Dooming Ourselves Deeper Into Debt
Aaron Cynic writes at Diatribe Media:
The showdown over the budget and the debt ceiling continues to drag on and Congress is still attempting to cut spending down to nothing but defense, tax breaks for the wealthy and their own salaries. While politicians continue to rail against taxes and spending and the media hypes the “gang of six”, it seems that we’re quietly moving past an interesting historical marker. Ten years ago, former President George W. Bush signed the first round of tax cuts and the Treasury Department began to borrow billions in order to pay for them.
Think Progress reports that on August 1, 2001, the AP ran a story on the Treasury announcing its intent to borrow $51 billion to cover the tax rebate checks handed out by the Bush Administration. In addition, the article highlighted the Democratic argument against the Bush tax cuts: “Democrats argued that President Bush’s $1.35 trillion…
Austerity For Everyone, Except The Defense Industry
Aaron Cynic writes at Diatribe Media:
While Congress and the President fight it out over the debt ceiling and all of America quietly shudders over whether our economy will completely default on itself, at least one industry still hums along without a care in the world.
Amidst a fiscal crisis of apparently apocalyptic proportions, where the GOP demands dollar for dollar spending cuts from the budget in order to raise our debt limit, the Pentagon asked Congress for $264 million to cover part of a $771 million overrun on the F-35 program. The Hill reports Republican Senator John McCain let the news slip via Twitter, saying “Congress notified that first F-35 jets have cost overruns of $771M. Outrageous! Pentagon asking for $264M down payment now. Disgraceful.”
Leaders of the program Lockheed Martin spat back on Twitter, contending “The F-35 team is focused on reducing costs of the jets and is showing significant improvement in…
Durban South Africa, Friday Night at The Movies: We Can’t Escape The Tensions Around Us
Soweto. Photo: Michael Toft Schmidt (CC)
It’s Friday night, and the motorways are packed with cars heading for the mall. Here in Durban, the Gateway Mall is the destination of choice. It’s huge, the biggest of its kind in the Southern Hemisphere. It’s stuffed with stuff, much of it upscale, calling itself a “theater of shopping.” (It is actually built over what was once a dump.) The parking lots are packed with late model cars, many of them high end.
I have to confess, I was invited there to see America’s latest high culture import, the 3D version of the movie Transformers 3, based on a toy and cartoon, in a modern movie complex with 18 theaters and rows and rows of packed gates where you line up for endless popcorn and soft drinks.
Business was booming; the theater was full. Most of the crowd seemed to be whites and Indians but there…
Do You Smell The Chum?
Well, this past Tuesday certainly was freaky. In case you hadn’t noticed it, a massive disturbance rippled through the Force with enough power to knock the shoes off of anyone paying attention. It’s unclear to me precisely what it all adds up to, but I suspect that the universe just passed through a Paradox Inflection. Just possibly the forces of Right Wing Corporatist Perversion have actually begun to turn on themselves. Here’s just three examples of what I mean:
1. Rupert Murdoch retreats on his big to monopolize Britain’s largest satellite service BSkyB. In the wake of the recent phone hacking scandal where person’s in the employee of Murdoch’s flagship publication News of the World was forced to close up shop for illegally eavesdropping on the survivors of terrorist attacks and bribing police officials. Many initial reports saw that as a savvy move to divert attention from Murdoch’s attempt to acquire…
Video: President Obama Says It’s ‘Time To Be A Dick’ (Parody)
With news of President Obama’s frustration with the debt talks, here is a parody from Funny or Die of what Obama may really want to say. As he said about the debt talks:
“I have reached the point where I say enough,” and added “I’ve reached my limit. This may bring my presidency down, but I will not yield on this,” according to the Republican aide. After leaving the debt talks, Obama said this confirms the totality of what the American people already believe” about Washington politicians who are “too focused on positioning and political posturing.” (RawStory)
Senator Orrin Hatch To Poor: Do More For The Rich
Aaron Cynic writes at Diatribe Media:
According to Senator Orrin Hatch (R-Utah), the poor and middle class aren’t doing enough to share the economic burden in America. In a speech on the Senate floor, the 77 year old Republican, whose net worth is estimated from $2 to $5 million and takes in a $174,000 per year salary from the Senate, said that the poor “need to share some of the responsibility” of the deficit, and that he preferred the Republican approach of “shared prosperity.”
Hatch went on to say that “51 percent of wage earners, of all households, do not pay income taxes.” He attempted to clarify a few sentences later, saying that payroll taxes were the same thing as social security taxes.
Senator Hatch appears deeply out of touch with exactly what “poor” people endure and where most of the federal budget goes. The richest Americans Hatch felt the need to so quickly defend…
President Obama Claims War Powers Act Does Not Apply to Libya
WTF, Obama … Charlie Savage and Mark Landler report in the NY Times:
The White House, pushing hard against criticism in Congress over the deepening air war in Libya, asserted Wednesday that President Obama had the authority to continue the military campaign without Congressional approval because American involvement fell short of full-blown hostilities.
In a 38-page report sent to lawmakers describing and defending the NATO-led operation, the White House said the mission was prying loose Col. Muammar el-Qaddafi’s grip on power.
In contending that the limited American role did not oblige the administration to ask for authorization under the War Powers Resolution, the report asserted that “U.S. operations do not involve sustained fighting or active exchanges of fire with hostile forces, nor do they involve U.S. ground troops.” Still, the White House acknowledged, the operation has cost the Pentagon $716 million in its first two months and will have cost $1.1 billion by…
The U.S. Owes $62 Trillion in Financial Promises
Dennis Cauchon writes in USA Today:
The federal government’s financial condition deteriorated rapidly last year, far beyond the $1.5 trillion in new debt taken on to finance the budget deficit, a USA TODAY analysis shows.
The government added $5.3 trillion in new financial obligations in 2010, largely for retirement programs such as Medicare and Social Security. That brings to a record $61.6 trillion the total of financial promises not paid for.
This gap between spending commitments and revenue last year equals more than one-third of the nation’s gross domestic product.
Medicare alone took on $1.8 trillion in new liabilities, more than the record deficit prompting heated debate between Congress and the White House over lifting the debt ceiling.
And Now: The Homily from Brother Dimon … U.S. Debt Default Would Be A ‘Moral Disaster’
It’s 21st May: If you’re reading this, you’re in Hell; welfare Queen JP Morgan Chase’s CEO, Jamie Dimon provides today’s post-rapture homily via the AP/Huffington Post:
It would be a “moral disaster” if the United States were to default on its debts and become unable to pay its obligations, JPMorgan Chase & Co. CEO Jamie Dimon said at an appearance in Colorado Thursday evening.
The U.S. is the financial linchpin of the world, and the economic effects of the U.S. defaulting could be “potentially catastrophic,” he said at a dinner for the University of Colorado Denver Business School.
“It will dwarf Lehman,” Dimon said, referring to the 2008 collapse of the investment bank Lehman Brothers, which contributed to the beginning of a global financial crisis.
Dimon’s comments came in response to a question about the federal deficit from moderator Tom Petrie, a vice chairman of Bank of America Merrill Lynch.
Congress is debating raising the country’s…
Osama Bin Laden’s Intended War On the U.S. Economy
- Note pre-9/11 (in red) and post-9/11 (in yellow) Debt.
This viewpoint from Ezra Klein in the Washington Post is one not discussed enough by the media and its pundits in our nearly decade-long “War on Terror” (except on a few occasions). Writes Klein in WashPo:
Did Osama bin Laden win? No. Did he succeed? Well, America is still standing, and he isn’t.
So why, when I called Daveed Gartenstein-Ross, a counterterrorism expert who specializes in al-Qaeda, did he tell me that “bin Laden has been enormously successful”? There’s no caliphate. There’s no sweeping sharia law. Didn’t we win this one in a clean knockout?
Apparently not. Bin Laden, according to Gartenstein-Ross, had a strategy that we never bothered to understand, and thus that we never bothered to defend against. What he really wanted to do — and, more to the point, what he thought he could do — was bankrupt the United States of America. After…
U.S. Debt Outlook Downgraded To Negative By S&P For First Time Since Pearl Harbor Attack (Animation)
If anyone’s confused by the news of Standard and Poor’s downgrading the U.S. debt outlook, here’s the Next Media Animation:
U.S. Ranks Dead Last In Overall Social Spending
Ray Medeiros writes on PoliticusUSA:
This report from the OECD and The Business Insider, could not have come at a more crucial time in our national debate regarding the federal budget and the course the Republicans have chosen to take.
The conservative pundits are trying to frame this debate along the lines that the deficit and debt of the United States was created by the liberal, nanny state programs. This is an outright lie they have drummed into the heads of the American people. Unfortunately, some of the pundits are trusted sources of information for millions of people.
The United States currently ranks thirty-fourth(34th) out of the thirty-four members of the OECD in regards to spending on social programs, DEAD LAST.
The amount the United States spends is currently only 7.2% of our gross domestic product on programs that make up our social contract with the American people.
Students: You Are Exploited Debt-Serfs
Charles Hugh Smith writes on OfTwoMinds.com:
Students and parents, wake up: your only salvation lies in political engagement and action.
Of all the exploitative systems in the U.S., none is more rapacious than the Education Cartel. Like the proverbial frog that is unaware that it’s being boiled because the water temperature rises so gradually, college students and their parents are unable to recall what higher education was like before students were herded into debt-serfdom.
Apologists for the Education Cartel like to blame Corporate America or the banks, but the reality is that the Federal and State governments and the employees of the Cartel are willing partners in the exploitation and fraud. How did we get to the boiling-water point where students are expected to take on $100,000 or more in debt to attend college–even a mediocre one?
Answer: immensely profitable Government-backed loans. If the Central State wasn’t partnered with the Education Cartel, today’s debt-serfdom…
More Americans Work For the Government Than In Manufacturing, Farming, Fishing, Forestry, Mining & Utilities Combined
Stephen Moore writes in the Wall Street Journal:
If you want to understand better why so many states — from New York to Wisconsin to California — are teetering on the brink of bankruptcy, consider this depressing statistic: Today in America there are nearly twice as many people working for the government (22.5 million) than in all of manufacturing (11.5 million). This is an almost exact reversal of the situation in 1960, when there were 15 million workers in manufacturing and 8.7 million collecting a paycheck from the government.
It gets worse. More Americans work for the government than work in construction, farming, fishing, forestry, manufacturing, mining and utilities combined. We have moved decisively from a nation of makers to a nation of takers. Nearly half of the $2.2 trillion cost of state and local governments is the $1 trillion-a-year tab for pay and benefits of state and local employees. Is it…
California Man Pays Off $6,500 Credit Card Bill In Pennies
UPI reports:
MIRA MESA — California man upset with his bank for disallowing his requested refinance said he decided to pay off his $6,500 credit card bill entirely with pennies.
Thierry Cahez of San Diego County rolled 650,000 pennies in plastic, loaded them into crates and drove the lot to his Mira Mesa bank, KABC-TV, Los Angeles, reported.
Cahez was turned away by the bank several times but eventually was sent to a branch with a vault large enough to handle the coins.
Cahez said he opted to pay his credit card bill with pennies because he was turned down for a refinance and for the amount of charges and fees on his credit card, KABC-TV said Tuesday.
If You’ve Wondered What Money Is With No Purpose: It’s Dubai
They have an an indoor ski resort in the middle of the desert. They also built fake islands. A. A. Gill writes in Vanity Fair:
Its skyline erupting from the desert in just two decades, Dubai is a cautionary tale about what money can’t buy: a culture of its own. After gorging on the Viagra of easy credit, the emirate has the world’s tallest building, the world’s most expensive racetrack, and a financial crisis to match. From the Western mercenaries and Asian drones who maintain the gaudy show to 100-odd families who are impervious to any economic reality…
The only way to make sense of Dubai is to never forget that it isn’t real. It’s a fable, a fairy tale, like The Arabian Nights. More correctly, it’s a cautionary tale. Dubai is the story of the three wishes, where, as every kid knows, with the third wish you demand three more wishes.…
$1.2 Trillion: The Real Cost of U.S. National Security
Christopher Hellman writes on TomDispatch.com:
So the big week is here as the federal budget heads for the Washington operating table. The question in the media will be: to shut or not to shut the government down — and whether that shutdown is likely to happen now, two weeks from now, or in the spring when raising the debt ceiling comes up for debate. In the meantime, the new Republican majority in the House of Representatives is intent on taking out fuel subsidies for the poor, federal funding for Planned Parenthood, money for National Public Radio and the Public Broadcasting System, and the Maternal and Child Health Block Grant that “supports state-based prenatal care programs and services for children with special needs,” among many other programs, but not (as New York Times columnist Gail Collins pointed out recently) the millions of dollars the U.S. Army sinks into its “relationship” with NASCAR. The House voted down a proposal to eliminate that program…
