Saturday, August 6, 2011

Standard and Poors Agrees with This Blog, even as NO Politician or Media Person Makes the Same Point

No, I have little regard for the people of Standard and Poors--especially John Chambers (see previous article). They are part of the group of Wall Street and financial peope I call the Stupidest People on Earth (not on making money, where they control the game, but on financial principles)--sharing that title with the mainstream media. One of the evidences of this stupidity is the inflated importance given to "credit ratings", which are of little or no use (always being too little and too late to get people ahead of the curve, or simply irrelevant--as is basically true of the downgrade of the U.S. credit rating). I correctly told you in the previious article that tis whole charade over the U.S. credit rating seems to be nothing more than another Wall Street power play (along with the Wall Street bailouts continued by the Fed to this very day). I call these people economic fasciss (really nothing to do with Hitler), because they are. They propose to be part of a "partnderhip" with government that they intend (stupid as they are) to CONTROL. Yep. I just called John Chambers, and the people of Wall Street in general, power mad and arrogant. They certainly do NOT believe in free markets.


Thus, Standard and Poors is part of the FANTASY world of Wall Street, where ALL that matters is perception, and not reality. What irked Standard and Poors was the failue of politicians to heel behind the Standard and Poors command that they produce a Soviet Union style ten year plan (even the Soviet Union generally not being arrogant enough to go beyond five year plans) with a SHAM 4 trillion dollars in deficit reduction (only 40 billion a year, you will note--always concentrated in the later years--not enough to handle our present and future deficits). But 400 billioni dollars THIS NEXT YEAR would have been a good start. Instead, we are proposing to ADD to the deficit next year, with nominal "cuts" of only less than 30 billioin. S Standard and Poors clearly approves of the "magic wand theory of government", where you simply wave a magic wand and SAY you willl accomplish things. That is exactly how we got into our present mess, and Standard and Poors is part of the problem rather than part of the solution (even though it is correct that we do not deserve the highest credit rating-as if our credit worthiness is the same now as it was when our debt was not heading for the same level as Greece). Look at what happens if our economy receives a major setback. We have NO reserves. We have NO money, in the sense we are borrowing 40 cents, and more, out of every dollar we are spending. We are on the edge, if not already over it, and credit ratings are supposed to be about RISK.


lStupid as the people of Standard and Poors are, however, even they--including John Chambers-recognize an elementary fact thata ONLY this blog has told you: We are the ONLY country in the world--according to Chambers--that separates our budget/spending process and our debt authorization process. Read that last sentence again, because Chambers is right on this one. We pass spending bills that REQUIRE a raising of the debt limit, but we address the debt limit at a different time. That makes no sense at all. It is absolutely insane.


Why are we this insane? It is the real reason our politics are now dysfunctional,. No, it is NOT "partisan bickering" that fundamentallly makes us dysfunctional. That is part of democracy. What is making us dysfunctional is DECEPTION. Our lpoliticians have perfected the talent--aided and abetted by the"journalists" of the mainstream media--of CONCEALING reality from the public, and even from themselves. We SHOULD increase the debt ceiling IMMEDIATELY after the spending bills for the year are passed, by exactly the amount that it is determined the spending bills will require for the next year. And we should TELL the public exactly what we are doing, so that everyone who votes for spending is forced to admit exactly how much debt their vote is adding to our debt problem. That is exactly why we DO NOT do it this way. Our politicians want to DISCONNECT the debt ceiling from the spending bills they vote for. At the start of the budget/lspending authorization process, the CBO should tell both Congress and the public how much our debt will rise if previous spending levels are maintained (along with projected increases). Then, as each spending/appropriation bill is passed, the CBO should estimate its effect on the REQUIRED debtg increase for the next fiscal lyear. Then, at the end of the appropriations process, the CBO shold tell Congress how much it MUST raise the debt ceiling to finance the appropraitions that Congress has just passed. And Congress should be REQUIRED to raise the debt ceiling to cover the spending it has just authorized. Anything else is DISHONEST, which accurately describes our present politicians.


No, this dees not "solve" our political differences, or financial problems. But it makes the debate REAL, instead of a farce. Chambers is right about that. The way we handle the debt ceiling is a frace and a mockery of good policy. We need to CONNECT the spending and debt authorization process, because they ARE connected. The amount we MUST raise the debt ceiling is DETERMINED by the amount we spend. That connection should be obvious in the way we do things. We have deliberately tried to DISCONNECT the two intertwined things, solely for the purpose of DECEPTION.


Tihss is exactly what my articles have been telling you for months. If even people as mentally challenged as those from Stand and Poors can see this, WHY have you heard it noowhere else but here? Yes, this is a rhetorical question. I have jus told you why. It is deliberate DECEPTION. Not even the Tea Party people want to address the REAL. They prefer "politics as usual". And we can't afford it, even if our politicians and media have perfected it beond any other political "elite" in the history of mankind.


Do yuo realize how much of a FRAUD it is to say that we need to "cut' spending one dollar for every dollar rise in the debt ceiling? It is like the FRAUDULENT weekly comparison by the mainstream media of UNREVISED jobless claims with the REVISED jobless claims for the previous week. It is apples land orages. We have raised the debt ceiling--still disconnecting it from the spending that produces the necessity--over less than a TWO YEAR period. The proposed "cuts", which probably will never take place, are proposed to occur over a TEN YEAR period--concentrated in the later years of that period. This is turly comparing apples and oranges If we really reduced spending one dollar for every dollar the debt ceiiling is raised, OVER THE SAME PERIOD, we would not have to raise the debt ceiing at all (by definition, really, since each dollar we cut spending means a dollar less we have to raise the debt ceiling--connected as they are).


See how this blog keeps you on the cutting edge, and beyond. If you understood this blog, you already KNEW that we had this insane disconnect between debate on spending bills and the raising of the debt ceiling that those spending bills REQUIRE. Now you could have the same deadlock over the spending bills, and a "shut down the government" brinkmanship. But at least you would be dealing with the REAL, and not with a deliberate farce where you are deliberately disconnecting the debt limit from the spending authorizations that REQUIRE that the debt limit be raised.


Did I just say that Tea Party oliticians are being dishonest about this? Yes, I did, and they are. They, too, have bought into this Washington idea of DECEPTION. This blog has told you what needed to be done to make this debate about spending, and not about a DISCONNECTED debt limit. All you had to do is CONNECT the tow, as they are in reality. NO ONE wants to do that, because EVERYONE wants to DECEIVE.


I am tired of it.


P.S. No proofreading or spell checking (bad eyesight).

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