Friday, July 29, 2011

US:Senator Chuck Schumer on CNN playing political games with debt issue (28 /7/2011)

Tonight on CNN Piers Morgan interviewed Senator Chuck Schumer concerning the US debt crisis. To put it mildly Schumer engaged in cynical political games. This is the type of behaviour, which gives politics a bad name. Schumer continuously used the term "Hard Right". It was entirely the “Hard Right's” fault as far as he was concerned. Of course the reality is that the Tea Party members are correct. America is living way beyond its means. This year the deficit is running at $1.65 Trillion. The National Debt is in excess of $14 Trillion (14 Thousand Billion). $40 out of every $100 being spent by Obama is borrowed. There has been an 84% increase in discretionary spending under President Obama. This is economic lunacy. It calls for very hard decisions on spending. A freeze on spending for six years and a 1% cut each one of those years is required if this is to be resolved. Schumer claimed that Harry Reid has come up with a balanced plan. Nothing could be further from the truth. The Reid plan dodges the hard decisions.
The Reid Plan would not curb the shocking rise in the National Debt. It fails to address the issue of cuts sufficiently. In short the debt problem would continue to escalate. When questioned about President Obama’s failure to produce any plan Schumer dived for cover. Schumer stated that the “Hard Right” members as he termed them should resign. No Mr Schumer it is people like you who should resign. You are driving America into BANKRUPTCY. It is time for YOUR President to produce a plan. He has put nothing on the table.

The Boehner Plan is a more effective instrument than the Reid Plan but does not go far enough.  However it buys the US some time. It is a start. Tactically Tea Party members would be better off to vote for the Boehner Plan in the House of Representatives as Harry Reid and the Democrats will kill it in the Senate anyway. Let the odium fall on them.  In addition Tea Party members in the Senate will oppose it also.

Let the Democrats and President Obama take the consequences of their  profligacy in 2012. This cannot continue much longer. It is the road to economic collapse and poverty. Just look at some European countries such as Greece.

If the ratings agencies downgrade the US (as appears highly likely) government and consumer borrowing costs will escalate very quickly. It is time to slash the borrowing. President Obama must sacrifice his re-election prospects and take the hard decisions. So far he has produced no plan.

Sadly the Democratic Party control of the Presidency and Senate is the obstacle to a resolution of the debt problem. The Democrats are the Party of Big Spending. Have they not learned from the European experience? The US cannot continue to increase spending by 8% annually.

Looking at the US political system it appears to be paralysed. It is cumbersome and unable to react quickly enough to the economic crisis. The European Parliamentary system is far superior and can tackle crises more expeditiously.


rainywalker said...

Again you are right. Everyone is posturing for the next election and many do not care what happens to the country or the people. Many are lying about the world debt since we will have 65 billion, plus treasury bonds turn over the first of August. The interest we owe on the debt is around 26 billion so we will have money left over. Then the government will have to make some hard decisions on what to pay with the remainder. But we need a budget that will keep us in the black. Washington is scaring the people to death on television about not getting social security checks out and they have nothing whatsoever to do with the world debt. From listening to people around where I live they are okey with tighting their belts, reducing programs we can not substain, reduce some of the entitlement programs, but those in Washington never will. I'm more concerned with the 20,000 troops the president is preparing for something here on the ground. If there is any disorder in the streets it will be government that started it.

John Barry said...

I just hope the US learns from the European experience. Once the national debt gets out of control it is very difficult to rein it in.
I dont like the sound of the 20,000 troops. Looks ominous alright.