History shows that budget cuts do not bring prosperity to the middle class, even though they are promises that the GOP and Tea Party have made to get into office. In the online Huffington Post, economics journalist David Leonhardt wrote an article entitled, “Why Budget Cuts Don’t Bring Prosperity” that has some excellent points. One of its strong points is that the “best compromise in coming weeks would be one that trades short-term spending for medium-and-long term cuts,” something the GOPs refuse to acknowledge.
Two aspects of Leonhardt's suggested budget compromise focus on the poor and middle-class. The first is to increase the quality of cost-control measures in the overhaul of the health care programs, while adding new ones if necessary. The second is to take a good look at social services and programs to see how effective they are, cutting funding in the future if it is found they do not work.
Two aspects of Leonhardt's suggested budget compromise focus on the poor and middle-class. The first is to increase the quality of cost-control measures in the overhaul of the health care programs, while adding new ones if necessary. The second is to take a good look at social services and programs to see how effective they are, cutting funding in the future if it is found they do not work.
Credit: istockphoto / james steidl
Budget cut compromises
Deep Republican budget cuts are morally satisfying to the Republicans and the very wealthy. However, national polls show that radical cuts in government spending targeting the low and middle-income population are not the answer to improve on U.S. business and individual confidence.
A February 23 national Gallop Poll shows that 61 percent of American people oppose the Republican political tactics being portrayed in Wisconsin in the name of budget cuts, while 53 percent oppose reductions in pay and benefits for state workers. To many, this shows the world that the majority of Republicans are on the edge of over-reaching, looking as if they are willing to sacrifice mainstream American to obtain their agenda.
If in doubt, just ask Ian's Pizza in Madison, Wisconsin, " as sympathizers from around the world send pizza from Ian's Pizza which is just across the street from the Capitol Building" to union protesters. According to the National Examiner, "...people from nearly every state and many countries from around the world have phoned in to send a pizza in support of the protesters."
In a Financial Times article written by Yepoka Yeebo entitled, “Goldman Sachs Says GOP Budget Plan Will Hurt Economy,” Sachs is very critical of the GOP spending cuts. It is one thing for mainstream America to complain about budget cuts, but it is something else when a Goldman Sachs expert economist warns that the cuts will harm an economy that is in serious troublet. What is also a concern to many is that the right-wing agenda acts as if its only purpose to be in office is to counter-attack President Obama every step of the way in an attempt to remove him from office --- regardless how it influences the middle class.
In the FT article, Chuck Schumer, the Democratic senator from New York, said: “This nonpartisan study proves that the House Republicans’ proposal is a recipe for a double-dip recession. Just as the economy is beginning to pick up a little steam, the Republican budget would snuff out any chance of recovery. This analysis puts a dagger through the heart of their ‘cut-and-grow’ fantasy.”
A February 23 national Gallop Poll shows that 61 percent of American people oppose the Republican political tactics being portrayed in Wisconsin in the name of budget cuts, while 53 percent oppose reductions in pay and benefits for state workers. To many, this shows the world that the majority of Republicans are on the edge of over-reaching, looking as if they are willing to sacrifice mainstream American to obtain their agenda.
If in doubt, just ask Ian's Pizza in Madison, Wisconsin, " as sympathizers from around the world send pizza from Ian's Pizza which is just across the street from the Capitol Building" to union protesters. According to the National Examiner, "...people from nearly every state and many countries from around the world have phoned in to send a pizza in support of the protesters."
In a Financial Times article written by Yepoka Yeebo entitled, “Goldman Sachs Says GOP Budget Plan Will Hurt Economy,” Sachs is very critical of the GOP spending cuts. It is one thing for mainstream America to complain about budget cuts, but it is something else when a Goldman Sachs expert economist warns that the cuts will harm an economy that is in serious troublet. What is also a concern to many is that the right-wing agenda acts as if its only purpose to be in office is to counter-attack President Obama every step of the way in an attempt to remove him from office --- regardless how it influences the middle class.
In the FT article, Chuck Schumer, the Democratic senator from New York, said: “This nonpartisan study proves that the House Republicans’ proposal is a recipe for a double-dip recession. Just as the economy is beginning to pick up a little steam, the Republican budget would snuff out any chance of recovery. This analysis puts a dagger through the heart of their ‘cut-and-grow’ fantasy.”
Newly created money
Yepoko Yeebo writes that it costs the American people $8 billion dollars a week every time the government is shut down. This does not include the prospective budget cuts eliminating over 700,000 jobs in the process -- something the U.S. Treasurer, Timothy Geithner, has already warned the government about.
Antal E. Fekete in “Revisionist View of the Great Depression” writes that the “central bank has the power to issue money at any preconceived rate through open market purchases of bonds, yet it is utterly powerless to determine how this money shall be used by market participants.” Newly created money can be placed in commodities and bond speculations, which lowers the economy’s interest rates --- placing the central bank in competition with the bond speculators -- with middle class Americans watching as innocent bystanders.
According to Fekete’s article, suppressing the rate of interest is almost always for political purposes only. The article refers to the so-called fiscal and monetary stimulus money boosting public demand … which is a myth. Stimulus money boosts speculative demand for bonds.
For example, if a bond speculator is aware that the central bank will buy bonds tomorrow in the open market, he will buy bonds today and sell them tomorrow to the central bank at a very high price. This places bond speculation in a vital role to influence depressions and deflations throughout the country due to the missing link between increasing costs and falling profits.
Antal E. Fekete in “Revisionist View of the Great Depression” writes that the “central bank has the power to issue money at any preconceived rate through open market purchases of bonds, yet it is utterly powerless to determine how this money shall be used by market participants.” Newly created money can be placed in commodities and bond speculations, which lowers the economy’s interest rates --- placing the central bank in competition with the bond speculators -- with middle class Americans watching as innocent bystanders.
According to Fekete’s article, suppressing the rate of interest is almost always for political purposes only. The article refers to the so-called fiscal and monetary stimulus money boosting public demand … which is a myth. Stimulus money boosts speculative demand for bonds.
For example, if a bond speculator is aware that the central bank will buy bonds tomorrow in the open market, he will buy bonds today and sell them tomorrow to the central bank at a very high price. This places bond speculation in a vital role to influence depressions and deflations throughout the country due to the missing link between increasing costs and falling profits.
Credit: istockphoto / kali9
Illegal practices of the bond-rating agencies
Another problem influencing the middle class is illegal tactics used by controlling bond agencies, even though Republicans would like to blame it on the unions and welfare of the low and middle class populations.
When bond rating agencies such as Moody’s Investors Service Inc. threatens to downgrade its rating of the government’s debt from its current AAA rating, higher interest rates will occur while the credibility of the United States will go down.
Blackmail has played a big part in Moody’s background. When the German insurer Hannover Reinsurance Company refused a free rating by Moody, their rating was lowered. The German company lost $175 million in market value within a few hours.
Meanwhile, analysts and executives were promoted and purged who helped Wall Street and Moody’s during the last current depression. Those who questioned the bond company’s tactics were punished, according to McClatchy’s article, “How Moody’s sold its ratings - and sold out investors.” Right now the Republicans are threatening to cut Social Security and Medicare as an answer to lower the government debt, but many experts feel the credibility and hidden practices of the bond agencies are what is in question.
"How on earth could a bond issue be AAA one day and junk the next unless something spectacularly stupid has taken place? But maybe it was something spectacularly dishonest, like taking that colossal amount of fees in return for doing what Lehman and the rest wanted," McDonald wrote.
Where does this place the common person in the United States? Dishonest money and undercuts by dishonest and power hungry controlling leaders are rapidly undermining mainstream America and the future of our country. Even though the United States is the richest free trade zone in the world, low and middle class populations are those who are suffering unless things change.
When bond rating agencies such as Moody’s Investors Service Inc. threatens to downgrade its rating of the government’s debt from its current AAA rating, higher interest rates will occur while the credibility of the United States will go down.
Blackmail has played a big part in Moody’s background. When the German insurer Hannover Reinsurance Company refused a free rating by Moody, their rating was lowered. The German company lost $175 million in market value within a few hours.
Meanwhile, analysts and executives were promoted and purged who helped Wall Street and Moody’s during the last current depression. Those who questioned the bond company’s tactics were punished, according to McClatchy’s article, “How Moody’s sold its ratings - and sold out investors.” Right now the Republicans are threatening to cut Social Security and Medicare as an answer to lower the government debt, but many experts feel the credibility and hidden practices of the bond agencies are what is in question.
"How on earth could a bond issue be AAA one day and junk the next unless something spectacularly stupid has taken place? But maybe it was something spectacularly dishonest, like taking that colossal amount of fees in return for doing what Lehman and the rest wanted," McDonald wrote.
Where does this place the common person in the United States? Dishonest money and undercuts by dishonest and power hungry controlling leaders are rapidly undermining mainstream America and the future of our country. Even though the United States is the richest free trade zone in the world, low and middle class populations are those who are suffering unless things change.
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