Congress

President Obama Gave Speaker Boehner the Debt Ceiling to Play With in 2010

Disclaimer: This forum rules like the moderators and contributors.

And here we are again! It started in 2010. The Bush tax cuts were about to expire. There was leverage to negotiate a debt ceiling raise or to just let them expire. How do I know there was leverage? I know Republicans like tax cuts for the rich, and there was a deal for the purpose of extending them with Republican votes. It passed with those Republican votes, which led to this whole thing because there was no debt ceiling raise included.

Maybe others are unaware of this? I don't know. It doesn't matter though; the uninformed shouldn't dictate fantasy as reality in a reality based community. This is the actual reality and why we are worried about a global financial calamity with regard to a possible political default on the public debt, which is a choice and otherwise impossible for a sovereign currency issuer.

Obama on the Debt Limit — December 2010

Q Mr. President, thank you. How do these negotiations affect negotiations or talks with Republicans about raising the debt limit? Because it would seem that they have a significant amount of leverage over the White House now, going in. Was there ever any attempt by the White House to include raising the debt limit as a part of this package?
 

THE PRESIDENT: When you say it would seem they’ll have a significant amount of leverage over the White House, what do you mean?
 

Q Just in the sense that they’ll say essentially we’re not going to raise the — we’re not going to agree to it unless the White House is able to or willing to agree to significant spending cuts across the board that probably go deeper and further than what you’re willing to do. I mean, what leverage would you have –
 

THE PRESIDENT: Look, here’s my expectation — and I’ll take John Boehner at his word — that nobody, Democrat or Republican, is willing to see the full faith and credit of the United States government collapse, that that would not be a good thing to happen. And so I think that there will be significant discussions about the debt limit vote. That’s something that nobody ever likes to vote on. But once John Boehner is sworn in as Speaker, then he’s going to have responsibilities to govern. You can’t just stand on the sidelines and be a bomb thrower.

You know, we on the left knew what this would lead to. You don't trust John Boehner with the full faith in credit of the United States unless one is completely clueless or an economic nihilist. The resulting signs we are starting to see of a financial panic in response to the prospects of a default on top of the ongoing depression, the jobs crisis, the continuing climate and ecological crisis all converging into one huge Epochal crisis, point to a special kind of disdain for the public that all our elected leaders have for us. I mean, we have enough problems without adding to them through a self induced global financial then economic crisis caused by the President's pursuit of a deficit terrorist grand bargain whether through incompetence or outright corruption.

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Historian Rick Perlstein Uses the Nation to Whine About My Tweet

I have to admit, I was surprised to be notified that Historian Rick Perlstein of Nixonland fame, devoted an entire column in the Nation to two tweets replying to him; one from myself and one from another commentator on twitter. It's also surprising, because I have been a fan of some of what Perlstein has written in the past, and I have cited him before. However, after this, I and certainly a lot of other people surprised at this lack of professionalism from an established writer, won't do it again.

After all, one doesn't normally read columns by established historians devoting entire pieces to complaints about tweets they received or people on twitter. Especially, one tweet that was merely a question about a widely cited article at CNET. I certainly don't know why Rick Perlstein was so offended by that to devote an entire piece in the Nation to mine and one other tweet he received. I have to wonder if he realizes how unprofessional he looks by doing so. The excellent responses to Perlstein's shoddy piece in the comments section certainly speak to that.

On Glenn Greenwald and His Fans

Read another tweet:
 

“NSA admits listening to U.S. phone calls without warrants cnet.co/1agOFCy via @CNET What say you, @RickPerlstein ?”
 

I think we can detect here an accusatory tone, especially given the way the tweeter, “therealpriceman,” fawns over Glenn Greenwald generally. (Though you can never be sure on the Internet, and besides, why do people pursue political arguments on Twitter anyway? I’ll never understand how, for instance, “When u talk gun violence lk in mirror PA here we cling to guns-apologz to PRES O”—another tweet directed my way, apparently somehow meant to respond to this—could possibly contribute anything useful to our common political life.) I detect in this message: even the NSA says you’re wrong about Glenn Greenwald, so when are you going to apologize? And if I’m reading right, that’s some really smelly stupidity. Because the whole point of my original post was that there was plenty Greenwald had “nailed dead to rights” in his reporting. What I had in mind when I wrote that (I should have specified this, I think) was the stuff on Verizon turning over metadata to the NSA. And yet what therealpriceman links to is an article suggesting something that Greenwald has not (yet?) claimed, and which still remains controversial and undetermined: that the NSA has acknowledged that it does not need court authorization to listen to domestic phone calls, a claim sourced to Representative Jerrold Nadler, which Nadler based on a classified briefing he and other Congressmen received, but which it has since been established Nadler probably just misunderstood.
 

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And given that perspective, I would love to know why Glenn Greenwald thinks the establishment cannot do to him, a relative flyspeck in the grand scheme of things, what they did to Dan Rather, a towering giant of Washington reporting going back to Watergate. Which is: consign him to the outer darkness, where the only people who care about what he has to say are the likes of my good friends @therealpriceman and @runtodaylight.

He starts out by assuring the audience that he has thick skin, but then goes on to prove just how thin it really is. By whining for 13 paragraphs or so about criticism, criticism from a couple of tweets he received days ago, it really doesn't show the maturity he was initially hoping to espouse. So since I apparently hurt his fee fees so bad, in 140 characters or less, I'll go ahead and put his suppositions to the test.

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When You Support George W. Bush's Policies, like Obama, I Get to Call You a Republican

Worse than a Republican; I get to call you a fawning sellout with even less principles than the Republican security soccer moms of 2004 that we all remember before. They really believed back then, and still do, that giving up their rights was worth a sense of (fake) security. And you know what? They were more principled than anyone who writes diaries excusing neoconservative policies from the Obama administration that were unacceptable to them when they came from the George W. Bush administration.

Period. End of story. Why? The RW soccer moms didn't pretend to be outraged about this stuff during the Bush years. They have consistently supported it. So since that is an undeniable fact, I have to ask some of you how it feels to have even less principles than Republican voters who excused and supported some of the worst war crimes in history? How does it feel to enable a Justice Department that has now de facto codified some of the worst war crimes and financial crimes in history? How does it feel now that it is now exposed that, like Republican voters, you need a BS war on terror to feel safe?

How does it feel to repeat the same BS that cretins from the right did in the 2004 election to support their chosen leader? You know that fear mongering bit about "having nothing to hide so then having nothing to worry about?" That came from the RNC, and now that garbage is being recycled by people "who consider themselves Democrats or progressives based mostly on their feelings and nothing more. This similar zeitgeist all started during the run up to the Iraq war after 9/11 when the Patriot Act was passed when almost no one read the Bill in Congress.

Unlike apparently many people who didn't really mean it, I was actually horrified by what went on during those years, and yet those same policies continue under President Obama. I'm also horrified that some of the same people who call themselves Democrats are not horrified anymore.

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Sunday May 26, 2013: Up with Steve Kornacki Tweets

Today's show was about immigration reform, Oklahoma disaster relief, Apple tax shelters, Apple, Congress, tax law, and corporate taxes. #Uppers is now.

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John T. Harvey: Austerity Leads To... Austerity!

In the real world and the reality based community, there is talk about austerity from people who understand the nuances of it and macroeconomic accounting identities. They point out the undeniable fact that there is austerity in the UK, the Eurozone, and yes, the United States. This interactive chart will show this, though I can't embed it here. So instead, I will add a small snapshot of some of the data.

Net spending in the United States has steadily declined since it rose from 2008 to 2009 when the inadequate stimulus(only $500 billion of direct spending at about 1.5 percent of GDP) was passed. Stimulus packages don't exist in a vacuum, and you have to count all government spending, which basically shows how exactly the numbers, including the stimulus as this does, didn't close the output gap. And since the numbers didn't, that is actually austerity. After all, spending went up in the UK and Eurozone from 2008 to 2009 as well, and since then, their spending has declined. Even though it is on a higher level, it is being cut at an even more alarming rate with its fate set to go below our miserable level by 2017.

I have pointed this out before. Sometimes I get frustrated, and point this out harshly, because some pride themselves on denying this established data to support whatever a politician in their party says or does. I don't know why. Denying reality is not going to give resources to people who need them. There is a reason my last diary has been cited by the reality based Post Keynesian MMT community, in which I am truly grateful for and humbled by; it is the truth.

The real economy of jobs and wages continues to go nowhere thanks to the lack of deficit spending and an illogical debate in DC about how much austerity we need to appease the invisible bond vigilantes and confidence fairies. It is neoliberal deficit terrorist economic insanity based on lies. And on that note, it is my pleasure to republish a piece by someone in the reality based economic community whom I can now proudly say is a friend of mine, Post Keynesian MMT economist John T. Harvey. He, once again, brings clarity to these matters in a way that only he can.

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Are We Really the Reality Based Community? We Don't Act Like It.

This is not directed at the reality based VOTS community.

And by "we" I don't mean me or I, because I make a good effort to at least try. I'm talking about blogs like Daily Kos. I had always assumed, because of the many insightful writers on the site and on the front page that was the case. However, we are starting to see some of what we see with corporate control of all airwaves in how site moderation is run.

For instance, whether on Fox News, CNN, or MSNBC there is always a fake debate when it comes to climate change which is undeniably happening since we have hit 400 ppm of CO2 in our atmosphere for the first time in 3 million years. When this spectacle that pretends to be a live debate on TV happens, there are always two guys picked by the network to come on TV to debate the issue; one a NASA scientist like say James Hansen and one fringe dwelling Koch funded climate changed denier to debate as if there is something to debate as if both sides have an equal argument to make. WRONG. The science is in.

I always thought we in the progressive blogosphere prided ourselves on not accepting that dynamic, but now I am starting to wonder. On the issues I go to great lengths to cover when it comes to the economy, there are certain undeniable facts that have to be acknowledged whether you are a Post Keynesian MMT proponent like me or not. I mean, if we are any different than debates on red state or the corporate owned media, that is. I have to wonder about that now, because it now appears from what went on in my last diary in the comment section that a moderator here stepped in and made an effort to portray the troll like behavior and continual denial of established facts in every diary of mine as "just an honest disagreement."

It was inferred that I was "out of line" for accurately describing a commentator while using a term that accurately describes his brand of troll like behavior. That's not out of line. When people act like trolls in every diary of mine I can only ignore it for so long before calling it out directly. We can't just ignore this kind of behavior forever in this community. I mean, not if we still consider ourselves part the reality based community. Do we?

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Denying the Data Today Won't Make President Obama's Austerity Go Away

That's right. Remember my last diary where I did prove without a shadow of a doubt that the austerity that this administration has put forth right now, and in effect right now, does not make this President a Keynesian? I provided a lot of reference material on Keynes proving each point I made, because that's what we encourage on this site. That's called backing up one's assertions with facts and data. I did.

The same facts were put forth by economist Jared Bernstein who used to work for VP Joe Biden and is now a senior fellow at the Center for Budget and Policy Priorities. As a Post Keynesian MMT proponent, I don't have the same outlook on economics, to say the least, as the CBPP on a number of things, especially on public debt and deficits. However, there's no reason to doubt the data in this paper from Richard Kogan; it is clearly well sourced from the CBO and the President's own Office of Management and Budget analyzing the Budget Control Act of 2011 signed into law by the President.

CONGRESS HAS CUT DISCRETIONARY FUNDING BY $1.5 TRILLION OVER TEN YEARS: First Stage of Deficit Reduction Is In Law

This proves without a shadow of a doubt that anyone who shows up in every thread and types that "cuts only happen in the future" must not be very intellectually curious. After all, as most can see with thier own eyes, the 70% of recommended cuts from Bowles Simpson going into effect this year, the year 2013, occurring until the start of fiscal year 2023 actually happen every year accumulating up to 1.5 trillion in real cuts. These are the indisputable facts.     

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The Reinhart and Rogoff Errors Discredit the Obama Administration and Austerity

Yes they do. I have heard a statement that bugs me a lot lately and that statement is that this was the go to analysis for the Republicans as if Democrats have never referred to it in any way. I'm here to say that is complete BS and we know this now. The Sequester created by the WH and passed in a bipartisan way, was based on Reinhart and Rogoff's BS analysis about scary scary long term debt to GDP ratios like their offer to cut Social Security.

So let's stop pretending this is only coming from Republicans, especially with the Obama administration using deficit lies and errors to come after Social Security. Reinhart and Rogoff's complete methodology was BS and neither of them understand the nuanced difference between countries with a sovereign currency; fixed exchange rates and floating exchange rates; gold standard countries and those with a fiat currency and how that relates to reserve banking at the Fed and our private current account and trade balance within. So therefore it skews the mean and amounts to garbage methodology even if done correctly.

I love How Mike Norman puts it. It kind of reminds me of how I would say it; those of you that are familiar with my work.

There's a solid account tying the Obama administration directly to the work of Reinhart and Rogoff. You will learn more about this below the fold.

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Hellraisers Journal: Rep Keith Ellison is a national treasure.

You..ought to be out raising hell. This is the fighting age. Put on your fighting clothes.
-Mother Jones

Friday April 17, 1903
West Virginia - Miners and Their Families Endure Hardship During the Long Strike


Strikers and Their Families
Living in Tents

The strikers have carried on through the winter and into the spring. Mother Jones described the conditions one bitter cold winter morning in the tent colony:

The wind blows cold this morning, but these cruel coal barons do not feel the winter blast; their babes, nay even their poodle dogs are warm and have a comfortable breakfast, while these slaves of the caves, who in the past have moved the commerce of the world, are out on the highways without clothes or shelter. Nearly 3,000 families have been thrown out of the corporation shacks to face the cold blasts of winter weather.

When the story of this strike in West Virginia is told, let us remember those who died of exposure in the tents as well as the martyrs of Stanaford.

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Hellraisers Journal: The First U.S. Secretary of Labor Fights for Mother Jones

You..ought to be out raising hell. This is the fighting age. Put on your fighting clothes.
-Mother Jones

Wednesday April 15, 1903
Recent letter from William Mailly of the Socialist Party to Mother Jones:

Mother Jones,
Clarksburg, W. Va.,
My dear Mother Jones
I have your favor of the 12th written from Montgomery and I am going to answer it right away and make you an official offer to become a lecturer for the Socialist party. I can see by your letter that you are tired of your present work and I should like to free you from it and put you out for the Socialist party. I know of nothing that would arouse more genuine enthusiasm among our members than for the announcement to go out from this office that you had become a National lecturer for the Socialist party, and that your entire arrangements for meetings would be in the hands of the National Secretary. If you will decide to come with us I shall arrange a tour for you through the states where I think you are most needed and can do the best work, and I shall pay you from the time you start, $3.00 a day and your hotel and traveling expenses. This would mean every day in the week although I would not ask you to speak every day...
With my love, as ever, I am,
Your Comrade,
[William Mailly]
National Secretary

This letter only increases speculation that discord is developing between Mother Jones and her current employer, John Mitchell, President of the United Mine Workers of America.

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