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Paul Abrams

Paul Abrams

Posted: March 3, 2011 08:50 PM

Screwing the middle class has become a Republican badge of honor. Republicans are tripping over themselves trying to find more creative ways to do it. The low-hanging fruit of suppressing their wages, shipping their jobs overseas, destroying their net worth, cheerleading them into crippling debt, and busting their private sector unions is done. The attack on public sector workers is in process.

Enter, stage far right, Koch-lobbyist and former derivatives maven Senator Pat Toomey (R-PA).

In a recent hearing Toomey (pronounced, perhaps not coincidentally, "to me"), suggested to Federal Reserve Chairman Ben Bernanke that there would be no financial crisis if the debt ceiling were not raised because the Treasury Secretary would pay bondholders first, an unspoken reference to his amendment designed to write that requirement into law.

Soldiers fighting in Afghanistan, Social Security recipients, Medicare/Medicaid providers and recipients, veterans, children's health care, food stamps... all would have to line up behind Wall Street to get their money.

Bernanke became visibly uncomfortable and tried as gently as possibly to warn Toomey that it might not work out so simply. Toomey then became visibly angry and cut off the answer referencing his experience as a bond trader and assuring Bernanke that bond traders would understand.

One wonders how many examples the electorate needs before they realize who these Republicans are, and whom they serve with complete obedience. Yes, many Democrats take money from these vested interests and support their positions, but the difference in support levels on the one hand, and obeisance on the other, is hardly subtle.

Moreover, Toomey is more than just a little crazy. Not raising the debt ceiling means the government cannot pay all its obligations. Any fiduciary, any holder of an IOU from the government, any vendor, would be negligent if they did not demand immediate full payment. It only takes one, and the others would be foolish not to follow.

What would be the value of holding US government obligations with loons like Toomey playing Russian roulette with the US and world economy?

The Social Security Trust Fund, for example, holds "Special Issue" Securities from the US Treasury, redeemable at any time for face value. Usually, the Trust Fund just redeems what it needs ("just-in-time-redemption," sounds like a revival!) and leaves the other money collecting interest. If the debt ceiling were not extended, a responsible fiduciary would demand payment of principal on some of the Special Issue Securities beyond the just-in-time-redemption requirements.

Toomey's proposal is thus not only mean-spirited, it is also unworkable. It will spook the markets at any time, and especially at a time of world-turmoil and high economic fragility.

Joe Sestak, Toomey's Democratic opponent in the 2010 election, was an Admiral who had spent his life in service to his country. Instead, Pennsylvania chose someone who spent his career in service to himself... and his corporate paymasters.

Any surprise that he would not only shut down the government, risk YOUR economic future by playing games with the debt ceiling, but also insist that Wall Street get paid ahead of soldiers, veterans, the elderly, the ill, children, disaster victims...?

Next time voters go to the polls, they (hopefully) will understand one irrefutable fact: Republicans in power = a relentless attack on the middle class.

Originally published at dirtyhippies.org.



 
Screwing the middle class has become a Republican badge of honor. Republicans are tripping over themselves trying to find more creative ways to do it. The low-hanging fruit of suppressing their wage...
Screwing the middle class has become a Republican badge of honor. Republicans are tripping over themselves trying to find more creative ways to do it. The low-hanging fruit of suppressing their wage...
 
 
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HUFFPOST SUPER USER
Devaron Namsaar
11:14 PM on 03/05/2011
Wall Street has been paid, and paid and paid... as far as I am concerned the CEO's need to be jailed, the buildings destroyed, and the street name changed to Crooks Row.
HUFFPOST SUPER USER
AntiClast
If it ain't broke, don't break it!
04:04 PM on 03/04/2011
There's talk of doing in houses: see today's NYT article on how subsidies for home purchases should be ended. No more Fannie Mae.

If you think the value of your house is bad, just wait. Somebody wants to wreck completely the last of the middle class investments.
03:54 PM on 03/04/2011
Voters don't seem to be understanding that fact. Many voters, in fact, seem to be lining up in droves to become post-modern intellectual Pinkertons in the face of the Overwhelming and Monstrous Power of federal and state employee unions (the dastards!!)
03:12 PM on 03/04/2011
Well, of course quite a number of those bondholders live in China and elsewhere. Truly ironic that not only our jobs but also our taxes will be shipped overseas.
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HUFFPOST SUPER USER
Muhtadi
06:19 PM on 03/04/2011
Curious, when the jobs arrive over in China and people eagerly open the box, does it have markings on it saying things like "Tom's Job" or "Mary's Favorite Job" – sort of like how kids write on their possessions to declare is as their property?

I have really never got the concept how people "own" a job or are somehow more "entitled" or deserving of it then someone else – yet they will refuse it for any less then they demand.
02:42 PM on 03/04/2011
I don't get it, taxes are lower than they have been since the 1920's (no jobs), Corperate profits are throught the roof ( no jobs), The wealthiest did not have their taxes increased (no jobs), Abortion is front & center (no jobs), Guns are god (No jobs), WHAT HAPPENED?!?!?!?!
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HUFFPOST SUPER USER
Devaron Namsaar
02:55 PM on 03/04/2011
What happened is that we allowed fanatics and idots to enter our high offices... You expect reason and creativity from these people and they have absolutely NONE to give. their track record over the past 70 years of so speaks for itself.. these people are losers and that is what they are trying to make this nation into...
03:09 PM on 03/04/2011
Only you and the progressives who are asleep appear to have noticed, I guess. We need to wake up and VOTE!
03:56 PM on 03/04/2011
We did vote. For a wolf in sheep's clothing who soothed our furious brows with soaring rhetoric and suckered us in (again) believing that we were electing someone who actually understood the stakes.

Alas, and perhaps predictably, we have been fooled yet again.
HUFFPOST SUPER USER
G E H
02:32 PM on 03/04/2011
Not everyone in PA voted for toomey. Many of us voted for Sestak. But if you look at a map of the vote distribution, you will see an interesting pattern. The red stain follows quite closely the path of Marcellus shale deposits. All those rural citizens who have been promised easy money by gas companies, if only they will sell or lease their mineral rights to the men with $ signs in their eyes.

And never mind about the radioactive water. Eventually all those upstanding citizens will be wealthy enough to abandon their land and move to some other state that isn't run by toomey.
03:11 PM on 03/04/2011
Extremely good observations. Which shows you why Repub control over redistricting is a big issue. And now in more states.
02:27 PM on 03/04/2011
Make no mistake, this is a war. Republicans represent the Wallstreet, Corporate, Banking interests, (in short, the richest among us),and the Democrats, when they get themselves some spunk and backbone, represent, really, the middle, working and poor classes of Americans. Compassion for others with lesser means is a sign of weakness, if you're a Republican. Truth is, Republicans are the money-laundering, political prostitutes of Corporate America, and that's a fact!
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HUFFPOST COMMUNITY MODERATOR
Tyler-Durden
leading a revolution of one
02:22 PM on 03/04/2011
"Next time voters go to the polls, they (hopefully) will understand one irrefutable fact: Republicans in power = a relentless attack on the middle class."

while this sounds simple, it's apparently too complex for the average amerikan to understand. their voting behavior to date confirms it.

the nation is doomed to drown in its own ignorance.
01:38 PM on 03/04/2011
I live in Pennsylvania - and cried when Toomey was elected. I plan to share this information with all those smug aquaintances that voted for Toomey to "save" this country from Obama.
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ahumbleopinion
tax $$$ for public services, not private profits
01:12 PM on 03/04/2011
Sounds consistent with the GOP principles:

What do public employees give up to help with the deficit:
Salary
Health care
Pensions
Job security
Collective bargaining
Safety

What do senior citizens give up :
Social security
Medicare

What do poor people give up:
Food
Housing
Health care
Education

What do women give up:
Birth control
Health care

What do billionaires and global corporations give up:
Nothing

Welcome to GOP America.
01:11 PM on 03/04/2011
Toomey's next bill: requiring Americans to sign their paychecks directly over to the banks.
HUFFPOST SUPER USER
G E H
02:33 PM on 03/04/2011
I believe they call that "direct deposit."

;-)
04:02 PM on 03/04/2011
ha ha. fantastic!
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HUFFPOST SUPER USER
dch58
To think is to differ.
12:40 PM on 03/04/2011
"One wonders how many examples the electorate needs before they realize who these Republicans are, and whom they serve with complete obedience."

It couldn't be stated any more clearly than that.
12:29 PM on 03/04/2011
Whether the people will allow this to happen is uncertain. There have already been demonstrations that indicate the people are not as ignorant as right wing supporters of corporations would wish. The Federal Government has to appeal to the common sense of the middle class to see what way their elected representatives are leaning, towards a fair system for the majority or towards greater power in the hands of the rich and annihilation for the middle class.
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HUFFPOST SUPER USER
wetdentist
03:55 PM on 03/04/2011
i don't know . . . my mom was sending out chain emails yesterday that told America to fear for its life because Obama was going to change the national anthem to "I'd Like to Teach the World to Sing"
12:29 PM on 03/04/2011
Too many politicians of today are unaware, that the successful system of Welfare Capitalism in the USA practiced throughout the industrial revolution and the early years of the 20th century, worked well in provided more than adequate profits for corporations while they also provided fair welfare provisions for their employees. Those that ignored the needs of employees caused the growth of unions to protect the workers, who wanted the same as their luckier fellows in socially-minded firms. More recently, corporation heads have become greedier, not for the benefit of shareholders but to line their own pockets. The previously advantageous provisions of pensions and benefits are seen as unnecessary expense and unions are identified as enemies to the capitalist cause. The rewarded greed of corporate employers has seen a shift in wealth from the majority of workers to an excessively wealthy few, correlating to a decline in union membership and well-paid jobs for the middle class. Further to the switch from Welfare Capitalism to Social Market Economy Capitalism, large corporate donations to political campaign funds are gradually pushing the country towards Corporate Capitalism, where the government would have less power to intervene in corporate control of all productive enterprises and the effect on workers rights. The rights of corporate America would outweigh the rights of individuals and effectively return the country to a system of fiefdom, governed by the wealthiest few.
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HUFFPOST SUPER USER
Muhtadi
06:29 PM on 03/04/2011
The Government needs to have less power. This isn't the 1920s. Corporations are responsible today because they are actually held accountable for their actions, unlike government. If a corporation does something you don't like? BAM facebook twitter organized boycott, nationwide in a matter of hours. You have far more control today of corporate America then you do the federal government - think about it.
11:14 PM on 03/04/2011
That is a great point. I've been trying to put the same idea into words. Faved.
10:52 AM on 03/04/2011
"Next time voters go to the polls, they (hopefully) will understand one irrefutable fact: Republicans in power = a relentless attack on the middle class."

Hopefully Democrats will figure out that when you parrot many of the same policies of the Repugs, just in a lite fashion, you look the same to the people and the real Repugs will win.