Louis Story of the New York Times is as good as any female fixture on your typical FoxNews panel. Louis loves Uncle Sam and speaks with a sibilance. Like GOP devotee Ann Coulter, Story thinks that investigating and further regulating Standard & Poor’s, Moody’s and Fitch—credit rating agencies all—is a good idea, as if that act would alter the reality of America’s debt, public and private. (The first amounts to $15 trillion, the last to $50 trillion or thereabout, I believe.)
Isn’t it interesting that so many sinecured commentators, no matter their brand of political whoring (Republican or Democrat), are furious about the downgrading of America from its status as best, AAA borrower? Is it patriotism that powers the fuming pundits? Not at all; Rand and Ron Paul are true patriots.
SAVING FACE VS. FACING REALITY. Here’s what’s a foot: The media talking heads are props to the politicos. They are all paddling as hard as they can to save face, even if it means not facing reality.
The talkers are a mirror image of the political class, reflecting and reinforcing the opinions—and the reality—of the elites. More often than not, the chattering classes are as privileged and protected as their masters. As long as they play to the “Demopublican Monopolists,” and sustain the respective parties’ constituencies, media “mavens” will retain their perches, their pensions, and their sizable salaries.
But what if they lose top-dog status? The Talkers are upset that as the dop-dog country loses its economic prestige and power in the world, so too will they be degraded in the world. Perhaps they fear, instinctively, a world in which we switch on RT or Al Jazeera to hear what their babes are saying? They should.
Considering the US’s economic vital signs, our professional gabbers are up the creek without a paddle.
In a world in which the written word is rapidly ceding to sound and images, good luck with finding the transcripts of President Barack Obama’s latest address. I’ve captured some of BHO’s verbal vapors for you. In responding to market madness, Obama, by the way, has said exactly what Bush or any Republican president would have said in his place—and that goes for mega Chris Christie, the Lovable Great Leader GOP devotee Ann Coulter fantasizes about.
Essentially, BHO believes that the downgrading of the US’s credit rating was a function of the country’s mischievous political shenanigans: the leadership’s wrangling over the debt ceiling, and not the debt itself.
Standard & Poor’s, the money market’s mortician, was reacting to our dysfunctional political system—to gridlock on Capitol Hill—and not to any economic reality.
US credit, says BHO, is still among the safest in the world. How does he know this? The rest of the world—Europe, Asia, etc.—are faring worse than we are. This is the sum-total of CNN and MSNBC’s “crayon level thinking”; the mantra John King USA, Ali Velshi (Egghead), Wolf Blitzer and Chris Matthews find persuasive.
But from the fact that the world is in bad shape it doesn’t follow that the US is better off.
BHO further galvanized the opinion of wealthy statist Warren Buffett who claims the USA deserves and quadruple A rating.
Yes, yes, we need to effect long-term changes, confirmed Zero, but we have already done all that can be done on the deficit and debt reduction fronts. The time now is ripe for “tax reform,” and mere “modest adjustments” to the large social programs (referred to for good reason as Third-Rail issues, because their reform is so popular with politicians and the people. The latter don’t ever want to be without the warmth of the government udder; the former don’t want to have to make a living in the real job market).
Reiterating the Matthews and Maddow “crayon level thinking,” Da Man went on to warn that any further cutting in government programs would … would… would—here I invite the reader to complete BHO’s warning with the most horrible scenario he can possible imagine. My choice: Donald Trump gets elected.
The president called on the country’s planners to show good will and promised the country—BEHOLD!—another committee, which, as this wily fox well knows, is one way to bury an issue for good.
Cutting the distribution machine that has crippled America’s private economy would be deadly to this very economy—so claims BHO. Thus, deficit spending on programs such as unemployment insurance must be extended. To be fair to this ass with ears, the president did tout the payroll-tax cut.
Look closely and this so-called ‘deal’ on the debt ceiling crisis is a triumph of sleight-of-hand over substance.
Sunday night it was, ‘We will cut a trillion dollars in the first 10 years.’ By this morning a trillion had become $917 billion, which means we lost $83 billion in cuts overnight. Makes you afraid to go to bed.
In the first three years of the Obama presidency, the deficits will total about $4.2 trillion. Cutting $917 billion over 10 years, or $91 billion a year, is chump change.
Then there’s the commission, another one. Remember the commission President Obama ordered to come up with answers to this stuff last year?
They did. Their report was full of a lot of good ideas. It was ignored by the president and Congress. But they want us to believe this commission will be different.
Baloney. There has been no attempt to address tax reform or entitlement reform. That will be left for ‘The Commission.’ My guess is they won’t touch it anymore than the current crop of folks tackled it. And without those two things, we are doomed.
Supposedly there will be triggers in the legislation that will require additional cuts totaling $1.4 trillion across the board if the committee and Congress cannot agree. Color me skeptical.
We are facing more than $61 trillion of unfunded liabilities from Medicare, Medicaid, Social Security and other obligations – $61 trillion.
There is no money to meet those obligations and our government knows it. But they have the unmitigated gall to march out Sunday night as though they had found a cure for cancer and expect us to break down in uncontrolled adulation. They make me ill.”
[SNIP]
Russia’s Prime Minister Vladimir Putin, via RT: “This colossal debt, 14 trillion or more, means that the country has been living on credit, which is really bad for one of the world’s leading economies. They live beyond their means, and put a part of their burden on the entire world’s economy.”
Wow: Republican wizards have passed a bill in the lower chamber that will both raise the debt ceiling and slash spending! The marvels of modern semantics. Meantime, BHO is tweeting like a twit possessed, urging Americans to work their representatives over so that a deal can be struck, and a disaster averted. The disaster: a rise in the interest rates on all the stuff they have borrowed. BHO’s re-election hinges on happy spenders. (Even if it’s splashing out at the One Dollar Store.)
It’s remarkable what politicians putting pen to paper can achieve, isn’t it?
The marvels of an alternate reality notwithstanding, interest rates are long overdue for a correction. Political will is what’s keeping interest rates low or at zero, the premise being that buying and consuming is what generate economic growth. Keynesian crap, if you’d pardon my language. If interest rates rise, savers will be better rewarded. Capital for future investment can be accrued.
In his wonderfully learned book,The Failure of the ‘New Economics, Henry Hazlitt summed-up the essence of Keynes’ General Theory: “The great virtue is Consumption, extravagance, improvidence. The great vice is Saving, thrift, ‘financial prudence.'” Duly, Obama has vowed to make credit flow “the way it should.” Never mind that “all credit is debt,” and that, in Hazlitt’s words, “proposals for an increased volume of credit are merely another name for proposals for an increased burden of debt.”
Nearly two hours after the House narrowly approved House Speaker John Boehner’s debt-ceiling bill, the Senate voted 59-41 to reject the speaker’s plan, leaving Congress no closer to reaching agreement before the August 2 default deadline.
The vote did not kill the Boehner bill itself, allowing it to be used as a vehicle for a later compromise.
But Senate Majority Leader Harry Reid, D-Nev., and Senate Minority Leader Mitch McConnell, R-Ky., appeared at an impasse late Friday on negotiations on a Senate bill to raise the debt ceiling. As a result, Reid introduced new language to tighten his original proposal in the hopes of gaining more Republican support on a cloture vote on his legislation expected early Sunday.
According to a memo from his office, Reid’s latest proposal would increase the deficit reduction over 10 years from $2.2 to $2.4 trillion, with a “dollar to dollar” increase in debt ceiling based on a proposal originally authored by McConnell to fast-track resolutions of disapproval to allow the president to raise the debt ceiling with the political liability falling on Democrats.
In his defense, Harry gets his meager savings by “winding down the wars in Iraq and Afghanistan which Republicans decry as budget gimmicks.”
I hope that every one of the already stale Tea-Party freshmen who refused to quit the wars to save some money is tossed out of office.
UPDATE (July 30): REEDS ALL. More mindless, insignificant tit-for-tat, via The New York Times:
The Republican-controlled House on Saturday dismissed a new proposal by Senate Democrats to end the fiscal crisis before the Senate even voted on it, deepening the ongoing federal budget stalemate.
In an effort to send a message to Senate leaders of both parties, the House voted 173 to 246 against the proposal by Senator Harry Reid, the majority leader, to show it had no future in the House.
During a heated debate, Republicans and Democrats traded accusations over who would be responsible for a government default if no compromise was reached by next Tuesday, with Republicans defending the plan they sent to the Senate on Friday only to see it rejected almost immediately.
On Twitter, Speaker John A. Boehner called the Senate measure “DOA” and a “non-starter in the House.” Republicans also said the $2.5 trillion in savings in the measure were illusory
.
Here’s a budget I can begin to get behind. Over to the marvelous John Stossel:
The biggest budget busters are Medicare and Medicaid, and get this: the 400 subsidy programs run by HHS. Assuming I take just two-thirds of the Cato Institute’s suggested cuts, that saves $281 billion.
(See Cato’s cuts at www.downsizinggovernment.org.)
How about the Defense Department’s $721 billion? Much of that money could be saved if the administration just shrank the military’s (SET ITAL) mission (END ITAL) to its most important role: protecting us and our borders from those who wish us harm. Today, we have more than 50,000 soldiers in Germany, 30,000 in Japan and 9,000 in Britain. Those countries should pay for their own defense. Cato’s military cuts add up to $150 billion.
I’ve now cut enough to put us $2 billion in surplus!
Can we go further? My TV show’s guests thought so.
“Repeal ObamaCare,” syndicated columnist Deroy Murdock said.
Reason magazine editor Matt Welch wants to cut the Department of Homeland Security, “something that we did without 10 years ago.”
But don’t we need Homeland Security to keep us safe?
“We already have law enforcement in this country that pays attention to these things. This is a heavily bureaucratized organization.
“Cut the Commerce Department,” Mary O’Grady of The Wall Street Journal said. “If you take out the census work that it does, you would save $8 billion. And the rest of what it does is really just collect money for the president from business.”
As the bureaucrats complain about proposals to make tiny cuts, it’s good to remember that disciplined government could make cuts that get us to a surplus in one year. But even a timid Congress could make swift progress if it wanted to. If it just froze spending at today’s levels, it would almost balance the budget by 2017. If spending were limited to 1 percent growth each year, the budget would balanced in 2019. And if the crowd in Washington would limit spending growth to about 2 percent a year, the red ink would almost disappear in 10 years.
As you see, the budget can be cut. Only politics stand in the way.
