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“Moving The Grenade To The Other Hand”: John Boehner Wants To Keep One Hostage, Briefly Let The Other Go

Have you looked at the major Wall Street indexes this morning? As I type, the Dow Jones Industrial Average is up over 200 points, and as a matter of percentage, the S&P and Nasdaq indexes are doing even better. After weeks in which stocks were on a downward trend, what caused the sudden spike?

Wall Street is now under the impression that congressional Republicans are not going to use the debt ceiling to crash the economy on purpose. This leads to a variety of questions, not the least of which is whether Wall Street’s exuberance is rational.

It may not be. Jane Timm reports from Capitol Hill:

On Thursday, House Speaker John Boehner proposed a short-term debt ceiling increase — if President Obama will negotiate on opening the government.

That plan may be presented to Obama this afternoon, when a delegation of Republican negotiators will meet at the White House.

And this is where things start to get messy.

We talked earlier about the subtle shifts in the Republicans’ posture, as it slowly dawns on them that they’re losing the public; they won’t achieve their goals through extortion; and they need to find a way out of the trap they set and then promptly fell into.

So, Boehner and his team came up with a plan. They’ll let the government shutdown continue, but raise the debt ceiling for six weeks. In exchange for not crashing the economy on purpose, Democrats will have to agree to participate in budget negotiations.

Will Republicans agree to let the government reopen during the budget talks? No.

Will Republicans take the prospect of a debt-ceiling crisis off the table? No.

Is there any chance in the world Democrats will consider this a credible solution? No.

Indeed, it’s already been rejected.

The White House indicated that while the president might sign a short-term bill to avert default, it rejected the proposal as insufficient to begin negotiations over his health care law or further long-term deficit reductions because the plan does not address the measure passed by the Senate to finance and reopen the government.

“The president has made clear that he will not pay a ransom for Congress doing its job and paying our bills,” said a White House official, speaking on the condition of anonymity.

The Democratic appeal to Republicans can basically be summarized in a few words: Just do your job. The government needs to be funded, so fund it — without strings attached or a series of demands. The debt ceiling needs to be raised, so raise it — without demanding treats or taking hostages. At that point, the parties can enter negotiations on just about anything and everything.

But the GOP’s new “offer” is predicated on the same assumptions as the other “offers”: Republicans won’t talk unless the threat of deliberate harm hangs over the discussion. It’s effectively become the GOP’s prerequisite to every process: only plans involving hostages will be considered.

Indeed, why raise the debt ceiling for just six weeks? Either Republicans are prepared to hurt Americans on purpose or they’re not. This is either a threat or it isn’t. Boehner is willing to put the pin back in the grenade, but he wants Democrats to know he’s prepared to pull it again around Thanksgiving?

I suppose it’s evidence of some modicum of progress that GOP officials are looking for a new way out of this mess, but this new “plan” is hardly any more credible than the others.

I wish I could share in Wall Street’s excitement, but I don’t.

 

By: Steve Benen, The Maddow Blog, October 10, 2013
 

October 11, 2013 Posted by | Debt Ceiling, Government Shut Down | , , , , , | Leave a comment

“The Double Play Game”: Do Republicans Believe In Their Own Crisis?

You would think Republicans would be the ones trying to scare the country about the imminent expiration of the Treasury’s borrowing authority. After all, they’re the ones trying to use the debt ceiling (and the government shutdown) as leverage to get their way on policies that would be laughed out of Washington at any other moment.

The leverage only works if the country is really worried about the potential economic catastrophe that would result from a failure to lift the ceiling. In the Republican fantasy, that would pressure Democrats to end health care reform, cut spending on entitlements and say farewell to all their liberal dreams.

But instead, the reverse is happening. It’s Democrats who are warning the country about the unimaginable consequences of default, and many Republicans who are minimizing it.

This phenomenon could be seen last week at the beginning of the shutdown, when right-wing lawmakers started pooh-poohing the effects of a closed government. Fox News called it a “slimdown,” and several House members said less government might be good for the country. Now, 10 days before (a potential) Default Day, several House members are deriding the notion that it would be a very big deal.

Senator Tom Coburn, flatly contradicting the clear explanation from the Treasury, said the country would continue to pay its interest and redeem bonds, so why worry? Mick Mulvaney, a congressman from South Carolina, repeated the well-known canard that the Treasury could prioritize its payments and that there would be no default.

And Ted Yoho of Florida, who is quickly replacing Steve King and Louie Gohmert as the congressman to whom reporters flock for the jaw-dropping quotes so beloved by Twitter, said that not raising the debt ceiling would actually be beneficial.

“I think we need to have that moment where we realize [we’re] going broke,” Mr. Yoho told the Washington Post. “I think, personally, it would bring stability to the world markets.”

If you think that remark is not only detached from reality but also utterly aberrant, take a look at the Pew Research poll that came out today. It shows that 54 percent of all Republicans (and 64 percent of Tea Partiers) believe the country can go past the debt-limit deadline without causing major problems. In that sense, Mr. Yoho better represents his party than Speaker John Boehner, who claims to believe that default would be terrible, but is nonetheless demanding concessions in exchange for preventing it.

That the very people who are causing the crisis are dismissing it shows the double game that’s being played here. Republicans don’t want the country to understand how big a threat they are posing to its well-being. A growing number of Americans already blame them for the whole mess, as the same poll shows. If people truly understood how bad a default would be — if they understood credit markets and interest rates, and how they would be affected by the global loss of faith in Treasury bonds — the anger would be much greater, and Republican control of the House would be threatened.

In the cynical game of spin and messaging that this crisis has become, the goal is to scare Washington Democrats while keeping ordinary people calm. It’s not working, though — Democrats have correctly refused to be intimidated, while businesses and average Americans are growing increasingly nervous. As they should be.

 

By: David Firestone, Op-Ed Columnist, The New York Times, October 7, 2013

October 11, 2013 Posted by | Debt Ceiling, Default, Government Shut Down | , , , , , , | Leave a comment

“The Gumption Gap”: GOP Moderates Should Ditch Their Party

Over the next couple of weeks, the fate of, well, some pretty big things — the Republican Party, the American system of government, the global economy — rests with about 20 people: Republican members of the House who have said they favor a straight-up continuing resolution that funds the government. No re-litigating Obamacare, no scaling back Social Security — just a “clean” resolution that would leave those other conservative causes to be fought about on their merits some other day.

When those votes are added to those of the 200 House Democrats who have said they would support a clean resolution, that yields a narrow majority for ending the government shutdown. It is hard to believe that those GOP dissidents wouldn’t support raising the debt ceiling as well. If they’re not willing to hold the functioning of government hostage to the tea party’s demands, they’re not likely to hold the economy hostage, either.

But that’s a big “if.” While The Post counts 21 GOP House members who have declared themselves in favor of ending the shutdown by passing a clean resolution, most of them have done nothing to compel the House Republican leadership to allow such a vote.

They could, for example, publicly declare their intention to join House Democrats in signing a discharge petition that would eventually force such a vote. They could privately declare that intent to House Speaker John Boehner, leaving him either to accede to such a vote or have it forced upon him. These center-right Republicans, however, have not indicated that they are willing to cross that Rubicon.

There is a simple explanation for their reluctance: Such action would surely result in serious primary challenges in 2014, when all the internal dynamics of today’s Republican Party would be working against them. The gerrymandering of congressional districts has made them safe for radical conservatives. The rise of the right that has marginalized the party nationally and driven moderates from its ranks has made the remaining handful of center-right incumbents exquisitely vulnerable to tea party challengers.

That, in turn, has created a strategic asymmetry within the House Republican caucus. The tea party faction, which by most estimates includes about 40 members, wields vast power over the leadership and the caucus, while the center-right contingent wields zilch. Both factions have enough votes to block legislation backed by the House leadership if the Democrats also vote against it, but it has been tea partyers, not centrist-moderates, who have used that veto power. Unlike their tea party counterparts, the center-right members lack gumption and imagination.

The gumption gap is understandable;unlike the Republican radicals, the moderates fear primary challenges next year. But there is a way to avoid Republican primary challenges, though it would take a leap of political imagination. To vote his beliefs and duck that challenge, all a center-right Republican has to do is declare himself an independent.

This is hardly a course to be taken lightly. It entails the loss of congressional seniority and would cause rifts with friends and allies. It requires considerable explanation to one’s constituents. There is no guarantee of reelection.

But others have taken this course and survived — most recently, former senator Joseph Lieberman, who, when he lost Connecticut’s Democratic Senate primary in 2006, reconfigured himself an independent and won reelection. Many of the House members tagged as supporters of a clean resolution, such as New York’s Peter King and Pennsylvania’s Charlie Dent, come from districts in the Northeast that aren’t as rabidly right as some in the Sunbelt. Others, such as Virginia’s Scott Rigell and Frank Wolf, come from districts with large numbers of federal employees, who almost surely are not entranced by the tea party’s anti-government jihad.

Leaving Republican ranks would not mean joining the Democrats. The ideological gap between GOP dissidents and the Democratic Party is huge. But the center-right dissidents are being willfully blind if they can’t see that the ideological gap between them and the tea-party-dominated GOP is also vast.

If they truly believe that government by hostage-taking is no way to run a democracy, they shouldn’t have too much trouble defending their defection. They could argue that their party has been transformed into a closed sect that can never win a national majority, or that it has descended into a hysteria that has run roughshod over such conservative values as prudence and balance, not to mention a modicum of strategic sense.

They could dub themselves Independent Republicans or True Republicans. They could tell their constituents that they put the interests of the nation above those of their party. If that’s not a winning argument in a swing district, Lord only knows what is.

Of course, these dissident Republicans could always stay and fight. But by staying and not fighting — their current course of inaction — they abet the very tea party takeover they dread.

By: Harold Meyerson, Opinion Writer, The Washington Post, October 9, 2013

October 11, 2013 Posted by | GOP, Government Shut Down, Tea Party | , , , , , , | 1 Comment

“They Haven’t The Foggiest Idea”: The Hostage Takers Disagree Over The Ransom Note

Rep. Scott Garrett (R-N.J.) said on Monday that he’s prepared to block a debt-ceiling increase, consequences be damned, unless Democrats give him “a full delay or defund of Obamacare.” Even if Democrats offered him changes to Social Security in exchange for nothing, the New Jersey Republican said, it wouldn’t be enough to satisfy him.

Just 24 hours later, Garrett appeared on CNN and said he’s prepared to block a debt-ceiling increase unless we “begin to address our entitlement problems.”

One lawmaker, one issue, two completely different positions.

Similarly, House Budget Committee Chairman Paul Ryan (R-Wis.) — remember him? — has an op-ed in the Wall Street Journal today, making his priorities clear.

The president is giving Congress the silent treatment. He’s refusing to talk, even though the federal government is about to hit the debt ceiling. That’s a shame—because this doesn’t have to be another crisis. It could be a breakthrough. We have an opportunity here to pay down the national debt and jump-start the economy, if we start talking, and talking specifics, now. To break the deadlock, both sides should agree to common-sense reforms of the country’s entitlement programs and tax code.

What does Ryan have to say about the Affordable Care Act? Nothing. In fact, the 1,000-word op-ed doesn’t mention the health care law at all.

Much to the chagrin of right-wing activists, Ryan apparently wants to change the ransom note. He’s comfortable with threatening deliberate harm to the nation unless Democrats meet Republican demands, but the Budget Committee chair wants to replace Tea Partiers’ priority (taking health care benefits away from working families) with his priority (tax reform and entitlement cuts).

Now, I have a hunch I know why Ryan ignores “Obamacare” in his preferred ransom note, and it’s not because he forgot about it. Republicans are reluctant to admit it, but the Affordable Care Act vastly improves the nation’s finances in the coming years, and repealing it would add hundreds of billions of dollars to the national debt. Ryan can’t afford to destroy the health care law — he uses it in his own plan to balance the budget over the next decade.

More important, though, in the bigger picture, Republicans aren’t just flailing, they’re lost.

They shut the government down last week, and they’re prepared to destroy the full faith and credit of the United States next week. They freely admit they’re prepared to impose self-inflicted wounds on Americans, on purpose, unless their demands are met.

And what are those demands? Even now, after months of planning and fiascos of their own making, the party’s own leaders and members haven’t the foggiest idea.

Here’s a radical suggestion: maybe Republicans can reopen the government, agree to skip the sovereign debt crisis, get their act together, and get back to us?

 

By: Steve Benen, The Madow Blog, October 9, 2013

October 10, 2013 Posted by | Affordable Care Act, Debt Ceiling, Government Shut Down | , , , , , , | Leave a comment

“Truly Essential Government Services”: Military Death Benefits, The Shutdown And The Importance Of Government

It gives a tragic new meaning to the term “death tax.” Families whose sons, daughters, husbands, wives and parents lost their lives in Afghanistan are now being denied the benefits traditionally given to defray the cost of funerals and travel costs to retrieve the remains. The funding cutoff, first reported by NBC News, is due to the government shutdown, which has stopped all but “essential” government services.

The House is set to pass a special bill restoring that cash. It’s unclear what the Senate will do. While expenditures involving the troops – especially fallen troops – are sacrosanct to lawmakers in both parties, Democrats have been loath to approve what they view as a GOP policy of releasing one hostage at a time while politicians fight over whether and how to reopen the government.

But the gut-wrenching impact on military families does serve one purpose. It reminds people of what their government does.

The understandable discontent with Washington has ballooned into a disgust with government of any kind, and a rejection of anything that has the word “government” attached to it. And it’s easy to point to government programs that may be bloated or outdated, or regulations that may do more harm than good.

But government programs are not just the big things – Social Security and national defense, for example – or even the smaller, but more controversial things, such as foreign aid or food stamps. It’s stuff like death benefits for families who have lost loved ones in conflicts they had nothing to do with authorizing. It’s things like payment for the Women, Infants and Children program – something that may be a budget item for those lucky enough not to need it, but which represents a life necessity for poor pregnant women and mothers.

We don’t all benefit directly from every single government program. They’re there because they represent  who we are – a nation that cares for its own, whether it’s hungry people or a family who needs to bury a servicemember.

Lawmakers can certainly debate the structure or funding level of such programs; that is, of course, their job. But it’s important to remember that much of what government does seems invisible – not because it’s not working, but because it is working.

Give LIHEAP assistance to low-income people who can’t afford to heat their homes, and it can appear to a hardline fiscal conservative like the aid is not doing any good. But take it away, and have an elderly person freeze to death in her home, and suddenly, the program seems useful. The National Transportation Safety Board might seem like just another government bureaucracy. But when a deadly bus crash occurred in Tennessee, and a Metro worker was killed while doing repair work over the weekend in Washington, D.C., the absence of a functioning NTSB becomes more evident. Sometimes, the value of government programs is the absence of disaster and pain. Military families are just one casualty of trying to function with almost no government at all.

 

By: Susan Milligan, U. S. News and World Report, October 9, 2013

October 10, 2013 Posted by | Federal Government, Government Shut Down | , , , , , , , | Leave a comment