We had a server outage, and we're rebuilding the site. Most of the site features won't work. Thank you for your patience.
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

Woolsey Fire: Worst News of 2018? J01 12:18AM

Oppose Environmentally-Harmful Development D10 4:03AM

Oppose Environmentally-Harmful Development D10 3:58AM

OUR HOUSE Grief Support Center Presents Night for Hope O30 5:38PM

Marshall Tuck’s racist dog whistle O27 5:01AM

Marshall Tuck’s ethnocentrism contradicts Californian values O27 4:32AM

Contra Costa-Hawkins O25 3:48AM

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

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

More Local News...

Other/Breaking News

The Attack of Corporations and the Rich on the Rest of Society J22 2:36PM

bataclown J22 12:32PM

bataclone J21 8:08PM

VAN ATTACK HOAX J21 7:35PM

Mobile Royale Hack Online Generator - Get Unlimited Crystals J21 3:03PM

Unification, séparation et fragmentation J21 2:48PM

Testing Upload J21 7:10AM

FARCELONA.2 J20 7:18PM

FAKE NEWS POR SOROS J20 6:11PM

Chemtrails and Prince J20 2:43PM

Wages For Housework J20 2:41PM

Tutelle comportementaliste J20 9:18AM

A Mistake: Jesse Jackson-Toyota deal-in Lexington -Ky is .8 billion over 10 years 2018 J20 1:17AM

If Trump Declares a AantionalEmergency, He'll Be Breaking the Law J20 12:47AM

Jesse Jackson's Sneak Attck on Toyota Lexington Ky and it's workers 2018 J19 9:12PM

Video: Chris Herdges in Eugene, 1 hr 24 min J19 5:37PM

FAKE NEWS J19 2:31PM

MACROTHSCHILD.2 J19 11:03AM

Judge Delays Ruling on Puerto Rico Debt Deal White House Opposes Island's Food Assistance J18 6:04PM

BATACLOWNS J18 9:28AM

FALSAS VICTIMAS J18 9:22AM

Paraphysique de proxémie guerrière J18 7:59AM

MACROTHSCHILD J17 9:38PM

FARCELONA 8.17.2017 J17 3:23PM

DEAD MAN LIVING J17 10:46AM

DIARY OF A CON MAN J16 10:40PM

PR Debt Cancel, Judge Reviews Cofina Debt J16 9:04PM

Réseautage, fragmentation du capital J16 4:20PM

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