AMERICA’S POTENTIAL DEBT DEFAULT:

How unprecedented would default be? The United States has never failed to repay a debt in its history. But it has twice altered the repayment terms, notes a study by Carmen M. Reinhart of the University of Maryland and Kenneth S. Rogoff of Harvard University. In 1790, when the infant republic took over the states’ colonial-era debts, it deferred some interest for 10 years. A more pertinent case occurred during the Great Depression. In 1933, President Franklin D. Roosevelt devalued the dollar by 41 percent against gold. This helped end the vicious cycle of bank failures, deflation and default that had worsened the economic downturn, but it created another dilemma. Since the Civil War, borrowers in the United States, including the government, had routinely issued bonds that allowed the holder to demand repayment in gold or its dollar equivalent, based on the price of gold when the bond was issued. Devaluation would have dramatically raised, in dollar terms, the burden of repayment. So in 1933, Congress repealed the gold clause, a decision the Supreme Court upheld in 1935.

at: http://www.washingtonpost.com/wp-dyn/content/article/2009/01/09/AR2009010902325.html

So as this new deadline on the debt ceiling  looms, we are left wondering what will happen ? The President has already committed to giving more than most Democrats are comfortable with . Democrats are not pleased when they  consider what  the details of  those concessions  could potentially  mean to the lives of actual people who benefit from Medicare,Medicaid and Social Security.Americans whom have worked and contributed, with the promise that when they retired those entitlements would be there.

President Obama is forced into a corner either way. On the Morning after his election Republican  awoke to the reality that a black man would be occupying the white house, they decided  they would do everything in their power to destroy his presidency, even if it included destroying the country . It is evident the republicans who wrap themselves in the American flag, pretending to  having  a monopoly on patriotism, did not care of the consequences to the country .What mattered was that Barack Obama  has to be stopped.

Their High Priest ,the Ultra right-wing wind bag, Rush Limbaugh articulated the way forward for the republican minority. they wanted Obama to fail, Senators , Congressmen and women  commenced to parrot that refrain ,when someone dared to point out to them that it would mean the failure of  the country, they argue that the President’s agenda was so liberal , so un-American that it would be a good thing for those policies to fail because if enacted it would be tantamount  to the Destruction of  America.

Those were the same arguments made when FDR was enacting his agenda, the same arguments made when Slavery was abolished,On every occurrence of a progressive agenda that included the people , republicans  resort to fear mongering and race baiting to scare the population into dissent.

In Obama’s case they chose a path that was travelled before , they sought to make Obama different.

The caricature and the cartoon depictions at the tea part rallies were reminiscent of a time that most intelligent people thought were behind America. They conspired to de legitimize  his presidency on the arguments he was born outside of America, anyone understanding how American Government works , understands the tiered system of clearance that obtains, in order to move up the federal ladder.

At every step serious background checks are done . Does anyone in their right mind believe that under any circumstance, America would allow an imposter, an illegitimate Manchurian candidate to occupy the white house ?

The tea party people embraced this fallacy and to this day they continue with their racist ignorant campaign to make the President an outsider.

Unfortunately Barack Obama continues to smile with them as if he really believes they want to work or compromise .Even Republicans with common sense, which is  an oxymoron these days , are afraid to  mention the word compromise, when it is mentioned in the same sentence with the name Barack Obama.

I never thought I would see the day when Orrin Hatch of Utah would be viewed as  a moderate. Such is the purity test within what used to be the republican party. That  Party is now dominated by racist ideologues ,who wrap themselves in the American flag, pretending to care about fiscial prudence, a fiscal maturitry that came about  as  as soon as Obama took office.

The Tea party cared nothing about fiscal properity when  Bush 43rd was President. after inheriting a balanced budget from Clinton it took him two years to squander over a trillion dollars of surplus, started two wars and put the American economy into a near depression.

Obama is still grappling with that mess today. The hypocrites who call themselves tea party patriots did not care then.They care because a black man is president and no one wants to call it what it is .I never dreamed I would see the day when Lindsay Graham of South Carolina and Orrin Hatch of Utah would be seen as moderates.Such is the litmus test ,that once moderates, such as John McCain has been forced to the far right ,toward the fringe, to ensure their political survival.One thing is certain we know what republicans stand for .Democrats could learn a lesson or two about principles from them.

What well thinking persons here, and around the world realized, was that the flames of American bigotry and racism were not extinguished, they were merely reduced to smouldering embers camouflaged with ashes.

It seemed that the  President was somehow still drunk with the disbelief of his ascendency.It appeared  he  believed  Republicans would be prepared to work with him , the first African-American President.

It seem the President is delusional in his belief that the Republican Party would want him a black man ,to have any notable success to point to. It was evident to anyone watching ,republicans were going to subvert everything they could , effectively running out the clock on his presidency.

President Obama, despite a majority in the house and senat,was unable to garner any support from republicans, for his signature accomplishment ,the health care bill dubbed Obama-care, Democrats squabbled amongst themselves as they have always done , a move which sucked the goodwill Americans had for the new Administration.The result of the disaffection was evident in the midterm elections, a disaffection Obama called a shellacking.

Mark you, the President did not yet articulate a way forward , he had just taken office when the anti Obama onslaught commenced.But let’s get back to the issue at hand for a second , President Obama went into the  discussions making giveaways, something Former President  GW Bush would never do. President Bush famously stated he never negotiated with himself, this was evident throughout his two terms in office, on every issue he ramrod Democrats, herding them to sign onto his agenda, if they resisted he would take to the airwaves and label them obstructionists, literally making them look un-American.

Tom Daschle stood in the way of the radical right-wing assault on the Constitution ,they made sure that all the money his opponent needed was made available to him. They poured untold millions of dollars into South Dakota and succeeded in unseating Daschle, this was unprecedented in recent times,  there was an un-written rule that the President would not go to the home state of the Majority leader to campaign against him.

Bush did that ,unashamed and  un apologetic. Democrats were railroaded into signing onto the Patriot ACT after September 11 at risk of seeming to support terrorists if they dared even question what was in  the ACT.  honest members of the Democratic Party have confessed they never even bothered to read the voluminous Bill the Bush Administration’s Lawyers gave them , they just voted Aye! Rights and Civil Liberties be dammed.

So where does this President find himself? he made mammoth offers to the Republicans,they slapped his hand away.They want  concessions that would be so far-reaching  there would be widespread civil war in the Democratic Party, a move that would effectively seal the president’s  fate.

On the other side of the coin if  the country goes into default , it will be a scarlet letter on his Presidency,  Republicans calculates that either way  Obama looses.

There are numerous arguments being made detailing the consequences to the economy in the event the Nation defaults on its debts, newly installed IMF chief Christine Lagarde said Sunday, quote ” there would be real nasty consequences to the global economy if the United States defaulted on its financial obligations, end quote.

Despite these projections and all of the assessments that have being in the public domain from qualified Economists and others,  Republicans in the US Senate and the right-wing nut cases in the house, elected under the tea party banner, continue to play political brinksmanship with the American and global Economy.

They have made a decision that Ideological purity is far more important to them that leaving a livable country to their children.

mike beckles:

have your say;

 

3 thoughts on “AMERICA’S POTENTIAL DEBT DEFAULT:

  1. The site is well done and I wish you lots of success with your endeavours. I would love for you to cover music in jamaica since the music is evolving and changing with each generation. One Love.

  2. iam really interested in this column and the editors views. why ill tell you why,the amont of information in this column is staggering and just makes you wonder. wonder things like can the economy get worst, will the economy worsen.all i have to say right now is its a time for serious men with real ideas to step forward.

Comments are closed.