Posts Tagged ‘President Obama

13
Aug
11

Republican Recession

Republicans are quick to declare that President Obama “owns” this recession. However, were it not for three very crucial decisions by REPUBLICANS before Mr. Obama took office, this recession would never have happened and it has been prolonged by two actions taken by Republicans since the beginning of the President’s term.

The financial melt-down which peaked on September 16, 2008 was caused by the collapse of mortgage-backed securities traded by the banks which issued the mortgages and then sold them off in bundles to other financial institutions. With the deregulation of banking effected by the repeal of the Glass-Steagall Act in 1999, banks issuing mortgages no longer had to worry about the risk in issuing the mortgage; they could just pass it on to someone else. Standard and Poor’s, who recently downgraded the Federal debt from AAA to AA+, as well as other ratings firms, inaccurately rated these investments much higher than they should have. The result was the collapse of the market for these instruments which, in turn, led to the financial meltdown of September 2008. This was the direct result of the passage of the Republicans’ Gramm-Leach-Bliley Act in November 1999 which removed the firewall between commercial and investment banking and de-regulated the banking industry. None of the abuses in the mortgage-lending collapse of the 2000’s would have occurred if the Republican Congress hadn’t passed the repeal of Glass-Steagal in 1999.

The second Republican decision leading to the Great Republican Recession was the decision by President Bush and the Republican Congress in 2001 to blow the budget surplus that President Clinton had left them on the Bush Tax Cuts in the mistaken belief that lower taxes would result in an expanded economy and greater government revenue. The Reagan years should have shown them that lower taxes have less of an effect on the economy than low interest rates and low energy costs. Combined with the Republicans third decision, to fight two unfunded trillion-dollar wars, the options left to President Obama to fight the Republican Recession were limited. When he sought to stimulate the economy though large infusions of cash, the Republicans put limitations on how much and where he could do so.

Today, when jobs are obviously the most important short-term issue facing the country, the Republicans, through their politically-motivated and absolutely manufactured debt ceiling crisis, have completely tied the President’s hands to stimulate the economy. They have ignored the recession in favor of debt reduction, which is indeed a serious problem, but one which could be better fought with a stronger economy, which could come about if they would allow some short-term spending stimulus.

To be perfectly honest, I believe the leadership of the Congressional Republicans know this, though the dozens of Tea Party newbies have demonstrated their ignorance of basic economics time and again. I believe that Boehner and McConnell are willing to allow millions of Americans to lose their jobs or remain unemployed in order to defeat President Obama in 2012. Remember, Mitch McConnell declared in 2009 that the primary legislative goal of Congressional Republicans was to defeat President Obama, not his policies, but the man personally.

The Republicans created this recession and they are the prime impediments to recovery.

01
Aug
11

Spineless Obama

The Tea Party terrorists who have hijacked the American political system have shown the Democrats the horrendous mistake they made in nominating for President the junior Senator from Illinois in 2008. In the three and a half years since his election, Barack Obama has shown repeatedly that he has no spine, no backbone, no courage. He is a political capon.

In 2008, I voted for a Democrat who would fight for universal health care coverage. Instead I got Barack Obama.

In 2008, I voted for a Democrat who would prosecute the violators of the Constitution in the Bush Administration. Instead, I got Barack Obama.

In 2008, I voted for a Democrat who would fight to reduce military spending and end the seemingly endless wars in Iraq and Afghanistan. Instead, I got  Barack Obama.

In 2008, I voted for a Democrat who would stand up to the liars at False News and the Republican propaganda machine. Instead, I got Barack Obama.

In 2008, I voted for a Democrat who would protect the social safety net AND cut needless spending to fight the deficit. Instead, I got Barack Obama.

I will hold my nose in 2012 and vote to re-elect Barack Obama, but only because he won’t be as bad as whomever the Republicans nominate, though at the rate things are going, even that could be doubtful.

01
Aug
11

Republican Terrorism

The Republicans, and the Tea Party in particular, have  used terrorist tactics in the debate over the debt  ceiling increase. Merriam-Webster defines terrorism as  “the systematic use of terror especially as a means of  coercion,” and if what the GOP and Tea Partiers have been  doing isn’t terrorism, I don’t know what is.

They have declared that they won’t vote for an increase  in the debt-ceiling unless Democrats and the President go  along with their demands. Some of the Tea Partiers are  quite obviously ignorant of the basic economics involved,  but some know exactly what they are doing. They know that  not raising the debt-limit with result in the United  States defaulting on its debt obligations for the first  time in history. They know that this will result in a  down-grade of the US debt rating from the perfect AAA to  something much less. They know that that will result in  higher interest rates on the US debt, thus increasing the  interest taxpayers pay on the debt and making the defecit  even worse. They know that this increase in interest  rates will cascade down to corporations and individuals,  who will all have to pay higher interest on loans and  credit cards. And, they know that Democrats and the  President don’t have the backbone to say “no” to them.

In other words, the Tea Party and the GOP are holding the  American economy (and the world’s, as well) hostage until  their demands are met.

If Barack Obama had a spine, which he has quite clearly  demonstrated he hasn’t, he would have refused to  negotioate at the point of a gun. He would have told the  Tea Party and the GOP that budget negotiations belong in  budget negotiations and not in the debt ceiling vote. He  would have said:

The United States does not negotiate with terrorists. We  do not negotiate with terrorists holding the American  economy hostage. We don’t allow Al-Qaeda to hold the  economy hostage and we won’t allow the Republicans to do  it.

Unfortunately, for the Democrtatic Party and the American  people, Obama has no spine. No matter what happens, the  Republican Terrorists have won.




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