President Utilizing Media to Pressure Republicans on Debt Ceiling
Let me first state that I am not a Republican or a Democrat, or a Tea Party advocate; I just look at individual issues based upon their merit. The issues and the right solution is what is important to me, and not collective party ideology. But president Obama trying the same tactics of negotiation in the media to frame the debt ceiling debate as the Republicans being irresponsible, and not paying the Country`s bills is just media manipulation at its finest.
This tactic is very transparent and apparent to the educated members of society, unfortunately the tactic worked with regards to the fiscal cliff, and he is hoping to do the same thing again by putting all the pressure on the Republicans with these media shows, and essentially making the Republicans look like the bad guys here.
This kind of tactic I find repugnant because yes I am an American president Obama and I don`t agree with this tactic or the Democratic stance on this issue. The Republicans wouldn`t have to resort to this kind of negotiation if Democrats could ever be forced to cut any type of spending in any other manner.
The Democrats just refuse to admit that there is a problem that is at the critical stage, and it needs to be addressed now, even if the country has to go into a recession to finally address the spending problem.
Just like Credit Default Swaps – The Numbers just don`t add up Anymore
The numbers just don`t add up anymore, and this is our Jesus Moment where we are AIG and we realize we need to sell a bunch of these credit default swaps while we still can because if the market turns against our debt portfolio even slightly in relative terms, the debt burden will take down our entire country.
We saw what happened to AIG, well there is nobody to bail out the United States. This is the last chance before interest rates and the bond vigilantes awaken from their slumber and debt markets revert back to their historical norms, and then we are AIG and it is too late.
The Democrats are the “Bad Guys” here!
I will frame the debate in the other direction. Democrats are irresponsible, and the Republicans already raised taxes and revenue, now this is your turn to address spending. If you refuse to address spending in the next month where you have had 5 years to cut spending and have refused then you are the irresponsible party, dead wrong on this issue, and you are the bad guys.
Winning Elections has nothing to do with Leading a Country
I don`t care if you won the election with a 100% mandate, I am sure the Greek politicians won all their damn elections as well. So stop spouting this campaign rhetoric as it is irrelevant to the spending problem at hand. We don`t have a tax problem, we have a spending problem. We never have a problem raising taxes in this country, but we sure have a problem cutting wasteful spending.
Personally, I doubt that the country`s spending issues and debt constraints that will hit home 5 years down the line were really on the voter`s minds while casting votes in the recent election. It is never on voter`s minds until you get Greece style austerity programs, then it really becomes on their minds, and guess what the Greek citizens still didn`t want to cut spending even when their country was in default.
So relying on the voters to volunteer to cut back spending is like asking a fox guarding a henhouse to tighten up security measures. It isn’t exactly in the majority of the population’s interests since the majority benefit from all this spending in the short term.
This isn`t a Republican or a Democrat issue as President Bush sure was quite a spender during his 8 years in office as well, and he wasn`t very fiscally responsible, and I don`t consider him a good president from a long term fiscal thinking standpoint. So I am just as hard on the Republicans on this issue as the Democrats, and they need to do a much better job cutting back on Military spending which has been in “Overkill” mode for the last 10 years.
Republicans Need to Start with Military Spending Cuts
The Republican Party has positioned themselves as budget hawks, but they have their own set of skeletons in the closet with regard to excessive Military spending over the years that has contributed their fair share to the federal debt of 16 trillion dollars and counting. Yes the United States needs a military to meet any threats posed by our enemies, but the amount that we currently spend versus the actual threats is just a waste of money.
I know that the industrial military complex as it were provided jobs in areas of technology and research and development not to mention an entire supply chain of components along the manufacturing process for military weapons and logistical infrastructure.
But the problem is that net of taxes generated for the nation versus costs to tax payers, military spending doesn`t pay for itself, and is a net drag on the economy from an economic standpoint.
I know there are all kinds of areas where this country needs to cut spending but Republicans can make the first move by offering up some legitimate cutbacks in military spending to get the ball rolling in the negotiations because the democrats are going to have to cut their “untouchables” as well.
Both Sides Underestimating the Cuts Needed
I frankly think that both sides are naïve in regards to just how much legitimate cutting on spending they are going to have to do as the numbers they are discussing are not even close to what is required. And with Obama already pushing the idea of closing corporate loopholes in the tax code, he and the democrats are still focused on the revenue side of the equation, even after just winning on the revenue issue this past month. I guess they still want more revenue, but I hope this is just an opening negotiation stance, but if we are still negotiating over revenue issues in the debt ceiling debate, then this country will be in default in 10 years instead of fifteen.
Maybe Now is the Time to let Accountants Decide Spending Cuts
This is not a political debate, this is a financial decision, get rid of the politicians and bring in the accountants and risk managers. The politicians have had their chance to solve the debt problem, now it is time to bring in the number crunchers and let them decide objectively where to cut government spending.