He's done, take the checkbook away - Spendthrift Obama's debt commission warns of fiscal 'cancer'
Leroy N. Soetoro
101956.html
BOSTON -- The co-chairmen of President Obama's debt and deficit
commission offered an ominous assessment of the nation's fiscal future
here Sunday, calling current budgetary trends a cancer "that will
destroy the country from within" unless checked by tough action in
Washington.
The two leaders -- former Republican senator Alan Simpson of Wyoming and
Erskine Bowles, White House chief of staff under President Bill Clinton
-- sought to build support for the work of the commission, whose
recommendations due later this year are likely to spark a fierce debate
in Congress.
"There are many who hope we fail," Simpson said at the closing session
of the National Governors Association annual meeting. He called the
18-member commission "good people with deep, deep differences" who know
the odds of success "are rather harrowing."
(Graphic: President Obama's proposed 2011 budget explained)
Bowles said that unlike the current economic crisis, which was largely
unforeseen before it hit in fall 2008, the coming fiscal calamity is
staring the country in the face. "This one is as clear as a bell," he
said. "This debt is like a cancer."
The commission leaders said that, at present, federal revenue is fully
consumed by three programs: Social Security, Medicare and Medicaid. "The
rest of the federal government, including fighting two wars, homeland
security, education, art, culture, you name it, veterans -- the whole
rest of the discretionary budget is being financed by China and other
countries," Simpson said.
"We can't grow our way out of this," Bowles said. "We could have decades
of double-digit growth and not grow our way out of this enormous debt
problem. We can't tax our way out. . . . The reality is we've got to do
exactly what you all do every day as governors. We've got to cut
spending or increase revenues or do some combination of that."
Bowles pointed to steps taken recently by the new coalition government
in Britain, which also faces an acute budgetary problem, as a guide to
what the commission might use in its recommendations. That would mean
about three-quarters of the deficit reduction would be accomplished
through spending cuts, and the remainder with additional revenue.
Most Republicans in Congress are opposed to any tax increases, which has
made the work of the commission far more difficult. Bowles and Simpson
appealed for support to the governors, who have been forced by their
states' constitutions to balance their budgets with deep spending cuts
and, in many cases, tax increases.
Bowles and Simpson said the commission would have had a stronger hand
politically had it been created by Congress, rather than through an
executive order. Simpson was pointed in his criticism of seven
Republicans who once co-sponsored such a measure but who helped block it
in the Senate.
"As far as I can discern, it was to stick it to the president," Simpson
said. "That's where we are in Washington." He later added that all seven
"have now come to us to say, 'We're ready to help.' "
The presentation by Simpson and Bowles, which included repeated
statements of determination to produce a bipartisan set of
recommendations, drew praise from the governors.
"I don't know that I've every heard a gloomier picture painted that
created more hope for me," said Arkansas Gov. Mike Beebe (D).
Washington Gov. Chris Gregoire (D) said that many governors fear that
the commission's recommendations will result in more demands on the
states.
Bowles, who noted that the 1997 balanced-budget agreement between the
Clinton White House and the Republican-controlled Congress included many
provisions that put more burdens on the states, said that wasn't likely.
"I don't think you're going to see a lot of devolution coming from us
because the states are all broke," he said.
Simpson also warned that the November elections could add another wild
card to the work of the commission. "I have no idea what's going to
happen on Election Day but it's going to be disruptive . . .," he said.
"It's going to be a big wake-up call around the whole United States. I
have no idea where it's going, but thank heaven we have a month then to
work through the wreckage."
--
Obama's black racist USAG appointee.
Eric Holder, racist black United States Attorney General drops voter
intimidation charges against the Black Panthers, "You are about to be
ruled by the black man, cracker!"
Eric Holder, prejudiced black United States Attorney General settles the
hate crime debate, "Whites Not Protected by Hate Crime Laws."
Felony President. 18 USC, Sec. 600. Promise of employment or other
benefit for political activity
Obama violated the law by trying to buy Joe Sestak off with a political
appointment in exchange for not pursuing an election bid to replace
Arlen Specter. Obama violated the law by trying to buy former Colorado
House Speaker Andrew Romanoff off last fall to see if he'd be interested
in an administration job -- instead of running against Sen. Michael
Bennet.
Nancy Pelosi, Democrat criminal, accessory before and after the fact, to
House Ways and Means Committee Chairman Charles B. Rangel of New York's
million dollar tax evasion. On February 25, 2010, the House ethics
committee has concluded that Ways and Means Committee Chairman Charles
B. Rangel knowingly accepted Caribbean trips in violation of House rules
that forbid hidden financing by corporations. Democrat criminal Nancy
Pelosi is deliberately ignoring the million dollar tax evasion of
Democrat Charles Rangel.
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Michael Coburn
> http://www.washingtonpost.com/wp-dyn/content/article/2010/07/11/
AR2010071
> 101956.html
>
> BOSTON -- The co-chairmen of President Obama's debt and deficit
> commission offered an ominous assessment of the nation's fiscal future
> here Sunday, calling current budgetary trends a cancer "that will
> destroy the country from within" unless checked by tough action in
> Washington.
That statement spells doom for America. These "co-chairmen" seem to have
no idea what the hell money is and what it is for. When debt threatens
to strangle the economy, the nation's leaders must find a way out of the
trap that is fair to the vast majority of the citizenry. And austerity
and depression and further empowerment of the wealthy are not the correct
answers.
> The two leaders -- former Republican senator Alan Simpson of Wyoming and
> Erskine Bowles, White House chief of staff under President Bill Clinton
> -- sought to build support for the work of the commission, whose
> recommendations due later this year are likely to spark a fierce debate
> in Congress.
The debate needs to take place in the economics community and include the
Federal reserve chairman and several key economists. The commission put
together by Obama seems to have no input from reputable macro economists
at all even though the "crises" is purely monetary. The commission
seems to be a mix of various idiotologists unbalanced to the conservative
side.
> "There are many who hope we fail," Simpson said at the closing session
> of the National Governors Association annual meeting. He called the
> 18-member commission "good people with deep, deep differences" who know
> the odds of success "are rather harrowing."
Based on what I've seen there is not one chartalist in the lot. I am not
aware of even a pure Keynesian in the mix. They are all conservatives
and worshipers of Hayek and other gold bug Austrian nutters.
> (Graphic: President Obama's proposed 2011 budget explained)
>
> Bowles said that unlike the current economic crisis, which was largely
> unforeseen before it hit in fall 2008, the coming fiscal calamity is
> staring the country in the face. "This one is as clear as a bell," he
> said. "This debt is like a cancer."
The recession started in Q4 2007 and was foreseen by many economists that
were not in the pay of the rich and/or the Republican party. All who saw
it coming were NON-Austrians and NON-neoclassicals. Now we have a bunch
of total political hacks trying to brew up a new batch of "how to
impoverish the American middle class even more" and rescue the "Gawd
Almighty Dollar" and the rich --- AGAIN.
> The commission leaders said that, at present, federal revenue is fully
> consumed by three programs: Social Security,
Here again we see the compelling evidence that this "commission" is
rightarded:
Until the Bush Recession, the Social Security System was cash positive.
And if Obama brings about the change he said he would (to lift the cap on
FICA taxes on those wage incomes in excess of $250k) there is no Social
Security problem. Even as the system exists, an improvement in the real
economy (measured in real wages) will suffice to keep the Social Security
system quite self sustaining. This issue is extremely important in that
the rightarded always insist in including this TOTALLY OFF BUDGET
insurance system in their analysis. The reason for its inclusion is
evident in that they always seek to kill social insurance even though it
is strongly supported by the vast majority. It is ALWAYS a fight for the
wealthy and the powerful against the middle class.
If Social Security is self sustaining (which it is with the removal of
the cap above $250k) then we can remove that item from the list and speak
to the actual problems of education, health care, and imperialism.
> Medicare and Medicaid.
The next alteration should be the total separation of health care
(Medicaid, Medicare, and insurance subsidies) from the budget and a
progressive adjustment to Medicare taxes that makes social health
insurance self sustaining based on Medicare taxes. The Medicare tax will
need to be increased and BOTH systems will need to be much more
progressive.
What we will find is that the only way to reduce the tax byte for
Medicare will be to reduce the cost of medical care by using the approach
taken by the most successful nations concerning health care. And that
will be a much larger role for the US government in controlling health
care costs.
All taken care of thank you.
> "The
> rest of the federal government, including fighting two wars, homeland
> security, education, art, culture, you name it, veterans -- the whole
> rest of the discretionary budget is being financed by China and other
> countries," Simpson said.
Quite right... The Bush tax cuts need to be ended and the military
budget needs to be cut and that problem is done with also.
> "We can't grow our way out of this," Bowles said. "We could have decades
> of double-digit growth and not grow our way out of this enormous debt
> problem. We can't tax our way out. . . .
Like hell we can't. It depends on how it is done. Some of the problem
needs to be monetized and the big adjustment that needs to take place is
a return to a more progressive tax system.
>The reality is we've got to do
> exactly what you all do every day as governors. We've got to cut
> spending or increase revenues or do some combination of that."
The US government is not a business or a member state. It can create
money as needed to finance its debts and such creation is a TAX ON MONEY
-- A TAX ON PEOPLE WHO HAVE ALL THE MONEY. States can't do that and
governors can't do that and businesses can't do that. But the rightarded
will continue to lie and to hide this option and to lie about it.
Printing money and blowing it into the bottom of the economy while
expiring the Bush cuts will stomp hell out of the debt and the interest
drag in short order. Interest rate will rise IN RESPONSE, but that is
OK. The solution to the monetary problem is actually a function of
appropriate taxation and fiscal policy that controls the AMOUNT of money
in the system. This in preference to _DEBT_ which is an adjustment to
velocity.
> Bowles pointed to steps taken recently by the new coalition government
> in Britain, which also faces an acute budgetary problem, as a guide to
> what the commission might use in its recommendations.
The British depression team??? And again the protection of the rich and
the "Gawd Almighty Dollar" and the rightardedness of this "council" is
exposed for all to see.
> That would mean
> about three-quarters of the deficit reduction would be accomplished
> through spending cuts, and the remainder with additional revenue.
Republican pigs, each and every one.
> Most Republicans in Congress are opposed to any tax increases, which has
> made the work of the commission far more difficult. Bowles and Simpson
> appealed for support to the governors, who have been forced by their
> states' constitutions to balance their budgets with deep spending cuts
> and, in many cases, tax increases.
Total pig crap. The Bush cuts are a mockery of economics and of justice.
And the Fed needs to monetize more of the stimulus through quantitative
easing. A monetized bailout of Fannie and Freddie might be a good way to
start. And a total takeover of the home mortgage sector would be the
right move for the future. Commercial banks should do commercial loans
and Fannie and Freddie as tightly controlled by the Fed should manage the
home mortgage area. The market value of homes is a function of interest
rates on 30 year mortgages and has been for a very long time. And the
homes really aren't to be used as financial poker chips anyway. When
mortgage rates are better stabilized the home ownership market will
stabilize. Housing will respond to demand and supply for homes as
opposed to being a poker chip in the wet dreams of financial weenies.
> Bowles and Simpson said the commission would have had a stronger hand
> politically had it been created by Congress, rather than through an
> executive order. Simpson was pointed in his criticism of seven
> Republicans who once co-sponsored such a measure but who helped block it
> in the Senate.
>
> "As far as I can discern, it was to stick it to the president," Simpson
> said. "That's where we are in Washington." He later added that all seven
> "have now come to us to say, 'We're ready to help.' "
Sure they are. Until it becomes a Democratic or Obama initiative they
will be all smiles. But if it has any Democratic fingerprints on it (and
I don't mean LIEberman or Nelson, or Lincoln), then it will be shunned.
If it has any Keynesian or Chartalist leanings it will be fought with the
usual conservative lies.
> The presentation by Simpson and Bowles, which included repeated
> statements of determination to produce a bipartisan set of
> recommendations, drew praise from the governors.
Who gives a rats ass what the governors think about it. They do not
control the central bank or the federal tax code.
> "I don't know that I've every heard a gloomier picture painted that
> created more hope for me," said Arkansas Gov. Mike Beebe (D).
The search for a sympathetic Democratic governor must have been long and
arduous.
> Washington Gov. Chris Gregoire (D) said that many governors fear that
> the commission's recommendations will result in more demands on the
> states.
This is _MUCH_ more likely among the governors and it is to be much more
appreciated in that the rightarded want no control of money at the
federal level and to use gold doubloons and whales teeth as currency in
the state banks. The State Bank of Louisiana will be located in the
middle of the great swamp and if you want yer gold you can rent a pirogue
to redeem your paper.
> Bowles, who noted that the 1997 balanced-budget agreement between the
> Clinton White House and the Republican-controlled Congress included many
> provisions that put more burdens on the states, said that wasn't likely.
>
> "I don't think you're going to see a lot of devolution coming from us
> because the states are all broke," he said.
CORRECT!!! The states need some federal assistance, especially with
health care and education, both of which need to be federalized. The
rightarded will doubtless trot out the "One World Government" and black
helicopters to fend of anything sane.
> Simpson also warned that the November elections could add another wild
> card to the work of the commission. "I have no idea what's going to
> happen on Election Day but it's going to be disruptive . . .," he said.
> "It's going to be a big wake-up call around the whole United States. I
> have no idea where it's going, but thank heaven we have a month then to
> work through the wreckage."
Oh yes!!! The screech monkeys will continue their vile and raucous
demonization of anything federal. We all will be wearing coon skin caps
and carrying a long barreled rifle as we hunt for breakfast.
--
"Senate rules don't trump the Constitution" -- http://GreaterVoice.org/60