Sunday, November 20, 2011

The Super Committee, killed by Kryptonite

Actually they were killed by a dose of reality when Democrats called the Republican's bluff. Democrats put everything on the table (far more than they should have) but Republicans refused to agree to any real cuts let alone to tax the rich even at Clinton era levels.

The Republicans refuse to cut spending in any serious way. Remember, they were in complete control for 14 years. The current budget is still entirely a Republican construct, they've blocked every reform possible since Democrats regained tacit control of Congress in 2006, as Republicans have maintained control by filibuster in the Senate.  If Republicans were to agree to any cuts, they would have to answer to either the voters (tea bag protest sign: "keep your Government hands off my Medicare") and on anything else they answer to the lobbyists who own the Congress. Sure they're happy to screw with poor people and school kids, neither constituency votes or gives bribes, but make real budget cuts? No way.

The Republicans are still chanting that we are borrowing from China and sticking our grandchildren with the bill. The fact is that China has not increased its US Treasury Bond holdings in years. Even when they did, they paid for them in USD. Have you gotten a Government check payable in Yuan? All those dollars they have to throw around are not from their own profits, China spends those buying up African copper mines and Texas oil fields. This is really extra money US companies are keeping offshore in Chinese banks to avoid US taxes. Those same companies pay far more corporate taxes in China than they do in the US.

The bulk of US Treasury bonds are in fact held by rich Americans who are wallowing in cash after three decades of being grossly under taxed. The rich see these bonds as the only safe investment since all the extra cash has created bubbles in everything else. The rich are really banking on a deflationary spiral like the one their grandfathers created in the early 30s. This will allow them to grab off the last of the middle class wealth.

As a point of history, it's not true that Hitler was brought to power by the runaway inflation of the Weirmar Republic in the early 20s, but from the real suffering brought on by the deflationary spiral of the late 20s. Despite Prescott Bush and his Wall Street banker friends' best efforts to repeat their successes in Italy and Germany, the Progressives in the US elected FDR instead. That didn't keep them from an immediate coup attempt. Things have been worse, but we continue to rush headlong toward a repeat of the events engineered by the descendants of the same people the New Deal tried to defeat. It is class warfare, and we're losing.

3 comments:

Dave said...

It's amazing to me how I got all the way through college and I'd never found out about the connections between economics, politics,and history until I started reading this site. Thanks again to Mike Malloy for talking about it on his radio show.

I didn't vote for George W Bush. I think I'd have shot myself before doing that.

However it wasn't until I started getting information like is presented here that a little discussed point became clear to me. It'a not that the current crop of Bushes were Nazi-like. They were the genuine article just a group of descendants who knew better than to use that name anymore. Their political, economic, and sociological agendas were quite similar to those of their historical counterparts. The new group's not advocating genocide on a huge scale doesn't change the resemblance and familial connections.

Anonymous said...

Thank you, it's time we recognize the the decades old class war that is being waged against us and start to engage the enemy. The OWS movement is a call to arms and should be supported and expanded. Let this be our "American Spring".

Paul said...

Unless you have been at the upper echelons of a large organized group "follow the rules" seems to be simple to understand. Of course you follow the rules, what would society be like if you everyone didn't? But that is not what really goes on. Take religion for example. Born again Christians demand we all of us follow the Ten Commandments. Makes sense, and its simple to follow. What the higher ups fail to tell us and most of their believers, is that according to their faith, Jesus made a new covenant with Man. Who so ever believeth in me shall have eternal life. In other words they believe you can do anything, and trust me they will, as long as you are born again, you got straight to heaven. As long as we on the bottom follow the rules the top can play us. The ones who demand loudest we follow the rules are the ones making the most money off of us. Politicians, corporations, religion, its all the same. Fair and equitable are just concepts they throw us like bones. These people call them what you will Nazi, fascist, Democrat, CEO, Republican, Catholic, its all the same for any large group. The guys at the top need to follow the rules and we need to be the ones to enforce them. Otherwise they will play us until we nothing left to play us for.