The Debt Ceiling

What was Behind the Stalemate?


Written June 28 2011

Critical Update Aug 12 2011

Update Aug 18 2011

   As the US Congress and the Executive Branch meet to discuss raising the debt ceiling to avert a potential government default, many challenges are presented on both sides, so where does compromise move this great country forward?

   The Republicans are right in that, it is time to move on past the abuses of the Bush era and a wasteful two war conflict that is bankrupting this country. That Administration so reduced government oversight allowing the creation of industry bubbles through complex financial instruments that popped while many in the financial industry took advantage of the loopholes created and just stole from America. In its wake, the value our homes and 401s gone from the levels many Americans works hard and saved for. We can not get this back. Now its time to rebuild this economy for all. Not just for the rich, but middle class America where their success as a unit creates an opportunity for the poor to move from dependency to contributors in this nation and also puts some money in the pockets of the rich that is earned. That is how America works. If an earnest opportunity is presented and all help is refused to maintain a lifestyle of taking, then they are on their own. This is a personal choice with consequences. Now this works two ways, for those who take advantage at the bottom to those who take advantage at the top. Lets address this.

  All know this nation must tighten its belt. If our finances in this country are to be sound once again, thus shedding the status of a debtor nation is a true goal. With any cuts, there is at first, an honest attempt to eliminate waste by lawmakers, but what happens good programs that are trimmed. Loss of income and tax revenue and the cascading effect of all those supported by this income. A drain of social services rise because of dependencies, unemployment insurance. The burden of support is moved from the free market system and government to the loved ones of the affected private citizens. This is not free money someone pays. In essence an economic downward spiral accelerated by these same cuts for those tossed during this budget crisis with a promise of savings.

   There is talk from the Democrats, that the Republicans should listen to those who put them in office and that the common citizen would not choose cuts in services to an increase in taxes for the rich. The problem is that many in America are still in denial, it is not the citizen that the Republicans listen to, but corporate and the private interests of the rich. How long and what is it going to take for mainstream America to see pass this. Some have, but not enough. So what needs to change?

   The talk is that in these challenging economic times you cannot raise taxes on those who invest. So I am going to hold you on your word Cantor since you seem to be the new fall guy, sorry, I mean spokesman. Good job Boehner shifting this delicate issue to another, too much risk? In this world some who achieved success has been by deceit and worse. This is no secret, just ask Trump. So your strategy is to give a blanket tax break to all. This is poor management of our money. If you want the people of the United States to invest revenue that would help reduce the deficit and give it to the rich, then there must be a return. Cantor, do you invest on a promise or a proven track record with the financials to back those words? You don't, so don't expect America to give you a very large check for recovery without some due diligence. Please tell us what the rich are going to do with our money besides spending it?

   You can offer tax breaks for those corporation closing overseas plants and opening in America. You can give tax breaks those investing in manufacturing plants in America that pay above 16/hr. You can give tax breaks for those that there workers generate added revenue to the government when they were taking. You can give tax breaks that cut waste, but also maintain or increase the standard of living. You can give tax breaks to companies that educate their workers so we can be competitive in this evolving world. You can give tax breaks to the companies on the cutting edge of technology that helps human existence, not the next best weapon of destruction. There are many opportunities not listed here.

  Now what will not happen. Tax breaks on derivatives trading, exploitation of debt, old energy resources, hedge funds, investment vehicles that affect the wealth of the individual with general little affect on others as a shared process. The US Government and its people will not be the private funding for those hoping to acquire wealth on the backs of the middle class with the promise of a job in a depression that your party created in order to now offer the solution. You will deliver the jobs, then receive the tax breaks. Can you do this Cantor? If not step aside.

   The debt ceiling affects all and if an agreement is not meet, most fingers will point to you and your party. Lets be adults and work this out, the American people come first, not your corporate backers pulling the strings.


Critical Update:

   Now that that the Debt Ceiling has been raised at a far greater cost than most of America understands, lets address and educate America on what has transpired to get us here. Since the public is so quick to believe what is stated on the networks each with a varying amount of truth, lets look back to the past so conveniently forgotten by the Republicans. Using nonfarm payrolls Bureau of Labor Statistics, we will start with Carter. Yes Carter, who was assumed to be a weak President in the eyes of many, now stands among the mighty that brought change and peace to parts of the Earth. He created over 10 million jobs in his term. Regan in his 1st term created 5.3 followed by 10.8 million in his second term. Then George Herbert Walker Bush came along and stated, "read my lips no new taxes", cuts taxes to the wealthiest 2% as this was suppose to spur job growth. The result is now history as 2.6 million additional jobs or about 25% of what was created  under Carter. With "Poppy" Bush voted (booted) out, Clinton comes in and ultimately balances the budget. Achieved with a mixture of cuts and revenue with repeal the Bush tax cuts and creates 22.7 million jobs in his two terms and a government surplus, all accomplished in despite of Newt's Contract with America. That theme sounds familiar wasn't that same format propose by the present administration?

Partial Reprint from CNN Politics written September 27, 2000

original complete article can be found at the link below

President Clinton announces another record budget surplus

President Clinton announced Wednesday that the federal budget surplus for fiscal year 2000 amounted to at least $230 billion, making it the largest in U.S. history and topping last year's record surplus of $122.7 billion." This represents the largest one-year debt reduction in the history of the United States," Clinton said Wednesday morning. "Like our American athletes in Sydney, we've been breaking records and have come a long way." In June, the administration predicted the surplus would be $211 billion, and would increase by as much as $1 trillion over the next 10 years. Clinton also announced the federal government paid down the national debt by $223 billion this year, and by more than $360 billion since 1998, the largest debt reduction in U.S. history." The key to fiscal discipline is maintaining these results year after year. We need to put our priorities in order," Clinton said.

   When George W Bush took office in 2001, during his first term, there was no job creation even with the "new" (first adopted by Poppy) Bush Tax cuts and a war initiated by a false flag event. Do you remember, any opposition to the massive spending and war was seen as unpatriotic spearheaded by Cheney as few Democrats had the spine to stand up to an unjust war. What happened to the Contract with America?  If placed in power by the American voter, Republicans would bring fiscal responsibility? They destroyed a surplus and now you are paying for that mistake.

Contract with America (Partial)

Government and Operational Reforms

On the first day of their majority in the House, the Republicans promised to pass eight major reforms:

  1. require all laws that apply to the rest of the country also apply to Congress;

  2. select a major, independent auditing firm to conduct a comprehensive audit of Congress for waste, fraud or abuse;

  3. cut the number of House committees, and cut committee staff by one-third;

  4. limit the terms of all committee chairs;

  5. ban the casting of proxy votes in committee;

  6. require committee meetings to be open to the public;

  7. require a three-fifths majority vote to pass a tax increase;

  8. guarantee an honest accounting of the Federal Budget by implementing zero base-line budgeting.


  The Contract with America was written by Larry Hunter, but aided by Newt, Boehner, DeLay and others. Delay could not even follow rule number #1 as he went to jail. So Newt and Boehner, neither of you stopped the spending and waste during the Bush years, why? Can either of you come up with a creative answer even now with a decade passed to get the spin straight? I think not. Not one of you and your party stopped the fraud in the mortgage markets, which propelled a false economic uptick. Eventually the market crashed, homes and jobs lost years later as the markets adjusted. Do you think the economy can turn in a few years after 8 years of abuse both hidden and revealed unwinds? Can you stop a locomotive in a few hundred yards or does it take miles? Wake up America. How is that 401 K working for you? Over the past 4 years and you say their policies did not hurt America. It sure hurt your net worth or are you still in denial.


indicator historical data chart

United States Non Farm Payrolls

Bush left office in Jan. 2009, nothing like a chart to dispel the media spin.

During the second term Bush added 1.1 million jobs aided by the false boom in the housing market and 2 wars and this is a policy that every Republican leader stood behind. Now with that said, we need to review how we got here again, only to remind those voices to do your research before spouting hate, blame and pointing fingers.

So what really was going on behind the scenes with the debt talks and what was the agenda?

As some in America have recognized the Republicans do not reflect the voice of the people who voted them in. They address what will not be tolerate and it includes the rich and what will not be taken from them to help you. The Republicans listen only to wealthy corporate America, when are you going to take off the blinders and see the truth. It is all about using the Tea Party to push an agenda by those pulling Boehner, Cantor and Mitch's strings. The Republicans state, we need the hold the line at all costs guided by the Tea Party. Since when do the adults in Washington allow the children to drive the car? The result has been a crash and is this how we lead a nation!

   They tell you we need job creation and this not being done by the present administration. Just how many jobs do you think can be created if corporate America is sitting on record profits and they are still downsizing. A question for all those wanna-be candidates, now just how do you propose to do this when you, your principles and party have already given away the farm. Most large corporations pay no taxes, the energy industry, you just throw money at them with the maintaining of tax loopholes, is that the benefit of being headquartered in Texas? You state uncertainty, but this is part of doing business. Where the best business models survive and grow, no corporate welfare in America. Loans are needed time to time and are given to save jobs, but are repaid like GM. Tax credits are a hand out like Exxon Mobil and someone pays, that someone is the American Taxpayer. How is that pump price working for you?

   History has shown us the government created jobs bring us out of depressions and recessions. The elite see this as a time to raid the stock market on the short side, depress wages and benefits in general labor force due to jobs needed to sustain life. There is little investment and risk taken when the environment allows to offer hope in the midst of despair, but give little in the way of help except promises. This is what is occurring now in America.

   Now lets address why there was a debt crisis debate in Congress, when in the past, the ceiling was raised in unison by both houses of Congress without little squabble. In any plan there must be a primary cause for the people to rally behind and a group of elected officials to push the agenda as if the idea is what the people want. But, behind the many layers of of the inner workings of an economy, a goal is not clearly seen until too late. With America headed by a President with a race other than what accepted mainstream still clings to and a name associated with the Moslem world this was easy. The Tea Party was formed. With their jobs taken, houses loss and just sometimes poor planning by living beyond their means, change moved to the extreme, but organized under a common theme, hate. The events behind the cause were already in place before the person took office. The finger pointing of blame does not see this based in hate, as it was steered by the minions of media, thus furthering their own careers, you know who you are.

  The Tea Party's goal was to bring fiscal responsibility back to the White House and Congress by cutting spending. What is funny is that we had fiscal responsibility a little over a decade ago, but wasteful spending and lack of leadership bankrupted America and you expect the new man to just clean up the mess with no cooperation from the same group of people who were in power during the collapse. Boehner, Cantor and Mitch are not the new guys on the block, All said and did nothing as the America's ship sunk. Most in the Tea Party have little knowledge of how the debt ceiling affects America except what they here on Fox News, which is long on presenting a condescending attitude and short on educational facts describing the whole picture. Yet this group set an agenda to hold the debt ceiling no matter the consequences to others and the Republicans listened. Quick to take the rewards of short term policy and runs from the long term results. This update was delayed only to show intent. Was all that is revealed here known in advance, the answer is yes. This is what you embrace, which holds back Humanity, but all affected now would have never been believed if printed ahead of time as plans adjusted behind the scenes would have changed the final perception to the public.

   Both some Republicans and the high level members of the Tea Party were told Obama would never let the country default, for he has a deep responsibility to the country and would rather sacrifice the Presidency than the fate of this Nation. This was a weakness that would be exploited as 2012 looms. They were promised that they would get almost everything they wanted if they stuck together and they did. Boehner bragged he got 98% of what he wanted on national TV. You can go to the video tape. But when you play with the devil there is a cost. Watch your back Obama, the leaked profile on you has given an inside edge to the Republican party, change tactics and clean house one more time. Your wife is right, trust me on that one.

   First, their hand had been to shown to the American public. When this paper was first released, it was stated Cantor was the fall guy and he realized this. Like all men when put in a vulnerable position, Boehner and Mitch were confronted and the next day both appeared on TV backing the hold on the debt ceiling. To increase the tension, Boehner was asked to walk out talks, just like Cantor why? All knew the Republicans were not going to cave. This did not make sense to most Americans and Boehner was over heard stating approximately, I did not sign up for this. Boehner you were told that you have to make a choice and this one, even you know was wrong. Their job was to implant fear into the markets without their knowledge and this uncertainty would translate into ratings for credit worthiness.

   The bankers knew they would make vast sums on the short side as the markets tanked on the debt ceiling agreement and you thought you wouldn't suffer any impact. With all the cuts this would still come up short with out revenue increases and this was taken care by the Republicans in full knowledge. So this was a win win situation. But those in the shadows wanted more. The key was a credit downgrade as the Fed would be forced to hold interest rates caused by market turmoil, which they did, but a downgrade could allow an increase to mortgage and credit card rates for the public. Profits for the banks would escalate as the spread between what they acquire at the Fed remains stable and the the interest rates they charge the public increases. This was the ultimate goal from the start and they used the Tea party, Republicans and media spin from good old Fox to achieve this.

   The beauty of this plan for them is pushing the Americans strapped, but paying they bills to miss a payment moving them into interest rates above 25%. When the markets did not respond as expected, pressure was applied from S&P  lower the financial ratings to double A+. Even Warren Buffet could not understand why as he is outside of the inner loop now, a turncoat. The cause, the inability of Congress to achieve an agreement, which was planned. We all know the result. America you were sold out. Will the bankers get the increased spread where ultimate goal is financial enslavement of the underclass (under 150 K for a family)? This remains to be seen and this is in the hands the men who control America. You need to look beneath the many layers of deception.

   Republicans voters, while you are so over obsessed with not giving entitlements (looking in the wrong direction) to the weak, the bankers are picking your pocket on the stock market and retirement funds, fools. Christians, you hear no abortions and throw your support blindly without looking at the total picture, but if their mistress gets pregnant, do once think they would not get an abortion to save their political office? Arnold made that mistake, look at him now. Do the Republicans give to the poor? I think you can answer that question yourself. Many say the words in public, few carry them out behind closed doors.

   Look at the current field of your Republican leaders, one made his money destroying companies and firing its workers for a profit, Romney and this is good for our economy. In time of crisis, could Bachmann lead the US Military or is better suited to lead a group of Girl Scouts? Is Perry just another Texas two step? Newt is just plain old school. The others, really this is what is going to lead America.

Update Aug. 16  

   Let's focus on the late entry of Perry built by Karl Rove and his PAC money in the late 1990s and Bush's underling, bought and paid for by the energy industry. So Perry, just what would you have done about the BP spill? Hide the true scope like Cheney would have and Rahm did without the knowledge of the White House. According to your current words reduce regulation so it may happen again and reduce taxes, oh we get it, stick America with the bill and this is responsible. You make wet paper bag threats to the Federal Reserve on the money supply. It was Bush that initiated hiding the M3 numbers March 23,2006. Did you go after him? If you lie and currently you have many, be ready to be called on it. Currently your tactics are straight out of the debunker manual. Engage the opposition to where he has to defend his character, question past choices all to get the public to focus away from his message. Been there and your tactics are old news. Anyway you may wish you never entered this race as Texas will suffer the most damage as a state due to Earth Changes all before the election. If you cannot help the state and do not look to the government for extra help as you burnt that bridge, how can you lead the nation. All will see you for what you are.

  You as the voter have to make these choices in the future. Many of you need to stop listening to the media and do your own research for the truth, just sometimes turn off the TV and put away the newspaper and just observe your world from your front steps. You may gain a new prospective as choices made at the poll are affecting your neighbors. All make mistakes, and this is how we learn. The wise one does not repeat them. Strike 1 on tax cuts was George Herbert Walker Bush, strike 2 was George W Bush, will there be a  final strike 3?

Update Aug. 18

   Job creation, use the US Corp of Engineers as the base for infrastructure rebuilding for control in costs and fraud and hire civilian assistants. Move the unemployed from collecting benefits to workers, elimination money given with no return. Anything with control is better than free. When the disasters renew in the middle of Sept. 2011, this will be the start of no more compromise, karma, America and its people come first as you already know. This is your chance to truly change the world Obama, just do it, for this is your mission that you chose.

   For the Republicans, how much more are you going to give to those pulling your strings under the guise of jobs creation? You have given them almost everything, yet the low tax rates already in place has changed little in the eyes of the common man, but your rich buddies transferring wealth from the market (pensions and 401s, the public is told to hold & invest for the long term) to their pockets on the short side is doing just great. If so please show us. You won't as this action might help the enemy, yes it has come down to that. What you thought would not hurt this country by holding up the debt ceiling has rocked the financial markets, no wisdom there. Do you know the difference of a business environment of Corporate Need vs. Corporate Greed. I think not. If you lie and it compounds sooner or later you will be called on it.

   For the Democrats, why is Obama stating Congress instead of focusing on just the Republicans for blame. All of you know the dirty truth, few of you wanted to go on the line with mid term elections coming. It was more important for you to get reelected than back the President when all this could have been avoided during the time of majority in both houses, selfish. A word to the Ca. Representative who has legitimate concerns. Obama is the President of all the people in this nation as everyone has some sort of economic pain, his race does not dictate preference to one group as you and the Caucus may want. You state that you are tired, just how tired would you be under McCain and Palin. One man does not steer the ship in America as there are many voices and concerns, unfortunately many Americans are still backing wealth even though many are poor or middle class. It is time for you to help find solution that really works starting in the home, it is here your efforts will find true change.

   The government and business model of the elite where goal is to attain of wealth and power of nations through the minions of politics and state positions, "Create the Problem, then Offer the Solution", by any means necessary.

 Grant Out

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