imc indymedia

Los Angeles Indymedia : Activist News

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


KILLRADIO

VozMob

ABCF LA

A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List

LAAMN List




IMC Network:

Original Cities

www.indymedia.org 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

www.indymedia.org 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 Hype

by Stephen Lendman Tuesday, Oct. 15, 2013 at 5:33 PM
lendmanstephen@sbcglobal.net

class war

Debt Ceiling Hype

by Stephen Lendman

The so-called deadline to raise it isn't one at all. Lots of ways can resolve it. Prioritized spending can keep government operating. It can prevent default.

From October 1, 2013 through September 30, 2014, an estimated trillion in revenue will be collected. The Treasury can mint trillion dollar coins if needed.

The Fed monetizes debt by buying Treasuries. It's purchasing about trillion annually. It can double the amount if it wishes.

Doing so, of course, is madness. What can't go on forever, won't. Massive monetization debases dollar value. Doing so is back door defaulting. Short-term, nothing prevents it from continuing.

Technically the debt ceiling is unconstitutional. The 14th Amendment Section 4 mandates paying public debt obligations. It states:

"The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned."

"But neither the United States nor any State shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void."

Defaulting violates the Constitution's "general welfare" clause. Article I, Section 8 states:

"The Congress shall have power to…provide for (the) general welfare of the United States."

Having power means using it when most needed. It means doing so for the good of the country and everyone. It requires keeping government operating. It requires funding its obligations.

The so-called debt problem is an accounting one. The Treasury can issue any amount it wishes. The Fed can buy it all if needed.

It can cancel debt it owns. It can simply forgive it. It's a bookkeeping entry. It's money Washington owes itself.

Doing it creates lots of wiggle room. It would end the current standoff. It would prevent default.

It won't happen whether or not the so-called deadline is passed. Bet on it.

Here's where things now stand. An hour from now they may change. According to Defense News.com:

Senate Democrat and Republican leaders "are close to finalizing a debt-ceiling deal…"

It buys time. It gives Congress and Obama three more months to resolve differences. It averts new defense sequestration cuts.

Senate majority and minority leaders Harry Reid (D. NV) and Mitch McConnell (R. KY) respectively agreed on 2011 Budget Control Act (BCA) funding levels.

If House Republicans concur, government reopens. It continues operating until January 15. It provides time to resolve differences.

Reid and McConnell are close to a deal to raise the debt ceiling until mid-February. In weekend talks, Democrats introduced a sequester replacement plan. Republicans balked.

Reid and McConnell agreed on 6 billion additional spending. It'll end in mid-January without a sequester replacement deal in the meantime.

According to Senator Mark Pryor (D. AK), both leaders agreed on what 13 Republican and Democrat senators proposed. Passing a continuing resolution (CR) would keep government operating.

Doing so requires House and Senate approval.

At 9:56 AM EDT time today, The New York Times headlined "House Outlines Plan on Spending Debt Limit," saying:

Doing so "would end the government shutdown and raise the debt limit into next year, but would also make some changes to the health care law."

Their plan mandates Obamacare coverage for congressional and high-level administration staffers. It excludes them from receiving government subsidies.

It suspends the medical device tax for two years. It reopens government. It funds it through January 15. It increases the debt ceiling until February.

Other House and Senate Democrat and Republican proposals were floated. They're being considered. So far, nothing is resolved.

At 11:30 AM EDT today, The New York Times headlined House "Republican Leaders Back Off New Plan," saying:

"Republican leaders walked back from a plan that had emerged this morning. Speaker John A. Boehner told reporters there are 'no decisions about what exactly we will do.' "

"We're trying to find a way forward in a bipartisan way that would continue to provide fairness to the American people under Obamacare."

House Republicans have different ideas on how to do it, he added.

According to The Times, they "appear intent to extract at least one concession…"

They want congressional members, Obama, Biden, and high-level administration staffers excluded from federal health insurance subsidies. They want them bound under the same Obamacare provisions as everyone else.

House Majority Leader Eric Cantor calls it "our provision of fairness. No special treatment under the law."

Stay tuned. Ongoing toing and froing has a ways to go. Debt default won't follow. Whatever happens, ordinary people will be harmed most.

A previous article explained. Squabbles mask Washington's longstanding class war. Neoliberal harshness explains it.

Bipartisan complicity demands it. Destroying social America is planned. Brinksmanship is theater. It masks what's really going on.

Expect resolution to hammer ordinary people hard. It'll hurt America's most disadvantaged hardest. It'll come incrementally.

It'll eliminate social protections too vital to lose. It'll leave growing millions increasingly on their own sink or swim.

It'll reveal more than ever America's dark side. It reflects heart of darkness wickedness writ large.

Report this post as:

Local News

Why Should California Choose De Leon Over Feinstein? O10 9:55PM

Change Links September 2018 posted S02 10:22PM

More Scandals Rock Southern California Nuke Plant San Onofre A30 11:09PM

Site Outage Friday A30 3:49PM

Change Links August 2018 A14 1:56AM

Setback for Developer of SC Farm Land A12 11:09PM

More problems at Shutdown San Onofre Nuke J29 10:40PM

Change Links 2018 July posted J09 8:27PM

More Pix: "Families Belong Together," Pasadena J02 7:16PM

"Families Belong Together" March, Pasadena J02 7:08PM

Short Report on the Families Belong Together Protest in Los Angeles J30 11:26PM

Summer 2018 National Immigrant Solidarity Network News Alert! J11 6:58AM

Watch the Debate: Excluded Candidates for Governor of California M31 5:20AM

Change Links June 2018 posted M28 7:41AM

The Montrose Peace Vigil at 12 Years M22 8:01PM

Unity Archive Project M21 9:42AM

Dianne Feinstein's Promotion of War, Secret Animal Abuse, Military Profiteering, Censorshi M17 10:22PM

CA Senate Bill 1303 would require an independent coroner rather than being part of police M10 9:08PM

Three years after OC snitch scandal, no charges filed against sheriffs deputies M10 8:57PM

California police agencies violate Brown Act (open meetings) M02 8:31PM

Insane Company Wants To Send Nuke Plant Waste To New Mexico A29 11:47PM

Change Links May 2018 A27 8:40AM

Worker-Owned Car Wash on Vermont Closed A27 5:37AM

More Local News...

Other/Breaking News

Apocalypse capitalisme O20 7:45AM

Stress, réaction organique à l'agression O19 6:59AM

Elder Aliyah to Israel, Like Abraham and Sarah O18 6:35PM

Politoscope plurivalent O17 6:59AM

Paraphysique du microcosme macrocosme O15 6:44AM

September 2018 Honduras coup update O15 3:31AM

The Nation Unites Against Brian Kemp, Most Racist Secretary of State in US O14 7:34AM

The Nation Unites Against Brian Kemp, Most Racist Secretary of State in US O14 7:23AM

Paraphysique de l'ubérisation O13 7:56AM

22 Ways Trump Has Increased US Deficit By 4 to 5 Trillion Dollars O12 10:34PM

Debunking Some Anti-Prop 10 Propaganda O12 6:56AM

Plus d'hôpitaux, à bas les aéros O12 6:38AM

When Banana Ruled (documentary) O11 3:00AM

Outstanding Report By RAMOLA D &Dr.Tomo Shibata O10 9:17PM

Dark Clouds Gather on Horizon for Financial System, Warns International Monetary Fund O10 1:51PM

Fbi pure evil & immorality O10 5:39AM

Reality Check: Palestinian-Israeli Coexistence is a Big Lie O09 7:40PM

Voiceless Animals: 2018 Candidates They Oppose O09 7:01PM

IMF Lowers Global Growth Projections and Raises Concerns of Financial Crisis O09 3:27PM

Canitie, l'inhumanité vieillit O09 7:13AM

L'anarchie en quelques exemples O07 6:50AM

100 Ways GOP Have Stolen Elections Since 1876 O06 12:03AM

Proximospective de l'univocité réifiée O05 6:27AM

“Kava-no!!!” O04 6:42PM

Trump & Palestine vs. Genesis, Rashi & The Land of Israel O03 6:29PM

The Criminality of the Elites O03 11:35AM

Business de l'inhumanitaire O03 7:51AM

Marriage Rape/Date Rape Highest Rapes O02 2:59PM

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