As this column is being written Standard & Poor’s Ratings Services cut its outlook on the United States to negative, warning that the U.S. fiscal profile may become weaker than that of other major countries if the budget deficit cannot be “tamed”. This bit of news raises the specter of the credit rating of the United States being downgraded from Triple-A.
By the time you read this column the “budget hawks” will be circling and preparing to swoop down with the only “solution” to the budget deficit – too much spending on social services, infrastructure and investment in the future of this country. This “solution” would cripple this country and deface its future far more than any credit rating downgrade by a discredited credit agency but that is not how the discussion will be framed – it’s a frame up.
Keep in mind that Standard & Poor’s Ratings Services is the same S&P that routinely gave favorable ratings to the noxious and toxic mortgage related bonds peddled by Wall Street firms. Those would be the same Wall Street firms that successfully bet against the economy of this country and reaped billions when the economy crashed. And S&P was more than an enabler; it has been a willing co-conspirator in the fleecing of investors from around the world.
That S&P has any credibility in the current debate regarding the United States budget and its deficit borders on the absurd. The fact that S&P alumni are not standing in a lunch line in orange jumpsuits in a federal facility is a testament to how people can benefit from the Big Lie.
Meanwhile the budget hawks will attack with this latest report from S&P grasped firmly in their talons. Their “solution” will be that it is necessary to cut expenditures and the cut taxes. Whether it is Planned Parenthood or NPR or assistance for homeless veterans, the budget hawks will demand that a cleaver be wielded and that all expenditures be put “on the table”.
Increased taxes will not be “on the table” of the budget hawks. Increasing revenue to government is anathema as far as they are concerned and any solution that calls for increased taxes is considered unworthy of discussion and is not subject to negotiation.
It is at times like this that an historical perspective is useful. Using the so-called philosophy of the budget hawks and the G.O.Tea Party, the additional governmental expenditures that helped to build the transcontinental railroad and the Panama Canal would have been rejected, thereby retarding the progress of this country in countless ways.
This would be, of course, very similar to the current cutting of the federal budget to eliminate funding for high speed rail and the expansion and improvement of the interstate highway system.
If the pseudo-philosophy of the G.O.Tea Party was employed in the past, the large governmental expenditures that literally saved the lives of the grandparents of their members – expenditures for the WPA, Social Security, the CCC, the Tennessee Valley Authority and Hoover Dam never would have been made.
It is impossible to imagine Michelle Bachman supporting the governmental expenditures that funded the G.I. Bill and changed the lives of tens of millions of Americans. Clearly Rand Paul would not have supported the creation of tax revenues that resulted in the NASA space program that accelerated technological advancement in this country, creating the environment for the advancement of personal computers and the internet.
And now here comes the big frame up. S&P, the handmaiden and enabler of Wall Street makes a pronouncement that unless the budget is “tamed” the credit rating of the United States will be downgraded. Wall Street firms and major corporations that have never been enamored of taxes of any kind (e.g. General Electric paying NO taxes on billions of dollars of revenue and profit) are financial supporters of the G.O.Tea Party.
The G.O.Tea Party, waving a cash-stained and morally tattered banner of patriotism will parade on Capitol Hill claiming that “taming” the budget is a national priority and that it can only be “tamed” by cutting the budget. Once again, no new taxes can even be considered.
This bit of bamboozling is so transparent and so barren of subterfuge it is a wonder that anyone is taking it seriously. But logic has been cast aside and we are faced with a framed up debate on how to cut a budget that has increased in part because the population of this country is now one third of a billion people.
The budget has increased in part because services for the elderly, the disabled, the poor, the young and the homeless are now part of the national rationale for a civil and compassionate society. The deficit has increased in large part because of mindless wars, irrational tax cuts and an engineered collapse of the national economy that almost worked.
If the truth is supposed to set us free it would seem that lies are meant to entrap and enslave. The big frame up has to be seen for what it is. In this instance time is not our friend.
One thought on “The Big Frame Up”
I was hoping to find a good article calling-out Standard and Poors for this recent shenanigans!