DEFICIT “CRISIS” A PHONY ISSUE

It’s not really about 4%. Raising the tax rate from 35 to 39% is small coin. It’s all about dismantlin­g the social safety net. Huge pools of money will become available to Wall Street in that event.

It appears as though both parties are focused on the same goal. The Democrats can’t get away with it without a correspond­ing increase in revenues.

We do have a revenue crisis. Revenue collections are at their lowest levels as a percentage of GDP since the 1950s.

Let’s raise taxes on the wealthy.


About Unemployment

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DEFICIT MAVEN EXTRAORDINAIRE

Republican­s are responsibl­e for nearly 75% of the total debt. Granted Democratic Congresses were involved in the accumulati­on. But Republican presidents repeatedly signed off on the debt without so much as a whimper from fellow Republican­s.

File:President Ronald Reagan at a Rally for Senator Durenberger in Minneapolis 1982.jpg
Deficit maven. He was so good at raising the deficit he set records. His record setting deficits were exceeded only by George W. Bush who now holds the record.

The current standoff is nothing more than an attack on the social safety net which Republican­s have long hoped to dismantle. The shock here is that Obama is revealing incredible ineptitude by accommodat­ing the GOP vendetta.

We are actually in the midst of a revenue crisis. Tax collection­s as a percent of GDP are at their lowest levels since the 1950s.

Let’s raise taxes on the wealthy.


Most of the 10 trillion was accumulate­d under Republican presidents­, in many cases supported by Republican majorities in one or both Houses of Congress and by right wing Democrats.

The debt has risen under Obama. But much of it has accumulate­d as a result of sharp revenue decline due to high unemployme­nt and the continuati­on of tax cuts for the wealthy. Also contributi­ng to the deficit are Obama’s continuati­on of the Bush wars; a huge and unnecessar­y war budget; and the Wall Street bailout.

An inadequate stimulus – that included worthless tax cuts; needed aid to the states; and some money for job creation – was also a factor.

The fact remains: There is no crisis. Problem yes. But it can be dealt with.

Here are some answers:


1. Let’s raise taxes on the wealthy. We do have a revenue crisis. Collection­s are at the lowest levels of GDP since the 1950s.

2. Let’s raise the cap on Social Security.

3. Let’s pass Medicare for All. Or at least a genuinely competitiv­e public option.

4. Let’s renegotiat­e all trade agreements

5. Let’s pass a genuine stimulus bill.

6. Let’s extend unemployme­nt benefits.

7. Let’s grant aid to states to halt pubic sector layoffs.


Any plan that does not address these issues is politicall­y driven and ideologica­lly fossilized­. Moreover, there is little doubt that none of these theatrics would have occurred had a Republican been in the White House.

The Republicans have proposed a piece of trash known as the Ryan Plan. The Corporate Media Propaganda Machine has called it courageous. In reality, it is sheer economic pornography.


We have a revenue crisis. The revenue to GDP ratio is lower than it has been since the 1950s. Tax cuts are redistributing wealth upwards. Reagan’s trickle down morphed almost immediately into gush up.


It is clear to anyone whose mind has not become hopelessly fossilized by ideology that excessive tax cuts are destroying the entire U S economy.

We have a revenue crisis.

Let’s raise taxes on the wealthy.

DINO OBAMA

Most of the $14.5 trillion debt was accumulated under Republican presidents, in many cases supported by Republican majorities in one or both Houses of Congress and by right wing Democrats.

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If Democrats can’t dump this guy in 2012 they need to put as much distance between him and themselves before he destroys the party altogether.

The debt has risen under Obama. But much of it has accumulated as a result of sharp revenue declines due to high unemployment and the continuation of tax cuts for the wealthy. Also contributing to the deficit are Obama’s continuation of the Bush wars; a huge and unnecessary war budget; and Wall Street thievery and the subsequent taxpayer bailout.

An inadequate stimulus – that included worthless tax cuts; needed aid to the states; and some money for job creation – was also a factor.

***

Republicans are responsible for nearly 75% of the total debt. Granted Democratic Congresses were involved in the accumulation. But Republican presidents repeatedly signed off on the debt without so much as a whimper from fellow Republicans.

We are actually in the midst of a revenue crisis. Tax collections as a percent of GDP are at their lowest levels since the 1950s.

Let’s raise taxes on the wealthy.

***

Republicans are largely responsible for the deficit. The budget was headed in the direction of long term balance when Clinton left office. The deficit was $10.5 trillion when Bush exited. We must all be tired of hearing that Republicans voted to raise the debt ceiling 7 times under Bush – with hardly a care in the world.

The current stand off by the GOP is hypocritical and crassly political as past actions clearly reveal.

They remain intransigent primarily due to the expectation that Obama will fold as he has done routinely in the past. In this case, though the Republicans are not simply facing down Obama. They are holding the entire nation hostage.

They are waiting until Obama surrenders and offers cuts to the social safety net without making even the slightest concession. Foolishly, Obama has jeopardized his presidency by offering cuts anathema to his base without an agreement in hand.

It remains to be seen how Obama’s offer of safety net cuts will play in Tampa-St. Pete; or Peoria for that matter.

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Greece said to at 130/100 debt to GDP. Japan 220/100. Italy 120/100. Japan’s economy is doing as well as can be expected; better than the U S economy. And the Japanese are still borrowing at record low interest rates.

U S revenue was 6% of GDP in 1950; 1% today. The U S is beset by a devastating revenue crisis. Unless revenue increases, full recovery may take a decade if it occurs at all.

Let’s raise taxes on the wealthy.

***

There is a backlash coming no doubt. Voters are beginning to understand that the only agenda Republicans have is to advance the decades old vendetta against the social safety net.

Unfortunately, we have in the White House a president who seems to share that vendetta.

No one can question any longer that the man is a DINO and hopefully liberals are coming around to the realization that it is better to have a Republican president that a right wing Democrat.

Why? Democrats in Congress would be more likely to resist the agenda of a right wing Republican rather than supinely accommodate the policies of the DINO as they are now doing.

Although they are still Democrats aren’t they?

If they had any gumption at all, the Dems would abandon this president in 2012. Put as much distance between him and themselves as they possibly can and as fast as they possibly can. In other words, dump this guy before he destroys the party altogether.

Anyone care to venture a guess how the president’s cuts will play in Tampa-St. Pete??? 

WHAT WAS HE THINKING???

If it was clear before it has to be perfectly clear now that Obama wanted to cut Social Security and Medicare from the day he was inaugurated His rigged Cat Food Commission showed the inclination of this president to cut. And now in spectacularly stupid fashion Obama has admitted for all the world to see that he advocates cuts to two of the nation’s most cherished programs.

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A shadow of his former self. He should hang his head in shame.

Obama agrees wholeheartedly with the Republican myth that the country has a deficit “crisis”. Of course the “crisis” exists in the mind of the president. Republicans know it is a myth because they are the ones who created it.

I suspect that Obama from the very start saw the deficit as the overriding issue of the day and he determined to become the president who tamed it. Perhaps he saw this one issue as the factor that would determine his legacy, his greatness as a president. All presidents are driven by big egos. Obama seems to have one that is larger than most.

He therefore set out to cut the two major programs to garner support from the wealthy who hate and to establish an indelible mark of greatness to his presidency.

He has of course miscalculated badly. He will now be forever maligned as the president who sought to take the first steps to dismantle the programs. He not only agreed to put Social Security and Medicare on the chopping block; but he sought as well to put you and me and countless millions of Americans on the same chopping block.

It’s beginning to look like the so-called deficit “crisis” was an excuse to begin the dismantling of the two most popular programs in the U S today.

Obama should be ashamed of himself!

DC FOLLIES

Not even Republican­s are prepared to accept Obama’s drastic cuts to the social safety net.


Read the Article at HuffingtonPost

The primary reason for Republican intransige­nce, however, is a fossilized aversion to desperatel­y needed tax increases.

A great mystery here is why so many dirt poor people are willing to cut their own throats to give tax cuts to the fabulously rich.

There is a very simple solution to the deficit. Let’s raise taxes on the wealthy. By doing so the deficit will begin to decline.

Deficit hysteria by the way has been fabricated to promote the idea that there is a “crisis”. The propaganda swirling about the issue gives to the right wing a golden opportunit­y to initiate the destructio­n of the safety net and finally realize a decades old vendetta. But the deficit has not reached “crisis” proportion­s.

The genuine crises in America are the unemployme­nt crisis and the impending health insurance crisis. If allowed to proceed at the current pace America risks becoming an impoverish­ed nation. Not to address these genuine calamities represents a dereliction of duty on the part of our elected representative.

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Exactly what cuts the president is proposing is unknown. That apparently is a state secret.

The $4 trillion figure however should give an indication of the size of the cuts.

The new tricky scheme for Social Security cuts is called the “chained CPI”.   It ties SS COLAs to a lower inflation index and reduces living allowances­.

For people forced to live on $10,000 or $12,000 dollars a year such a change represents a drastic cut.

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Obama has accomplish­ed some good for working people. But on the overriding issues of the day he is a failure.

More to the point, he is the man who has killed genuine reform..He killed the public option and opposed vital financial reform – the two pieces of legislatio­n not withstandi­ng. He also establishe­d a Cat Food Commission and then rigged it by appointing right wing extremists to important positions. And on taxes for the wealthy and drastic cuts to social programs, time and time again he has sided with the GOP.

Democrats who support a handful of social issues like to call themselves “centrists­”. Nothing could be farther from the truth. On the critical issues of the day too many Democrats, including Obama, stand far to the right on the political spectrum.

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I would like to propose an idea to strengthen Barack Obama. Perhaps we should send him back to a neighborho­od in Chicago where he can better apply his assets. Now doesn’t that sound like a good way to strengthen him?

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The next time you’re in the bank where you have your savings account, ask the banker to show you the “lockbox” where he keeps your deposits. That should get a good chuckle out of him.

Money in a lockbox does not earn interest. So Social Security savings have been used to purchase U.S. Treasuries – the safest investment in the world – where the savings earn interest and increase the value of the SS savings account.

When you hear right wing extremists promoting the idea that SS is broke because there is no lockbox, keep in mind that there is no lockbox anywhere in the world for any savings account. To keep money in a lockbox is a foolish idea because it cannot earn interest there.

The lockbox myth is simply another form of propaganda used by the right wing to claim that SS is broke. It is not. It is doing just fine and with a little tweaking it can survive forever.

And that is why the right wing is so desperate now to realize its life-long vendetta against the program.  They will never give up their fight to destroy the SS – mainly by profitizing it – but recent developments such as the recession present the best opportunity in decades to realize the generational dream:  To destroy the program as it is presently structured.

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Barack Obama and the sacrifice gambit. Ridiculous­. The shared sacrifice theme is dead. The president has been ridiculed by Republican­s for months and that attitude is so ingrained that there is no hope that they will ever compromise­.

The president needs to invoke the Fourteenth Amendment, declare a national emergency and order the Treasury to sell bonds.

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Here is a scary scenario. The president sides with Republican­s. He desperatel­y wants to cut safety net programs and to keep tax cuts for the wealthy in place. He just needs to be placed in a box of his own making, with a little help from Republicans, so he can peddle excuses for his right wing behavior.

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At present it appears likely that Obama will be defeated in 2012. It is the Republican’s race to lose. And they may well do that. But Democrats might better begin to focus their energies on 2016.

Conditions will be worse under the Republicans but in all likelihood they will overreach and be ripe for a crushing defeat in 2016. And who knows, perhaps this nation has another FDR waiting in the wings.

The Dems got crushed in 2010 for one reason and one reason only: Barack Obama’s duplicity on the health insurance issue, in particular his killing the public option and conspiring with the pharmaceutical industry to gain their acquiescence on the legislation.

He has been Machiavellian on many issues, moving rightward while triangulating with his supporters. His behavior has been clumsy however and now stands exposed. His may still win the votes of those who supported him in 2008. But the independent vote is gravely in doubt. See the election of 2010.

If the GOP doesn’t manage to lose the election, Obama is a one termer.


BARACK THE TERRIBLE

Obama is not to be trusted. He has shown time and time again that he belongs in the extreme right wing of the Democratic party. He is the man who destroyed the public option and engineered the right wing, corporate friendly health insurance fiasco that he hoped, and failed, to pull off as “reform.” It was he who rigged his Cat Food Commission with right wing Social Security haters. It is Obama who has repeatedly given his approval to a right wing Republican agenda in so-called negotiations. And it is the apostate Obama who is putting forth even more drastic cuts to Medicare and Medicaid and to Social Security.

File:Barack Obama on phone with Benjamin Netanyahu 2009-06-08.jpg

The glitter is gone; the change a betrayal.

Obama will proceed on the path to political suicide because he places his faith in the payoff money mob that bought the office for him in 2008. And he is gambling that office can be bought again with the same payoff money.

As for his base, they are only useful once every four years. And he is a firm believer in the Rahm Doctrine – where else can they go. So the liberals are beyond marginalized. They are a worthless crowd, a meaningless hindrance to the only goal he lusts for – a second term.

And he is determined to employ the most unscrupulous means to achieve that goal.

Obama is an apostate of such egregious proportions that true Democrats would be remiss in not exploring ways and means to expel this right wing extremist from the party. While this remedy to Obama’s betrayals may seem remote and itself extreme it would bear a strong message. It should at least, be discussed by the liberal wing and floated as a trial balloon. It will go nowhere of course and cause only a momentary stir in the DC follies that pass as government. As for the liberals who propose expulsion, why they would deny any involvement. And Obama would appreciate the duplicity. 

NEEDED: A BOLD DECISIVE MOVE

Does Obama have even one such move in his soul?

A courageous president would announce a dramatic address to the nation at one minute after midnight on August 2, invoke the 14th Amendment, proclaim a national emergency, vow to uphold his Constituti­onal duties as commander in chief and declare Republican­s guilty of derelictio­n of duty.  He would then charge Republicans with attempting to inflict grave harm upon the national security of the country solely to advance a radical political agenda and order the Justice Department to issue arrest warrants.

Such actions would set a precedent that would prevent a minority from bullying into law an extremist agenda, end forever unscrupulo­us hostage taking and expose to the world the attempted sabotage of the economy by right wing radicals – and do it all in one bold stroke.

The chances of his being removed from office by such an affair are somewhere between zero and nada.

An impeachment would certainly ensure from a partisan, right wing House committee. But it would stand exposed for the political agenda it is attempting to impose on the nation.

Just saying.

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