Reid to GOP: Give up and become reasonable...(that'll never work.)

Senator Harry Reid (D)

Democrat Senate majority leader Harry Reid sent a letter to John Boehner today asking for a reasonable end to the government closing forced by the unreasonable demands of Republicans.  You can see the entire letter here.

To paraphrase, Senator Reid explains that the actions to close the government are an undeserved consequence of Republican actions which should never have been attempted.

Senator Reid wants Mr. Boehner to become reasonable and pass the Senate version of the clean continuing resolution after which Senator Reid promises to name nominees to a budget conference which he says can start as soon as the government re-opens.

In a nutshell, Harry Reid is asking Republicans to give up their master accomplishment, shutting down the government, in order to behave as reasonable people and compromise on government funding after they wake the government "monster" back up.

There are a number of reasons why Harry Reid's request will not be successful.   However, he doesn't see it because he is a reasonable person who simply doesn't appear to understand the nature of the Republican mind.

First, the radical wing of the Republican party is instigating the government shutdown because they are

anarchists whose purpose is to eliminate government.  They are actually happy that the government is shut-down.  Because they have the ear of some simple-minded citizens and because they have tremendous amounts of cash coming in from like-minded anarchists, they control the Republican party right now.

Their plan all along has been to get the government into this precarious situation.  The first step was to obstruct all Obama era legislation.  The accomplishments of the 112th and 113th Congress since Republicans have been in control of the House are devoid of any substantial legislation.  They are the two worst in the history of the United States.

Next they planned to starve government by allowing the sequester to happen. This was a Republican tactic from the beginning.  John Boehner reminded us of how favorably Republicans see the sequester when he commented that their plan for the continuing resolution keeps the "savings brought about by the sequester."

They saw their next obstacle to government shutdown in Obamacare.  They realized that implementing this program might squash or set their agenda back.  Even their own constituents, as simple-minded as some of them are, might realize that affordable healthcare is something that they want and need from government.  So in their minds this program must be destroyed.

And that brings us to where we are today.  Republicans happy with the damage they have done to America so far, won't be completely satisfied until Obamacare is gone and they will do everything from spreading lies and rumors to creating legislation in Republican controlled states to block it,  blame it, and make it look responsible for their devious behavior.

Congressman Ryan (R)

House Speaker John Boehner (R)

Not only will Boehner not accept Harry Reid's offer, Republicans will allow the government shut down to persist until the next Republican manufactured crisis; the debt ceiling.

It was Paul Ryan who enthusiastically lectured Republicans on live TV just as the government was shutting-down, that the next hostage to use to get their way was the debt ceiling.

So expect the shut down to last at least until then and be prepared for economic melt-down if Republicans hold the debt ceiling hostage.  Economists have compared the damage done by a government shut down to the damage done by defaulting on our debts as the difference between a hand grenade and global nuclear war.

But maybe that is what Republicans want.

Fed Chairman Bernanke's report to Congress

Ben Bernanke

Federal Reserve Chairman Ben Bernanke met today with Congressional leaders of the Financial Services Committee to report on the Federal Reserve's take on the state of the economy and Federal Reserve actions in that regard.

In an introductory statement Mr. Bernanke made it clear that the fiscal policy that legislators have chosen to take has been a detriment to the economic recovery.  In an effort to acknowledge the impact that a dysfunctional Congress has on the economy, he highlighted that tight fiscal policy will restrain economic growth.  He warned that political fights over raising the debt ceiling as has happened in the past would hamper the recovery.  Although a few of the Congressmen on the committee appeared to understand the importance Congress has in assisting in the recovery, it is still to be seen if Congressional Republicans take this guidance into consideration as they enter discussions about raising the debt ceiling, ending sequester or resurrecting the American Jobs Act.

Bernanke believes the economy is recovering at a moderate pace.  He cited the improvements in the housing market as contributing to economic gains and predicted this would continue to improve notwithstanding recent mortgage interest gains.

He believes the labor market is improving gradually and contributed a 0.1% drop in the unemployment rate to the Fed's policies of buying assets.  He admits that job growth has a long way to go to be considered satisfactory.  As I have stated in previous blogs, I question the impact that buying assets really has on the job market especially because it does nothing to increase demand for products and services.  It does have an important impact on the stock market as we have seen investors sell off stocks and bonds when Bernanke hinted that the asset purchase program was going to be discontinued.

Understanding the emotional nature of the stock market, Bernanke was careful not to repeat the mistake of hinting at a change in the asset program at the committee meeting.  He emphatically stated that the current asset purchase program will continue and monetary policy will be "accommodative" for the foreseeable future.  As of noon today the US markets appeared to be unaffected by Bernanke's comments.

In order to help prevent another Bush era financial collapse of the big banks, Fed policy is to prevent  collapse by increasing the requirement for cash reserves under what is called Basel III capital reforms.

 In summary, Bernanke explained three mechanisms that the Fed is using to support economic growth.  These are mortgage asset purchases, forward guidance on Fed plans for the federal fund rate target and Basel III capital reforms.

Based on the comments at the committee meeting, it appears obvious that the Fed needs a lot of help from Congress to revitalize the economy.  Bernanke's warning about Congressional actions around fiscal policy may have been his cry for help.

A Republican to English dictionary

Although born and raised in the United States, my father, who passed away in his old age a few years ago, was not really good with the English language.  Sometimes he used words that he made up in conversation that sounded like words that they really weren't.  My kids were often confused by their "Papa", as they used to call him, and I would joke with them that maybe we needed to get a Papa- to-English dictionary.

Because of their support for policies which Republicans stand for, most of which go against their best interest, middle-class Republicans may be well served if they had a Republican-to-English dictionary.  Perhaps that way they could better understand that their welfare is not of concern when it comes to modern Republican politics.

Here are a few examples of statements we have heard our Republican leaders talk about.  I have given some assistance to the American voter by attempting to identify the true meaning of these words in plain English.

"Jobs, Jobs Jobs": Cheap foreign labor for America's Corporations.  

"Support for our troops": Increasing government funding of defense contractors.

"Reducing the deficit":  Protecting the 1% by taking revenue off the table, increasing military budgets to protect defense contractors and only calling for government spending reductions in programs for the poor, women, children, the elderly, students, the handicapped, military veterans and the unemployed.

"Smaller Government": 1. Eliminating government protections of it citizens in regards to regulations on business so that big business can operate with a free hand to decrease costs involved with making a safe product, protecting the environment, giving fair wages, creating a safe work environment, treating workers fairly and otherwise operating responsibly.  2. Reducing government spending by eliminating public service jobs such as teachers, police, fire-fighters and government workers and rejecting the American Jobs Act that would have improved the infrastructure of roads, bridges, schools, etc. 

"2nd Amendment rights": Returning the favor for NRA lobbyist money and preserving the market and demand for weapon manufacturers regardless of the wishes of the majority of Americans for stronger gun laws.

"Obama-Care": Originally a Republican introduced derogatory term for the Affordable Care Act which later became adopted as a catch-phrase by President Obama.  Republican intent is to put fear into American citizens and protect big insurance corporations from the effects of treating American citizens with fairer insurance rules and charging costs that would benefit the citizen.  Most of the effort of the Republicans in the 113th Congress has been in attempting to repeal Obama-Care law 37 times as of this date.

"Sequester": A Republican plan since 2010 to reduce the size of government in a way that would protect the wealthy and would otherwise never be possible by normal legislative proceedings.

"Filibuster": The cornerstone of Republican obstructionism used to prevent problem resolution, slow down progress on legislation and block President Obama's appointees and ideas that support middle-class Americans.

"Balanced Budget": A financial plan that reduces spending on useful government programs such as medicare, medicaid, the social safety net and social security which must not be balanced by any increase in revenue, especially by increased taxes on the wealthy or corporations. 

"501(c)4": Republican worked loophole in the IRS regulations that permits a political action committee to receive donations that are exempt from federal taxes and then to complain when the IRS workers request information that may prove they are political action committees.  The 501(c)4 is supposed to be for non-political social organizations.

"Stimulus package": Another name for the American Recovery and Reinvestment Act.  An act carried out by the Democrats and President Obama that saved the country from financial collapse.  Republicans voted against the stimulus package.

"Voter ID": An attempt to reduce access to voting by members of the citizenry who would not vote Republican in elections.  This action as well as closing down voting precincts and voting hours were used by Republican state legislatures as a strategy in the 2012 elections.

Republicans have proven that they do not represent the middle-class or the poor.  If you are in one of these groups and you vote Republican, I would be interested in knowing why you would vote that way.

If you have any other definitions, please feel free to add a comment.  I'll add the best one's to my collection.

Sequestration: How has it affected you?

On March 1, 2013 Congress allowed the United States to fall victim to one-sided, across the board government spending cuts.  The sequester is one sided, because revenue is not an element.  It is across the board, because most government spending accounts will be cut back without consideration for the importance of the spending.

Ironically, Congressional salaries are unaffected by the cutbacks even though that element of government spending is assumably one that most of America would agree should be cut.

The effects that the sequester will have on American society and the economy has been varied depending on the source of the observation.

Democrats, including the President have expressed grave concerns that society and the economy will suffer as a result of the cuts.  Although the President has said  the economic effects will not be catastrophic, he issued concerns about a sluggish recovery and has pointed out that certain individuals will suffer as a result.  Being a President of all the people, he has concern for those who depend on the government for essential services.

Republicans, including House speaker Boehner, have essentially welcomed it and expect it will go a long way to reigning in the wild spending that the government has supposedly become accustomed to and which otherwise would have, in their opinion, ruined our economy.  Never mind that the facts prove otherwise.  Republicans have been planning the sequester in their arsenal of tools to eliminate government for a few years now.  A powerpoint slide prepared by John Boehner shows this was a Republican plan since 2011.

With Boehner being a leader of the Party that protects the assets of the rich, he expressed his demands in Congress that any substitute for the sequester would not include an increase in taxes or closing tax loop holes for the rich.  In my opinion, Republicans in Congress follow two philosophies that are essential to their existence; a "head in the sand" philosophy and an "out of sight, out of mind" philosophy.

Regardless of the opinions of others, I want to give you a chance to record the impact that the sequester has had on you.  For that reason I have created the poll at the top of the side-bar.

The poll questions are intended to be answered by American citizens, however citizens of other countries may respond if they believe the American sequester has an impact on them.

A few explanatory notes about the poll questions:

You can only select one answer, so please try to select the most accurate answer for your situation.

I used the term "essential" to describe government services, without which you are severely affected either physically, medically, psychologically, educationally or financially.

I used the term "nice to have" to describe government services, without which you suffer some form of minor inconvenience, such as waiting longer in TSA screening lines at the airport.

I realize that the effects of the sequester may become worse on particular individuals as time goes on, so if you have not voted, please feel free to take the poll at any future date.  You can see the results of the polling at any point in time by visiting any blog on my site.  I will record the results over time and report back on the time related results in a future blog.  In the past, blog polls have not received a lot of responses, but I encourage you to participate in this important research.

Thank you for your participation.

Sequester: How to take action by inaction or how Congress seems to work now

Government domestic and military budgets will be slashed by a total of $1.2 trillion ($109.33 Billion per year) with cuts coming as soon as March 1, 2013 for some areas.  The automatic cuts will come as a 50/50 blend between defense and non defense spending.  This means $54.667 billion per year for each of these categories.

Although it was never intended to occur, it is nearly a certainty that the sequester will occur.  With the date quickly arriving, the Republicans in Congress have decided to go on recess for the next ten days and will not return in time to do much of anything to avert sequester.

Although Republicans blame President Obama for the sequester, in August of 2011 bipartisan majorities in the House and Senate voted to allow the threat of sequestration to force Congress to act on deficit reduction.  It was thought that the drastic, across the board cuts would be viewed as something that Congress would want to avoid at all costs, thereby forcing them to compromise in a bipartisan way to identify and agree on deficit reduction actions.  This proved to be misplaced optimism.

Recently both parties have put forth proposals to avert the sequester.  House Budget Committee ranking Democrat member Chris Van Hollen has offered an alternate plan that would eliminate excessive agriculture subsidies; apply the Buffett Rule (making 30% a minimum income tax rate on the wealthy) and eliminate tax breaks for big oil.

The Republicans have refused any deal that means an increase in taxes or revenue increases from reduction of special interest tax breaks.  The Republican's alternative to sequestration has proposed strict social program cuts and Corporate tax breaks in exchange for  plugging some tax loop holes. This offer doesn't sit well with Democrats and the President who insist on a balanced approach that includes revenue increases as well as spending cuts.  So we are in a stalemate that will result in sequester.

Some areas of government are exempt from sequester.  These include entitlements such as social security, railroad retirement benefits, Department of Veterans Affairs, pension and special compensation programs.  The Farm Credit System Administration and crop insurance and the FDIC Deposit Fund are exempt.  Some low income assistance programs are exempt such as ACG/SMART Grants, Child Care entitlement grants to States, All Child Nutrition (except special milk programs), Children's Health Insurance Program, Some Pell grants (for first year of cuts only), Medicaid, Supplemental Nutrition Assistance Program, Supplemental Security Income Program, Temporary Assistance for Needy Families.  Medicare cuts are limited but not absent.

Military Sequester

All other areas of government are impacted.  The sequester percentage cuts applied across all remaining government accounts is between 7.6% and 9.4% of their existing budgets.   The military takes huge cuts in all branches of service.   These cuts are sure to impact defense industry contracts, cause lay-offs of civilian labor, the closing of bases, etc.

Social safety net programs such as Special Supplemental Nutrition Program for Woman Infants and Children (WIC) will eliminate $543 million per year and in effect remove hundreds of thousands of families from the rolls.  Low Income Home energy assistance reduction of $285 million will leave hundreds of thousands of elderly and poor Americans fending for themselves to keep warm during the winter months.  The list goes on and on.

Democrats have published a listing of the effects they believe the sequester will have.  See that report here.  The obvious effect of the sequester is that government services will be reduced.  The government has indicated that 750,000 jobs could be affected.  Some economists have stated that the stock market may be affected.

Once the domestic program cuts go into effect I believe they will be here to stay.  I do not see our Congress working out any compromise deal at a later date.  I say this based on Congress' proven lack of ability to do their jobs and their propensity for taking time off.  More importantly Republicans know they would never get Democrats to cut the social safety net so severely  in any other way and they are not going to start being concerned about the poor or helpless now.  That is their mantra.  Only the wealthy deserve entitlements.

There is a very good likelihood that Republicans will re-introduce bills to return military budgets back to pre-sequester levels and Democrats may be forced into voting for the increases either through fear of public embarrassment or falling for Republican false promises for future tax loop hole legislation.  I know that the President will continue to push for tax law reform, but believe it will never happen given the nature of our obstructionist Republicans in Congress and their uncompromising defense of the wealthy, even at the expense of the less fortunate.

The less apparent effect of the sequester is going to be the magnitude of the down-stream effects that these budget cuts will have on our economy and the adverse effect on Americans who depend on government services that will be cut.  We are about to find out.

Whatever happens, remember this day if you are still a member of American society during the 2014 Congressional elections.  In our vote is the power to reverse the damage done.  It is time for middle-class Republicans to voice their opposition to the leadership of their party which has proven that they do not represent you.