This is taken from Gregg Easterbrook's most recent TMQ article on ESPN.com and I thought it was important enough to try and share with as many people as possible: http://sports.espn.go.com/espn/page2/story?page=easterbrook/080923
Gimme! Gimme! Gimme! Last week, TMQ asked why no one was paying attention to the fact that the national debt ceiling was quietly raised by $800 billion during the summer. Well, toss that column: The White House just asked the national debt ceiling be raised another $700 billion, for the proposed financial-sector bailout. If that happens, in 2008 alone, $1.5 trillion will have been added to the national debt: every penny borrowed from your children and their children. Stated in today's dollars, in 1979 theentire national debt was $1.5 trillion. George W. Bush and Congress have in a single year added an amount equal to the entire national debt one generation ago. And the year's not over!
|"Stocks are surging today, but U.S. government futures are down in heavy trading."|
It took the United States 209 years, from the founding of the republic till 1998, to compile the first $5 trillion in national debt. In the decade since, $6 trillion in debt has been added. This means the United States has borrowed more money in the past decade than in all our previous history combined. Almost all the borrowing has been under the direction of George W. Bush -- at this point Bush makes Kenneth Lay seem like a paragon of fiscal caution. Democrats deserve ample blame, too. Harry Reid and Nancy Pelosi, Democratic leaders of the Senate and House, have never met a bailout they didn't like: Harry and Nancy just can't wait to spend your children's money. Six trillion dollars borrowed in a single decade and $1.5 trillion borrowed in 2008 alone. Charles Ponzi would be embarrassed.
If you borrowed, borrowed, borrowed, you could afford to live high for a while -- then there would be a reckoning. Hmmm … that sounds a little like what many Americans did with gimmick mortgages in 2005 and 2006. They were only imitating their political leadership! Why is it both parties in Washington think the United States can borrow, borrow, borrow without a reckoning ever coming? Bush, Reid and Pelosi seem poised to transfer hundreds of billions of dollars of borrowed public money to political insiders on Wall Street and in banking, whose bonuses will now be tax-subsidized. The capitalist maxim is, "She who reaps the gains also bears the losses." Now Washington wants those who reaped the gains to shift the losses to those who lived humbly. The young will pay and pay for these cynical ploys to insure the luxury of the powerful old. Why aren't the young outraged?
|Charles Ponzi, relaxing in retirement as he stops at the mailbox to collect his 305 pension checks, can only envy modern Wall Street.|
TMQ's pal Isabel Sawhill, among the leading public-policy economists of our day, says Washington does indeed need to intervene in the financial system -- the harm to the average person of letting credit markets freeze would be greater, she thinks, than the harm caused by more public debt. Fair enough. But it doesn't inspire confidence that on Sept. 12, Treasury Secretary Henry Paulson said the financial system had been fixed and "under no circumstances" would there be further bailouts; on Friday, Paulson said the system was collapsing and another $700 billion was needed. Suddenly Paulson is insisting the country has no choice other than immediately to hand over $700 billion to Wall Street fat cats, with barely any debate or even explanation of the plan. Why should anyone believe this guy, when just one week previously he said no further bailouts would occur? It seems clear Paulson had no idea what he was talking about then, while if the problem is really as bad as Paulson says now, his past delay in facing the problem has made the cost far higher. With such a poor track record, why is the treasury secretary suddenly viewed as a superbrilliant genius whose marching orders must be followed?
It is not public intervention that is objectionable. University of Chicago Nobel Prize winner Gary Becker, among the top conservative economists, just said, "I have reluctantly concluded that substantial intervention was justified." Rather it is size of the bailout, and the hurry-up-give-the-money-don't-stop-to-think aspect, that are troubling. Much of the $700 billion will flow to investment-community friends of Paulson, Bush and other administration figures. Average Americans who behaved irresponsibly by signing gimmick mortgages may get some taxpayer aid from the Paulson proposal, and maybe they should get none. But in the end, average Americans will still be liable for most of what they owe -- that is, will still be held responsible for their actions. Wealthy, politically connected insiders who run banks and companies such as American International Group will be exempt for responsibility for their actions, and will stuff taxpayer-subsidized millions into their pockets.
On Sunday, Paulson called the self-serving actions of top Wall Street figures "inexcusable" -- yet the plan is not only to excuse them, but to shower them with free money. Paulson said Wall Street pay levels were "excessive," but should be discussed later, after the bailout is done. Now is the moment of maximum leverage! Once they are holding the public's money and laughing about how easily they got it, financial executives will have no incentive to compromise on pay. Here's an idea: Any company that participates in the bailout agrees to limit its top-tier executives to the federal minimum wage. That is, after all, the amount Washington says is enough to live on. Meanwhile, of the two jokers who drove Fannie Mae and Freddie Mac into the ground, one was paid $19.8 million in 2007, the other $14 million; each will get nearly $5 million in taxpayer-funded "retirement" bennies.
|That was the clock in 2007, now it needs another digit. (Note: Not a joke, now it needs another digit.)|
Yet there's scant outrage. Maybe this is because in an era of fiscal irresponsibility by both parties, everybody wants a bailout. Wall Street, bankers, homeowners who lied on their mortgage applications, Detroit automakers, farmers -- gimme, gimme, gimme! Rather than asking whether the $700 billion giveaway is too large or being structured in a way that benefits the rich, numerous members of Congress are instead demanding more bailouts be appended: for seniors (see below), cities, states, more "stimulus" checks, you name it. Give money to whoever will fund my re-election! The money is being forcibly extracted from the pockets of our children and their children. Every dollar borrowed today by the irresponsible old of Washington will subtract two dollars from future economic growth, leaving our children and their children a legacy of stagnation.
The 1980 Chrysler bailout, which was nationally debated for months before happening, cost $3.2 billion, in present-value dollars, and was financed by revenue rather than by borrowing. Here is the borrowing that's happened in 2008 alone, with precious little public debate:
• $29 billion to bail out Bear Stearns.
• $40 billion in the first mortgage-holder bailout.
• $80 billion for an additional year of Iraq war operations. (Another $150-$200 billion in war costs such as future veterans' disability benefits were incurred but not funded.)
|We should give away $700 billion? I need to think about that. OK, I thought; give it away.|
• Up to $85 billion to bail out AIG.
• $153 billion to households for "economic stimulus."
• $200 billion, and possibly more, to bail out Fannie and Freddie.
• $290 billion in farm subsidies, despite agricultural prices and grains profits being at record highs.
• $700 billion general bailout of securities backed by bad debt. (The International Monetary Fund estimates this figure will rise to at least $1 trillion.)
That comes to $1.6 trillion, explaining the debt-ceiling rise, and does not include roughly $300 billion in essentially interest-free cash issued to banks by the Federal Reserve on an emergency basis, which may or may not be repaid, but which in any case make all existing money somewhat less valuable. Why is the debt aspect of the splurge barely being remarked on by the mainstream media and by politicians? Why are the young not furious? And about that $700 billion about to the shoveled to the Wall Street elite -- in 2007, George W. Bush vetoed an increase of $7 billion per year in health care spending for the poor, saying the country couldn't afford it.
How many days are you willing to wait in front of a T-Mobile store to be the first own a gPhone? You might have to decide soon. According to the Reuters news agency, T-Mobile is set to announce availability of its mobile phone based on Google's Android operating system as soon as September 23.
read more | digg story
originally appears here: http://www.nytimes.com/2008/09/12/opinion/12krugman.html?_r=2&hp&oref=slogin&oref=slogin
Blizzard of Lies
Did you hear about how Barack Obama wants to have sex education in kindergarten, and called Sarah Palin a pig? Did you hear about how Ms. Palin told Congress, “Thanks, but no thanks” when it wanted to buy Alaska a Bridge to Nowhere?
These stories have two things in common: they’re all claims recently made by the McCain campaign — and they’re all out-and-out lies.
Dishonesty is nothing new in politics. I spent much of 2000 — my first year at The Times — trying to alert readers to the blatant dishonesty of the Bush campaign’s claims about taxes, spending and Social Security.
But I can’t think of any precedent, at least in America, for the blizzard of lies since the Republican convention. The Bush campaign’s lies in 2000 were artful — you needed some grasp of arithmetic to realize that you were being conned. This year, however, the McCain campaign keeps making assertions that anyone with an Internet connection can disprove in a minute, and repeating these assertions over and over again.
Take the case of the Bridge to Nowhere, which supposedly gives Ms. Palin credentials as a reformer. Well, when campaigning for governor, Ms. Palin didn’t say “no thanks” — she was all for the bridge, even though it had already become a national scandal, insisting that she would “not allow the spinmeisters to turn this project or any other into something that’s so negative.”
Oh, and when she finally did decide to cancel the project, she didn’t righteously reject a handout from Washington: she accepted the handout, but spent it on something else. You see, long before she decided to cancel the bridge, Congress had told Alaska that it could keep the federal money originally earmarked for that project and use it elsewhere.
So the whole story of Ms. Palin’s alleged heroic stand against wasteful spending is fiction.
Or take the story of Mr. Obama’s alleged advocacy of kindergarten sex-ed. In reality, he supported legislation calling for “age and developmentally appropriate education”; in the case of young children, that would have meant guidance to help them avoid sexual predators.
And then there’s the claim that Mr. Obama’s use of the ordinary metaphor “putting lipstick on a pig” was a sexist smear, and on and on.
Why do the McCain people think they can get away with this stuff? Well, they’re probably counting on the common practice in the news media of being “balanced” at all costs. You know how it goes: If a politician says that black is white, the news report doesn’t say that he’s wrong, it reports that “some Democrats say” that he’s wrong. Or a grotesque lie from one side is paired with a trivial misstatement from the other, conveying the impression that both sides are equally dirty.
They’re probably also counting on the prevalence of horse-race reporting, so that instead of the story being “McCain campaign lies,” it becomes “Obama on defensive in face of attacks.”
Still, how upset should we be about the McCain campaign’s lies? I mean, politics ain’t beanbag, and all that.
One answer is that the muck being hurled by the McCain campaign is preventing a debate on real issues — on whether the country really wants, for example, to continue the economic policies of the last eight years.
But there’s another answer, which may be even more important: how a politician campaigns tells you a lot about how he or she would govern.
I’m not talking about the theory, often advanced as a defense of horse-race political reporting, that the skills needed to run a winning campaign are the same as those needed to run the country. The contrast between the Bush political team’s ruthless effectiveness and the heckuva job done by the Bush administration is living, breathing, bumbling, and, in the case of the emerging Interior Department scandal, coke-snorting and bed-hopping proof to the contrary.
I’m talking, instead, about the relationship between the character of a campaign and that of the administration that follows. Thus, the deceptive and dishonest 2000 Bush-Cheney campaign provided an all-too-revealing preview of things to come. In fact, my early suspicion that we were being misled about the threat from Iraq came from the way the political tactics being used to sell the war resembled the tactics that had earlier been used to sell the Bush tax cuts.
And now the team that hopes to form the next administration is running a campaign that makes Bush-Cheney 2000 look like something out of a civics class. What does that say about how that team would run the country?
What it says, I’d argue, is that the Obama campaign is wrong to suggest that a McCain-Palin administration would just be a continuation of Bush-Cheney. If the way John McCain and Sarah Palin are campaigning is any indication, it would be much, much worse.
We just got the following email regarding a custom t shirt request:
"I've looked for a certain shirt for weeks and haven't found anything, so I'm hoping you can help me. Im wanting a shirt with the vote McCain 08 image with "keep the white house white" under the image. Help?"
I responded with the following: "As I think your idea is insanely racist and disgusting, not to mention that I do not support McCain or Palin, I'm sorry but we'll have to pass on this custom request."
What is wrong with people? I mean, everyone is entitled to their own opinion but ...comon! I sit here wondering how the polls are really as close as they are and then you get an email like this reminding you of the type of people that vote along with you in this country. It's sad, shocking and maddening all at the same time.
How I wish the main stream media would do stuff like this! And yes, I would expect them to do it for both sides...THAT is how people are educated and learn what these presidential nominees are really about.
I just love watching the Daily Show rip apart the Republican Party. It's a shame that the mainstream media doesn't expose this type of bullshit to the masses. I hope you'll spread videos like this around to help educate people.
By JIM KUHNHENN, Associated Press WriterWed Sep 3, 11:48 PM ET
Alaska Gov. Sarah Palin and her Republican supporters held back little Wednesday as they issued dismissive attacks on Barack Obama and flattering praise on her credentials to be vice president. In some cases, the reproach and the praise stretched the truth.
PALIN: "I have protected the taxpayers by vetoing wasteful spending ... and championed reform to end the abuses of earmark spending by Congress. I told the Congress 'thanks but no thanks' for that Bridge to Nowhere."
THE FACTS: As mayor of Wasilla, Palin hired a lobbyist and traveled to Washington annually to support earmarks for the town totaling $27 million. In her two years as governor, Alaska has requested nearly $750 million in special federal spending, by far the largest per-capita request in the nation. While Palin notes she rejected plans to build a $398 million bridge from Ketchikan to an island with 50 residents and an airport, that opposition came only after the plan was ridiculed nationally as a "bridge to nowhere."
PALIN: "There is much to like and admire about our opponent. But listening to him speak, it's easy to forget that this is a man who has authored two memoirs but not a single major law or reform — not even in the state senate."
THE FACTS: Compared to McCain and his two decades in the Senate, Obama does have a more meager record. But he has worked with Republicans to pass legislation that expanded efforts to intercept illegal shipments of weapons of mass destruction and to help destroy conventional weapons stockpiles. The legislation became law last year. To demean that accomplishment would be to also demean the work of Republican Sen. Richard Lugar of Indiana, a respected foreign policy voice in the Senate. In Illinois, he was the leader on two big, contentious measures in Illinois: studying racial profiling by police and requiring recordings of interrogations in potential death penalty cases. He also successfully co-sponsored major ethics reform legislation.
PALIN: "The Democratic nominee for president supports plans to raise income taxes, raise payroll taxes, raise investment income taxes, raise the death tax, raise business taxes, and increase the tax burden on the American people by hundreds of billions of dollars."
THE FACTS: The Tax Policy Center, a think tank run jointly by the Brookings Institution and the Urban Institute, concluded that Obama's plan would increase after-tax income for middle-income taxpayers by about 5 percent by 2012, or nearly $2,200 annually. McCain's plan, which cuts taxes across all income levels, would raise after tax-income for middle-income taxpayers by 3 percent, the center concluded.
Obama would provide $80 billion in tax breaks, mainly for poor workers and the elderly, including tripling the Earned Income Tax Credit for minimum-wage workers and higher credits for larger families.
He also would raise income taxes, capital gains and dividend taxes on the wealthiest. He would raise payroll taxes on taxpayers with incomes above $250,000, and he would raise corporate taxes. Small businesses that make more than $250,000 a year would see taxes rise.
MCCAIN: "She's been governor of our largest state, in charge of 20 percent of America's energy supply ... She's responsible for 20 percent of the nation's energy supply. I'm entertained by the comparison and I hope we can keep making that comparison that running a political campaign is somehow comparable to being the executive of the largest state in America," he said in an interview with ABC News' Charles Gibson.
THE FACTS: McCain's phrasing exaggerates both claims. Palin is governor of a state that ranks second nationally in crude oil production, but she's no more "responsible" for that resource than President Bush was when he was governor of Texas, another oil-producing state. In fact, her primary power is the ability to tax oil, which she did in concert with the Alaska Legislature. And where Alaska is the largest state in America, McCain could as easily have called it the 47th largest state — by population.
MCCAIN: "She's the commander of the Alaska National Guard. ... She has been in charge, and she has had national security as one of her primary responsibilities," he said on ABC.
THE FACTS: While governors are in charge of their state guard units, that authority ends whenever those units are called to actual military service. When guard units are deployed to Iraq or Afghanistan, for example, they assume those duties under "federal status," which means they report to the Defense Department, not their governors. Alaska's national guard units have a total of about 4,200 personnel, among the smallest of state guard organizations.
FORMER ARKANSAS GOV. MIKE HUCKABEE: Palin "got more votes running for mayor of Wasilla, Alaska than Joe Biden got running for president of the United States."
THE FACTS: A whopper. Palin got 616 votes in the 1996 mayor's election, and got 909 in her 1999 re-election race, for a total of 1,525. Biden dropped out of the race after the Iowa caucuses, but he still got 76,165 votes in 23 states and the District of Columbia where he was on the ballot during the 2008 presidential primaries.
FORMER MASSACHUSETTS GOV. MITT ROMNEY: "We need change, all right — change from a liberal Washington to a conservative Washington! We have a prescription for every American who wants change in Washington — throw out the big-government liberals, and elect John McCain and Sarah Palin."
THE FACTS: A Back-to-the-Future moment. George W. Bush, a conservative Republican, has been president for nearly eight years. And until last year, Republicans controlled Congress. Only since January 2007 have Democrats have been in charge of the House and Senate.
Associated Press Writer Jim Drinkard in Washington contributed to this report.
This video is beyond awesome. All registered voters should be required to watch this lol.
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