Flim Flam Forever

Flim Flam Forever

The Debt Ceiling and the Housing Bust

The Debt Ceiling and the Housing Bust

Krugman: Automatic Destabilizers

Krugman: Automatic Destabilizers

Blame Obama Please

Remember when Obama negotiated with the GOP over an extension of the Bush tax cuts and allowed the GOP to take the budget hostage? This phony debt ceiling crisis is directly related to that. If he let the tax cuts expire we wouldn’t be in this mess as the GOP would have been discouraged from further hostage taking.

Two ways to call the GOP bluff

The Stop Socialist Redistribution act. A one page bill that simply states that no state can receive more in money from the Federal Government in the form of payments, credits and subsidies than it pays in taxes. Those surpluses would go to deficit reduction and the states would be on the hook to make up the difference internally, without the help of socialist wealth redistribution. This would directly (and in some cases considerably) harm 11-15 states, mostly ones that went for McCain and all of which have republican and tea party dominated politics.

The Better than the Ryan Plan Debt Ceiling act Demand that the house pass a bill raising the debt ceiling to a level needed to support the Ryan plan (which they passed) and only the extent needed to support the Ryan plan. Any actually budgets must then be better at reducing the debt than the Ryan plan. Not hard as just letting the Bush tax cuts expire and doing nothing else make the budget balance by itself in 2014.

GOP Victory on Debt Ceiling

I think the GOP won this round. They got to push the odious by necessary task of extending the debt ceiling to Obama and can not stand on the sidelines and complain loudly. And this is all they want to do anyway. They are like arsonists complaining about the shoddy work the fire fighters are doing putting out their fires.