After posturing, huffing and puffing, the Republicans in the House are now preparing to surrender to Obama and agree to a short term increase in the debt limit without any cut in government spending at all. The quid in the quid pro quo is not spending cuts, not the so-called Boehner rule (one dollar of spending cuts for each dollar of borrowing authority) but an agreement by the president to do his job and negotiate with Congress.
This surrender is a great illustration of the power of the stock market to force the hand of policy makers on both sides of the partisan aisle.
The furloughs of government workers didn’t matter, the inconveniences of the government being closed didn’t matter, any harm to the economy mattered not at all. Only the stock market mattered.
When the market dropped over 800 points due to the fears of default fanned by the misleading threats of the president, the Republicans surrendered.
Everybody knows there will be no default. Even if the debt limit is not increased, even Goldman Sachs agrees that no default is likely or necessary. the firm says “we do believe that the Treasury could ensure that enough cash was available to make interest payments on Treasury securities.”
Obama’s threats and warnings had only one goal: To stampede Republicans into surrender.
What happens on Wall Street has no basis in reality in the economy. 35% of all stocks and mutual funds (in amount) are owned by the top 1% of households and 46% is owned by the next 9%. In all, 81% of all stocks and mutual funds are owned by the top 10 percent.
Not only does that group include the movers and shakers in the American power structure, it also includes most members of Congress.
47% of all Senators and Congressmen are millionaires. It is their stock portfolios they are trying to protect. The money may be in blind trusts, but it doesn’t take a transparent trust for a Congressman to realize that his money is somewhere in the market and at risk in a crash.
The tail has wagged the dog.
Please sign this petition to tell your Congressman not to surrender. One dollar of cuts for each dollar of new debt!
Click Here To Sign The Petition To Stop Debt Deal Without Spending Cuts!
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