Showing posts with label Debt Default. Show all posts
Showing posts with label Debt Default. Show all posts

Saturday, July 30, 2011

U.S. public deserves what is coming their way.

Maria Cardona's article 'Tyranny of 87' on CNN blog sums it well that 87 tea party congress members are holding the country, its financial system and the world's economy hostage.

It may be unkind to say it, but U.S. public deserves what is coming their way. After all, they elected this zealot group of 87 tea party activists who have no clue of the harm they are about to inflict on the nation. They say that to avoid default, just pay the interest on debt and stop all social security and medicare checks. This will leave millions of Americans in despair, but that does not bother them as long as there are no tax increase on the rich and loopholes remain open for big corporations to avoid taxes.

What the U.S. needs at this time is to carefully nurture its economy back to health, even if it requires more stimulus or Quantitative Easing 3. But the actions of Republicans, especially the group of 87 could cause a recession all over again with more job losses adding to the already high 9% unemployment.

Handing veto power to a group of unknown idealists of the opposing party, only two years after electing a new President was a huge mistake.

Thursday, July 28, 2011

US VOTERS SHOULD THROW OUT THE ENTIRE CONGRESS

A Congress that repeatedly voted funds totaling trillions of dollars for an illegal, ill planned and an ill executed war in Iraq, also voted nearly a trillion dollars for another badly managed, over extended war in Afghanistan, is now not prepared to vote for an increased debt ceiling to avoid a US default? Such a Congress deserves to be thrown out.

US voters should hold each and every Senator and House member accountable for this political debacle and elect new representatives who will be more responsible in running nation's affairs than this bunch of idiots.

Had the US Congress been sensible, it would have shut down Iraq & Afghan wars early enough to save $4 trillion. Had that been done, total US debt today would have been $10.3 trillion not $14.3 trillion. An increase in debt limit would not be needed.

Tuesday, July 26, 2011

US: Tea Party is to blame for the impending default

The intransigence of Republican Party, especially their Tea Party component to raise debt ceiling is sending Canadian Dollar, Gold and Swiss Franc soaring. The markets consider these safe havens in case of a US default. If a default occurs August 2, 2011 onwards, the Tea Party will be to blame for creating havoc with US and World financial systems.

The debt ceiling was raised 17 times under Reagan, 4 times under Bush Sr. 4 times under Clinton and 7 times under Bush Jr. The Republican Party has only now developed consciousness or is it that their game play has gone too far?

The Tea Party's ideology is warped. In a country where every dollar spent, only 62 cents are raised in revenue and the rest is borrowed, Tea Partiers refuse to increase revenue sources. Granted that US spending is out of control and needs to be reigned in, but most of the extra spending in last ten years has been on expensive wars.

The Republican lawmakers who rave and rant against Government spending are themselves guilty of appropriating funds by way of entitlements for their pet projects, whether these are productive or not - like the bridge to nowhere in Alaska. They tag entitlements to any bill that passes Congress.

Although this fight between Tea Party and President Obama seems mostly ideological, but there may be some undercurrents of racism here. In 2010 elections, some Tea Party zealots suggested that African Americans should not vote as they don't understand democracy. It seems that Tea Party has a one point agenda - remove Barack Obama from office, no matter what the cost to country's economy.

To prevent default, if moderate Republicans do come to a last minute agreement with President Obama, Tea Party may try to stall the bill in Congress. If they cannot, they will probably field their own Presidential candidate in 2012. This could rip the Republican Party as their votes will split against Obama.