End the doomed shutdown. The main focus is not debt, but the state of the economy.

Sometimes ago, I suggested the debt could take care for itself. The conclusion was the following :

Fixing the debt problem is the new pretense of the GOP’s unjustifiable opposition to president Obama’s economic plan, as wisdom commands that fixing the debt issue should not come at the prejudice of the breathing of the economy or hamper the emergency of rethinking and reshaping the society and the economy up to the new challenges and to the issues emerging from the new cycle. 

The problem is not debt. The priority is how you keep your economy working and performing well and strong. The best assurance your debt would be paid is your state of economy. The main focus is not debt, but the state of the economy. Debt will take care for itself, if you keep the fundamentals stronger.

The ongoing stalemate is an excellent opportunity to post the entire article again. This would widen the vision and the context either in perspective and in density.

« Nowhere the relationships between the amount of debt on one hand, and on the other, unemployment, growth, free enterprise, a genuine governance and the fulfillment of the American Dream for every one have been proven.

Yes, debt interests count. Anyway, the GOP has been governing America for so many years that they can’t superbly stand today, after Bush’s two terms, one term of the father, and two other terms from Reagan, proclaiming the $16 thrillion debt is an Obama responsibility or Democrats. More, they can’t ask president Obama to shoulder those 30 latest years during which the debt ceiling has been pushed up again and again, each year. Where were the GOP Republicans to react so strongly and to shout their desperation ?

How is it that during those times of increasingly debt ceiling, the American economy was performing high and strong ? Another confirmation the debt is not the main concern, but the global projection of the economy is.

How is it that Republicans systematically gave quitus to the debt ceiling elevator just to discover during Obama’s tenure this was no longer acceptable ? The GOP is making some confusion between the crisis and the fundamentals that are still strong in American economy as Larry Fint quoted it on Bloomberg TV those latest days. Doing so, he insisted on the new data : « longevity » that should be brought into the debate. GOP rationale tremendously lacks prospective and long-sight vision.

That is why, we are sorry, this whole affirmation we heard yesterday from the Speaker is wrong throughout :

« The American Dream is in peril so long as its namesake is weighed down by this anchor of debt. Break its hold, and we begin to set our economy free. Jobs will come home. Confidence will come back. We do this not just to boost GDP or reduce unemployment, but to secure for our children a future of freedom and opportunity. Nothing is more important.

As Washington wrote in his farewell address, we should not “throw upon posterity the burden which we ourselves ought to bear.” Well, the burden is ours and so is the opportunity. »

The Speaker started the speech soundly :

« The one addition we dare to make, as George Washington did at the first inaugural, is to invoke the assistance of our Heavenly Father.

This covenant makes us servants of posterity. It calls us to refuse the pull of passing interests and follow the fixed star of a more perfect union.

Put simply, we are sent here not to be something, but to do something – to do the right thing.

It’s a big job, and it comes with big challenges. »

And then the speech derailed completed into false allegations and equations :

« Our government has built up too much debt. Our economy is not producing enough jobs. These are not separate problems.

At $16 trillion and rising, our national debt is draining free enterprise and weakening the ship of state. »

- First, « Today’s report from the Bureau of Labor Statistics (BLS) shows that private sector businesses added 168,000 jobs in December. Total non-farm payroll employment rose by 155,000 jobs last month. The economy has now added private sector jobs for 34 straight months, and a total of 5.8 million jobs have been added over that period, taking account of the preliminary benchmark revision. In 2012, private businesses added two million payroll jobs, taking account of the preliminary benchmark revision ».

- Second, the ship of state can’t be weakened as long as the Leadership is strong and focused on the challenges facing the country. Unless Speaker Boehner was intending to weaken Obama’s second term and his leadership by the way, before it even started, the rationale here is hard to see.

- Third, free enterprise depends on the global economic environment. It depends on the incentives generated by the government. Amid them are credit taxes for businesses, social security, government investments for the future : education, research, clean energy, social equity, age of retirement… Those are elements that are framing Obama’s plan for the second term. And it is precisely the nuclear point of the confrontation between Republicans and Democrats that played out in the « fiscal cliff’s » round and would continue in February with the second round over spending cuts and the debt ceiling.

- Four. How can the GOP express any concern about growth, jobs, free enterprise, unemployment, if their number one priority is to repeal the Obamacare ? We are told that Michelle Bachman is still insisting on the point and voted for the Speaker yesterday. Her voice and Eric Cantor’s are the two voices that allowed Boehner to keep the Spearkership. How do you grow an economy without making sure the first capital – men and women in good health condition and shape – is ensured ?

Yet, some people could replicate, let replace those lazy people – unable to help themselves paying the costs of their health – by robots. I won’t comment this, as it is pure nightmare and social and economic Darwinism.

- Five. How can the GOP show some concern about the amount of debt and the deficit if they are not willing the wealthiest people to pay their fair share in taxes to the point of edging the fiscal cliff for that opposition ?

Fixing the debt problem is the new pretense of the GOP’s unjustifiable opposition to president Obama’s economic plan, as wisdom commands that fixing the debt issue should not come at the prejudice of the breathing of the economy or hamper the emergency of rethinking and reshaping the society and the economy up to the new challenges and to the issues emerging from the new cycle. (See the map below).

The problem is not debt. The priority is how you keep your economy working and performing well and strong. The best assurance your debt would be paid is your state of economy. The main focus is not debt, but the state of the economy. Debt will take care for itself, if you keep the fundamentals stronger.

In one word, GOP should bring more analysis in the basket to change the public sentiment of Poisoning the debate and the negociations to come AHEAD OF time.

That said, we praise the Speaker for his second Speakership and we wish him the best.

This article was written on the 4 janvier 2013 by me : (Elise Mbock) under the title : Boehner startling second debut as Speaker. Today, it is even worse.

Picture. Yesterday, Speaker Boehner took oath to office. Before that he made a speech. The apparent sounding speech was poisoned with fake assertions and unproven links between the amount of national debt and economic problems. Difficult to sell. U.S. economy adds 155,000 jobs in December, the government reports. Unemployment rate unchanged at 7.8% ».

TODAY, GLOBAL RESEARCH IS REPORTING ONE WAY THE DEBT CAN TAKE CARE OF ITSELF.

With all due respect to the Rep. Alan Grayson, I will call it the EASY WAY OUT NOT ATTUNED WITH THE INTERNATIONAL ECONOMY. THIS OPTION IS DELOYAL TO THE OTHER NATIONS COMPETING ON THE GLOBAL ECONOMY. MY PREFERENCE GOES TO RISING TAXES FOR THE HAPPY FEW AND WORKING TO REDUCE INEQUALITIES.

From CNN. U.S. be warned: Default would cause global crisis

With uncertainty growing, the only sure thing is that default would send seismic economic and political shockwaves across the globe. This would not just further undermine the U.S.’s reputation as a responsible international power, but potentially send it into freefall again.

From Global Research.

Solution to the “Shutdown”: The Fed Could Simply Cancel $2 Trillion of Government Debt

Global Research, October 12, 2013

fedreserve

  Bipartisan Proposal Would Take Pressure Off the Budget Crisis

Congressman Alan Grayson and former congressman Ron Paul are two of the fiercest warriors against an out-of-control Federal Reserve.

Paul has campaigned to dissolve the Fed for 35 years, and wrote an entire book called “End the Fed“. Grayson has  repeatedly slammed the Fed, andabsolutely demolished it … to its face.    Paul and Grayson also co-sponsored a bill to audit the Federal Reserve. (Their desire to rein in the Fed is supported by numerous top economists.)

So when the two of them support a Fed-related solution to the “government shutdown” crisis,  I listen.

Congressman Grayson writes today:

A simple solution to the impasse is as follows: Federal Reserve Chairman Ben Bernanke should simply cancel the Treasury debt that it owns. The government can just forgive the government’s debt.

This wouldn’t solve the debt problem entirely. The Federal Reserve doesn’t own all U.S. government debt; it owns only roughly $2 trillion of it. (Well $2,076,927,000,000.00, as of last Wednesday, but who’s counting?)

NPR has a helpful graphic showing the various holders of U.S. government debt, including the Fed:

pm-gov_debt_v-624Source: NPR

 Congressman Grayson continues:

Yet canceling this debt would give the government substantial room under the debt ceiling to manage its finances. It would end the debt ceiling standoff in Congress, and it would prevent a default.

The debt held on the balance sheet of the Federal Reserve can be canceled without any significant consequence, because it is a bookkeeping artifact corresponding to the money supply. In essence, the government owes this money to itself. If I owe money to myself, I can cancel that debt at will and without consequence, essentially taking it out of my left pocket and putting it in my right pocket.

Have more at Global Research.