imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Calendar Publish RSS
latest news
best of news




A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List


IMC Network:

Original Cities africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech

Surviving Cities africa: canada: quebec east asia: japan europe: athens barcelona belgium bristol brussels cyprus germany grenoble ireland istanbul lille linksunten nantes netherlands norway portugal united kingdom latin america: argentina cmi brasil rosario oceania: aotearoa united states: austin big muddy binghamton boston chicago columbus la michigan nyc portland rochester saint louis san diego san francisco bay area santa cruz, ca tennessee urbana-champaign worcester west asia: palestine process: fbi/legal updates process & imc docs projects: radio satellite tv
printable version - js reader version - view hidden posts - tags and related articles

Debt Ceiling Debate Charade Masks Planned Entitlement Cuts

by Stephen Lendman Friday, Jul. 15, 2011 at 10:10 PM

criminal plan

Debt Ceiling Debate Charade Masks Planned Entitlement Cuts - by Stephen Lendman

Short of finalizing details and assuring enough bipartisan support, it's a done deal to slash Social Security, Medicare, Medicaid, and other social spending while leaving outsized military budgets and generous handouts to corporate favorites in place.

At the same time, the timeline to accomplish it is undetermined. Political posturing may extend the August 2 deadline until fall or beyond.

It's how corrupted Washington always works, notably since the 1980s under both parties. Obama was elected to assure continuity and accomplish by rhetorical duplicity what Republicans on their own can't do.

Notably after capitulating last December on tax cuts for America's super-rich, he proposed deep budget cuts, affecting disease prevention, children's and community healthcare, education, supplemental grants to poor women and children, community block grants for housing, energy efficiency and renewable energy, and other benefits for people most in need.

He's a charlatan, not a leader who cares. Earlier, he proposed hundreds of billions in Medicare cuts. It was step one ahead of incrementally ending entitlements and other social benefits altogether, including publicly funded pensions, returning America to dark age harshness.

Bipartisan duplicity supports it, including slashing healthcare, education, housing, virtually all social benefits incrementally, eliminating them all altogether. Obama and many Democrats tacitly agree. Timing is mostly at issue with an eye to 2012.

In principle, Obama and Speaker Boehner privately agreed to trillion in Social Security, Medicare, and other social spending cuts, backtracking when word leaked prematurely to a more modest .4 trillion package, then resurrecting the trillion one.

At a July 11 press conference, Obama again stressed "shared sacrifice," leaving unexplained he means working households sacrifice to let America's super-rich share.

Also unmentioned was his 2006 debt ceiling position, voting against raising it in the Senate saying:

"The fact that we are here today to debate raising America's debt limit is a sign of leadership failure. It is a sign that the US government can't pay its bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our government's reckless fiscal policies."

"Increasing America's debt weakens us domestically and internationally. Leadership means that 'the buck stops here.' Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better."

As President, Obama endorsed reckless fiscal policies, including:

-- trillions of bailout dollars to bankers;

-- generous handouts to other corporate favorites;

-- record high military spending for multiple illegal wars and proxy ones;

-- the same anti-labor tax workers, not the rich policies as Republicans;

-- wrecking Social Security, Medicare, Medicaid, and other social spending policies; and

-- rhetorically insisting the debt ceiling be raised before the August 2 deadline as part of a deal to please Wall Street at the expense of working households and seniors, dependent on vital entitlements they can't afford to lose or see weakened.

In fact, economist Michael Hudson accused Obama of governing to the right of George Bush, Sarah Palin, and Michele Bachmann, the Republican far right-wing extremist presidential candidate endorsing holy war on democratic values.

At the same time, he's triangulating more than Clinton to appear responsible. The budget debate is a charade. Republicans are playing bad cop. Obama plans selling out his constituency. Ahead is a nightmarish scenario comparable to Greece, impoverishing working households to pay bankers, starving states and cities of revenue, forcing them to sell public assets cheap, putting America on sale at fire sale prices, creating a dystopian Great Depression, wiping out generations of social progress.

Moreover, only a democrat could do this, especially a smooth talking charlatan like Obama - more duplicitous and pernicious than hardline Republicans saying, "(M)eaningful changes to Medicare, Social Security and Medicaid (plus other social spending policies must be made to) preserve the integrity of the programs and keep our sacred trust with our seniors (and other needy households), but make sure those programs were there not for just this generation, but for the next generation."

He lied. He wants them incrementally ended, perhaps over the next decade when another president will have to answer for his social destruction. His Wall Street and other corporate cronies demand it. They also want and will get the debt ceiling raised. It's why they funded his 2008 campaign, put him in the White House, and assure his reelection if he plays ball.

Chamber of Commerce president Thomas Donahue also weighed in, saying:

"An unprecedented default on the nation's bills would have dire consequences for our economy, our markets, and Main Street Americans."

The Washington Post gave PIMCO's Bill Gross (the nation's largest bond investor) July 13 op-ed space, saying:

"Don't mess with the debt ceiling. Raise it unencumbered if necessary. (Default) a huge negative for the US and global financial markets, introducing fear and unnecessary volatility into the economy and global trade."

False! America won't default, but doing so is the road to recovery, forcing bondholders to take stiff haircuts, letting too-big-to-fail banks take pain, collapsing their Ponzi scheme speculating, or shutting them down altogether. Removing that cancer would facilitate recovery and growth.

Moreover, if post-2008 crash Fed created trillions went into the real economy, creating jobs and stimulating growth, they'd be no social spending cuts/debt ceiling debate because America again would be healthy.

Ignoring basic truths, a July 11 Washington Post editorial called Obama's entitlement slashing a "truly progressive position."

A June 1 New York Times editorial called congressional posturing "Playing With Matches on the Debt," endorsing corporate America's advocacy for raising it, slashing social spending to finagle it, and keeping the nation on a fast track to third world status, including workers transformed to serfs.

On July 13, Fed Chairman Bernanke (Wall Street's hired hand) said Washington's failure to service debt would cause "shock waves through the entire global financial system," omitting what he should have said: namely,

-- that Washington has no debt creation limit;

-- that quantitative easing buys all of it not absorbed by sovereign or private buyers;

-- that the Fed can issue whatever amount is needed to service it; and

-- most important that Congress can reassert money creation power, replacing Federal Reserve notes with Treasury ones interest and inflation free with no need to raise taxes if responsibly done.

Doing so would end the budget cutting/debt ceiling charade. Moreover, sustainable economic growth would follow because publicly controlled money would reignite it free from predatory bankers, wrecking the economy to buy assets cheap, complicit with corrupt politicians letting them.

A Final Comment

On July 12, economist Jack Rasmus tried "reading the debt ceiling tea leaves," predicting what he sees ahead, saying:

-- gutting Social Security and Medicare is planned;

-- the debt ceiling will be raised;

-- real negotiations will begin once it's done;

-- for starters, slashing trillion in entitlements is a done deal;

-- October 1 is the next deadline, the start of FY 2012; at issue is passing next year's budget, including cuts;

-- expect the retirement age to be raised to 70 as well as sharply reduced disability benefits;

-- Medicare recipients will absorb all future cost increases, including Part B (raised to double the current level) and higher Part D deductibles; "(t)hat way Obama can say he never 'cut' Medicare," yet, in fact, slash "0 - 0 billion a year for the next decade;"

-- Republicans will agree to token tax cuts, closing loopholes easily offset by agreeing to overhaul the tax code favoring corporations; specifically, the top corporate rate will be cut from 35% to 20%, though gaming the system lets many corporations pay minimal taxes or get rebates despite being profitable;

-- "lowering rates for foreign profits (will) placate multinational" firms;

-- what political Washington takes with one hand goes back twice over with the other, continuing "the decades long tax 'shell game;' "

It's why corporations' share of federal revenue dropped from 20% years ago to 10% now, and falling because of bipartisan deceit.

Obama and Congress now plan completing their financial coup d'etat, ending America's social contract, leaving retirees, working households, and impoverished millions on their own sink or swim.

Only revolutionary change, impeaching Obama, and routing bipartisan criminals can stop them. It's high time public anger demanded it.

Stephen Lendman lives in Chicago and can be reached at

Also visit his blog site at 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.

Report this post as:

Local News


lausd whistle blower A10 11:58PM

Website Upgrade A10 3:02AM

Help KCET and UCLA identify 60s-70s Chicano images A04 1:02PM

UCLA Luskin: Casting Youth Justice in a Different Light A02 11:58AM

Change Links April 2018 A01 11:27AM

Nuclear Shutdown News March 2018 M31 6:57PM

Join The Protest Rally in Glendale on April 10, 2018! M29 7:00PM

Join The Protest Rally in Glendale on April 10, 2018! M29 6:38PM

Spring 2018 National Immigrant Solidarity Network News Alert! M19 2:02PM

Anti-Eviction Mapping Project Shows Shocking Eviction Trends in L.A. M16 5:40PM

Steve Mnuchin video at UCLA released M15 12:34AM

Actress and Philanthropist Tanna Frederick Hosts Project Save Our Surf Beach Clean Ups M06 12:10PM

After Being Told He's 'Full of Sh*t' at School Event, Mnuchin Demands UCLA Suppress Video M02 11:44AM

Resolution of the Rent Strike in Boyle Heights M01 6:28PM

What Big Brother Knows About You and What You Can Do About It M01 3:30PM

Step Up As LAPD Chief Charlie Beck Steps Down F14 2:44PM

Our House Grief Support Center Hosts 9th Annual Run For Hope, April 29 F13 12:51PM

Don’t let this LA County Probation Department overhaul proposal sit on the shelf F13 11:04AM

Echo Park Residents Sue LA Over Controversial Development F12 8:51AM

Former Signal Hill police officer pleads guilty in road-rage incident in Irvine F09 10:25PM

Calif. Police Accused of 'Collusion' With Neo-Nazis After Release of Court Documents F09 7:14PM

Center for the Study of Political Graphics exhibit on Police Abuse posters F07 9:50AM

City Agrees to Settle Lawsuit Claiming Pasadena Police Officer Had His Sister Falsely Arre F04 3:17PM

Professor's Study Highlights Health Risks of Urban Oil Drilling F04 12:42PM

Claims paid involving Pasadena Police Department 2014 to present F04 10:52AM

Pasadenans - get your license plate reader records from police F03 11:11PM

LA Times Homicide Report F03 1:57PM

More Local News...

Other/Breaking News

The Shortwave Report 04/27/18 Listen Globally! A26 4:03PM

Federal Bank Examiner FDIC recalls year long 1999 robbery in 2017 A26 3:24PM

Doxa du lobby A25 2:03AM

Tech workers organize A24 6:24PM

Architect Stephen Francis Jones A24 3:01PM

UN Forum Wrestles with Economic Policies 10 Years After Financial Crisis Islands Call for A24 12:34PM

Xyloglossie attitudinale A23 8:07AM

What does the Quran Say About Islamic Dress?? A21 4:15PM

Biodiversité ou la nature privatisée A20 11:22AM

The Market is a Universal Totalitarian Religion A20 7:14AM

Book Available about Hispanics and US Civil War by National Park Service A19 5:52PM

The Shortwave Report 04/20/18 Listen Globally! A19 4:01PM

The Republican 'Prolife' Party Is the Party of War, Execution, and Bear Cub Murder A19 11:48AM

Neurogenèse involutive A18 9:21AM

Paraphysique de la dictature étatique A16 10:13AM

Book Review: "The New Bonapartists" A16 3:45AM

The West Must Take the First Steps to Russia A14 12:25PM

Théorie générale de la révolution ou hommage à feu Mikhaïl Bakounine A14 3:30AM

The Shortwave Report 04/13/18 Listen Globally! A12 3:50PM

“Lost in a Dream” Singing Competition Winner to Be Chosen on April 15 for ,000 Prize! A12 3:48PM

The World Dependent on Central Banks A12 4:43AM

Ohio Governor Race: Dennis Kucinich & Richard Cordray Run Against Mike DeWine A11 9:40PM

March 2018 Honduras Coup Again Update A10 10:52PM

Apologie du zadisme insurrectionnel A10 3:33PM

ICE contract with license plate reader company A10 1:14PM

Palimpseste sisyphéen A09 11:23PM

Black Portraiture(S) IV: The Color of Silence...Cuba No...Cambridge Yes A09 5:32AM

Prohibiting Micro-Second Betting on the Exchanges A09 4:18AM

More Breaking News...
© 2000-2018 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy