A person, company or nation would be defined as ‘broke’ if it couldn’t pay its bills, and that is not the case with the U.S. Despite an annual budget deficit expected to reach $1.6 trillion this year, the government continues to meet its financial obligations, and investors say there is little concern that will change.

David J. Lynch repeating that which cannot be repeated enough. We have a ~$16 Trillion economy and the lowest tax burden in half a century. And, miracle of miracles, the beloved market realizes this because, as the linked article also notes, we can borrow at historically low interest rates, paying 0.68 percent on a two-year note, down almost 5% from what we were paying on that back in 2007.
Clearly, though: time to panic.

[Tea Party activists and junior lawmakers] literally think you can just balance it, you know, [by cutting] waste, fraud and abuse, foreign aid, and NPR. And it doesn’t work like that.

Paul Ryan, letting a little truth slip out. Wonder how those people got crazy ideas like that into their heads?
Almost equally unbelievable is that Ryan also said: “Do I believe you can get slightly higher revenues without harming jobs, and get better economic growth? Yes, I do believe that.” Not the R-word! And from a Republican. Who knew?

Shortly after the Democrats’ “shellacking” last November, I phoned a friend in the White House who had served in the Clinton administration. “It’s 1994 all over again,” he said. “Now we move to the center.”

Robert Reich: Why Obama Isn’t Fighting the Budget Battle.
This is, to say the least, deeply troubling. The administration (and the Beltway media as well) have been all-too-willing to lap up the standard FOXnews and talk-radio line about Obama governing from the “far left” and being a “radical socialist” and so forth. Has not and is not.
In fact, he’s been governing from the center, or even center right all along. That’s simply how it is. Look at the record. Lowered taxes, passed a previously GOP-pushed version of health care reform, pushes previously GOP position on environment, GOP position on torture, GOP position on Guantanamo, GOP position on everything. It’s just that the GOP (wisely, from their viewpoint) promptly disavows these positions and moves the Overton Window ever further to the right. Thus, Obama’s “move to the center” described here will conceivably locate him somewhere to the right of Reagan. Which is what the GOP would certainly enjoy (and but simultaneously of course still criticize his supposedly socialistic positions), but it’s not what the voters who elected Democrats in three straight elections culminating with Obama’s own election want.
The sad fact is that Democratic “strategists” took exactly the wrong message from the “shellacking,” as usual, and are telling all Democrats to forget their ideas, get as far into a defensive crouch as possible, and “weather the storm.” When they lose again in 2012, it’ll me more of the same: this isn’t an example of voter fury with no clear outlet or focus or unifying leader to channel it one way or another (beyond “throw the bums out!”), this isn’t the fault of our lack of strong positions, of not fighting for the will of the people, of not presenting a compelling and alternate vision for America, it’s because we weren’t far enough to the right.
The problem is that it’s not true, hasn’t been true, won’t be true. Ever. This is why they fail.

EXTRA: USA NOT BROKE, JUST RESTING

Bloomberg delivers some shocking, shocking stuff:

“The U.S. government is not broke,” said Marc Chandler, global head of currency strategy for Brown Brothers Harriman & Co. in New York. “There’s no evidence that the market is treating the U.S. government like it’s broke.”

The U.S. today is able to borrow at historically low interest rates, paying 0.68 percent on a two-year note that it had to offer at 5.1 percent before the financial crisis began in 2007. Financial products that pay off if Uncle Sam defaults aren’t attracting unusual investor demand. And tax revenue as a percentage of the economy is at a 60-year low, meaning if the government needs to raise cash and can summon the political will, it could do so.

Print out in the largest type possible and stick to the teleprompter of every Serious Person currently inhabiting the media. Likewise, Obama and his proxies need to be talking about this. A lot. So often that we can’t stand it anymore, and then a few million more times on top of that. Then you can start a serious discussion about revenue, which is the only truly serious way out of this mess. Sorry, but it is.

EXTRA: USA NOT BROKE, JUST RESTING

Conservative Radio Hosts Called by Scripted Actors

Premiere On Call is our new custom caller service,” read the service’s website, which disappeared as this story was being reported (for a cached version of the site click here). “We supply voice talent to take/make your on-air calls, improvise your scenes or deliver your scripts. Using our simple online booking tool, specify the kind of voice you need, and we’ll get your the right person fast. Unless you request it, you won’t hear that same voice again for at least two months, ensuring the authenticity of your programming for avid listeners.

The report notes that the “service” is part of the overall operation that syndicates Rush Limbaugh, Glenn Beck, and Sean Hannity among many others. I keep thinking that one day one of these “shocking revelations about the conservative message machine” will stick, but then we’ve long known that W. Bush and his administration planted editorials, basically employed journalists to run preferred stories, and openly bragged about controlling various “mainstream” media outlets and programs (notably Meet the Press, but also obvious ones like Hannity and etc…). None of those seemed to register with people and the MSM has an obvious vested interest in letting such stories drop. Quickly . This one probably won’t register either, though it does get at their precious, precious two hours hate…and we certainly can’t have that.

Anyway and once again: they are lying to you with malice aforethought. Your entire media construct is bought and paid for with the express intent of fucking you out of what is yours so that the folks at the top can extract an additional fractional percent at your expense this quarter. They call that “shared sacrifice.” There are more of you; one would think the center could not hold. Not forever, anyway. Thanks for consistently proving me wrong on this. It’s really made my day. Over and over and over again. That is all.

(via militantagnostic)

Conservative Radio Hosts Called by Scripted Actors

The improvement seen in this report is a credit to the hard work of the American people and their success in stopping the tax hikes that were due to hit our economy on January 1. Removing the uncertainty caused by those looming tax hikes provided much-needed relief for private-sector job creators in America.

House Speaker John Boehner, taking credit for the recent and notably improved employment report.
Of course, the uncertainty engendered by the fact that the entire federal government may shut down for an indeterminate period in a couple of weeks has nothing but salutary effects on the economy as well. And, the uncertainty caused by the massive layoffs that seemingly every analysis yet performed says will inevitably result if the GOP economic agenda comes to pass, well that’s also just a massive opportunity for good ole ‘Merican know-how and will, in fact, increase jobs, pay, and consensual reproductive sex between one man and one woman across this great land of ours.

Unified Field Theory

First principles:

  1. The recently House-passed continuing resolution only makes a government shutdown more likely by both caving to perceived GOP demands to “cut” while also exhausting the supply of low hanging fruit that Obama has already come out in favor of cutting.
  2. The GOP has the media high-ground, as always, because serious people know that cuts must be necessary, and since the GOP is at dollar value X, and the Democrats are, for all intents and purposes, at dollar value $0 (spending freeze as opposed to new cuts), the serious person answer must be $X/2. That’s the “grand bargain” that Democrats wisely point out will still submarine the economy and the GOP flatly refuses to even discuss. See: shutdown and default in 2011.
  3. Serious People furthermore agitate for deep cuts to Social Security, despite its dedicated funding source and minimal deficit impact in the near future, because, well, because that’s what serious people do. Acceding to the demands for cuts to Social Secuirty is 2012 suicide for the Democrats. It just is.

With all that in mind, what the Democrats need is a concentrated, coordinated effort that steals this idiotic media high ground surrounding the (perceived) absolute necessity of “cuts and a lot of them.” Karl Rove taught us nothing if not the fact that making your enemies’ strengths into their weaknesses is a potent political tool. Think Swiftboating. That The Democrat assiduously avoids the use of this tool is why they fail.

Therefore: the GOP is talking at least $100B in cuts, and immediately. Right or wrong, that’s going to have to be your number too. However, and critically, the GOP wants those cuts to come entirely from the non-military discretionary budget, somewhere around 14% of the whole government budget. This, then, is where and how you attack them. And you’re going to do it specifically and with dollar amounts.

You go down the list of GOP hobby horses: faith-based initiatives, the military, oil subsidies, agribusiness subsidies, general corporate welfare, abstinence-based education, all of it; but you don’t stop with spending, you also target revenue: capital gains taxes, estate taxes, social security taxes (as in: uncapped), and ultimately the tax code itself, which could use a few new brackets up top.

Secretary Gates can likely provide you with a long list of outdated or otherwise no-longer-needed military programs. Lots of them will seem ridiculous or hopelessly out of touch. Mock them and mock the GOP for continuing to support them.
Same goes for oil subsidies. These are the richest companies on Earth and the GOP wants to give them corporate welfare while asking for “shared sacrifice” from the poorest of the poor?

When you’ve run out of spending to cut from GOP programs, you go to work on revenue. That’s right, I said it. You need to too. First: revenue is revenue. Capital gains, management fees, bonuses, and everything else falls under regular pay. Next, you set about raising effective rates on corporations and the rich. The corporate side can be most effectively done by eliminating shelters and loopholes. Any country in which ExxonMobil pays $0 in taxes needs, needs corporate tax reform. Period. Still haven’t hit the number? New tax brackets. Still haven’t hit the number? Uncap Social Security. And so on.

You then pack the whole thing together and unveil it as the “alternative” plan and hoist the GOP upon it each and every day, all day. Because they are guaranteed to hate it. But will have to explain why they prefer to make these cuts on the backs of the poorest instead of the richest and furthermore call it “shared sacrifice.”

You’ve got less than two weeks to put this together. Recent history with the tax cut extension “fight” suggests you haven’t even considered something along these lines yet. But it’s how to win. That’s why it looks so strange to you. Yes, it’s simple minded. But simple minded is what works. You are the last few hundred people in America to come to this realization.

I’m not saying this bill would be what was passed, or that it would even reach the floor in a serious way…but it would drive the conversation in a way that benefits you, The Democrat, and not so coincidentally us the American people.
Currently you’re battling over the 14% that contains the most painful cuts possible. You shouldn’t be. You furthermore don’t even need to be. Change the conversation to terms that have the potential to benefit you. Right now revenue doesn’t even come up. It needs to. It needs to be the first question off the lips of the serious people. Until it is, you will fail.

Zero

That would be the number of Republicans that voted to end taxpayer subsidies for Big Oil. Companies that are enjoying record profits of ~$100 billion per year, often pay no taxes whatsoever, and receive taxpayer provided subsidies to the tune of tens of billions of dollars per decade.

But, by all means, let’s cut $100 over here that just gets wasted on food for starving children. Furthermore, let’s agree not to discuss any of this. Shrill.

Zero

Social Security Pays for Itself

OMB director Jacob Lew, from the turnstile:

Social Security benefits are entirely self-financing. They are paid for with payroll taxes collected from workers and their employers throughout their careers. These taxes are placed in a trust fund dedicated to paying benefits owed to current and future beneficiaries.

[…]

For years, the surpluses in the Social Security trust fund have helped to mask our deficits elsewhere. Now that we are paying Social Security back, the problem is not with Social Security, but with the rest of the budget. In 2001 and 2003, Washington cut taxes for the wealthiest Americans and later expanded Medicare without paying for it. Blaming Social Security for our fiscal woes is like blaming you for not saving enough in your checking account because the bank lost all depositors’ money.

Replace “Washington” in the second-to-last sentence with “Republicans and the Bush Administration rammed through” and we are in full agreement. Now if we can just get serious people talking in these terms on the serious Sunday morning shows (and etc…) every week for the next 20 or so years, the logical argument can finally begin on equal footing.

Social Security Pays for Itself

Shared Sacrifice

Just in case you thought the Social Security stinger on this post was unsupported, EJ Dionne provides:

Lori Montgomery reported in The Post last week that a bipartisan group of senators thinks a sensible deficit reduction package would involve lifting the Social Security retirement age to 69 and reforming taxes, purportedly to raise revenue, in a way that would cut the top income tax rate for the wealthy from 35 percent to 29 percent.

Only a body dominated by millionaires could define “shared sacrifice” as telling nurses’ aides and coal miners they have to work until age 69 while sharply cutting tax rates on wealthy people. I see why conservative Republicans like this. I honestly don’t get why Democrats – “the party of the people,” I’ve heard – would come near such an idea.

Absolutely right. I’d only quarrel with the title: “The Tea Party is Winning.” Nope. It is the plutocrats and banksters that invented the Tea Party out of whole cloth to gather useful drones to advance their preferred distraction campaign that are winning. The folks that make up the broader Tea Party itself are losing right along with the rest of us filthy proles. And once they undermine the entire non-military discretionary budget to their own detriment, then they hope to get serious and finally eliminate their own Social Security, after which they will go lie down in the streets to die, free from all unnecessary governmental inconveniences.

Shared Sacrifice