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Title: Supercommittee Strikes Out
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Published: Nov 22, 2011
Author: Stephen Lendman
Post Date: 2011-11-22 04:31:24 by Stephen Lendman
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Views: 161
Comments: 10
Supercommittee Strikes Out - by Stephen Lendman On November 20, New York Times writer Eric Lipton headlined, "Lawmakers Trade Blame as Deficit Talks Crumble," saying: Hours away from their self-imposed deadlined, "Congressional leaders conceded Sunday that talks on a sweeping deficit agreement were near failure and braced for recriminations over their inability to reach a deal." Republican aides said lawmakers will end their negotiations with a whimper, not a bang. Expect no final news conference, just a quietly issued joint statement and follow-up comments. By law, automatic $1.2 trillion in cuts over 10 years will start in 2013. They're to be equally divided between defense and domestic programs. Don't bet on it. Expect sustained military spending at the expense of what people value most. Either way, lost purchasing power means less spending, fewer jobs, and greater public anger than today's high levels. Both sides blamed the other. Democrats said Republicans wouldn't yield on tax hikes. They pledged none, no matter what. Republicans called Democrats inflexible, especially on Medicare, Medicaid and Social Security cuts. The Congressional Budget Office (CBO) estimated that domestic programs, including education, transportation and immigration would be cut by 7.8% in 2013 and Medicare would lose 2%. Defense would be reduced 10%. For now at least, Medicaid, Social Security and veterans' benefits are spared, but that could change. Members of both parties oppose defense cuts. Expect "entitlement" reductions instead, despite exemptions under the automatic "trigger" procedure. Failure complicates extending end of year expiring payroll tax cuts, unemployment benefits, and other tax breaks experts say could shave over a percentage point off already weakening growth. Troubled Eurozone economies are crumbling. Nonetheless, ECB president Mario Draghi says it's "heading toward a 'mild recession' by the end of the year." He knows the truth but suppresses it. So does Wall Street. They've seen Eurozone bond yields rise, in some cases to alarming levels. Across America and Europe, millions are raging against policies they want changed. Economist David Rosenberg asked if Italy is another "Lehman event?" Not exactly, but they're similar. Confidence lost is tough restoring. Italy has to roll over $500 billion of maturing debt next year, $800 billion through 2014. At 7% yields or higher (the same tipping point that drove Greece to default), it's impossible to meet fiscal targets markets demand. Italy faces a classic Catch-22 dilemma. The difference is Lehman had $150 billion in outstanding bonds. Italy has $2.5 trillion, the Eurozone's largest bond market by far. Wall Street banks are called too big to fail. Italy's too big to save, and without monetary and fiscal sovereignty, it can't print money, add fiscal stimulus or devalue its currency to boost exports. Italy's financing needs are so huge, it'll have to hold near weekly bond auctions for many months or years. One or more failures seems likely followed by severe repercussions. Other troubled Eurozone sovereigns face similar problems. So does America. Its annual deficit approaches 11% of GDP. Weakening economic conditions next year will drive it higher. Total government debt (including US agencies) as a percent of GDP exceeds 118%. France's borrowing costs surged 2% above Germany's, more than triple the worst 2009 level. Whatever steps America takes to curb debt won't work. Unlike Eurozone measures, they're slowdowns, not reductions. Either way assures failure when stimulus is needed. Key also is congressional paralysis to address financial crisis conditions too grave to ignore or delay. Major credit rating agencies plan "negative outlook" US Treasuries downgrades. Merrill Lynch believes they're coming, saying: "The credit rating agencies have strongly suggested that further rating cuts are likely if Congress does not come up with a credible long-run plan. Hence, we expect at least one credit downgrade in late November or early December when the Super Committee crashes." Ahead also, expect higher defense spending, lower corporate taxes or no hikes, Bush era cuts for the rich untouched, and major reductions to Medicare, Medicaid and other social programs to make people pay, not Wall Street, other business favorites, and America's super-rich already with too much. Progressive Radio News Hour regular Bob Chapman says Supercommittee members plan billions of dollars in secret farm bill handouts to prop up failed agricultural policies. Now passed their self- imposed deadline without agreement, expect Congress to do it. At the same time, automatic triggering will impose cuts. Congress must vote them up or down without amendments, debate or delay. Expect more benefits for corporate favorites, higher deficits despite reductions, America's fiscal mess increasing, and economic conditions becoming worse than ever. Bad policies produce failed results. It's just a matter of how bad, how soon. Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net. Also visit his blog site at sjlendman.blogspot.com and listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network Thursdays at 10AM US Central time and Saturdays and Sundays at noon. All programs are archived for easy listening. http://www.progressiveradionetwork.com/the-progressive-news-hour/.
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#1. To: Stephen Lendman (#0)
We pretty much knew going in that the Republicans on the Supercommittee would be absolutely obstinate in refusing even the slightest tax increase on the rich, and would insist on spending cuts as the one and only remedy. The Dems on the Supercommittee offered to trim and even slash a lot of federal programs - but not enough to solve the budget problems without some tax increase. End result: No result.
Every year the Communist Party of the Soviet Union (CPSU) elected a 27 member Central Committee. In March 1919 the party decided this body was too large to determine policy. It was therefore replaced by a five man Politburo (increased to nine in 1925 and ten in 1930). Its first members were Vladimir Lenin, Leon Trotsky, Joseph Stalin, Lev Kamenev [My note: aka Rosenfeld/Roosevelt] and Nikolai Krestinsky. In 1952 the Politburo was replaced by a presidium of thirty-six members. After the death of Joseph Stalin it was reduced to ten members. ------- "They're on our left, they're on our right, they're in front of us, they're behind us...they can't get away this time." -- Col. Puller, USMC
Its a damned good thing I don't depend on you for information and that I do my own research. Your "take" on the Republicans and their responsibility for the failure of the supercommittee shows you are either a programmed robot or brain dead.
Super committee: Who are these guys? Almost all men -- they are the 12-member panel charged with finding an additional $1.5 trillion in debt savings over a ten-year period. Pan to the EU: Eurozone crisis: European Union prepares for the 'great leap forward' "If eurozone debt is going to be 'mutualised'," [My note: read "Pooled, Monetized and Socialized"] said Guy Verhofstadt, the former prime minister of Belgium and now leader of the liberal group in the European parliament, "then [sic] someone or some independent institution is going to have to police that. I was in the Council of Ministers for nine years. I know from experience that prime ministers don't police each other, don't point the finger at each other for bending the rules." The new "police force", Verhofstadt believes, will be the European commission itself. Pan to China: Mao's Great Leap Forward 'killed 45 million in four years' ------- "They're on our left, they're on our right, they're in front of us, they're behind us...they can't get away this time." -- Col. Puller, USMC
Super Committee Hits Supersnag If both sides don’t come to an agreement asap, automatic cuts to the tune of $1.2 trillion take place in just over a year. Neither side wants that but there’s no turning around unless somebody, the public actually, can look at the whole picture and demand the service they deserve. ------- "They're on our left, they're on our right, they're in front of us, they're behind us...they can't get away this time." -- Col. Puller, USMC
You can depend on him for misinformation, at least most of the time. Liberty is not a means to a higher political end. It is itself the highest political end. Lord Acton The human herd stampedes on the fields of facts and the valleys of truth to get to the desert of ignorance. Saman Mohammadi The only difference between genius and stupidity is that genius has its limits. Albert Einstein "...if the military is going to defend our freedoms, then we need freedoms to defend. Our freedoms must be restored before the military can defend them..." Lawrence M. Vance Você me trata desse jeito só porque eu sou preto. Junior (my youngest son)
This supposed supercommittee wasn't supposed to do anything. It was just a propaganda tool to try and convince people that the politicans/govt is working to try an solve the problem. They had not intention of doing anything. The goal is to eliminate the middle-class, destroy/outsource American jobs, widen the gap between the super rich and everybody else to the point where we have nothing but the elite and serfs. Everything that has happened over the past 50+ years was planned. The goal is to turn the U.S. into another 3rd world country.
The last 50+ years? We have to look much farther back than that! The goal is a zero sum game called humanism. We have been sending our money to third world countries, AND to our enemies so they can put up a decent fight when we decide to invade them, for a very long time. The Zero sum game is to reduce all of humanity, except the elites, to the lowest common denominator. The Babylonian Canaanites a.k.a. Khazars a.k.a. the Freemasons, a.k.a. the Synagogue of Satan have been at this for 3,000 years. It is vital to understand that there is no truth without discernment and no wisdom without the truth. What then is “faith” but an effort to confound truth and wisdom?
At least he has a good memory. That is almost word-for-word what Patty Murray said in an interview to explain why the super committee was going to fail to break its deadlock. Blame Shoonra for not naming his source. It is vital to understand that there is no truth without discernment and no wisdom without the truth. What then is “faith” but an effort to confound truth and wisdom?
So he's a plagiarist, too. Disgusting, but typical liberal.
#2. To: Stephen Lendman (#0)
Supercommittee
#3. To: Shoonra (#1)
We pretty much knew going in that the Republicans on the Supercommittee would be absolutely obstinate in refusing even the slightest tax increase on the rich, and would insist on spending cuts as the one and only remedy. The Dems on the Supercommittee offered to trim and even slash a lot of federal programs - but not enough to solve the budget problems without some tax increase.
#4. To: Stephen Lendman (#0)
NEW YORK (CNNMoney) -- They are the "super committee" -- and they have a lot of work to do.
By pooling its debt with its cash-strapped neighbours, Berlin would be vouching for Rome, Madrid and any other government that entered the bond traders' sights. But the price for such solidarity will be very high.
during the time that Mao was enforcing the Great Leap Forward in 1958, in an effort to catch up with the economy of the Western world, he was responsible for overseeing "one of the worst catastrophes the world has ever known". [sic] Between 1958 and 1962, a war raged between the peasants and the state; it was a period when a third of all homes in China were destroyed to produce fertiliser and when the nation descended into famine and starvation, Mr Dikötter said. [sic] members of the rural farming communities were seen by the Party merely as "digits", or a faceless workforce. For those who committed any acts of disobedience, however minor, the punishments were huge.
#5. To: Shoonra (#1)
Both parties have to realize our mutual enemy has and will continue to be the psychopaths in our midst who exploit every resource available. This is why the two parties can’t work things out because they’re so encrusted with crime no matter which way they turn they foul up.
#6. To: Phant2000, Shoonra (#3)
Its a damned good thing I don't depend on you for information
#7. To: Stephen Lendman (#0)
#8. To: bush_is_a_moonie (#7)
Everything that has happened over the past 50+ years was planned. The goal is to turn the U.S. into another 3rd world country.
#9. To: Phant2000 (#3)
Its a damned good thing I don't depend on you for information and that I do my own research. Your "take" on the Republicans and their responsibility for the failure of the supercommittee shows you are either a programmed robot or brain dead.
#10. To: angK (#9)
Blame Shoonra for not naming his source.
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