Wednesday, June 29, 2011

Nothing Like Writing Your Doctoral Desertation The Night Before It's Due

Quality work, I'm sure. No, nothing schlocked together at he last minute to fill the required blanks. The very best ideas thoroughly thought out over time, tested and approved, yeah right.

Here we are about a month from the national debt going over the debt ceiling and BOTH sides of the aisle are playing coy. Just like the lame duck session,taxes on the rich are a big part of the issue. That question was decided albeit during the 11th hour last December. A compromise was reached that never should have been agreed to in the first place. The economy is stagnated, and taxing America more to get the economy moving again was voted on in the mid term elections of 2010. Obama was routed and on his ass, yet the republicans compromised by extending the 99ers unemployment payments, plus another couple hundred billion in spending.

Obama is holding a junk hand, just like last December, and the republicans are wetting their pants fretting over his bluff.

The big hammer over Obama last time was 64 lost congressional seats and a party in disarray calling for an Obama antidote, a call coming from the left. What is the big hammer this time? Moodys. If the bozos in Washington screw this up this time, Moodys is going to unload on America. The Triple A credit rating is going to go out the window, replaced with a down graded B avoid rating and a spike in interest rates. Our national interest payments are going to go from high to sky high. Kinda like when you lose that 9% interest rate from Mastercard for being late on a maxed out card, and they hit you with the penalty rate of 28% because they can.

On the one hand I can see Obama letting the US go into default and or let interest rates cripple the country. He does want to collapse the economy after all. Think about this, If you are poor with zero assets, does inflation really affect you? You have no savings in the bank dwindling to nil because inflation has eroded your money's buying power. You have no home to become underwater on. The inflation adjusted money that you get from Uncle Sam is spent immediately at current prices.
So the only people taking a bath in a hyper inflation situation, are the "haves". It is their nest eggs that are turning to dust. Hmmm sounds like, like ohhh maybe, redistributing the wealth.

But you know something, I don't think Obama has the guts to try it. I think redistribution of wealth is nothing but hot air. I can say this based on his past behavior. For all the tough talk last December Obama caved on tax rates. He'll cave on the debt ceiling too, because if the economy does go tits up, and savings are wiped out, Obama won't have to worry some "extremist militias" will rise against him, grannie herself will be in the streets. And for all his bluff Obama isn't ready for that.

McConnell and Boehner will never do this, but they should plunk down in front of Obama the long term budget cuts, leave the tax rates for individuals where they are and no debt ceiling increase, and a note to prepare for revolt if it isn't agreed to.

It's time for some ultimatums.


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