And just like that, the great battle of the debt ceiling is done.
No, the bill hasn't officially passed through the Senate, or been signed by the President this morning - but the likelihood that it will be a law before three o'clock this afternoon is pretty high.
We're extremely glad this whole debacle is past, for now. Hopefully, our government can begin moving towards more jobs-related actions, since this bill did nothing on jobs or to help the unemployed. There are some signs that Democratic members of Congress already have begun to do so. The entire time this massive debt debate has been going on, the economy has continued to flicker in the background, like some Laurel & Hardy short where the problem seems obvious to everyone but them.
Still, the argument is basically over - but you may not have had the time to dig into the bill as some of us have. Before this subject gets filed away for a little while, we thought we'd give you a quick post-skirmish analysis. Think of this as a Cliff's Notes for the bill that was passed after all that fighting.
To start with, for those on the right who wanted cuts in entitlement programs? They didn't get them. For those on the left who wanted tax revenues from the wealthy, they didn't get what they wanted either.
After digging into the bill, it's fairly easy to see that the Republicans seem to have traded the appearance of winning the politics on this issue for the substance that the Democrats actually gained.
Yes - the bill still has a two-phase process. No, passing a Balanced Budget Amendment (BBA) isn't a requirement of either phase. Yes, there is a provision for attempting to pass a BBA (which is highly unlikely). Yes, both phases give the power to raise the debt ceiling to the President (even though that power constitutionally is the responsibility of Congress). Yes, both phases are subject to a "vote of disapproval" from the House & Senate, as Sen. McConnell initially proposed. No, neither vote of disapproval is expected to be anything other than a formality.
When all phases are complete, the debt ceiling will be raised to a minimum of $2.1 trillion, but no higher than $2.4 trillion.
After the bill is signed today, about $1 trillion in cuts will be locked in immediately - but the cuts are heavily back-loaded, with most of them not beginning until 2013 or 2014, and not ending until 2022. Only about $22 billion dollars in cuts will come from 2012 spending budgets - the same cuts that President Obama and Speaker Boehner began discussing about a month ago, and agreed on publicly over a week ago.
A committee will be formed, made up of twelve members, six from the House and six from the Senate. Each leader - Reid, Pelosi, Boehner, and McConnell - will choose three committee members. The committee will be tasked with finding $1.2 trillion in debt reduction savings from the Federal budget. There will almost certainly be massive closing of tax loopholes, which is allowed. Some form of tax increases are also almost certain.
If the committee doesn't reach it's goal in finding $1.2 trillion dollars in savings by this Thanksgiving, and Congress doesn't follow the committee's recommendation, then an automatic trigger kicks in, which automatically cuts $1.5 trillion from the budget, half of which would be from defense.
Programs for the poor and elderly, including Medicaid and Social Security, will be exempt from these cuts. Medicare payments to providers could be hit in a small way - but not to Medicare recipients.
In short, this agreement allows Congress to FINALLY get moving on the most important job they've all been avoiding so far, the single biggest thing that could solve both our debt problems and the economy - job creation.
Of course, Congress will get going on that right away... as soon as their FIVE WEEK summer vacation is over. After all their fine work in Washington, be sure to tell them how you feel about their job performance when you get the opportunity.
Tuesday, August 2, 2011
Monday, August 1, 2011
Get Busy Livin' Or Get Busy Dyin'
As these words hit your e-mail box today, we don't know if there is a final debt and budget deal in place yet for the United States. Yes, a deal was announced last night - but it isn't over until all the votes are counted.
Frankly, we're not sure it matters all that much anymore. Even the head of the International Monetary Fund has acknowledged, America's financial reputation is already severely damaged, thanks to this unnecessary debt & budget debacle. One ratings agency says the deal won't prevent a credit downgrade for the U.S.
What few details about the latest "last ditch" bill that have come out are not promising. The deal will cost jobs, will lose the federal government revenue, and will squeeze the states even further - which will only make things worse at the local level.
As Paul Krugman, one of the smartest economists in the world right now, has said time and time again, we are doing exactly what we should NOT be doing at this point: cutting government spending in the near term. In fact, all the numbers and facts say there will likely be NO better time for America to borrow money - in the SHORT TERM - so that we can usefully and measurably fix our infrastructure, invest in our nation, and plan for long-term debt reduction.
Investing in ourselves would create jobs in the private sector right away, as it always has in the past, which would also help fuel the one sure cure for our long-term debt problem: economic growth.
Of course, doing so would mean both Republican and Democratic leadership, as well as our President, would have to do something they seem to have found impossible the last few years: Tell the political terrorists in the extremist, regressive right to take a hike.
We don't say that hyperbolically. The extremist right has taken a new approach, absolutely not intended by the founders or the Constitution: extortion politics. Why wait and do things slowly, through procedure, when holding a political gun to the head of anyone who disagrees with you is so much faster and easier? That idea sounds really good until it's the guys on the OTHER side trying to shove through legislation that will have long-term negative effects on everyone. Even well-known hyper-conservative commentator Charles Krauthammer says, "...trying to force the issue — trying to turn a blocking minority into a governing authority — is not just counter-constitutional in spirit but self-destructive in practice."
It hasn't helped that our President has acted so weak, stubbornly refusing to understand that his opposition views him as an enemy, not as a partner in governing. Mr. Obama has been "left at the alter" by the GOP so often, the defense that Mr. Obama is "playing 11-level chess" seems far less likely than the fact he's simply, willfully, politically naive.
A feckless media is also to blame, as any insane tea bagger fool can swing around like a monkey on a pole and have every so-called news agency within fifty miles covering them. Meanwhile, when a progressive rally with significant numbers occurs, most of the media doesn't even bother to cover it. There is definitely media bias in America - but anyone who tells you it's liberal is still living in the 1970s.
The final failure has been that of individuals on both ends of the political spectrum. On the left, Democrats grumble, but they still support their President blindly, by ridiculously high margins. Even more responsible for this failure are the Republicans, who conscripted the Tea Party folks into their own political organization - but then failed to control the extremist Tea Bagger movement within the Tea Party.
It's time – long, long, long past time, actually - for Americans to get their lazy asses off their couches, to talk with their neighbors, to educate themselves on the issues, to stop being TOLD what to think by professional bloviators, and to get involved again in governing their country. The extremists MUST be minimized to the proper representation of their numbers in the greater population. The rules must be followed by all parties and individuals - and heavy penalties need to be levied by the offenders' own party to keep political terrorism from becoming the defacto method of governing.
Americans must get busy repairing the economic and political damage that its citizens have allowed over the last thirty-plus years -- or we Americans may as well disband this union-in-name-only of states that we occupy, and sign the death certificate of this great experiment we've proudly called the United States of America.
Frankly, we're not sure it matters all that much anymore. Even the head of the International Monetary Fund has acknowledged, America's financial reputation is already severely damaged, thanks to this unnecessary debt & budget debacle. One ratings agency says the deal won't prevent a credit downgrade for the U.S.
What few details about the latest "last ditch" bill that have come out are not promising. The deal will cost jobs, will lose the federal government revenue, and will squeeze the states even further - which will only make things worse at the local level.
As Paul Krugman, one of the smartest economists in the world right now, has said time and time again, we are doing exactly what we should NOT be doing at this point: cutting government spending in the near term. In fact, all the numbers and facts say there will likely be NO better time for America to borrow money - in the SHORT TERM - so that we can usefully and measurably fix our infrastructure, invest in our nation, and plan for long-term debt reduction.
Investing in ourselves would create jobs in the private sector right away, as it always has in the past, which would also help fuel the one sure cure for our long-term debt problem: economic growth.
Of course, doing so would mean both Republican and Democratic leadership, as well as our President, would have to do something they seem to have found impossible the last few years: Tell the political terrorists in the extremist, regressive right to take a hike.
We don't say that hyperbolically. The extremist right has taken a new approach, absolutely not intended by the founders or the Constitution: extortion politics. Why wait and do things slowly, through procedure, when holding a political gun to the head of anyone who disagrees with you is so much faster and easier? That idea sounds really good until it's the guys on the OTHER side trying to shove through legislation that will have long-term negative effects on everyone. Even well-known hyper-conservative commentator Charles Krauthammer says, "...trying to force the issue — trying to turn a blocking minority into a governing authority — is not just counter-constitutional in spirit but self-destructive in practice."
It hasn't helped that our President has acted so weak, stubbornly refusing to understand that his opposition views him as an enemy, not as a partner in governing. Mr. Obama has been "left at the alter" by the GOP so often, the defense that Mr. Obama is "playing 11-level chess" seems far less likely than the fact he's simply, willfully, politically naive.
A feckless media is also to blame, as any insane tea bagger fool can swing around like a monkey on a pole and have every so-called news agency within fifty miles covering them. Meanwhile, when a progressive rally with significant numbers occurs, most of the media doesn't even bother to cover it. There is definitely media bias in America - but anyone who tells you it's liberal is still living in the 1970s.
The final failure has been that of individuals on both ends of the political spectrum. On the left, Democrats grumble, but they still support their President blindly, by ridiculously high margins. Even more responsible for this failure are the Republicans, who conscripted the Tea Party folks into their own political organization - but then failed to control the extremist Tea Bagger movement within the Tea Party.
It's time – long, long, long past time, actually - for Americans to get their lazy asses off their couches, to talk with their neighbors, to educate themselves on the issues, to stop being TOLD what to think by professional bloviators, and to get involved again in governing their country. The extremists MUST be minimized to the proper representation of their numbers in the greater population. The rules must be followed by all parties and individuals - and heavy penalties need to be levied by the offenders' own party to keep political terrorism from becoming the defacto method of governing.
Americans must get busy repairing the economic and political damage that its citizens have allowed over the last thirty-plus years -- or we Americans may as well disband this union-in-name-only of states that we occupy, and sign the death certificate of this great experiment we've proudly called the United States of America.
Friday, July 29, 2011
Friday Funday: What Now? Or Why Not?
We know today is Friday, and we usually try to give you something a bit more light-hearted to think about, as you head into the weekend. We'll do our best today, but it's not going to be easy.
Then again, nothing worth doing ever is.
For many folks in the media, right now, covering this insane manufactured debt ceiling crisis, where the Tea Party has taken the rest of the country hostage, we feel like we're at the end of the world. We can't tell you how many times we've heard that the economy is "going off a cliff" - and this is from people we work in the same industry with.
The fact is, there's no way to know exactly what's going to happen over this weekend, between now and the time you touch base with us again on Monday. There's no certainty of what's going to happen next week either.
Then again, that's pretty much how every day really is, even if we don't realize it most of the time.
We say this as we found out this week about a couple of media acquaintances, friends of friends who had been living good lives, filled with work, family, and friends - and now have been diagnosed with deadly conditions. One has been diagnosed with ALS and the other with a vicious cancer. While we're certain both will put up valiant fights, we know the long-term, and even mid-term prognosis for either isn't great.
In what may seem counter-intuitive, neither man swore to keep going with their regular lives, like nothing had happened, as you see in so many sappy Hollywood movies.
Both men did call their loved ones though; gathered their editors, producers, and fellow media partners; and told them all the news. Then, they each went back to doctors, and both have began treatments, of one kind or another.
And then they each went to their favorite grocery store, and stocked up. One finally joined Netflix.
They are living their lives - and that's exactly what we think you should do.
None of us every know when the script of our lives will change direction rapidly. We often think we know what's around the corner - but we really don't. So ask yourself... If that bottle of wine you've been saving for a special occasion never gets opened, what's the bigger crime? That you never had an occasion worthy of opening it? Or that you didn't celebrate with relish the occasions that you did have?
Go have dinner with a friend this weekend. Call someone you haven't talked to in a while - just because. You never use up all your monthly cell phone minutes anyway - why NOT make that call now? Write a letter. Sure, you may have to walk farther to mail it - and it will probably not arrive before the world economic situation drives off that cliff, like "Thelma & Louise". What the hell? Write that letter it anyway.
Make plans for LATE next week. Or next month. Or next year.
There are no guarantees in life, one way or another.
We don't necessarily recommend living life that country song, that implores you to "Live Life Like You're Dying."
We do recommend, simply, that you live life to the fullest every day.
Then again, nothing worth doing ever is.
For many folks in the media, right now, covering this insane manufactured debt ceiling crisis, where the Tea Party has taken the rest of the country hostage, we feel like we're at the end of the world. We can't tell you how many times we've heard that the economy is "going off a cliff" - and this is from people we work in the same industry with.
The fact is, there's no way to know exactly what's going to happen over this weekend, between now and the time you touch base with us again on Monday. There's no certainty of what's going to happen next week either.
Then again, that's pretty much how every day really is, even if we don't realize it most of the time.
We say this as we found out this week about a couple of media acquaintances, friends of friends who had been living good lives, filled with work, family, and friends - and now have been diagnosed with deadly conditions. One has been diagnosed with ALS and the other with a vicious cancer. While we're certain both will put up valiant fights, we know the long-term, and even mid-term prognosis for either isn't great.
In what may seem counter-intuitive, neither man swore to keep going with their regular lives, like nothing had happened, as you see in so many sappy Hollywood movies.
Both men did call their loved ones though; gathered their editors, producers, and fellow media partners; and told them all the news. Then, they each went back to doctors, and both have began treatments, of one kind or another.
And then they each went to their favorite grocery store, and stocked up. One finally joined Netflix.
They are living their lives - and that's exactly what we think you should do.
None of us every know when the script of our lives will change direction rapidly. We often think we know what's around the corner - but we really don't. So ask yourself... If that bottle of wine you've been saving for a special occasion never gets opened, what's the bigger crime? That you never had an occasion worthy of opening it? Or that you didn't celebrate with relish the occasions that you did have?
Go have dinner with a friend this weekend. Call someone you haven't talked to in a while - just because. You never use up all your monthly cell phone minutes anyway - why NOT make that call now? Write a letter. Sure, you may have to walk farther to mail it - and it will probably not arrive before the world economic situation drives off that cliff, like "Thelma & Louise". What the hell? Write that letter it anyway.
Make plans for LATE next week. Or next month. Or next year.
There are no guarantees in life, one way or another.
We don't necessarily recommend living life that country song, that implores you to "Live Life Like You're Dying."
We do recommend, simply, that you live life to the fullest every day.
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