"I spend most of my time telling people to do the things they ought have the sense to be doing without my telling them" --Harry Truman.
To resolve the (inevitable) impasse on the debt-ceiling, President Obama may have to hold a news conference to exhort Congress and meet with Congressional leaders to demonstrate he is trying, but resolution of the impasse can only arise from his Chief of Staff, Bill Daley's, discussions with Wall Street and the Chamber of Commerce.
In the Biden talks, the conferees have, so we are told, identified $1.3T in cuts over the next decade. The ball is in the Republicans' court.
But, left to on their own, these parties are no more likely to resolve this matter by August 2, or any other date, than the Israelis and Palestinians are to define boundaries, forswear violence, and agree to peace. There are just too many Islambouli and Amir (assassins of Anwar Sadat and Yitzhak Rabin, respectively) equivalents lurking -- e.g., Grover Norquist, the Koch Boys, Freedomworks -- who are prepared to assassinate politically those who stray from party orthodoxy on taxes. Recently re-elected Senators such as Tom Coburn (R-OK) may have a 5-year grace period, but Members of the House are facing re-election in 2012.
Wall Street and the Chamber of Commerce (collectively, "Wall Street") bought this Congress. Fear and delusional beliefs ignited fervor, Wall Street money sustained it, and it worked -- to win.
Governing has been a very different story. Even government spending Wall Street favors -- e.g., infrastructure repair and development -- has fallen prey to extreme rightwing ideology and partisanship. But, since Wall Street and business have been doing well -- the Dow has nearly doubled under President Obama -- Wall Street has felt no acute need to remind Republicans of who pays their campaign bills, and who will employ them with cushy jobs when they leave Congress to "spend more time with their families".
Now there is. [ Anyone who says that defaulting on the debt is "no big problem" cannot make the case that the debt itself is a problem because the only real concern about debt is not paying it off, aka, "default". ]
Indeed, since Wall Street knows that there would be no appetite for even a morsel of bailout when it collapses this time, the stakes for Wall Street are extremely high. Debt default would be kryptonite to the masters-of-the-universe.
One can be certain that, before they act, Wall Street will be looking for concessions -- e.g., a pledge not to appoint Elizabeth Warren, delays in rulemaking under Dodd-Frank, lax enforcement of capital ratios, hands-off oil speculators at the CFTC, and similar "understandings".
Of course, the Administration need agree to none of them. Wall Street's survival is on the line and, as the saying goes, "nothing like a good hanging to focus one's mind". But, with the possible exception of the oil speculators at the CFTC because that has such an impact on the economy, one suspects they will succumb, because the Administration cannot allow those discussions to drag on while Wall Street determines when to tell its lackeys to jump. We all love Elizabeth Warren, but one doubts the Administration would hold firm on appointing her if it can get a decent and timely deal on the debt ceiling.
Wall Street knows far better than this writer what it needs to do to get the debt ceiling raised, and to make clear that it is deadly serious. One might suppose that canceling some fundraisers, and declining to provide any more money to Republican committees and lawmakers, until that debt ceiling is raised, would send a strong message. Agreeing to "be there" when these lawmakers get primaried, with early cash and ads, would provide the carrot along with the stick. [Of course, all of this will be stated in code, so there is no record of a quid pro quo].
So, just as Israel and Egypt, and Israel and Jordan, respectively, required Jimmy Carter's and Bill Clinton's intercessions to make peace, our Congress needs Wall Street to avert an economic crisis that we would otherwise walk into with our eyes open.
Not pleasant to admit that our democracy needs Wall Street to function politically, and I say this only in sad resignation to the truth, but it is what it is, and expecting Wall Street to act in its own selfish self-interest is as good a wager as betting the sun will rise in the East.
Victor Williams: End "Trips and Traps": Recess Appoint Elizabeth Warren as CFPB Director
"Wall Street and the Chamber of Commerce (collectively, "Wall Street") bought this Congress. Fear and delusional beliefs ignited fervor, Wall Street money sustained it, and it worked -- to win."
So now Wall Street bears the responsibility for it, and how to correct it.
They have a vested interest in saving our nation, because if we go down, Wall Street will go down with us too!
So many kochroaches and so little time.
I say let Wall Street sweat.
They will lose billions if America defaults and their money is worth a lot less.
The kochroaches won't save the country but they WILL save themselves.
As always.
Saving themselves means helping the country.
Or perhaps Nancy Pelosi or Harry Reid?
Or is it only money given to Republicans that needs to be reined in?
I would venture to guess there would be little delay in raising the debt limit if Congress and Senate salaries are publicized as being the first to take a hit if we default on our debt obligations.
As long as they can get away with peddling the tax increase LIE then they will frame the issue as such. It's not a tax increase.
The results of Wall Street’s fraud are numerous FRAUDclosuers, topped with the ignorance that works well for those who committed the biggest financial crime in the history of the world. Nothing will change until the responsible for this scam are prosecuted! We must do that, we should not rest until the truth is out and all those responsible are prosecuted.
Please read today’s press release from MA Essex County Register of Deeds:”My office is a crime scene!” - http://tinyurl.com/42e8nom
Also, here is my letter to MA Attorney General, to the President and any government official that will listen - People have had enough! http://tinyurl.com/3l8awqt
If "the people" were bailed out the economy would recover instantly.
It's all a shell game and we're the victims. Voting won't solve our problems, sadly, only violence will. It's coming, so be prepared.