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News Link • Government Debt & Financing

The GOP and Tea Party Propitiate The Bankers

In other words, both parties will be free to lie, and they will. And the so-called "Tea Party" that thought it had such wonderful influence in Congress will find that, once again, the failure to focus on what's actually important - whether the government can deliver on what has been promised - has once again led it, like other "right wing" groups to veer off into the weeds on Guns, Gays and God. Oh please don't get me wrong: You can win elections on those points. But you can't govern on them on a sustainable basis - not when you've promised the FSA ("Free **** Army") things you cannot possibly pay for with the tax revenue you have coming in the door. So rather than have an honest conversation with the American public and telling them the truth - that they've been lied to repeatedly over the last 30 years, that we've build a house of cards on the back of leverage and debt, and that the credit card will eventually come back "Really Declined" and we had better stop this crap before that happens, we get this sort of dishonest "result." The Treasury says its borrowing is growing by $125 billion a month. At that rate, it would need a $1.5 trillion debt-ceiling increase to get through one year. How? There's only one way to accomplish this sort of nonsense without the bond market blowing up instantly, and that's for The Fed to come in and keep monetizing debt (which, I remind you, Bernanke said he would not do.) But lying before Congress isn't really much different than lying in Congress, and the 535 criminals that infest the Beltway are well-practiced in the latter. Earlier this year, Mr. Ryan defined the contours of the fiscal debate with a deficit-reduction plan that relied entirely on spending cuts and a reshaping of Medicare and Medicaid. No he didn't. He lied. His "projections" rely on an unemployment rate that has never been achieved in the modern history of the United States...

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