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Debt Crisis Flimflam

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Day before yesterday, actually Friday, July 22, 2011, I started out listening to Democracy Now. Halfway through the program I listened to an interview with economist Michael Hudson, Pushing Crisis: GOP Cries Wolf on Debt Ceiling in Order to Impose Radical Pro-Rich Agenda.

What caught my attention was this comment by Amy Goodman:

“Meanwhile, more details have emerged about the massive government bailout of the banking industry. On Thursday, the Government Accountability Office issued an audit of the Federal Reserve’s emergency lending programs. It revealed the Fed provided more than $16 trillion in secret loans to bail out American and foreign banks and businesses.”

This is money the Federal Reserve simply printed then used. If you ever wondered why the dollar doesn’t buy as much as it used to, well – there’s your answer. The more they print the less valuable the dollar becomes. Remember, this is printed money on top of all the other bailout money and wars.

Read the complete interview. He details exactly what is going on with the current “crisis,” the so-called debt war between President Obama and the Republicans – what Obama is REALLY doing and what America and the World can expect. Here’s a taste:

“What’s happening across the world is an attempt by the financial sector to really make its move and say this is their opportunity for a power grab. And they’re creating this artificial crisis as an opportunity to carve up the public domain and to give themselves enough money. They’re taking the money and running, because they know that unemployment is going up. The game is over. They know that. And the only question is, how much can they take, how fast?”

Later that morning is picked up the Times-Standard newspaper and read, this masterful piece of invective written by eight brilliant and undaunted people: Progress or protest? We need to work together to move forward.” Their solution for “working together” will take your breath away. The implementation of the flimflam betrayal Michael Hudson explains is demonstrated locally by these eight individual and their class warfare. Classic sheep in wolves clothing.

To conclude, that afternoon I listened to Barack Obama as he spoke to the White House Press Core as he tried to explain why the talks on the debt crisis broke down. Of course, he accepted NO responsibility for what happened. Later, I listened to Speaker of the House John Boehner explain his conduct. He, however, said something rather interesting. He said Obama would say one thing to the public, but when he was in direct talks did something altogether different, putting Boehner in a difficult position. Since under those conditions he couldn’t negotiate in good-faith he had to accept the reality and act accordingly. Based upon my own life’s experience, I’d say John Boehner is the one most likely speaking the truth.

Amazingly, what Michael Hudson talked about earlier that morning was playing out right before my eyes. There’s a crisis alright, but not the one they want everybody to believe we’re facing.

If Michael Hudson has it right, and I’m inclined to believe he does, then this flimflam is about the Rich Elite’s finalizing their looting. They’re really only just fighting over the scraps.
[Source]

–Joe

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Ron Paul on the Deficit

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Anyone interested in another point of view might find this article of interest:

By Pete Kasperowicz – 07/19/11 11:20 AM ET

Rep. Ron Paul (R-Texas) on Tuesday predicted that the U.S. would default on its debt.

“When a country is indebted to the degree that we’re indebted, the country always defaults,” the 2012 GOP presidential candidate said on the House floor. “We will default because the debt is unsustainable.”

Paul predicted that the U.S. government would dodge the best solution, which is to impose real spending cuts.

“The reason we don’t cut spending is, one side loves entitlements and one side loves war,” he said.

But he warned against the temptation of simply continuing to send out government checks backed with more borrowed money. He said choosing this course would mean default would come in the form of significant inflation and a further erosion of the dollar.

“If we don’t understand this, this default will not be because we don’t send out the checks,” Paul said. “We will send out the checks. It will be defaulted on because people will get their money back, or they will get their Social Security checks, and it won’t buy anything.”

He warned this is a “much, much worse” solution.

Paul was one of several Republicans who spoke Tuesday morning on the House floor in anticipation of the GOP’s “Cut, Cap and Balance”
bill. Rep. Wally Herger (R-Calif.) was one who spoke in favor of the bill, and said higher spending under the Obama administration was a proven failure.

“The tragic reality is that the president’s big spending policies only made things worse,” Herger said. “Now, with the national debt at crisis levels, he is standing in the way of common sense solutions, offering only lectures, not leadership.

“As a matter of conscience, this Congress cannot support allowing President Obama to continue to steer America’s debt past a point of no return,” he added.

Rep. Virginia Foxx (R-N.C.) said Democrats have no plan for handling the debt crisis, citing the Senate’s rejection earlier this year of the Obama administration’s proposed 2012 budget.

“There is no leadership on the part of the Democrats,” she said.

Rep. Mike Quigley (Ill.) was one of the few Democrats who spoke on the debt ceiling Tuesday morning. He argued that Republicans were using the myth of former President Reagan to justify efforts to tie the debt-ceiling increase to spending cuts.

Quigley said that if Reagan could see the current debate, “he’d see his most dedicated followers using his name as justification for saying no to honoring our debts. He’d see his legacy used to play chicken with the world’s greatest economic engine.”

The contents of this site are © 2011 Capitol Hill Publishing Corp., a subsidiary of News Communications, Inc.

–Joe

Written by Joe Blow

July 20, 2011 at 9:32 pm

Beginning of the End for Social Security

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The following is an excerpt from an interview on Democracy Now Thursday, December 16, 2010 with Representative Rush Holt. Here he explains in simple understandable language how the enemies of the American people finally win the war.

Here’s the link for the complete interview:

REP. RUSH HOLT: But you heard the President say, well, in a compromise, we have to sacrifice some things we care about. I’m not willing to sacrifice Social Security. And I’m concerned that this does real damage, does violence, to the rationale for Social Security. Apart from what it does to the financing of Social Security, which can be made up in future years, it does, I think, irreparable damage to the very idea of Social Security. It puts Social Security on the table as a bargaining chip along with the alternative minimum tax, the debate over whether the Bush tax cuts should end at $250,000 or a million dollars income, and with business expensing and estate tax rate. In other words, it’s just a bargaining chip, it’s just another item. And, you know, ever since 1935, Social Security has had its enemies, but it has withstood those enemies because of really the ingenious, the shrewd rationale that FDR assigned to Social Security. And this undermines that. It makes Social Security just another program, not—it does away with the idea that Treasury funds, that general funds, are not fed in to Social Security to support it. And I think a year or two in the future, the political support for Social Security will just unravel.

QUESTION: […] Obviously, every working American will next year see, for one year, their pay—this is a sizable reduction in what they have to pay out in Social Security taxes. So then, at the end of next year, as you’re beginning a presidential election year, the Obama administration will be forced to having to increase those taxes again or may end up bending to Republican pressures to begin creating private retirement accounts as part of that two percent return, and something that Obama’s own economic adviser, Austan Goolsbee, has often advocated. Do you have any concerns about that? What will happen at the end of this one-year period?

REP. RUSH HOLT: Well, in January 2012, workers—under this proposal, under this scheme, workers would see their take-home pay go down. I’m not sure who wants to be responsible for that. So, this is called a one-year change. And any lost revenue will be replenished from the general fund, and then the tax rates would be restored to the full 6.2 percent in 2012. I’m not so sure. I mean, it—but my point is, even if you lose that revenue for one, two or three years, it could be made up. But the damage done to the idea, the political underpinning of Social Security, will be, I’m afraid, irreparable.

By the time of this posting tax bill will already be signed – the beginning of the end. On Yahoo News: Bill preventing big tax hikes heads to Obama Fri.

[UPDATE]

Obama Signs (Republican) Tax Deal, Hails Bipartisan Effort to Grow Jobs

and calls it “COMPROMISE.” I wonder how he defines surrender.

–Joe

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