Get Your Act Together! Now!

The Economist:

TODAY is July 19th. Two weeks from today, it will be August 2nd. On that day, or very soon thereafter, the Treasury will run out of room to use extraordinary measures to keep meeting its obligations without issuing any new debt. To avoid a default at that point, which most economists agree would be catastrophic, the Treasury will then need to slash spending immediately and precipitously—by about 44%. The process won’t be tidy; depending on what bills are coming due on a particular day, the shortfall will affect payments to state governments, public employees (including soldiers), payouts to entitlement beneficiaries, and so on. Absent an agreement to raise the debt ceiling, spending would be slashed by $134 billion over the month of August. That would represent a sudden fiscal consolidation of over 10% of GDP—enough, in all likelihood, to tip the economy into recession. And at some point, if no agreement were reached, default would become inevitable. (read all)

Anybody home in Republicanland? Are you sure you know what you’re doing? I am pissed. So, setting the economy on fire wasn’t enough in 2008? Want to blow it up one more time? A really spectacular blowup this time that destroys government, so Grover Norquist will love you all and rapture you into everlasting economic bliss, as promised for his true believers?

You know what? YOU ARE THE PITS!

Greek people go hungry, because your rating agencies saw fit to play monopoly with their assessments and caused the worst currency crisis ever. Hey, just a hint. If the agencies and banks thought Greece’s debt was a problem, why not stop lending before? Maybe because you could get top interest and then socialised your losses to a point where the beast you so busily starved can’t do anything to relieve you anymore? Now it’s time for bilking, eh?

Being able to eat to sustain yourself is by now considered an entitlement obviously in the US. We don’t want that over here, we don’t think like you do, we actually practise a Democracy on Christian principles of caring for our neighbour! Now you are about to present us with another economic crash three years after the last one, which we, using our socialist methods, mostly rode out fairly well. But we won’t be able to just right now. We can’t breathe anymore.

Corporate greed Republican-style caused the stock market crash in 1929 and gave the Fascists here the final push into government. With the most terrible consequences imaginable. In 1945 Europe was reduced to rubble.

This time around fascism rears it’s head on your side of the pond, the consequences may well play out on your soil. So be careful what you wish for. And don’t expect any help. We can’t, your style of capitalism has already stripped us clean.

You’re on your own.

13 thoughts on “Get Your Act Together! Now!

  1. But House Republicans passed the ‘Cut, Cap, and Balance’ bill, also now known as “The Bill To Nowhere’, so everything is fine now!

    The ‘Gang of Six’ has unveiled a 3.7 trillion dollar deficit reduction plan. We had a better plan in December. It was called the ‘Don’t Renew The Bush Tax Cuts’ plan.

    • But, but, but, but, but… those tax cuts create jobs. When they create those jobs, I’m not so sure… but someday. In a galaxy far, far away. Those tax cuts may create a job.

  2. Either Obama is going to cave – he wants the big bipartisan deal because he still thinks that faced with a choice between him and a rabid animal from the GOP, enough people will hold their nose and vote for him.

    Or, the Teabaggers are going to blow it all up. Spending cuts by default…..

    Lunacy, sheer lunacy.

  3. I can’t say I blame you folks on the other side of the pond for telling us we’re on our own. Greedy people caused this problem and stupid people put them in a position to do it.

    Unfortunately, in this country, it used to be that in order to get denied the right to vote, you had to be a convicted felon. Now, thanks to Republican state legislatures who don’t believe in following the Constitution, you can get denied the right to vote if you’re poor and it’s likely you’ll vote for Democrats. As a result, the people most likely to help get us out of this mess by voting for Democrats won’t be allowed to vote (because of, what for all intents and purposes amounts to, a poll tax), and the people who are left to vote are too stupid to know not to vote for the people who caused this economic mess in the first place!

    Democrats did not cause this problem, Republicans did. But if you want one person in particular to blame, blame Grover Norquist and his stupid, idiotic, ridiculous, no-tax pledges!

      • Grover Norquist (A/K/A “Gopher Nosetwist”) insists that Republicans running for office sign a pledge promising to never raise taxes for any reason. Sadly, they agree to do this because he makes vague huffy-puffy noises about primary challenges and such. As a result, they are all afraid to raise taxes. Then Norquist goes on the TV machine and spreads lies about the affects of tax increases on jobs and the economy. “Liberal media” too chicken-shit to challenge him on his lies (most, anyway).

        Without Norquist, Republicans would not be so afraid of raising taxes.

  4. Great post, EV!

    What I find so distressing is that, by taking those “extraordinary measures” to artificially keep the economy afloat beyond last spring, Geitner and Co gave the ‘pubs and ‘baggers some time to play politics. It didn’t go their way like they’d hoped (I believe they were looking for another summer of Town Halls demonizing the Dems but instead cutting social safety nets came back to bite THEM) but it gave the nation a false sense of security.

    I equate it to having no money left, savings tapped out, no friends or family left to borrow from but a few credit cards that aren’t at their top limit, and still feeling like you have money to spend. It was all smoke and mirrors, and the thought-challenged American Bagger never did understand that the desperate times really started last spring.

    Anyway, I don’t blame Europe for wanting to stay out of this mess here!

  5. We not only want to stay out of it, we can’t not stay out of it. Germany, for instance, has good substantial economic growth rates. Unemployment is going down. Now the EU is threatened and by this Germany’s main market. While the Germans are not into that tax cut mantra, many countries of the EU are, or are ruled by a crippling political caste who are too corrupt to make their clientele pay taxes (Greece). The Swiss are very much into the tax mantra, but if you owe taxes here, you pay taxes here. Government here is really efficient, even if some say it isn’t. Well, Switzerland is really small and small is much easier to handle. Next to the big financial industry, which is showing signs of some wobbliness, we have a good and sound engineering and manufacturing industry, chemicals and pharma as well. I have my qualms about the latter, but while they could use some better ethics, it is still research and manufacturing based and, from an economic point of view, sound. We are beginning to struggle due to the strong Swiss Franc. Rates have gone up by 21% during the last year for the USD and 13% for the Euro. This may well break the Swiss economy’s back. And don’t get me started on the non Euro member UK.

    Noone here is in a position to help out in any way.

    • But, but…. Germany’s *socialist* – how can they have low unemployment, great social programmes, an education system that turns out engineers and technologists that make them the world’s #3 exporter after China and the US (I think)?

      Go on EV let’s get started on the UK….. 🙂

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