paul Ryan’s (and by extension, nearly every House Republican’s) plan to reform Medicare, calling it “radical.”
“I don’t think right-wing social engineering is any more desirable than left-wing social engineering,” he said when asked about Ryan’s plan to transition to a “premium support” model for Medicare. “I don’t think imposing radical change from the right or the left is a very good way for a free society to operate.”
As far as an alternative, Gingrich trotted out the same appeal employed by Obama/Reid/Pelosi — for a “national conversation” on how to “improve” Medicare, and promised to eliminate ‘waste, fraud and abuse,’ etc.
“I think what you want to have is a system where people voluntarily migrate to better outcomes, better solutions, better options,” Gingrich said. Ryan’s plan was simply “too big a jump.”
He even went so far as to compare it the Obama health-care plan.”I’m against Obamacare, which is imposing radical change, and I would be against a conservative imposing radical change.”
I have to say that having Trump, Gingrich, Santorum and Paul all debating each other on one stage would probably be highly entertaining. They could have a contest for who would make the craziest old uncle.
The White House is out on the road trying to head off problems with the national debt ceiling. Timothy Geithner says that the economy will double-dip if the Republicans don’t raise the ceiling.
In a heavily-anticipated response to Sen. Michael Bennet, D-Colo., who asked Geithner to document the economic and fiscal impacts of failing to lift the statutory debt limit, the Treasury secretary detailed a chain reaction that would cripple the economy, costing jobs and income.
“A default would inflict catastrophic far-reaching damage on our nation’s economy, significantly reducing growth and increasing unemployment,” said Geithner in the letter to Bennet which was dated May 13. “Even a short-term default could cause irrevocable damage to the economy.”
Geithner has imposed an August deadline for Congress to lift the $14.3 trillion debt ceiling, but lawmakers are still negotiating over Republican demands to tie the move to spending cuts. And a portion of the GOP still remains skeptical about the need to act by the deadline at all, arguing that the consequences have been overstates.
Economist Mark Thoma has a better explanation of how the refusal to increase the debt ceiling would impact the economy on CBS Money Watch. This explanation is much more precise.
If politicians fail to reach a deal to increase the debt ceiling, there would be a large fall in federal spending. The decline in federal purchases of private sector goods and services would reduce aggregate demand, and this could slow or even reverse the recovery (it could also threaten the delivery of critical services that some people depend upon). In addition, the failure to pay wages to federal workers would disrupt household finances and cause a further decline in demand, as would the failure of the government to pay its bills for the goods and services it has already purchased from the private sector (and it could even threaten some households and businesses with bankruptcy should the problem persist). There may be some room for the Treasury to use accounting tricks to avoid the worst problems, at least for a time, but it is not at all clear how well this would work to insulate the economy from problems and eventually this strategy will come to an end.
That’s potentially bad enough, but it’s far from the end of the problems that could occur. Failure to raise the debt ceiling could also undermine faith in the safety of US Treasury bills. If we default on bond payments, or appear willing to do so even if it doesn’t actually occur and investors lose faith in US Treasury Bills, they will begin demanding higher interest rates to cover the increased perception of risk. This could be very costly. We depend upon the rest of the world to finance our debt at extremely low interest rates. If the willingness of other countries to do this diminishes, then the cost of financing our debt would rise substantially. And that’s not all. In addition to increased debt servicing costs, an increase in interest rates would also choke off business investment potentially lowering economic growth, and the consumption of durable goods by households would fall as well. Rising interest rates would also be bad for the housing recovery (such as it is). Thus, failure to reach an agreement could be very costly.
The Economist‘s Blog on American Politics: Democracy in America has an interesting post right now on ‘The Road to
Plutocracy’. It’s an interesting read with a lot of quotes from other pundits.
THE word “plutocracy” is in the air these days. Some say the era of the de facto rule of the mighty top 10%, or top 1%, or whatever insidious sliver of the income distribution is thought to constitute the moneyed power elite, is upon us, or nearly so. I’m not so sure. I am sold on the proposition that there’s something deeply whacked about the American financial system, and that whatever that’s whacked about it is significantly responsible for the top 1% pulling so far away from the rest of the income distribution. This needs to be fixed, whatever its other consequences. It’s not clear to me, however, what exactly is whacked. I don’t know whether to sign up for Tyler Cowen’s “going short on volatility” story, Daron Acemoglu’s “financial-sector lobbying and campaign contributions ‘bought’ an enriching (and destabilising) regulatory structure” story, or some other story. No doubt the truth is in some subtle combination of stories. In any case, accounts such as Mr Acemoglu’s, according to which big players in certain sectors over time manage to rig the regulatory climate to their advantage, are quite compelling for reasons both theoretical and empirical
Newsweek has an interesting article up on why the megarich manage to have such a sweet tax deal. Even if we raise their income taxes, it really doesn’t hit them where it counts. Here’s why.
It drives economist Bruce Bartlett crazy every time he hears another bazillionaire announce he’s in favor of paying higher taxes. Most recently it was Mark Zuckerberg who got Bartlett’s blood boiling when the Facebook founder declared himself “cool” with paying more in federal taxes, joining such tycoons as Bill Gates, Warren Buffett, Ted Turner, and even a stray hedge-fund manager or two.
Bartlett, a former member of the Reagan White House, isn’t against the wealthy paying higher taxes. He’s that rare conservative who thinks higher taxes need to be part of the deficit debate. His beef? It’s a hollow gesture to say the federal government should raise the tax rate on the country’s top wage earners when the likes of Zuckerberg have most of their wealth tied up in stock. Many of the super-rich see virtually all their income as capital gains, and capital gains are taxed at a much lower rate—15 percent—than ordinary income. When Warren Buffett talks about paying a lower tax rate than his secretary, that’s because she sees most of her pay through a paycheck, while the bulk of his compensation comes in the form of capital gains and dividends. In 2006, for instance, Buffett paid 17.7 percent in taxes on the $46 million he booked that year, while his secretary lost 30 percent of her $60,000 salary to the government.
“It’s easy to say ‘Raise taxes’ when you know you’re not going to have to pay those taxes,” Bartlett says. “What I don’t hear is ‘Let’s raise the capital-gains tax.’” Instead the focus has been on the federal tax rate paid by those with an annual income of $250,000 or more—the top 3 percent of earners. Bartlett argues that while raising taxes on the country’s richest individuals would go a long way in easing the debt crisis, it makes no sense to treat the professional making a few hundred thousand dollars a year the same as the Richie Rich set. Maybe it’s hard to muster sympathy for an executive pulling down $1 million a year. But ours is a tax system where a person in the top tax bracket (those earning more than $374,000 in 2010) pays a tax rate of 35 percent on the upper portions of his or her income (37.9 percent if you include Medicare), whereas a hedge-fund manager or mogul earning 10 or 100 times that amount pays less than half that tax rate.
Well, now I’m thinking we’re all just so f’ked that I might as well stop while I’m ahead. What’s on your reading and blogging list today?










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