Sunday, July 10, 2011

Obama's poker face

After Republicans walked out of the Biden talks because the President was demanding the closure of a few tax loopholes for the rich in exchange for 2 Trillion in budget cuts over ten years, Obama went all in with 4 Trillion in cuts. Rumors of cuts to Social Security are being denied (Obama would be stupid to do that) and Medicare would be reformed not cut (there is still a lot of corporate fat to rendered from Medicare).

Boner panicked and now wants the Biden plan back or even less of a deal if he can get it. Republicans don't want budget cuts except for the poor and the Feds don't spend that much on poor people. The Federal Government is largely an insurance company for elderly white people that has an army. Nearly 90% of the Federal income tax revenue goes to the Pentagon with a huge amount buried in the budgets of other agencies. Start making serious cuts to those other agencies and either the military industrial complex takes a hit or you stop doing any non-military functions like Border Patrol, CDC, food inspection, bridges, damns and right down the list.

Then there is the 200 billion or so the Treasury pays in interest on long term debt left over from Reagan and Bush I and to a minor extent, Clinton. You see once Clinton balanced the budget and he had boom period established he refinanced all of the remaining debt as long term bonds at what was at the time low interest rates.

When Bush II started running over a trillion dollar annual deficit he was of course selling short term Treasuries like his daddy did. This was the only way to keep interest rates down because the rich and their corporations are awash in cash since they pay almost no taxes they will buy short term paper at low rates but not so much the long term bonds. In fact at the height of the Bush bank panic investors were buying bonds at the Treasury auctions at such high prices that the government made money, effectively getting a negative interest rate.

The problem is if the Republicans force a default in August when large amounts of this debt start coming due and needs to be rolled over, interest rates could spike and we'll all be speaking Greek or in tongues or whatever happens during an Apocalypse.

Keep in mind none of this has to happen. Like the security theater at the airport it's all a show invented by the Republicans and the corporate fat cats to make them richer and you into a serf. We can have our country back anytime enough of us realize its our country and not theirs. The government borrows money from rich people because the rich have surplus money. They have this surplus money because they bribe enough Congressman to go along with this Kabuki theater and cut their taxes and raise yours because it's good for the economy. Their economy, not yours. It's up to you to change that.


Anonymous said...

"You see once Clinton balanced the budget ..." No credit to the Republican majority in congress at the time, I see.

Anonymous said...

"The problem is if the Republicans force a default in August when large amounts of this debt start coming due and needs to be rolled over, interest rates could spike and we'll all be speaking Greek or in tongues or whatever happens during an Apocalypse. ..."

Yeah, like Y2K was supposed to meltdown the world, too. .. still waiting for that scare tactic to come to pass. Yawn.

prairie2 said...

I let a couple of talking points through to take the opportunity to slap them down. The Clinton budget: the fact you can easily look up is that Speaker Gingrich and the majority of the Republicans voted against it predicting it would crash the economy and end the world. Republicans have never balanced the budget or cut government spending, look it up.

The default is now a "like Y2K ...scare tactic... yawn"? Is he agreeing or didn't read the whole post? It's definitely not yawn time though, it will be bad times, at best.

John said...

Four trillion (with a "T" like teabag) dollars over ten years is $400 billion (with a "B" like Bush) a year. This is about the magic ten percent that goes to non-pentagon expenditure.

This could well explain why Boner is now nervously moistening his undies. I'll refrain from lambasting Obama, this time, since he did not say: "this is my final offer."

I've trumpeted far and wide the analysis (link below) that 53% of the federal budget goes to the pentagon ( I prefer: "perpetual war machine").

In this post the figure is 90%. While I do not dispute it (and, I note, neither did the reich's commenters), is there a some article, for reference, that reveal's where that other 37% is buried?

John Puma

macnow said...

John that "T" for trillion also comes up in this beautiful little piece (specifically listen 53 second in for it, you will laugh or cry)

Kinda makes you believe the 911'er stuff once you hear/see it with your own ears/eyes that this happened the day before 911.

I served honorably (and decorated)in the army intelligence, in the late 80's and early 90's. At my remote intelligence site... we alone had racks of computer equipment that was never put into service (brand spanking new tech) that cost upwards of 10 million a rack. Now times that one remote site's "boondoggle of waste" across the whole military; and it becomes some serious change : - )

Oh and F*ck the wingnut trolls of late, you all are pathetic little piss-ants.

John said...

To macnow:

Well. that Rummy may not have been able to manage his area, the perpetual war machine, just like the rest of the Bush admin's executive scum.

But this video leads one to the irrefutable conclusion: Rummy may have been the king at what that stable of scum were experts: manipulation of the news cycle.

Thanks for the video link.

John Puma

Anonymous said...

Now, Italy is starting to rollover. ... then Spain, Portugal, Ireland, Britain and finally, the biggest of them all, the USA. .. Say goodnight, Gracie.

macnow said...

Yeah manipulation of the news cycle to the nth degree.

I mean Fcking A, to drop that bomb the day before 911... It's like the fcker knew before hand what would happen the next day; so he dropped this turd knowing full well it would be forgotten in the institutional memory hole that is 911.

But if he ever was questioned later, he could always say he really planned to do something about it, but of course bigger things (911) came about that demanded full attention.

Sorta indemnifying himself against possible prosecution later.

It all makes me sick.

Anonymous said...

Played poker many times in Vegas. Nobody says, "Don't call my bluff." A statement from someone that has no idea how to play the game. No wonder the USA is a debt laden, welfare/nanny state/entitlement mess.

prairie2 said...

Why don't they read the post? Do they think anybody who doesn't chant the RWTP with them will agree with them? Just keep chanting on the big bad truth will go away.