SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
To donate by check, phone, or other method, see our More Ways to Give page.
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
After the last election Republicans have one power left: the power to destroy the country. They are threatening to use it to get what they want. And what they want is to reverse the results of the last election.
Shutdown Threat, Followed By Debt-Ceiling Threat
We still don't know if Republicans are going to shut down the government next week over demands to nullify the new health care law. But that would be small potatoes next to what happens if they let the country reach the debt-ceiling limit and default.
Jared Bernstein explains in "The Relative Costs of a Shutdown Versus a Default" that the government-dollar costs of a shutdown would "only" be a few billion if it didn't go on very long (not including the wider-economy and other costs, including resulting human suffering and further loss of confidence in our government and democratic system) .
However, the government-dollar cost of not increasing the debt-ceiling could easily be in the hundreds of billions per year from now on. And that's just increased borrowing costs. Never mind the costs of a crash in the economy that could be much, much worse than the 2008 crisis.
If we really default, here's a rough rule of thumb for you: The debt held by the public right now is $12 trillion. So, a percent higher risk premium adds about $120 billion to annual payments, about 100 times worse than a shutdown.
Now, I don't know that a default would raise interest rates by a full point (and, of course, I'm just talking about the increased cost of servicing the public debt... many private rates are tied to T-bills, so the cost to the broad economy is much higher). You wanna divide that by half, be my guest. Or double it.
Shutdown cost: a few billion for a short shutdown.
Debt-ceiling default cost: hundreds of billion per year in direct costs, trillions in ripple-effect costs, potentially the end of economic stability in the world for the foreseeable future, the end of the US as a financial power - and those are just the starting point for the potential costs as tens of millions are left unemployed and the world destabilizes.
A Wish List Of Plutocrat Crap
So with the shutdown fight underway, Republicans are planning out what they will demand in exchange for not destroying the country by defaulting on the debt. It looks like they are going to demand a wish list of plutocratic crap.
From The Hill: "House Republicans plan to tie an increase in the $16.7 trillion debt ceiling to a broad GOP wish list..."
Republicans are demanding everything they have tried to get in the last few years, but was rejected by the legitimate democratic and constitutional processes.
It's as if every billionaire and Fortune-500 corporation in the country is getting a call this week, asking what they want and what they're willing to pay to get it. You can only imagine those conversations: "We're going to go for it. Are you in? OK, what do you want and what are you willing to pay to get it?"
Don't be surprised if before this is over they are demanding that cigarette sample packages be handed out in every elementary school or they'll release the Kraken.
Clash of the Titans Release The Kraken [HD]Release The Kraken.
Who Benefits? Not We the People!
Jonathan Strong at the (very) conservative National Review's The Corner has some of the list, in "Revealed: The House GOP's Debt-Ceiling Plan." (I have added in parentheses the most likely paying client that asked for the insertion of a particular demand.)
This is a big-corporation/billionaire wish list of crap. Not one of these helps the economy, regular people, or democracy. And it appears that this "Onion headline" list is not a hoax. Zach Carter and Luke Johnson of Huffington Post are confirming this list. Think Progress also has the list, with more explanations of some of the demands.
All of these help the 1-percent plutocrats, some obviously inserted at the request of particular paying clients, like the demand to allow Canadian oil companies to use state eminent domain authority to seize farmland and build a pipeline across the country so they can sell oil to China.
Why are Republicans doing this? Why are they refusing to accept the results of the legitimate democratic and constitutional process? Why are they forcing a wish list of plutocratic dreams on the country with the hostage threat to destroy the country if they don't get these things?
Because this is who they are.
Emily Foster assisted with research for this post.
Common Dreams is powered by optimists who believe in the power of informed and engaged citizens to ignite and enact change to make the world a better place. We're hundreds of thousands strong, but every single supporter makes the difference. Your contribution supports this bold media model—free, independent, and dedicated to reporting the facts every day. Stand with us in the fight for economic equality, social justice, human rights, and a more sustainable future. As a people-powered nonprofit news outlet, we cover the issues the corporate media never will. |
After the last election Republicans have one power left: the power to destroy the country. They are threatening to use it to get what they want. And what they want is to reverse the results of the last election.
Shutdown Threat, Followed By Debt-Ceiling Threat
We still don't know if Republicans are going to shut down the government next week over demands to nullify the new health care law. But that would be small potatoes next to what happens if they let the country reach the debt-ceiling limit and default.
Jared Bernstein explains in "The Relative Costs of a Shutdown Versus a Default" that the government-dollar costs of a shutdown would "only" be a few billion if it didn't go on very long (not including the wider-economy and other costs, including resulting human suffering and further loss of confidence in our government and democratic system) .
However, the government-dollar cost of not increasing the debt-ceiling could easily be in the hundreds of billions per year from now on. And that's just increased borrowing costs. Never mind the costs of a crash in the economy that could be much, much worse than the 2008 crisis.
If we really default, here's a rough rule of thumb for you: The debt held by the public right now is $12 trillion. So, a percent higher risk premium adds about $120 billion to annual payments, about 100 times worse than a shutdown.
Now, I don't know that a default would raise interest rates by a full point (and, of course, I'm just talking about the increased cost of servicing the public debt... many private rates are tied to T-bills, so the cost to the broad economy is much higher). You wanna divide that by half, be my guest. Or double it.
Shutdown cost: a few billion for a short shutdown.
Debt-ceiling default cost: hundreds of billion per year in direct costs, trillions in ripple-effect costs, potentially the end of economic stability in the world for the foreseeable future, the end of the US as a financial power - and those are just the starting point for the potential costs as tens of millions are left unemployed and the world destabilizes.
A Wish List Of Plutocrat Crap
So with the shutdown fight underway, Republicans are planning out what they will demand in exchange for not destroying the country by defaulting on the debt. It looks like they are going to demand a wish list of plutocratic crap.
From The Hill: "House Republicans plan to tie an increase in the $16.7 trillion debt ceiling to a broad GOP wish list..."
Republicans are demanding everything they have tried to get in the last few years, but was rejected by the legitimate democratic and constitutional processes.
It's as if every billionaire and Fortune-500 corporation in the country is getting a call this week, asking what they want and what they're willing to pay to get it. You can only imagine those conversations: "We're going to go for it. Are you in? OK, what do you want and what are you willing to pay to get it?"
Don't be surprised if before this is over they are demanding that cigarette sample packages be handed out in every elementary school or they'll release the Kraken.
Clash of the Titans Release The Kraken [HD]Release The Kraken.
Who Benefits? Not We the People!
Jonathan Strong at the (very) conservative National Review's The Corner has some of the list, in "Revealed: The House GOP's Debt-Ceiling Plan." (I have added in parentheses the most likely paying client that asked for the insertion of a particular demand.)
This is a big-corporation/billionaire wish list of crap. Not one of these helps the economy, regular people, or democracy. And it appears that this "Onion headline" list is not a hoax. Zach Carter and Luke Johnson of Huffington Post are confirming this list. Think Progress also has the list, with more explanations of some of the demands.
All of these help the 1-percent plutocrats, some obviously inserted at the request of particular paying clients, like the demand to allow Canadian oil companies to use state eminent domain authority to seize farmland and build a pipeline across the country so they can sell oil to China.
Why are Republicans doing this? Why are they refusing to accept the results of the legitimate democratic and constitutional process? Why are they forcing a wish list of plutocratic dreams on the country with the hostage threat to destroy the country if they don't get these things?
Because this is who they are.
Emily Foster assisted with research for this post.
After the last election Republicans have one power left: the power to destroy the country. They are threatening to use it to get what they want. And what they want is to reverse the results of the last election.
Shutdown Threat, Followed By Debt-Ceiling Threat
We still don't know if Republicans are going to shut down the government next week over demands to nullify the new health care law. But that would be small potatoes next to what happens if they let the country reach the debt-ceiling limit and default.
Jared Bernstein explains in "The Relative Costs of a Shutdown Versus a Default" that the government-dollar costs of a shutdown would "only" be a few billion if it didn't go on very long (not including the wider-economy and other costs, including resulting human suffering and further loss of confidence in our government and democratic system) .
However, the government-dollar cost of not increasing the debt-ceiling could easily be in the hundreds of billions per year from now on. And that's just increased borrowing costs. Never mind the costs of a crash in the economy that could be much, much worse than the 2008 crisis.
If we really default, here's a rough rule of thumb for you: The debt held by the public right now is $12 trillion. So, a percent higher risk premium adds about $120 billion to annual payments, about 100 times worse than a shutdown.
Now, I don't know that a default would raise interest rates by a full point (and, of course, I'm just talking about the increased cost of servicing the public debt... many private rates are tied to T-bills, so the cost to the broad economy is much higher). You wanna divide that by half, be my guest. Or double it.
Shutdown cost: a few billion for a short shutdown.
Debt-ceiling default cost: hundreds of billion per year in direct costs, trillions in ripple-effect costs, potentially the end of economic stability in the world for the foreseeable future, the end of the US as a financial power - and those are just the starting point for the potential costs as tens of millions are left unemployed and the world destabilizes.
A Wish List Of Plutocrat Crap
So with the shutdown fight underway, Republicans are planning out what they will demand in exchange for not destroying the country by defaulting on the debt. It looks like they are going to demand a wish list of plutocratic crap.
From The Hill: "House Republicans plan to tie an increase in the $16.7 trillion debt ceiling to a broad GOP wish list..."
Republicans are demanding everything they have tried to get in the last few years, but was rejected by the legitimate democratic and constitutional processes.
It's as if every billionaire and Fortune-500 corporation in the country is getting a call this week, asking what they want and what they're willing to pay to get it. You can only imagine those conversations: "We're going to go for it. Are you in? OK, what do you want and what are you willing to pay to get it?"
Don't be surprised if before this is over they are demanding that cigarette sample packages be handed out in every elementary school or they'll release the Kraken.
Clash of the Titans Release The Kraken [HD]Release The Kraken.
Who Benefits? Not We the People!
Jonathan Strong at the (very) conservative National Review's The Corner has some of the list, in "Revealed: The House GOP's Debt-Ceiling Plan." (I have added in parentheses the most likely paying client that asked for the insertion of a particular demand.)
This is a big-corporation/billionaire wish list of crap. Not one of these helps the economy, regular people, or democracy. And it appears that this "Onion headline" list is not a hoax. Zach Carter and Luke Johnson of Huffington Post are confirming this list. Think Progress also has the list, with more explanations of some of the demands.
All of these help the 1-percent plutocrats, some obviously inserted at the request of particular paying clients, like the demand to allow Canadian oil companies to use state eminent domain authority to seize farmland and build a pipeline across the country so they can sell oil to China.
Why are Republicans doing this? Why are they refusing to accept the results of the legitimate democratic and constitutional process? Why are they forcing a wish list of plutocratic dreams on the country with the hostage threat to destroy the country if they don't get these things?
Because this is who they are.
Emily Foster assisted with research for this post.