Tag Archives: deficit

Obama’s First State of the Union a Source of Regret

Obama’s First State of the Union a Source of Regret
On Jan. 27, 2010, Obama appeared before Congress for his first State of the Union and declared that the time for moderate austerity had arrived. It would prove to be a seminal moment for his presidency -- setting the stage for years of debate over the deficit and debt reduction -- and it would be one that close advisers would come to regret. Read more

The Standard & Poor’s Agenda

By George Zornick August 8, 2011, The Nation Standard & Poor’s declared in April that if $4 trillion in savings was not achieved in the debt ceiling deal, it would downgrade the government’s credit rating from AAA status. They did so on Friday, citing not only a deal that achieved “only” $2.1 trillion in savings but also Republican intransigence against raising new revenue and the party’s hostage-taking over the debt ceiling. The agency ... Read more

The Economic Illiterates Step Up The Attack On Social Security and Medicare

                By Dean Baker Truthout, August 9, 2011     Standard & Poor’s (S&P) downgrade of US debt should be seen as the joke it is. The rating agency, which gave investment grade ratings to hundreds of billions of dollars of subprime mortgage-backed securities, made an accounting error of $2 trillion in doing its assessment of the US financial situation. However, when this ... Read more

The history lesson Obama has ignored

Obama has made the same mistake as FDR, turning his back on Keynesian economics. And we’ll all pay dearly for it By David Woolner New Deal2.0, August 3, 2011 Wikipedia Former president Franklin Delano Roosevelt “The economic experiments of President Roosevelt may prove, I think, to be of extraordinary importance in economic history, because for the first time — at least I cannot recall a comparable case — theoretical ... Read more

What Happens After the U.S. is Downgraded?

By John Carney CNBC.com, August 6, 2011, 10:31 AM Barack Obama signed into law a bill to raise the debt ceiling, preventing a default on U.S. government bonds or other obligations. But despite a resolution on the debt-ceiling debate, Standard & Poor’s decided that the deal failed to produce a longer-term solution to the U.S. debt burden. A downgrade from our triple-A credit rating was the result. So, Who Owns Treasuries? The owners of ... Read more

Barack Obama hints at tax rises after US debt bill goes through Senate

US president refuses to rule out tax rises for wealthiest Americans as he signs debt limit bill into law By Ewen MacAskill The Guardian, August 2, 2011 Barack Obama came out fighting in an attempt to undo the damage to his reputation caused by the long-running debt standoff, and pacify Democrats who feel betrayed by the deal that will result in spending cuts totalling trillions of dollars. The president, who turns 50 on Thursday, faces a ... Read more

Reading the Debt Ceiling Tea Leaves to Predict the Future

The Worst is Yet to Come By Jack Rasmus Z Net , July 14, 2011 A few weeks ago in late June it leaked out that Vice-President Biden had secretly agreed with Republicans to $1 trillion in spending cuts in an effort to get them to agree to raise the debt ceiling. That was soon upgraded in rumors to Biden agreeing to $2 trillion. And there was no agreement by Biden from Republicans in exchange for equal tax hikes on the rich and corporations. It ... Read more

US debt deal: how Washington lost the plot

Politicians and the media are obsessing on debt, deficit and cuts, but the real story is a stalled economy and rising unemployment   Dean Baker guardian.co.uk, Monday 1 August 2011 Debt relief? Senate Republican leader Mitch McConnell gives a thumbs up when asked if a deal had been agreed. Photograph: Astrid Riecken/Getty Images President Obama and the Republicans in Congress have finally worked out a deal over the debt ceiling. It appears ... Read more

The debt deal: Disaster averted, decline straight ahead

By Matt Miller, Washington Post, July 31, 2011 So this is what we’ve driven the global economy and America’s credit rating to the brink for? This is why Republicans (who voted for the Paul Ryan plan that would add $5 trillion in red ink over the next decade) decided it was vital to not lift the debt ceiling to accommodate their own budget’s outsized debt? Fast Fix – A deal on the debt ceiling is reached, but the economy is far from ... Read more

Debt Deal: Distaster Not Averted

The President Surrenders By PAUL KRUGMAN NY Times July 31, 2011 A deal to raise the federal debt ceiling is in the works. If it goes through, many commentators will declare that disaster was avoided. But they will be wrong. Fred R. Conrad/The New York Times For the deal itself, given the available information, is a disaster, and not just for President Obama and his party. It will damage an already depressed economy; it will probably make ... Read more