Teh stupid! It burns!


From Cheetoville:

GOP Has Been Openly Scamming Dems for 30 Years Now

[…]

And now, with a Democrat in the White House, the GOP once again is insisting that the Democrats put their own policies on hold and clean up the mess left by Bush the Dumber. Of course, once the GOP takes the White House again – whether in 2012, 2016 or later – they will again be all too happy to blow up the budget and the economy with tax cuts for the wealthy and investment cuts for the rest of us. Rinse and repeat.

What is ultimately so maddening is that every time the Dems go along with this scam, they are simply being hoodwinked. Right now the nation is in the economic doldrums and we know – we know – from past experience that the way out of these doldrums is to increase government spending until the private sector can take over again. And we know – we know, because we can see what the yield on government debt is – that the rest of the world is more than willing to finance that additional government spending at amazingly low rates of interest. If there is any single thing we should be doing at this point, it is increasing – not decreasing – government spending.

But, of course, that would allow progressive economic policies to be enacted. It would allow investment in much needed infrastructure (our highways, bridges, electrical grid, even our telecommunications infrastructure), and would show the American people – many of whom seem to have forgotten – that a liberal economic form of government works.

And that would be bad, politically, for the party out of power. Can’t have that.

So despite explicitly telling us – over and over — that this is just a scam to maintain power, despite a history of watching this scam play out before . . . the Dems are going to go along with it.

Political malpractice doesn’t even begin to describe this decision.


I agree – malpractice is the wrong word. So is “hoodwinked.” I would use the three “C’s” instead:

Collusion, Corruption and Conspiracy.

Of course it wouldn’t be Cheetoville if there wasn’t some gratuitous CDS:


And the GOP has been pulling this scam ever since. As Bloomberg News reported even before Obama had won the election, the bond markets were poised to start insisting on cuts to social spending in order to protect the bond traders themselves. This, of course, was just a repeat of the scam that was pulled on Bill Clinton when he took office:


Then “swellsman” cites this as his authority:


Clinton’s experience shows what such pressure can do to a president’s agenda. Promises of spending on education, public works and a middle-class tax cut fell by the wayside as advisers led by Robert Rubin, who later became Treasury Secretary, convinced the new president the best thing he could do for the economy was to show investors his resolve on fiscal discipline.

“You mean to tell me that the success of the economic program and my re-election hinges on the Federal Reserve and a bunch of fucking bond traders?” Clinton raged at aides, according to journalist Bob Woodward’s book, The Agenda.

Clinton’s deficit reduction policies resulted in a sustained economic boom that generated budget surpluses from his last four budgets and helped pull 10-year yields, which topped 8 percent in 1994, below 5 percent by the late 1990s.


WTF?

This “scam” resulted in “a sustained economic boom that generated budget surpluses from his last four budgets and helped pull 10-year yields, which topped 8 percent in 1994, below 5 percent by the late 1990s?”

Good thing we got rid of that Clinton fella, huh? Check out what he did to our national budget deficit:



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89 Responses to Teh stupid! It burns!

  1. ralphb says:

    This fits in with the stupid pretty well. GOP are terrorists

    Matthews blurted out “I agree it’s terrorism.” The random statement was odd since nobody suggested anything about terrorism, leaving Matthews to not really “agree” with anyone. Maybe Matthews was just eager to wrap-up the segment and dropped such an extreme comparison to get Walsh to agree and stop talking, or maybe Matthews really thinks a stubborn Republican economic position amounts to terrorism? Either way, the rhetoric certainly seems to be heating up.

    This loon is going to cost the Democrats yet. The more paranoid commentors at mediaite seem to like him though.

    The feds have taken over the media in an effort to suppress what happened immediately following the 2008 election of Obama.

    A military Coup took place with the introduction of Sarah Palin as John McCain’s running mate. Obama is not the president, he’s the acting president. He disappeared for 2 weeks after his election win and has been turned into a Pentagon puppet ever since.

    • myiq2xu says:

      What are they smoking and where can I get some?

      • ralphb says:

        Did the dude at Cheeto not read what he wrote? How is it a horrible scam to have a huge economic expansion and the poor do better for the first time in decades? You’re right, it burns.

        • myiq2xu says:

          The Kosshole solution:

          “Let’s give Obama bigger Democratic majorities!”

        • DandyTiger says:

          No thanks, we can’t afford it. Well, real Dem majorities would be fine, but we’d need real Dems not “New Dems” and we’d need a real Dem president. Neither would be the result of Obama plus more “Democrats”.

        • djmm says:

          CDS is an incurable disease if one has it and one is a Democrat. Reality has no impact whatsoever.

          I can’t explain it, but that’s the way it is.

          djmm

      • crawdad says:

        I know a guy who can get you a card.

  2. yttik says:

    Wow, Dems must be some major dumbasses. What’s that saying, fool me once, shame on you, fool me twice, shame on me. Fool me for three decades and I’m either too stupid to govern or I’m complicit.

  3. ralphb says:

    If this were still true it would be nice, but it’s not entirely. That’s one reason the Fed has been buying it’s own debt the last couple of quarters.

    And we know – we know, because we can see what the yield on government debt is – that the rest of the world is more than willing to finance that additional government spending at amazingly low rates of interest.

    What he knows is no longer operative for the most part. Let’s see what happens to rates once QE2 has wrung out of the system.

    Here’s a handy little factoid. Say they agree in DC to a $2 trillion deficit reduction but rates rise to their average. The net result would be a larger deficit than we have now. Very large debts mean very large interest payments. Discouraging, huh?

    • WMCB says:

      Kos is a fucking idiot. THE FED bought 80% of all debt in 2009, not foreign investors. They did that because if they hadn’t, we’d have had a failed Treasury Bond auction, and all hell would have broken loose.

      The Fed just announced last week that they ain’t buying no more, at least not at those levels.

      Kos is a fucking completely economically uninformed moron.

    • Three Wickets says:

      At last year’s very low rates (10 year treasuries at just below 3.0%), the projected debt service over 10 years would be around 5 trillion. So yes if that rate were to double, 5 trillion would turn into 10 trillion. Puts that 2 trillion they are arguing about into perspective.

  4. DandyTiger says:

    That graph kind of says it all.

  5. yttik says:

    “This, of course, was just a repeat of the scam that was pulled on Bill Clinton when he took office”

    Holy crap, I’m not even fond of most Republicans, but if “their” scam resulted in a sustained economic boom that created budget surpluses, any chance we could get them to scam us again??

    I’m kidding of course. The Great Orange Cheetoh sure is good at making people long for Republicans. I wonder if they realize it?

  6. WMCB says:

    Oh, well, maybe Kos was not just talking about 80% of our debt being bought by the fed. Maybe he meant not treasury bonds, but capital investment. Here’s all that nifty “foreign investment” that Kos imagines is waiting in the wings (along with the pony) just dying to get a piece of Obama’s economy:

    The White House also neglected to disclose that in the first quarter of 2011 foreign investment fell by 51% from the first quarter of last year, according to data released last month from the federal Bureau of Economic Analysis. Foreigners of late have not found the U.S. to be a receptive, high-return home for investment.

    Much more worrisome is that Americans are taking their investment dollars abroad at a faster pace than foreigners are bringing capital to these shores. In 2010, for example, U.S. investment abroad was $351 billion—$115 billion higher than foreign investment here. Economic recoveries are periods when investment capital usually surges into a country, but since this weakling rebound began in the middle of 2009 the U.S. has lost more than $200 billion in investment capital.That is the equivalent of about two million jobs that don’t exist on these shores and are now located in places like China, Germany and India.

    Can we say capital flight, children??? Kos is a fucking ignorant, uninformed moron. Did I say that already?

  7. WMCB says:

    Right now the nation is in the economic doldrums and we know – we know – from past experience that the way out of these doldrums is to increase government spending until the private sector can take over again.

    “Priming the pump” in bad times is a sound economic tool. But this is not normal bad times. That’s what the people chanting “more stimulus” like a mantra don’t get. Deficit spending is not necessarily bad, but it’s not like there are no limits. There is indeed a limit, and we are heading for it like a train to the side of a mountain.

    We are facing a rapid acceleration of the curve, where just our INTEREST on the debt is going to consume GDP, even if we experience decent growth and nothing else goes wrong. If we don’t get good growth, we are boned even sooner.

    That’s not politics or ideology, that’s goddamn math. When you use one exponential function to bankroll another exponential function, the curve gets away from you. It’s called being over-leveraged, and once the line of one crosses the line of the other, it is mathematically impossible to catch up.

    They’ve been kicking the can for years, BOTH parties, and both the govt and the Fed are pretty much out of bullets. More stimulus at this point is a suicide mission.

    • 1539days says:

      My solution is for the Fed to RAISE interest rates. A lot. Like 1% in a shot and tell bankers and business cheap loans are over. If they want cheaper money, they have three months left. That’s how you encourage investment, threaten to take away rich people’s shit.

      • WMCB says:

        We should have had a 10% contraction in the economy years ago, and now, after the housing bubble, we need an approximately 20 – 30% contraction to get back to stable.

        The contraction HAS to happen. Has to. The only question is when, and how. And the longer you wait to take yer medicine, the worse it is going to be.

        But we won’t do that, because the chickenshits in congress and the WH aren’t willing to break the news to the people of just how badly their govt has screwed them over. Personally, I think they are going to let it go on until we either hit massive hyperinflation or a default.

        • DandyTiger says:

          I said last year we were going to hyperinflation. I think no one is going to take any steps to prevent it. Hold on to something…

        • ralphb says:

          The only thing that might save us from hyperinflation is irrational confidence. Don’t know how long that can last.

      • ralphb says:

        I like that idea, it’s just counter intuitive enough to work.

        Part of the capital loss is obviously from flight but we could recoup a lot of that money by giving business a one time tax break to repatriate their foreign profits. There are 100s of billions which might find it’s way into our economy. Now it’s being held outside because of our corporate tax rate.

    • yttik says:

      Increasing government spending can have some negative consequences. Like spending money on road work makes it hard for shops to keep their doors open. How you spend Gov money and what you invest in really matters. Bill Clinton did it by doing things like increasing the earned income credit, creating the home office deduction, funding the small business administration.

    • myiq2xu says:

      It’s not just how much the government spends but how they spend it. In 1960 historian John D. Hicks wrote in Republican Ascendency 1921-1933 that:

      “As later events seemed to prove, money poured in at the top of the economic system tended to stay there, whereas money poured in at the bottom tended to rise through all levels of business and to strengthen the economy as a whole.”

      The New Deal money got poured in at the bottom with programs like the WPA which put people to work.

      TARP and the Obama stimulus got poured in at the top.

      • Three Wickets says:

        And all those trillions from the Fed, not poured but mainlined right to the top.

        • myiq2xu says:

          That money ain’t trickling down, they’re just pissing on our heads.

        • WMCB says:

          We expended 2.3 trillion in freshly printed Fed money, and 2-3 trillion in increased debt, to get virtually no jobs and an anemic 1.9% GDP growth.

          The money disappeared down the black hole of trying to keep the banks afloat and the bubble inflated. If they had let the economy contract, and used govt money to cushion the blow for the little guy, we’d have had an AWFUL year or two, and been coming out of it by now.

      • djmm says:

        Excellent point, myiq. “A rising tide lifts all ships.” Tides rise from below.

        djmm

      • WMCB says:

        It also got poured into real, tangible, IMPRESSIVE infrastructure projects. Many companies sprang up or increased productivity just by providing services and supplies for those projects, and people got on-the-job-trained in needed skills to do them.

        So even when the project was done, and the money withdrew, there was lasting economic benefit.

  8. Three Wickets says:

    Mike Lux put his latest Kos post up on facebook today. So I blew off some steam with comment below, there hasn’t been much conversation on the thread.

    ‎”(Frank) Rich argues that it is only by standing up the powers that be on the economy, and standing up for the middle class, that Democrats will find their political way.” Yes but where was Frank two years ago when such a view might have made a difference. Bit late now. The powers that be train has left the station in very good shape, and this administration (along with the Fed) has been crucial in making that outcome possible. Working people have been left behind in favor of the Wall Street creative class. Where the hell were Progressives. Train, long gone. Trust me.

  9. WMCB says:

    I know I am repeating myself, but I just cannot get over the mind-blowing, gobsmacking, breathtaking, sheer unadulterated childish ignorance and wishcasting of this statement right here:

    And we know – we know……that the rest of the world is more than willing to finance that additional government spending at amazingly low rates of interest.

    It’s just….just….beyond rational belief. Hell, it’s beyond irrational belief. It’s in “sparkly unicorns will fly out my ass” land.

  10. WMCB says:

    ROTFLMAO! Some commenters (conservative) discussing Obama’s obvious attempts to appropriate Reagan’s re-election strategies, and how if that’s his 2012 gameplan, he’s going to get his ass whipped:

    You can’t use the slogan “It’s morning in America” when it’s actually a quarter past midnight.

    • WMCB says:

      Hey, maybe he could try out Bill’s old slogans!! Yeah, like “It’s the Economy, stup……

      Oh, wait. Nevermind.

    • WMCB says:

      I’m hoping that the electorate will be more like:

      “It’s morning in America…..and man, I am really hung over…..and…(looking at Obama)……Oh, fuck no – I slept with that??????!!!”

      • Lola-at-Large says:

        Actually, a morning in America/hungover commercial is an excellent idea. GOP would never has the gumption to run it. But an outside group could…

  11. myiq2xu says:

    Via Cannonfire:

    • myiq2xu says:

      The headline is:

      Michele Bachmann interrogates commies Geithner and Bernanke

      WTF?

      BTW – Bachmann doesn’t sound like a drooling idjit

      • WMCB says:

        Looks like the youtube banner was written by a rapid Paultard. But yeah, she did well. Bernanke at least tried to answer her question. Timmy-in-the-well was just clueless.

        • Lola-at-Large says:

          Clueless indeed. Geithner didn’t understand the question because he doesn’t know what’s in the Constitution. Benacke answered her question in under 30 seconds right off the bat, because he knows what’s in there.

          Geithner did manage to get a “is this lady crazy?” gesture in there with his exasperated eyebrow raising, though.

      • 1539days says:

        You do realize you misappropriated the purpose of his post.

        Good for you.

        • WMCB says:

          I like Joseph, but he gets a little nuts at times. Like the whole WEINER WAS FRAAAMED! deal.

      • ralphb says:

        I’ve heard better questions but they were not idiotic.

      • Three Wickets says:

        Interesting. Only Bachmann and Paul from the Republican field can say they were in Congress and cast votes against the bailouts in 08/09. No doubt she’ll be using that.

        • angienc says:

          I think maybe McCotter can too. I’m pretty sure I read he voted against the bailouts.

          Of course, not too many people know about him (still), but I’m hoping for a Reaganesque “Dark Horse” miracle, mainly because I want to see him school BO during the debates.

  12. Three Wickets says:

    Nothing quite like an Amanda Marcotte thread where the kids are bashing both Palin and Bachmann. It’s very medieval.

    • WMCB says:

      Amanda did actually make an effort, at one point back during the 2008 election and soon after. And she got a somewhat tepid response to her defense of conservative women from her readership.

      So she pretty much backed off unless a national media figure is screaming “She’s a sluuuuuuuuutttt!” on live TV. Because hey, acceptance by the tribe is much more important than principles.

    • Erica says:

      Sounds like a party I went to over the weekend.

  13. angienc says:

    I hope she blows the NYPost out of the water, but if they didn’t print her name, can they really be guilty of libel? I don’t know.

  14. myiq2xu says:

    Legal Insurrection:

    It’s getting hard to tell anti-Bush and anti-Obama bumpers stickers apart

    That’s because it’s hard to tell Bush and Obama apart.

  15. WMCB says:

    Personally, I think the Repubs futzing around with balanced budget amendments is a loser. Because they will just spend the money anyway, then come to us after the fact and say they “have” to raise taxes, because the law requires them to.

    What I’d like to see is total govt spending limited to X percent of GDP. That would effectively limit their spending, and would have the added benefit of FORCING the congresscritters to do things to get the private sector economy moving if they wanted more money. Get the economy (not just bankers balance sheets) booming, and you’ll have plenty of dough to spend. It’s a win-win to me. If the country does well, then all their pet projects do well. Gives the fuckers incentive.

    You could always allow that the limit could be exceeded in a given year with a 2/3 majority vote if its a real national emergency or catastrophic fiscal crisis.

  16. ralphb says:

    Fucking hypocrite: Soros buys Halliburton

    Normally, I’m willing to overlook the hypocrisy of the liberal elite. If Al Gore and his Hollywood cronies want to fly around on gas-guzzling, atmosphere-polluting private jets while railing against global climate change, I’m willing to overlook it.

    But the latest move by globe trotting, hyper-liberal billionaire George Soros borders on being too much. According to papers filed with the SEC, in the fourth quarter of 2006 Soros purchased nearly 2 million shares of … hold your breath … Halliburton.

    Soros’ position in Halliburton is reported to be his first, which means he bought it with a full understanding of Halliburton’s reputation. Soros may not see a problem with profiting from a company that has been accused of everything from sweatheart deals to cooking the books to serving U.S. troops lousy food in Iraq. The real question, however, is whether MoveOn.org, the Center for American Progress, and other organizations that have benefitted from Soros’ charity will see a problem with accepting money earned off Halliburton shares?

    Money is green. They won’t care where it comes from. Are they better than “Koch Whores”? Hell No!

    • votermom says:

      I predict that the new meme will be that Halliburton is a reformed good corporation now…

    • WMCB says:

      They are all fucking hypocrites in one way or another, ralph, but where corporations and business are concerned the Left are the biggest liars. The R’s have less hypocrisy in this particular area, because they make no pretense of being pro-business.

      Obama can stand up there and wail about fatcat financiers, while he loads his administration with them. The Left screams and yells about boycotting those nasty corporations who are paying little to no taxes, yet GE (and thus MSNBC) are one of the worst offenders, and the Dems’ best buddy.

      The Left in this country is more and more resembling to me to old European style champagne socialists and communists. Not because they are all Marxists (they are not) but because they see their own privilege as just deserts and think the rules they impose on everyone else don’t apply to them, since they are the noble ones making this grand new society on behalf of the stupid masses.

      Thus even in Soviet Russia, the members of the Politburo never lacked for country houses and limousines, those nasty symbols of “capitalist oppression”. Thus those higher on the party ladder of privilege got the better apartments, better food, etc – while the populace stood in bread lines.

      That’s not the old-school liberalism to which I adhere. I distrust great concentrations of power, no matter WHERE that power concentrates – be it the govt, the bankers, the corporations or the media.

  17. ralphb says:

    Best diagnosis of American decline I have read yet. What we have to do to turn it around seems obvious.

    In the wake of my recent blog post on the new Oakland Bay Bridge being made in China, a lively debate has erupted. I found the best comments to be those of Vikram Dalal of Iowa State University. I am passing them along here.

    By Vikram Dalal
    Professor of electrical and computer engineering, Iowa State University

    • WMCB says:

      Great piece. Riverdaughter may like to see it, since she hits on the R&D drain, but I don’t go over there anymore.

      • ralphb says:

        He’s right about capital as well. Raising money here for a new business start up is ridiculous if not impossible,.

    • votermom says:

      That was good except for the bit about healthcare.
      Agree completely that we need manufacturing & industry.

      • ralphb says:

        He wasn’t entirely wrong about health care either. There is a bit of a monopoly in it now. Regulation on referrals and ownership of labs etc are needed.

      • Mr. Mike says:

        We saw that here in Lancaster county PA when the AREVA built steam generators made their way up RT 441 to Three Mile Island. They had to go to the land of the Cheese Eating Surrender Monkeys. There they were able to build the generators at a completive price in spite of the yoke of Universal Health-care … or maybe because of it?

    • djmm says:

      Thank you for this link, RalphB! That is an excellent summary of the problem.
      “It’s impossible to raise capital in the United States, and you cannot compete against China because land is free, water is free, electricity is sold far below production cost, there are no environmental restrictions, capital is freely available, and they can (and do) copy anyone’s technology. How is this free trade?”

      It is not free trade as it is advertized and is certainly not fair trade. And when you outsource to China, you may be outsourcing all your IP rights as well.

      djmm

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