GOP Is Sure To Throw Debt Ceiling Tantrum-So Let’s Just End It

Must Republicans abuse every basic standard of humanity regardless of who it hurts  just so they can notch a “win”? We all know that Republicans are going to throw their newest hissy-fit using the debt ceiling; so let’s end what was intended to be nothing more than a parliamentary procedure once and for all.

The irony that drips from this situation like slobber from a bulldog, is that these same House Republicans caused the so-called “fiscal cliff” the last time they held the country’s credit rating hostage. That didn’t work out, so now they’ll try do it again, and all because they failed to force their ill-advised and rejected economic policies on the majority of Americans by lying, cheating, and stealing. What a pathetic group of people.

Like Abusers-The GOP Isn’t Happy Unless Someone Else is Hurting

Like serial abusers, Republicans are constantly searching for someone to hurt. And like serial abusers, they claim it’s our fault that they abuse us; or it’s for our own good. There is never enough pain to bestow on someone who doesn’t share their views. So, having failed, like most bullies who cannot win, Republicans are intent on brandishing the heretofore merely procedural debt ceiling increase like some sick new weapon to wield upon the middle class, the elderly, the poor, or non –white males. Yes, yes, bow down before Zod. Yada, yada, yada.

If it means the U.S. credit-rating takes another hit? Republicans repond, “Oh well, too bad. Should’ve let us have out way”.

Speaker Boehner even had the audacity to call it HIS “leverage”! Leverage against who? The American voters? While the Obama administration is trying to remove this childish, yet destructive means of obstructionism obsolete by removing the threat of default as part of any agreement, the GOP decide to simply go home. Why work when there nothing going on? (After all, (R)Eric Cantor has already set the 2013 HOR schedule and it’all of 129 days! for this they get full pensions and paid healthcare for life?).

Here’s one reason why I call this debt ceiling tactic destructive, and that it needs to be eliminated: last time the obstructionists used this tactic, the conservatives actually applauded a potential default. I shouldn’t be surprised that being deadbeats is no deterrent to conservative behavior though; it’s been more and more evident that the Republicans care about no one but themselves and their wealthy donors. But as I’ve explained before, raising the debt ceiling causes no additional spending, it merely allows the U.S. to pay the bills that Rs and Ds have already approved! The conservatives applauded defaulting on our debts and said it would be a “moral” victory; as if the credit agencies were kidding when the said that the SIZE of our debt was not the reason for lowering our first-ever credit rating two summers ago. It was that the Republicans were incapable of being responsible in threatening not to PAY their debts-the very definition of a deadbeat.

Financial analysts profoundly disagreed with the conservartive opinion. Back in April, 2011, JP Morgan analyst Terry Belton wrote that “any delay in making a coupon or principal payment by Treasury would almost certainly have large systemic effects with long-term adverse consequences for Treasury finances and the US economy.”

In other words, the mere threat of defaulting on payments for bills for money the House and Senate have already spent would cause a crippling run on money market funds not seen since the Lehman Brothers collapse. That means “it would be bad”.

And Republicans are willing to simply let that happen because they:

  1. Want to protect their wealthy donors
  2. They don’t care who gets hurt as long as they collect their life-long pensions and receive their lifelong healthcare
  3. Their extensive spin machines of Rush Limbaugh, FOX “News”, David Gregory, Joe Scarborough, et al, will convince the low-information Republican faithful that it’s all Obama’s fault.
  • The Brain Trusts Behind Republican Methodology and Their “Logic”:    The Future of America, and possibly the World economy, Hinges on the U.S. Invisible Debt Ceiling.

American Enterprise Institute, a conservative “think tank” headed by former Rand Corporation “consultant”, Arthur C. Brooks, published the following during the last debt ceiling imbroglio: “The battle over the debt ceiling…is not a political fight between Republicans and Democrats; it is a fight against 50-year trends toward statism…No one deserves our political support today unless he or she is willing to work for as long as it takes to win the moral fight to steer our nation back toward enterprise and self-governance.”

At the same time, Edwin J. Feulner, the president of the Heritage Foundation, (Breaking: Jim Dement will leave the Senate to lead the Heritage Foundation) compared Democrats to Japan during World War II and then argues: “We must win this fight. The debate over raising the debt limit seems complicated, but it is really very simple. Look beyond the myriad details of the awkward compromises, and you see an epic struggle between two opposing camps….Congress should not raise the debt limit without getting spending under control.”

  • Technical Default Is No Big Deal.

Another AEI contributor, corporate shill and CNBC contributor, James  Pethokoukis wrote about Moody’s downgrade in 2011, “I guess I would care more about what Moody’s had to say if a) they hadn’t missed the whole financial crisis, b) didn’t want to see higher taxes as part of any fiscal fix and c) if they made any economic sense.” Default doesn’t matter because Pethokoukis doesn’t want taxes to go up, and there’s no economic sense because of an interview he read in the Wall Street Journal.

Sadly, there even scarier opinions.

Here’s a commentary from economics21.org, another conservative think tank that read, “policymakers need to stay focused on the real default issue: whether the terms of the debt limit increase this summer will be sufficiently tough to ensure that the nation’s debt-to-GDP ratio is stabilized and eventually sharply reduced.” All these people who want a clean debt ceiling increase are causing the real default issue. As someone who used to do a lot of credit risk modeling, this is my favorite: “Indeed, those demanding the toughest concessions today actually have a strong pro-creditor bias.” S&P disagreed with whoever wrote that editorial and increased the credit risk (downgraded) based on the threat of this technical default.

So the conservative network of “intellectual thinkers” examined the likelihood of a debt default and decided it was both insignificant and the only way to stop statism in our lifetimes. It’s no surprise that the instance around the last debt ceiling was such a debacle for our economy, killing around 250,000 jobs that should have been created.

By all appearances, despite the thrashing that Republicans took in the election barely a month ago, the Republican leadership is willing to double-down on the tactic again…regardless of the damage it will do to our country.

Strange. We used to call doing intentional harm to our country TREASON.

There’s no good reason for the debt ceiling, and now that we have children playing stupid games of “chicken” with our reputation, and our economy, there are really bad ramifications when it’s abused.

Just End It!

Harvey Gold

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