The debt hawks are to economics as the creationists are to biology. Those, who do not understand Monetary Sovereignty, do not understand economics. If you understand the following, simple statement, you are ahead of most economists, politicians and media writers in America: Our government, being Monetarily Sovereign, has the unlimited ability to create the dollars to pay its bills.
In the event you think the Republicans finally have awakened to shed the nutball Tea party, read excerpts from an article in the Washington Post.
Boehner demands ‘trillions’ in spending cuts in exchange for lifting debt ceiling
By Paul Kane and Lori Montgomery, Monday, May 9, 2011
NEW YORK — House Speaker John A. Boehner (R-Ohio) is demanding that the White House agree to at least $2 trillion in spending cuts in exchange for lifting the limit on federal borrowing to finance the government’s massive deficits.
And if the White House does not agree to the suicidal spending cuts, what then, Rep. Boehner? Destroy America?
In a Monday evening address to the Economic Club of New York, Boehner will say that in the ongoing negotiations over the federal debt limit, he is demanding that President Obama and Senate Democrats agree to spending cuts greater than the value of the planned increase in federal borrowing. Even under the House Republicans’ budget-slashing proposal, the Treasury would need to borrow an additional $2 trillion to make it into 2013 without defaulting on its loans.
Before a meeting at the White House, House Speaker John Boehner and Republicans spoke about the upcoming budget negotiations.
“The cuts should be greater than the accompanying increase in debt authority the president is given. We should be talking about cuts of trillions, not just billions. They should be actual cuts and program reforms, not broad deficit or debt targets that punt the tough questions to the future,” Boehner says in his prepared remarks, which were distributed before his speech.
“Cuts of trillions”? I assume Rep. Boehner is aware that such cuts would throw us into a depression, which means he is more interested in a Tea/Republican victory next year, than the welfare of the American people.
These cuts would come from discretionary spending programs — those that are financed anew each year in the federal budget process — as well as from mandatory spending programs such as Medicare and Medicaid and other items such as agriculture subsidies. Boehner was vague on the time frame for the spending cuts, meaning that they could be phased in over many years.
Translation: Remember, these are the same politicians who cry crocodile tears, while lying that our children and grandchildren would pay the federal debt, but are ready to punish our children and grandchildren to lower Medicare, Medicaid and Social Security benefits. Talk about hypocrisy! Boehner relies on Americans being so selfish, so uncaring, we will agree to reduced Medicare and Medicaid for future generations, so long as current recipients are not touched. Lord save us if that is what we have become.
After a week of mixed signals about how hard GOP leaders will push for the controversial Medicare-overhaul proposal, Boehner is standing behind the partial privatization of the popular health-care plan for the elderly. However, in recent days, many GOP aides and several Republican leaders signaled that the proposal is not likely to be a focus of the ongoing budget negotiations led by Vice President Biden and a bipartisan group of six congressional leaders, because President Obama’s staunch opposition makes the plan virtually dead on arrival.
Thank goodness for that!
In short, the Tea (formerly Republican) Party, rather than developing a plan to help America (for instance, by increasing federal deficit spending on health care and Social Security, and/or by cutting taxes), has decided to pursue the extremist, Tea Party, wealthy-first agenda, come what may. In short, it’s “To hell with the poor and middle class; to hell with Medicare, Medicaid and Social Security recipients; to hell with the future of America. All we care about is protecting the our rich contributors and the next election.
I find traitors to this nation disgusting.
Rodger Malcolm Mitchell
No nation can tax itself into prosperity, nor grow without money growth. It’s been 40 years since the U.S. became Monetarily Sovereign, and neither Congress, nor the President, nor the Fed, nor the vast majority of economists and economics bloggers, nor the preponderance of the media, nor the most famous educational institutions, nor the Nobel committee, nor the International Monetary Fund have yet acquired even the slightest notion of what that means.
Remember that the next time you’re tempted to ask a dopey teenager, “What were you thinking?” He’s liable to respond, “Pretty much what your generation was thinking when it screwed up the economy.”