Obama's GRAND BETRAYAL

[Segami]

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" Previously, I reported the startling news - Obama to Change Party.
<http://www.opednews.com/articles/Obama-to-Switch-Party-by-Michael-Collins-101114-821.html>


That was satire, at least on November 14. Just three weeks later, satire becomes reality. In the past few days, President Obama has traded away $620 billion in tax revenues in order to get a $56 billion, 13 month extension of unemployment benefits. Of course, the lost $620 billion will make any further unemployment benefits, or for that matter, any other productive social programs pipe dreams as the deficit explodes over the next two years. (Image: Banksy)


The Obama deal is a long way from the original position of ending Bush tax cuts for the highest earners and simply extending unemployment benefits, as called for by economic and social circumstances.


It started when President Obama sent his vice president to negotiate with Republican leaders on Capitol Hill.
<http://news.yahoo.com/s/nm/20101130/bs_nm/us_usa_taxes>


Since the president still has a majority in both chambers of Congress, you might wonder why he's negotiating. The House Democrats are ready to rock to show that they're not to blame for the past two years of inaction. There are enough Democratic Senators with either the inclination or the compromised background to strong arm a majority.


If Obama has forgotten how Chicago politics work, he could certainly find someone from the windy city to show him how it's done. Edward ("fast Eddie") Vrdolyak has some free time on his hands for a consulting gig.


So why did Obama come up with such a ridiculous deal? The outcome was an extension of unemployment in return for a two year continuation of the Bush era tax cuts.


"Lieberman noted that as part of the deal that extends the Bush-era tax rates for all income brackets, Democrats got a 13-month extension of unemployment benefits, a payroll tax cut and extensions of the childcare tax credit and the college tuition tax credit." The Hill, Dec. 7


The finances are ugly if you're a budget balancing president who demands revenue neutral legislation. The Obama deal will cost $500 billion in lost revenues as a result of extending the Bush tax cuts, $120 billion in lost payroll taxes (dropping from 6.2% to 4.2% for employees/employers); and $56 billion to extend unemployment for 13 months.


During the Reagan years, David Stockman and his crew slashed away at taxes in hopes of starving programs like Social Security and Federal discretionary spending on social welfare and health programs for the poor. Obama has joined the cult of Reaganomics. Why is this surprise? He spoke glowingly of Reagan during the primaries.



Here's how bad it is


Here's what Louisiana Senator Mary Landrieu said about the deal. Landrieu is a conservative Southern Democrat with big energy agenda. She represents a very conservative state. Even she knows this deal is a disaster.


"He's enthusiastic about this new arrangement dealing with the Republican caucus that stated, according to their leader, their number one objective is to unseat him. I can understand trying to appeal to independent voters. I do that myself. I think it's very important. But this sort of enthusiasm for caucusing with Republicans -" and he didn't even, literally, didn't even speak to the Democratic caucus. Not any of it. Not the liberal group, not the moderate group, not the conservative group," said Landrieu. Senate Democrats Openly Upset with Tax Cut Deal


cont'

<http://www.opednews.com/articles/Obama-s-Grand-Betrayal-by-Michael-Collins-101208-494.html>

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[stray cat]

1. It would extend unemployment benefits, most of us would prefer no tax cuts thus no unemployment

Benefits

[dennis4868]

2. I have come to realize.....

That there are many stupid people on this country.....why is Obama negotiating when he has majority in congress right now? Because in the senate the repubs fillubuster every fucking piece of legislation. Why does this fact not understandable to so many liberals around the country and on TV?

[donco6]

7. *I* could negotiate a 10:1 deal!

So could anyone.

[myrna minx]

19. Some folks root for the casino house to win, while they're doubling down, I guess.

:shrug: Who bloody well knows anymore.

[BrklynLiberal]

3. Interestinglly enough, David Stockman has totally disavowed all that trickle-down crap.

http://www.nytimes.com/2010/08/01/opinion/01stockman.html

Op-Ed Contributor
Four Deformations of the Apocalypse
By DAVID STOCKMAN
Published: July 31, 2010

IF there were such a thing as Chapter 11 for politicians, the Republican push to extend the unaffordable Bush tax cuts would amount to a bankruptcy filing. The nation’s public debt — if honestly reckoned to include municipal bonds and the $7 trillion of new deficits baked into the cake through 2015 — will soon reach $18 trillion. That’s a Greece-scale 120 percent of gross domestic product, and fairly screams out for austerity and sacrifice. It is therefore unseemly for the Senate minority leader, Mitch McConnell, to insist that the nation’s wealthiest taxpayers be spared even a three-percentage-point rate increase.

More fundamentally, Mr. McConnell’s stand puts the lie to the Republican pretense that its new monetarist and supply-side doctrines are rooted in its traditional financial philosophy. Republicans used to believe that prosperity depended upon the regular balancing of accounts — in government, in international trade, on the ledgers of central banks and in the financial affairs of private households and businesses, too. But the new catechism, as practiced by Republican policymakers for decades now, has amounted to little more than money printing and deficit finance — vulgar Keynesianism robed in the ideological vestments of the prosperous classes.

<snip>

It is not surprising, then, that during the last bubble (from 2002 to 2006) the top 1 percent of Americans — paid mainly from the Wall Street casino — received two-thirds of the gain in national income, while the bottom 90 percent — mainly dependent on Main Street’s shrinking economy — got only 12 percent. This growing wealth gap is not the market’s fault. It’s the decaying fruit of bad economic policy.

The day of national reckoning has arrived. We will not have a conventional business recovery now, but rather a long hangover of debt liquidation and downsizing — as suggested by last week’s news that the national economy grew at an anemic annual rate of 2.4 percent in the second quarter. Under these circumstances, it’s a pity that the modern Republican Party offers the American people an irrelevant platform of recycled Keynesianism when the old approach — balanced budgets, sound money and financial discipline — is needed more than ever.


http://www.npr.org/blogs/thetwo-way/2010/08/02/128933945/david-stockman-opposes-extended-bush-tax-cuts-icymi
David Stockman Opposes Extending Bush Tax Cuts

David Stockman who served as President Ronald Reagan's budget director, has for years been known as a deficit hawk.

Still, he was a supply sider long before many of the current crop of Republicans who support the foundational idea that tax cuts always boost the economy were in Congress.

So it's worth noting that Stockman had a New York Times opinion piece over the weekend in which he seemed to channel liberal economist Paul Krugman in his criticism of those in the party he once served for pushing to extend the Bush tax cuts despite the impact that would have on deficits.

http://crooksandliars.com/susie-madrak/former-reagan-budget-director-david-s
Former Reagan Budget Director David Stockman: 'The GOP Destroyed U.S. Economy'



http://www.rollingstone.com/politics/matt-taibbi/blogs/TaibbiData_May2010/191906/83512

http://www.washingtonpost.com/wp-dyn/content/video/2010/12/02/VI2010120206709.html

[BzaDem]

4. YAWN

[saigon68]

5. Mr One Termer will be getting a new Enema

When the new congress comes calling

We'll see few if any Vetos

And the War---it will be expanded for the military industrialists

[maryf]

12. with friends like him who needs enemas?

its non stop.

[unkachuck]

20. I think....

....he's considering switching partys; he's halfway there already.

[Vinnie From Indy]

6. K&R

Yep! This deal is set to kill SS. Bet on the attack coming very soon.

[JamesA1102]

8. The Grand betrayal is the left betraying the unemployed and

middle class who will directly benefit from this deal.

[Erose999]

9. The GOOP are bluffing. If they really believed tax cuts for the rich created jobs then why would

they approve a deal that included unemployment extensions.

Fuck the GOP and their "deal".

[JamesA1102]

10. Because they know that the tax cuts for the rich won't create jobs

but the extention of unemployment benefits would help and were willing to hold the unemployed hostage.

[readmoreoften]

15. And how will the unemployed benefit from a massive tax giveaway to the rich

that sets the stage to destroy social security and undermine our infrastructure. Obama can pay for the 99ers in another provision. Either you don't know a divide and conquer strategy when you see one, or you're a neoliberal, Reaganite shill.

[NeoConsSuck]

16. You're driving the nail in SS

for pocket change. Are you that effing stupid?

[704wipes]

17. why are they claiming the payroll tax cut is something for dems?

Who is the dem who called for it? Won't it defund SS long-term? Last time I checked that was not on agenda of any Dem.
A lot of this does not make any fucking sense. Didn't even talk to Dems before hand?

Calls me a purist? George Bush used to call me names, how does this make the HNIC any different?

Seriously.

[shanti]

18. divide and conquer

isn't it interesting how this has panned out? he's pitting us against each other AND IT'S WORKING.

[autorank]

11. Thanks for posting!!! n/t

[maryf]

13. Ditto...

K&R

[autorank]

14. Duplicate;)