The US debt crisis worsened on Thursday when a proposed Congressional vote exposed the extent of divisions within the Republican party. Boehner had said that the Republicans would pass their own bill, but hardliner Republican rejected Boehner’s bill and demanded even more spending cuts ! Of course, the House finally voted on Friday night for the bill. The Democratic leader in the Senate, Harry Reid, has promised that the Senate would kill it and Obama has said that he would veto it. Democrats in the Senate are meanwhile preparing a bill of their own, but the chances are Republicans in the House would vote that down too. The situation is very chaotic. It’s really a complete shambles. What the ordinary Americans want is not what the Republicans and Democrats want. And what the Republicans want is not what the Democrats want. The media reported: ” Democrats want a savings and debt limit deal that gets the US government past the date of the next election on 6 November 2012. Republicans have backed short-term solutions that would reopen the debt ceiling debate in 2012 as election season gets underway. Democrats willing to include tax rises, closing loopholes and increased government revenue in overall deficit reduction plans. Republicans have ruled out tax increases as part of any debt limit deal, most are also opposed to including revenue increases. Democrats opposed to deep cuts in key social welfare programs, especially social security payments and healthcare. Republicans willing to include aggresive cuts and revisions to social welfare programs as part of long-term savings. Democrats support plan that includes $1tn in lower spending on military operations. Republicans say reduced military spending should not be counted as part of deficit reduction proposals .” Some say: “For wise ordinary Americans both the Democrats and Republicans are evil, but now the lesser evil is the Democrats. But when Americans decide that they should stop choosing between the greater evil and the lesser evil?” The US debt crisis is very serious, and the ordinary Americans should take it very serious.
In the recent days, a new report about secret loans to companies, about how the U.S. provided a whopping $16 trillion, i.e.$16000 billion !, in secret loans to bail out American and foreign banks and businesses was very interesting. The report said: “The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression … Bernie Sanders to the Wall Street reform law passed one year ago this week directed the Government Accountability Office to conduct the study. “As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the US and throughout the world ,” said Sanders. “This is a clear case of socialism for the rich and rugged, you’re-on-your-own individualism for everyone else .” … the CEO of JP Morgan Chase served on the New York Fed’s board of directors at the same time that his bank received more than $390 billion [!!!] in financial assistance from the Fed . Moreover, JP Morgan Chase served as one of the clearing banks for the Fed’s emergency lending programs … The Fed outsourced virtually all of the operations of their emergency lending programs to private contractors like JP Morgan Chase, Morgan Stanley, and Wells Fargo. The same firms also received trillions of dollars in Fed loans at near-zero interest rates. Altogether some two-thirds of the contracts that the Fed awarded to manage its emergency lending programs were no-bid contracts .” What you can call this, except “Dreadful Corruption” ? But it’s not the whole story.
A report about Boehners plan says that it could produce the greatest increase in poverty and hardship produced by any law in modern U.S. history . In fact, the ordinary Americans should pay the price of the dreadful corruption, the greedy rich, and the missteps. The reports says: “House Speaker John Boehners new budget proposal would essentially require, as the price of raising the debt ceiling again early next year, a choice between deep cuts in the years immediately ahead in Social Security and Medicare benefits for current retirees, repeal of health reforms coverage expansions, or wholesale evisceration of basic assistance programs for vulnerable Americans. The plan is, thus, tantamount to a form of class warfare. If enacted, it could well produce the greatest increase in poverty and hardship produced by any law in modern U.S. history. This may sound hyperbolic, but it is not. Both the mathematics and the politics are clear … The Boehner plan envisions no tax increases … That House Republicans would likely seek to reach the Boehner budgets $1.8 trillion target in substantial part by cutting programs for the poorest and most vulnerable Americans is given strong credence by the Cut, Cap, and Balance bill that the House recently approved … In short, the Boehner plan would essentially force policymakers to choose among cutting the incomes and health benefits of ordinary retirees, repealing the guts of health reform and leaving an estimated 34 million more Americans uninsured, and savaging the safety net for the poor – or letting the nation default early next year.” It’s really shameful. Some American comments in the mass media are interesting: “This farce has gone on long enough, at one point it was mildly amusing now its just pathetic, Obama seems pathalogicaly incapable of standing up to these hard line elements, grow a spine Barack or you will be out of a job next November … Citizens of the US cannot trust either party to represent their interests. All our elected representatives are in it to reward the rich and penalize the middle and lower class workers. Only we are too dumb to figure it out … Obama is unfit to be President, we need someone should have nailed the rich, made them pay their share, made them squeal, cut corporate subsides, and forced them to pay taxes. He did neither, he is useless”.