The Worst Deal in American History -- Obama's Big Payback to Wall Street

[Octafish]

Something I'll consider when asked to go door-to-door next fall...



Obama's Big Payback to Wall Street

The Worst Deal in American History?

By MIKE WHITNEY
CounterPunch
August 1, 2011

Is Obama's debt ceiling agreement the worst deal in US history?

Probably. But not for the reasons that are presently being discussed in the media. What makes the deal such an unmitigated disaster is that it strips congress of its Constitutional authority to control the nation's purse-strings. That authority will be handed over to a bipartisan committee that will decide how to slash $1.5 trillion from the budget in order to reduce the deficits. But, since the committee will be evenly comprised of Republicans and Democrats, there's bound to be disagreement about what programs should be cut. This is all by design, because if the committee is unable to decide where the cutbacks should be, then the decision will be made for them via an "enforcement mechanism" that will require across-the-board spending cuts.

Pretty sinister, eh? It's is a backdoor way of repealing Congress's primary authority while making austerity the default position of the US Government. Whenever in doubt, "Cut spending". Naturally, the GOP refused any agreement that would involve new taxes.

SNIP...

Uh huh; which explains why he picked the two losers most responsible for the Crash of '08 to lead his economics team; Lawrence Summers and Timothy Geithner. Obama devotees shrugged off the appointments as a rookie error unwilling to breach any criticism of the Dear Leader. Even now, they cry "Foul", claiming Obama was either hoodwinked or --get this--a "poor negotiator".

CONTINUED...

http://www.counterpunch.org/whitney08012011.html

I'll also remember: The wars and tax hikes for the rich and their corporations are off-limits; meanwhile, trickle down continues its 30-plus year run.

[Skittles]

1. he is a supreme embarassment

[Octafish]

19. The wars without end and welfare for Wall Street make the case.

He campaigned to end the former and regulate the latter.

We know the wars aren't going anywhere. As for Wall Street, it's set to continue the party.

[ibegurpard]

2. excellent summation

[Octafish]

31. Tycoons laughing all the way to the bank

Locking in future action without addressing the GOP elephant in the room is a recipe for disaster.

Tycoons laughing all the way to the bank

Linda McQuaig
Aug. 1, 2011
The Star (Toronto)

There are likely few characters less loved in America these days than hedge fund managers — widely regarded as among the archvillains of the 2008 Wall Street meltdown.

So, months ago, when Washington embarked on a frenzied search for ways to reduce the massive U.S. deficit, a tax loophole that allowed hedge fund managers to pay tax at the exceptionally low rate of 15 per cent certainly seemed like low-hanging fruit.

Cancelling the loophole would save the treasury $20 billion over 10 years, and the public would surely be unmoved by the pain inflicted on hedge fund managers — the top 25 of whom took home an average pay last year of $880 million each.

But as the stakes rose in the bizarre negotiations over the country’s debt ceiling, the Republicans managed to push reluctant Democrats into taking all tax increases off the table. All deficit reduction was to come exclusively from government spending cuts, hitting the middle and lower classes hard.

Perhaps this seems like evidence of how resistant Americans are to tax increases. In fact, it shows no such thing. Rather, it shows how a band of far-right Republican Tea Party extremists — financed initially by the billionaire Koch brothers — have managed to effectively take control of the U.S. political system and block the will of the American people.

CONTINUED...

http://www.thestar.com/article/1032493--mcquaig-tycoons-laughing-all-the-way-to-the-bank

Looks like tax increases on the rich are something that will never happen. So, who runs America?

[immoderate]

40. So, who runs America?

I ask this of my (few) Libertarian friends, when I want to hear an explosion of word salad. :rofl:

--imm

[femrap]

48. This new

'Power Structure' which will decide where to cut funds is the entire reason why there was all this DRAMA over the raising the Debt Ceiling.

It's like a coup d'etat.

It is NOT constitutional....will this be stopped?????

[mmonk]

3. Recommended.

Thanks Octafish.

[MadMaddie]

4. The worst deal was the election of 2010

If people would have shown up and voted and prevented the teabaggers from getting into office this deal would not have had to be made.

The Big 3 were not touched.....!

[sabrina 1]

14. Sorry, it would have happened anyway.

And it is not the voters who are responsible. People need to stop looking in the wrong direction or we will never fix this country.

Independents didn't show up to vote for Dinos. That is their right. Progressives showed up to keep those who work for them in DC. But we do not have enough of them. And the Dem Leadership did everything it could over the years, to back Blue Dogs over Progressives.

Why would they do that if they were really working for the people? I think a lot of people's eyes are beginning to open regarding this 'two-party' system. I hope it's not too late.

[Bluebear]

15. I would say 2000 and 2008

[Initech]

32. No 2004 was the biggest mistake in American history.

[rhett o rick]

43. I agree. America officially condoned Bush's crimes. nm

[Initech]

49. And it's been completely downhill and out of control ever since.

I swear that election was rigged.

[rhett o rick]

53. I am sure it was. But the main issue is that there were millions of Americans

that voted legitimately for Bush. They condoned his crimes, as did those that didnt vote. Shame on them. Shame on America.

The Revolution Is Waiting.

[Initech]

54. I guarantee an economic revolt will happen in the US in my lifetime.

I'm only 31 - and I predict if the GOP keeps winning and screwing the working class, we will retaliate. And it won't be pretty when it happens.

[rhett o rick]

55. As Marx predicted, capitalism will kill itself. When the workers have no money to buy

products, the system will implode. When the employed can no longer support the unemployed, the system will implode.

[SammyWinstonJack]

38. I'd say the same, Bluebear.

:-(

[Big Blue Marble]

16. Not touched for the next three months.

then Katy bar the door cause that steamroller a commin.

[EFerrari]

26. 2010, independents broke for the Thugs over jobs. We did show up.

http://abcnews.go.com/ad/gmaintroad.html?goback=http%3A%2F%2Fabcnews.go.com%2FPolitics%2Fvote-2010-elections-results-midterm-exit-poll-analysis%2Fstory%3Fid%3D12003775

And the Big 3 are not off limits in the second round.

[bvar22]

29. That is not what happened.

Here.
Harry Truman clearly explains what happened in 2010, and what is GOING to happen in 2012 if nothing changes.

"I've seen it happen time after time. When the Democratic candidate allows himself to be put on the defensive and starts apologizing for the New Deal and the Fair Deal, and says he really doesn't believe in them, he is sure to lose. The people don't want a phony Democrat. If it's a choice between a genuine Republican, and a Republican in Democratic clothing, the people will choose the genuine article, every time; that is, they will take a Republican before they will a phony Democrat, and I don't want any phony Democratic candidates in this campaign."
---President Harry Truman

QED:2010




But, of course, that was back when Democrats were "DEMOCRATS"!!!

[femrap]

50. So now can

we primary this dude??? I feel as if there has been some coup d'etat with this new 'Power Structure' which is completely unconstitutional.

Now our 'representatives' have no say in funding cuts or tax reforms. WTF?

Is this a dictator with a Politburo of 12?

[amborin]

5. yes, sinister; and Summers was an early advocate of Reaganomics

not an unintentional or uninformed choice

[7wo7rees]

6. It's like the Emergency Financial Manager status that's screwing Michigan

http://en.wikipedia.org/wiki/Robert_Bobb#Emergency_financial_manager

Less democracy means we can can keep this sucker afloat. Deadbeats and Grandma Millies off the boat!

[nashville_brook]

7. k and r

[leftstreet]

8. K&R

[dixiegrrrrl]

9. Repeat: strips congress of its Constitutional authority to control the nation's purse-strings.

Again:
It strips congress of its Constitutional authority to control the nation's purse-strings.

THAT is what people do not seem to be recognizing.

Over the last 2 decades, more and more of the Constitution and the Bill of Rights and the rule of law has been erased,
plus we have seen Bush's henchmen hold Congress in contempt and get away with it!

THAT is what is wrong with the bill that was passed.
But most people were distracted by "debt ceiling" and "credit downratings" and threats about Soc. Sec.

[Desertrose]

10. This is how they hide their real intentions.....

...distract by fear or emotion.

I really am tired of this crap.

[dixiegrrrrl]

28. The scary thing is, so few STILL get the picture.

After all this time.

[SammyWinstonJack]

39. Works like a charm every DAMN time! I bet it even amazed the PTB just how well it works on the

masses. :evilgrin:

[woo me with science]

25. [phone] nt

[H2O Man]

11. Recommended.

Earlier today, I wrote an OP stating my hope that Obama will face a primary challenge. A couple of days ago, I posted one about Malcolm X's saying that the Washington politicians fit into two groups: the Democrats are foxes, who smile to our faces, and bite us from behind our backs, and the republicans are wolves that just bite us.

Combine those two with this OP, and it sums up how I view things right now.

[tnlefty]

12. Thanks!

I'm torn between crying and throwing up, but I sincerely mean the thanks.

[October]

17. I'm with you... /nt

[Karmadillo]

13. K&R

nt

[BeHereNow]

18. Thanks Octafish K&R and a thread from the archives...

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=389&topic_id=2636329

BHN

[Kaleko]

20. Mike Whitney has become a must-read for me

ever since the Dominique Strauss-Kahn affair broke and Whitney was the first on line to respond with an article explaining why he smelled a whole squadron of rats scurrying to take DSK out of the picture. Not that I can verify every point Whitney makes or agree with every one of his conclusions, but for the big-picture overview I find his writings bang on perceptive.

Recommended, Octafish.

[suffragette]

21. Yep, restructure is pretty much trickle down

And trickle down basically was and is the people being pissed on.

[Starry Messenger]

22. k&r

[snagglepuss]

23. K & R. nt

[EFerrari]

24. K&R

[ProSense]

27. "The Worst Deal in American History?" Really?

This?

The worst deal in American history was the deal with Phil Gramm to repeal Glass-Steagall.

I could be wrong!

[bvar22]

30. I agree.

The Wall Street Bailout and the disastrous Health Insurance reform Bill are worse than this one.

In 2014, when the MANDATE kicks in,
and 40 - 70 MILLION struggling Americans are forced to buy Junk Insurance that they can't afford to use (High Co-Pay/High deductible),
they are going to be PISSED,
and they WILL blame the Democrats,
and rightly so.

The "Democrats" passed a Republican Insurance Scam without forcing the Republicans to take ANY responsibility.
The DEM Leadership did ALL the dirty work FOR them.
All the Republicans have to do is sit back and say, "Yep. We voted against it"
and Democrats will be unelectable for a generation.

So I agree.
Today was NOT the worst deal in History,
not even the worst deal in the last 3 years.
That "worst" part was over the top.
In reality, it was just another really, really BAD deal,
but not outside the performance box established since 2008.

"Strong and successful presidents (meaning those who get what they want - whether that happens to be good for the country or not) do not accept "the best deal on the table". They take out their carpentry tools and the build the goddam piece of furniture themselves. Strong and successful presidents do not get dictated to by the political environment. They reshape the environment into one that is conducive to their political aspirations."

http://www.commondreams.org/view/2010/07/17

[ProSense]

45. Opinions,

"The Wall Street Bailout and the disastrous Health Insurance reform Bill are worse than this one."

Everyone has an opinion.

Report: Wall Street’s Opposition to Dodd-Frank Reforms Echoes Its Resistance to New Deal Financial Safeguards

[bvar22]

46. More lipstick for The PIG.

Even the people who WROTE the "historic" Financial Reforms admit that they will NOT prevent another Heist & Bailout.
The "historic" reforms did not even return financial regulation to the level of accountability we had BEFORE another "Centrist New Democrat" president removed them.

Wall Street's Big Win

Financial Reform Bill Won't Stop Next Crisis

All Holes and No Cheese

Laughable "Historic Reforms"

Another Pyrrhic WIN for the White House!!!!
Put it on The List!
Put it on The List!
Which way to the Mission Accomplished parade?
:party:


"There are forces within the Democratic Party who want us to sound like kinder, gentler Republicans.
I want a party that will STAND UP for Working Americans."
---Paul Wellstone

photo by bvar22
Shortly before Sen Wellstone was killed


"By their WORKS you will know them."

[ProSense]

51. Hmmm?

From your first link:

It's not that there's nothing good in the bill. In fact, there are many good things in it, even some historic things. Sen. Bernie Sanders and others won a fight to allow Congress to audit the Fed's books for the first time ever. A new Consumer Financial Protection Bureau was created to protect against predatory lending and other abuses. New lending standards will be employed in the mortgage industry; no more meth addicts buying mansions with credit cards. And in perhaps the biggest win of all, there will be new rules forcing some varieties of derivatives – the arcane instruments that Warren Buffett called "financial weapons of mass destruction" – to be traded and cleared on open exchanges, pushing what had been a completely opaque market into the light of day for the first time.

From your second link:

This article appeared on National Review (Online) on June 25, 2010.

Your third and fourth links: drivel.

[Pale Blue Dot]

37. So I'm sure you've been lobbying Obama to reintroduce Glass-Steagall.

Right?

[rhett o rick]

42. It's on the list right after repeal of the Patriot Act. nm

[rhett o rick]

41. Yes I agree. How do you feel about this deal? I would be interested in hearing. nm

[scarletwoman]

33. No, not the "worst", just another in a series of "deals" designed to preserve the rule

of the Owner Class.

Excellent piece, nonetheless.

Rec'd,
sw

[girl gone mad]

34. k & r

[Robeson]

35. I've learned that whenever you hear, "Obama is in negotiations"...

...it's best to hide your wallet.

[quaker bill]

36. Nah, I would still go with Dred Scott. n/t

[Major Hogwash]

44. Give it 6 months. I'm sure Obama can cobble together a worse deal than this.

Hell, he wasn't even trying with this deal.

Wait until he agrees with the Republicans that the EPA must go!
And that fracking is just something that "we have to live with".
And blowing up mountains clears the skyline of obstacles.
And adding oil to the water makes it go down faster.

Up is down, black is white, spin the wheel, where it stops, nobody knows.
But, you'll be fucked, one way or another, you can be sure of that!!

[Remember Me]

47. OMG. Shock Doctrine implementation -

Disaster Capitalism = Fascism in my book.

But then, capitalism as we know it increasingly looks like fascism to me. Apparently I'm not alone. Well before me, Gandhi thought so too (this isn't the quote I was looking for, but it'll have to do:

"Democracy can only be saved through nonviolence, because democracy, so long as it is sustained by violence, cannot provide for or protect the weak. My notion of democracy is that under it the weakest should have the same opportunity as the strongest. This can never happen, except through non-violence. Western democracy, as it functions today, is diluted nazism or fascism." - Mahatma Gandhi

[Enthusiast]

52. Obama is not in charge.

He is playing a role.