TODAY IN WASHINGTON: 2 WAYS TO HIDE FACTS

Profiles in courage (Craven Division).

The NY Times reported today on the utterances of one John A. Boehner.

http://www.nytimes.com/2013/11/14/us/politics/boehner-rules-out-push-on-immigration.html?hp&_r=0

He was confronted, the Times aid, at his daily Capitol Hill breakfast stop, Pete’s Diner, by 2 teenaged students, brought to this country illegally by their parents when they were young children, who asked for his help in passing comprehensive immigration reform, Boehner told them, “I’m trying to find some way to get this thing done. It’s, uh, as you know, not easy, not going to be an easy path forward. But I’ve made it clear since the day after the election it’s time to get this done.”

Later, that same day, Boehner must have re-checked the time, because he told reporters asking about the Senate-passed immigration reform legislation:

 

“’The idea that we’re going to take up a 1,300-page bill that no one had ever read, which is what the Senate did, is not going to happen in the House,’ he said. ‘And frankly, I’ll make clear we have no intention of ever going to conference on the Senate bill.’”

Whatever you think of Boehner’s political bind, what can one say about the bald-faced lie he palmed off on the students?  He sure taught them a thing or two about honesty and honor in American politics.

I mean who were these “illegals” to demand the personal respect of an honest answer?

Of course, by the end of the article, Times reporters Ashley Parker and Michael S. Schmidt had provided evidence that dishonesty through non-disclosure is no partisan thing in today’s Washington. “John McCain, Republican of Arizona, said at a confirmation hearing for Jeh C. Johnson, the nominee for secretary of the Department of Homeland Security,” the Times reported, "that the administration had refused to provide information on how it was policing the border.

"After Mr. Johnson stopped short of committing to provide the border data without consulting with homeland security officials, Mr. McCain said that he would not vote to confirm him until Mr. Johnson gave a 'yes answer' to sharing the information. 'How can we carry out our functions of oversight if we don’t get the kind of information we need to make the decisions that this committee to make?' Mr. McCain said."

 

 

CASSANDRA WINS, EVERYONE ELSE (BUT THE 1%) LOSES BIG TIME

The fix is finally in; the patch is on the tires of the US Government’s functionality and credit, at least for a few months.  But irreparable damage has been done, and no one could say, they didn’t see it coming, especially readers of DAVEMARASHSEZ.

http://davemarashsez.blogspot.com/2013/08/how-congress-earns-and-burns-your-money.html

In this case, I hate to say, “I told you so.”

Check out the first hours' damage report from the New York Times,

http://www.nytimes.com/2013/10/17/business/economy/high-cost-to-the-economy-from-the-fiscal-impasse.html?src=un&feedurl=http%3A%2F%2Fjson8.nytimes.com%2Fpages%2Fnational%2Findex.jsonp

“Even as the shutdown of the United States government and the threat of a default appear to be coming to an end, the cost of Congress’s gridlock has already run well into the billions, economists estimate. And the total will continue to grow after the shutdown ends and uncertainty persists about whether lawmakers might reach another deadlock next year.”

Sharp losses of what should have been economic performance are almost certain to be recorded for the 4^th Quarter of 2014, the Times reports, in employment, business earnings, borrowing costs and overall national and global growth, all of this due to “the intransigence of House Republicans.”   

Like your humble blogger, the Times looked back to the pre-run of this gratuitous stupidity in 2011.  “We saw huge effects during the summer of 2011, with consumer confidence hitting a 31-year low in August and third-quarter G.D.P. growing just 1.4 percent,” said Beth Ann Bovino, the chief United States economist at Standard & Poor’s.

Now, Bovino says, we can only expect worse.

Already, Times reporters Annie Lowrey, Nathaniel Popper and Nelson D. Schwartz write, “The two-week shutdown has trimmed about 0.3 percentage points from fourth-quarter growth, the forecasting firm Macroeconomic Advisers, based in St. Louis, has estimated.”

And they add, “Most analysts are predicting that growth will remain subpar, probably running at an annual pace of around 2 percent. While companies have generally reporting healthy earnings for the third quarter, an unusual number have been warning that the fourth quarter is not going to look as good, in part because of the political turmoil. Of the 105 companies in the Standard & Poor’s 500-stock index that have reported earnings so far, 68 have provided negative guidance, according to S&P Capital IQ.”

These long-term losses will extend the short-term effect I predicted, more free lunch for the 1%, paid for by the 99%, a predator-creditor’s ball.

“The impasse over the debt ceiling has already raised the United States’ short-term borrowing costs, with investors demanding triple the interest payments they demanded just a few weeks ago, in some cases. Concerns about the United States as a borrower might have a much longer and deeper effect than the shutdown, analysts think.

“A new Macroeconomic Advisers report, prepared for the Peter G. Peterson Foundation, estimates the costs of the fiscal uncertainty of the last few years.”

Since 2009, PGPF says, corporate borrowing costs have gone up 0.38%; economic growth has gone down by 0.3% per year, at a cost of 900,000 jobs.

Now, to the future, the proposed agreement keeps the government open only until January 15, and the staves off default only till February 7.

The Republicans like to call themselves, “the party of small business.”  Ask any small businessman about the costs of preparing for shutting down the shop, much less actually doing so, and then re-opening.  If the next round of “negotiations” gets close to either deadline, all those costs, which for the US Government are huge, will be repeated.

Madness.

And, as the curtain on Act 1 of this unending tragedy falls, here’s what John Boehner had to say to conservative radio host Bill Cunningham: "We fought the good fight; we just didn't win."

You didn’t win, Mr. Speaker, that’s for sure.  The pathetic display Tuesday, after the Senate stepped back just so you could “be a leader” and vote for the inevitable, should put a final stamp of failure on your tenure.  The Tea Party didn’t win; its ratings in national polls have never been lower.  So bad game, badly played.

But the real losers here are the United States and its taxpayers, who will not reap the unearned benefits of your foulness, who will, this month, next month, next year and for years after have to pay more to and earn less from your benefactors and beneficiaries, the very, very rich.

DO IT NOW, MR. SPEAKER!

Well, here’s one species of political madness we might not have to worry about: the US defaulting on its national debt.

The NY Times says, Republican House leader John Boehner will not allow it to happen.

http://www.nytimes.com/2013/10/04/us/politics/debt-limit-impasse.html?hp

Speaker John A. Boehner has told colleagues that he is determined to prevent a federal default and is willing to pass a measure through a combination of Republican and Democratic votes, according to multiple House Republicans.

If I might be permitted a suggestion:  DO IT NOW, MR. SPEAKER!

As relieved as I was to read the Times headline and Ashley Parker and Annie Lowry’s well-reported story, I wondered why, if Boehner had made his decision, he was not acting on it immediately.

Every day the Republican leader waits, he adds to uncertainty and anxiety in the nation and the world’s markets.  This uncertainty and anxiety is pure torment to most participants, but it represents a predatory opportunity to a few.  “Frightened” creditors are entitled to demand a bigger payoff from their “uncertain” borrowers; they raise interest rates.  Every rise in interest rates on public debt comes right out of taxpayer’s pockets; every rise in private debt stalls projects and kills jobs.  Every rise in interest rates displaces wealth, both within the economy and without; it shifts money from the 99% to the 1%, and from the United States to its creditors abroad, like China.

The politically damaging idea that the Grand Old Party is the political organization that consistently makes the poor poorer and the rich richer (and today, the very, very rich, very, very much richer) is not one that wants reinforcing.  But the current and abhorrent “hostage-taking” of the nation’s credit in order to re-litigate Obamacare does just that: it puts the Republican brand on an artificial crisis with very real effects, including tossing a bonus bundle of Big Money to the people in the world who need and deserve it least.

Not only is the threatened default a GOP-manufactured disaster, it is unnecessary, redundant.  Hostage situations are one area of life where 2 heads are not better than one.  The threat to take one life makes the point.

The real fight here is not over our debt, anyway.  It’s about how American acquired it, not just how much we spend or owe, but what we get for it, or lose by skimping.  I think the Republicans are dead wrong taking the federal Budget hostage, shutting down the government and causing for Americans completely avoidable economic losses and personal inconveniences.  There are plenty of legitimate legislative ways to take on every investment, expense or program thought by the Tea Party and others to be wrong.  The way for Republicans to change laws is available within the rules and customs of Congress.  It has been used for almost 225 years.  It is shameful that rather than do the jobs for which they were elected, House Republicans are choosing to paralyze and de-populate the government to amplify their already-clear objections to what clear (if secret, on the House side) majorities of Senators and Representatives are ready to vote for.

But ya gotta do what ya gotta do.  “Young guns” and “tea bags,” be that way!  I am confident you will pay politically for the shutdown, but you will have been loudly heard on the money issues you care about most.

But, no one needs to do that twice.

So, GOP, be happy with your one hostage issue and flail way!  Let the other hostage free! 

The national debt is a fact not an issue.  Trifling with America’s “full faith and credit” is an economic and moral crime.

Recognize that, by moving immediately to raise the limit on the debt, and focusing your (to me, mostly mean-spirited, intellectually shoddy) arguments on your real targets: shrinking the government by down-scaling the budget.

Mr. Speaker, why wait another minute, another day.  Move on the debt ceiling NOW!