And, FWIW, Social Security Benefits Cuts Are, Indeed, On The Table In The Debt Ceiling Negotiatio
Read the Article at HuffingtonPost
I’m getting tired of the hand-wringing on the left about how unreasonab le Republican s are being and how “strong” Obama was yesterday. Of course Republican s are being unreasonab le: they’re threatenin g to blow up the global economy rather than raise taxes on rich people in an era of historical ly-low taxes for rich people.
Does anyone expect crazy people to act any other way but crazy?
And I’m sorry, I don’t think stating the obvious — that Republicans would rather take money out of the mouths of hungry children so that rich people can buy a few more baubles — is “tough.”
What I want to start seeing is what Obama should do. And it’s kind of depressing that the best answers I’ve found so far come from DavidFrum:
3) Why for that matter is Obama surrendering to the demand to change the subject from jobs to deficits? Surely Obama believes that rapid budget-cut ting will be deflationa ry? And therefore irresponsi ble in the context of 10% unemployme nt, near-zero inflation, and 1% interest rates on federal debt? Why has he allowed himself to be pushed into measures he regards as irresponsi ble?
4) Beyond that why isn’t he yelling his head off about the Republican default threat? Why isn’t he being specific about what it could mean? And why isn’t he doing what LyndonJohnson would do – making it clear that if H-Hour does arrive, he’ll use disburseme nt power just as politicall y as Republican s are using the power of the debt ceiling: eg, paying Medicaid bills from Blue states first, Red states later? Paying farmers and other Republican constituen cies with IOUs, while hoarding cash for Democratic voters?
Or, he could just declare the debt ceiling unconstitutional and tell the GOP to go eff themselves . Now that would be “tough.”
Can’t anyone in the WhiteHouse play this game?
While Afghanistan is hardly a model of the rule of law -- the arrests were effectuate d by a corrupt government under severe pressure from outside factions on which they financiall y rely -- it's nonetheles s true that in the U.S., even that minimal level of accountabi lity seems impossible:
In November 2009, Attorney General Eric Holder vowed before television cameras to prosecute those responsible for the market collapse a year earlier, saying the U.S. would be “relentles s” in pursuing corporate criminals.
In the 18 months since, no senior Wall Street executive has been criminally charged, and some lawmakers are questioning whether the U.S. Justice Department has been aggressive enough after declining to bring cases against officials at American Internatio nal Group Inc. (AIG) and Countrywid e Financial Corp. . . .
"Can that many companies have collapsed -- large financial firms -- and not one criminal case comes out of it?" said Peter Henning, a law professor at Wayne State University in Detroit who previously was a federal prosecutor and attorney for the SEC. "That seems to go against the norm of the savings-and-loan crisis, and the accounting frauds 10 years ago."
Some of the biggest Wall Street firms rebounded from the crisis stronger than ever. Goldman Sachs’s 2009 profits were a record for the firm and JPMorgan Chase & Co. (JPM)'s earnings in 2010 and the first quarter of 2011 have been at an all-time high.
A bitter cynic might suggest that such prosecutions have not happened because both political parties are desperatel y competing for Wall Street cash for the 2012 election, and nothing would doom the incumbent party's chances more than holding Wall Street royalty accountabl e, along with the fact that the top levels of government are suffused with former bank officials and lobbyists -- but everyone knows that American justice isn't politicize d that way, so that can't be it (just like everyone knows that political considerat ions played no role whatsoever in the presidenti al shield of immunity lavished on high-level Bush officials) .
"The bottom roughly 45 million families in America or households in America—and there are a little over 100 million households —they’re going to actually see their taxes go up. Republican s got an extraordin arily good deal, that raises, I think, basic questions about the negotiatin g skills of the President. "
The White House is playing hardball with Democrats who intend to vote against the supplemental war spending bill, threatenin g freshmen who oppose it that they won't get help with reelection and will be cut off from the White House, Rep. Lynn Woolsey (D-Calif.) said Friday.
"We're not going to help you. You'll never hear from us again," Woolsey said the White House is telling freshmen.
The Politico’s Jonathan Martin reported this morning that Rahm Emanuel warned leaders of liberal groups in a private meeting this week that it was time to stop running ads attacking Blue Dog and "centrist" Dems on healthcare.
I'm told, however, that Emanuel went quite a bit further than this. Sources at the meeting tell me that Emanuel really teed off on the Dem-versus-Dem attacks, calling them "f**king stupid." This was a direct attack on some of the attendees in the room, who are running ads against Dems right now.
Even if we give first priority to the destruction of terrorist networks, and even if we succeed, there are still government s that could bring us great harm. And there is a clear case that one of these government s in particular represents a virulent threat in a class by itself: Iraq.
As far as I am concerned, a final reckoning with that government should be on the table. To my way of thinking, the real question is not the principle of the thing, but of making sure that this time we will finish the matter on our terms. But finishing it on our terms means more than a change of regime in Iraq. It means thinking through the consequences of action there on our other vital interests, including the survival in office of Pakistan's leader; avoiding a huge escalation of violence in the Middle East; provision for the security and interests of Saudi Arabia, Turkey and the Gulf States; having a workable plan for preventing the disintegra tion of Iraq into chaos; and sustaining critically important support within the present coalition.
In 1991, I crossed party lines and supported the use of force against Saddam Hussein, but he was allowed to survive his defeat as the result of a calculation we all had reason to deeply regret for the ensuing decade. And we still do. So this time, if we resort to force, we must absolutely get it right. It must be an action set up carefully and on the basis of the most realistic concepts. Failure cannot be an option, which means that we must be prepared to go the limit. And wishful thinking based on best case scenarios or excessivel y literal transfers of recent experience to different conditions would be a recipe for disaster.
The report describes how Chicago sold the revenues from its parking meters in 2009 to a consortium of investors led by Morgan Stanley. “Private investors gave the city an upfront payment of $1.15 billion in exchange for meter revenues for the next 75 years," the report writes. "Since private operators took over the parking meters, rates have significantly risen, whle meter maintenanc e quality has declined. Recent analysis shows that Chicago undervalue d the asset and should have received a billion additional dollars for the deal.”
Bottom line: The people of Chicago will pay higher parking fees while suffering from deteriorating meters through the year 2084. Welcome to the "efficienc ies" and "innovatio n" of the "free market."
Welcome to the next frontier in the business campaign against governmentKEEP READING. First it was the fight against regulation and public-sec tor spending, both largely successful . Now business is vying to ownthe equity assets of government through arcane lease-back and securitiza tion deals.
These strategies not only hurt us as taxpayers and citizens (through higher expenditures for less value, and through reduced public discretion over public assets). They fling open the doors to all sorts of other investor schemes to buy and privatize public assets. Next stop: the withering of the State and the arrival of the Total Market Order.
Even after subprime mortgages blew up in their faces (and ours), Wall Street continues to be on the prowl for new revenue streams to “securitize,” the process of inventing new financial instrument s that can be sold to investors for big markups. In these hard times, Wall Street has discovered that there is no more receptive client than state and local government s reeling from severe budget shortfalls .
Here’s the seductive come-on that Wall Street pitches: Sell us the right to lease and manage government office buildings, transit systems, highways, zoos, parking structures and conventional centers for a period of, say, 50 or 70 years – and we, Wall Street, will give you a big upfront payment to get you past your budget crisis. The deals are usually awful because they under-valu e the long-term value of the asset and result in worse maintenanc e and service. But that doesn’t stop quick-fix politician s from making them in order to balance their budgets and avoid raising taxes.
Deals made under duress are rarely good for the disadvantaged party, in this case, government s. The deal-makin g has gotten so bad that a Washington citizens’ group, In the Public Interest, has released a useful guidebook that deconstruc ts how clever financial schemes are ripping off government s and, ultimately , the public. “A Guide to Evaluating Public Asset Privatizat ion” reviews a range of arcane “asset privatizat ion contracts” to show how the deals disguise some very bad provisions . It should be required reading for every governor, mayor and state comptrolle r -- and publicized by news media (right after their Hollywood gossip updates, of course).