Tag Archives: Debt Ceiling

Obama’s Press Conference

Barack Obama

I only caught a few minutes of the President’s press conference this afternoon but one thing I did hear that I found interesting is this:

Now, the good news is, over the past 3 1/2 years, our businesses have created 7 1/2 million new jobs. Our housing market is healing; we’ve cut the deficit in half. Since I took office, the deficit is coming down faster than any time in the last 50 years.

The irony is thick.  The whole reason the deficit is coming down so fast is due to House Republicans forcing the administration to accept cuts.

Obama is taking credit for republicans doing exactly what they’re doing now.

Boehner vs. Reid – II

Nickgb commented that Boehner backed off of his claim that he would forgo the Hastert Rule and allow a straight vote on raising the debt ceiling.

I called Reid out for being he more political partisan on issues like this.  Well, it turns out that Boehner has backed away from his claim and will no longer the straight up and down vote:

(Reuters) – U.S. House of Representatives Speaker John Boehner said on Sunday that there is “no way” Republican lawmakers will agree to a measure to raise the nation’s debt ceiling unless it includes conditions to rein in deficit spending.

I think that the government is too big.  And I think that our debt is a problem.  However, I agree that we cannot do normal business by threat of or actually shutting down the government.

The budget fight is one thing.  I think that a strong case can be  made that the budget comes before the individual programs that are in place.  If the budget isn’t big enough to contain those programs, then revenue needs to increase or expenditures need to decrease.

But the debt ceiling?  For some reason that seems different.

Jon Stewart – Pure Platinum

Look, Stewart is funny, wickedly funny.  His timing, expressions and body language are the best. And the fact that his patter is politics only makes it better; I like politics, he makes political humor.

What’s not to love?

But lot’s of people forget that the man is a clown.  He’s an entertainer.  He’s on a stage making people laugh at jokes. Think Abbott and Costello.  Andrew Dice Clay.  Rodney Dangerfield.

Gifted all.

He isn’t a commentator.  He’s isn’t a reporter.  He isn’t a writer.

So I love it when folks use Stewart as a source of news or to make a point.  I especially love it when he turns his schtick back on the liberal establishment that loves him so:

!!!!

The Daily Show with Jon Stewart Mon – Thurs 11p / 10c
Paul Krugman & the Trillion Dollar Coin
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On Crazy And Irrelevant

A few days ago Paul Krugman jumped the shark:

Should President Obama be willing to print a $1 trillion platinum coin if Republicans try to force America into default? Yes, absolutely. He will, after all, be faced with a choice between two alternatives: one that’s silly but benign, the other that’s equally silly but both vile and disastrous. The decision should be obvious.

So, there ya have it.  Paul’s contribution to the debt ceiling problems.  And his reasoning?

For those new to this, here’s the story. First of all, we have the weird and destructive institution of the debt ceiling; this lets Congress approve tax and spending bills that imply a large budget deficit — tax and spending bills the president is legally required to implement — and then lets Congress refuse to grant the president authority to borrow, preventing him from carrying out his legal duties and provoking a possibly catastrophic default.

I think Paul is forgetting that we can service our debt very easily with existing revenues.  The money we don’t have is for additional spending.  There really is very little danger of defaulting on our debt.

Anyway, cooler, calmer and more rational minds have saved the day:

The U.S. Treasury Department said on Saturday it will not produce platinum coins as a way of generating $1 trillion in revenue and avoiding a battle in Congress over raising the U.S. debt ceiling.

The idea of creating $1 trillion by minting platinum coins has gained some currency among Democrats in recent days as a way of sidestepping congressional Republicans who are threatening to reject a necessary increase in the debt ceiling unless deep spending cuts are made.

The Treasury Department and the Federal Reserve, both independent of one another, each concluded this was not a viable option.

“Neither the Treasury Department nor the Federal Reserve believes that the law can or should be used to facilitate the production of platinum coins for the purpose of avoiding an increase in the debt limit,” said Treasury spokesman Anthony Coley in a statement.

File this under “no kidding”.

If the United States Debt Were a Swimming Pool

If you aren’t reading Carpe Diem, you should.  Go, right now, check out Mark Perry’s site.

This whole thing started way back when.  I was an avid reader of Rob Neyer over at ESPN.  I was very much into baseball and stats and just the game.  I loved me some Neyer.  Since then, however, ESPN has made his stuff paid content and I no longer go to ESPN.  But whatever, ‘nother story.  One day, a long time ago, Rob mentioned a writer in Minnesota, Twins Geek.  And Twins Geek wrote a blog.   And I didn’t know what a blog was.  But it had the words, Twins, Geek and Neyer, so I checked it out.

And it turns out Twins Geek is a dude from Minnesota who works in an office doing office type work who just loves to write.

And I love that.

So, now I know what a blog is and I start looking for one.  And I trip upon Coyote Blog.  And NOW it’s on.  This is just too cool.  And, after reading Coyote for awhile, I notice he refers us to Carpe Diem on a regular basis.  And Mark Perry is from Minnesota.  And he writes about interesting stuff in a way that just makes sense.

So I read him everyday.

In fact, he is a large inspiration for the stuff I write here.  Only, like, he’s better and smarter, but hey, I have longer hair!

Anyway, via Mark Perry at Carpe Diem comes this:

We have what you call a spending problem.

By the way, if you like baseball and can stand the Twins, check out this most amazing site dedicated to Sabermetrics with a Twin’s twist.  This guy is the hero.  Dropped out of school at the UofM, living in his mom’s townhouse blogging about baseball at 3,000 words a clip.  Gets picked up by NBC sports and is livin’ large.

Will We Raise The Debt Ceiling

Latest InTrade chart on whether or not Washington will raise the debt ceiling by midnight July 31st, 2011.

Doesn’t look positive.

On the upside, if you think they pull out of this spiral by July 31st at midnight, there’s money to be had!

The Debt Limit, Budget, Deficit and Debt: Update

So, yesterday I posted about a possible solution to the deficit and the debt. In those plans I accommodated those on the right who insist on a plan that includes no new revenues due to tax increases.  Further, I accommodated those on the left who insist on a plan that doesn’t cut; in fact my plan GROWS government each and every single year.

As I ended my analysis I demonstrated a method by which both of those targets were met AND we backed away from the debt limit that we are struggling with today.  The solution began to reduce the the deficit in year 1.  And it balanced the budget in year 19.  It’s the perfect trifecta.

But what if we can do better?  What if we can reduce the amount of time in which we are free of the deficit?

I think we can:

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Boehner’s Speech: What He Did Say – July 25, 2011

Well, just finished watching and listening to John Boehner.

Yeah, any good will established by Obama in trying to give the Speaker of the House props for being willing to work with the Democrats is out the window.  John Boehner came out swinging and he didn’t let up.  Almost with a vengeance the Speaker took Obama to task going back to January and the President’s request for more money.  And this after sending America on the largest spending binge of all time.  While I think he’s right, I’m not sure that the approach the Republicans just took is the wise one.

Where Obama made the case that we all need to agree to get along, Boehner went right at the President.  Where Obama looked to build a coalition with the Speaker, Mr. Boehner attacked the President for his priorities and his tactics in the debt talks to date.  Further, by appearing so dug in, the Republican may have set himself up for a situation that he can’t win.  A long time ago I learned that to be successful, you have to create a situation where your opponent can retreat or compromise in honor.  I’m afraid that Mr. Speaker has removed that option from the table.  I can see many things being thrown at the TV in the Democrat Head Quarters.

This is not to say That I don’t agree with the Republicans.  We DO spend too much.  We DO waste money.  Obama DOES negotiate in bad faith.  I know Obama is not a centrist but rather an over-matched Leftist Statist.  However, tonight, America was watching, not just us political junkies.  And America wants compromise more than they want ideology.

Either way, tonight set the die.  How it impacts the debate and the 2012 elections will, of course, remain to be seen.

Obama’s Speech: What He Did Say – July 25, 2011

I’ll be a son of a bitch!  President Obama reads TarHeel Red!

In spelling out what Barack Obama SHOULD say I neatly laid out Obama’s speech for him and he delivered what I think was a very strong message; a very good speech.

Obama DID talk about the battle in Washington.  He did bring into play the question that each side would have to give and compromise.  And he did it while sounding Presidential.

Kudos Mr. President, well done.

Further, I predicted that Mr. Obama would bring up the fact that much of the problems we’re faced with today are the result of Dubya and his policies.  I mentioned that he wouldn’t blame Bush directly, but rather use the code phrase “of the last decade”.  Imagine my excitement as I was proven right within the first 90 seconds.  However, much to his credit, he only ever touched on Bush 2 more time, so I fell short of my “at least 4 times” prediction.  Obama took a shot at Bush giving him credit along the lines of Reagan, Clinton and himself; Obama.  Further, there was a shot when Obama listed the troubles that brought us to this position included tax cuts to the wealthy, 2 wars and a Medicare Part D program.

In describing the talks, Obama made the point that it was himself that compromised and agreed to a path forward that was not popular within his party.  And he did call out Republicans for failing to give ground.  So, while he didn’t credit Democrats [that honor was reserved for him] he also didn’t accuse the Republicans of “leaving him at the altar” as I suggested.

Further, I did say that Obama would mention the strategy Republicans have taken in pushing this debate out only 6 months.  And he did.  But I also said that Obama deride this as politics and blast the “two tiered approach”.  And he didn’t.  Rather, he made well-reasoned arguments against such a strategy; arguments that I tend to agree with.

Finally, I had thought Obama would take advantage of the fact that Democrats were willing to stipulate that there would be no tax increases in the plan.  That in exchange for an extension past the election, they were willing to give on those increases.  I was wrong; Obama made it clear he expects the wealthy to “pay their fair share”.

In fact, I thought the constant “we-they” warfare was a touch over the top.  He again brought oil companies, hedge fund managers and jet owners into the conversation.  He mentioned that those who have benefited the most in the past decade [a nifty wink at Dubya that even I didn’t score against him] shouldn’t be exempt from bearing part of the burden.

However underscored the class warfare argument was, it was overshadowed by some pretty strong points made by the President.  I thought his best moment was when he descried the voters who elected both himself and the House Republicans into office.  His comment that:

They’re offended by that.

Was especially on target and scored several points.  Further, Obama was strong when he mentioned that as recently as 2000 we had budget surpluses, that we need to act in a bi-partisan manner and that both parties need to shape up.  People are, after all, bone tired and are fed up with this three-ring circus.

On one hand, I’m excited that our President delivered a strong speech more leader like than I expected.  I’m humbled some that I was so wrong, but that is tempered by the fact that it’s now clear Obama not only reads my little rantings, but takes them to heart!

😉

The Debt Limit, Budget, Deficit and Debt: Framing the Picture

The talk of the town is the debt limit.  Raise it or not raise it; and what it would take TO raise it.

Reasonable people can agree on a couple of things:

  1. We are in debt and it’s getting worse.
  2. To balance the budget, there needs to be a combination of an increase in revenue and a decrease in spending.

I honestly feel that if you were to ask this question, hidden in such a way as to bypass the normal political partisanship, every single American would agree.  If the checking account is overdrawn, a second job becomes something to consider and a review of the household spending becomes a priority.

But, how do we agree on such a combination when the discussion changes from the household budget to the federal budget?  How can we get folks who demand that we raises taxes together with folks who demand we don’t?  How do we get people who refuse to cut spending to shake hands with those who feel we HAVE to cut spending?

I propose that we do it by doing neither.

Watch:

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