11th hour before doomsday. The whole episode from President Obama and the whole of Congress has been deeply unimpressive. It is not just the US which would have been affected if they screwed up playing chicken. Let’s now see if the Senate can manage to pass it.
Yes, it does still have to pass the Senate.
Yet it is interesting to mentally review the last 3 years, in which the GFC occurred, Brooksley Born has been proven correct though she had been bullied by Greenspan, Rubin and Summers (and a now-contrite Leavitt) to prevent any regulation in the 1990s of credit-default swap markets, O’Bama was elected, his first 4 budget advisers including Orszag and Goolsby have all departed DC (is Summers still there?), and Senator Reid declined to raise the ceiling last Dec. hoping instead to split the GOP by forcing them into the voting situation just held…..
The out-of-control US government/financial nexus is an enormous vessel but the captains on the bridge may just possibly have succeeded in maybe, perhaps, starting to correct her course, in a first small increment that needs to be followed up by more increments. This course correction is what the government elected in 2008 actually should have been doing. Still, the Failure-in-Chief (read John Sununu in the Boston Globe for a defense of this title) must not be allowed to re-assume command of the bridge.
Lenders have been spooked, and there may be consequences down the line from this. Let’s hope not. In Europe we know what happens when lenders lose confidence in a country.
4, what would you say if Parliament returned the power to raise and spend revenues to the Crown without any check by Parliament? That is exactly what the US House of Representatives did.
#5 Thanks Br Michael. I am not saying anyone has done well in this.
We had a not entirely dissimilar situation after our general election, with no single party able to govern on its own effectively. So in the interests of the country, two quite different parties, sat down and worked out how they could work together and give us a stable government. It took time, and it was not easy, nor has been since, but they did the serious work to see how they could try to cut spending and take the necessary action, to enable us to have a program which would avoid what happened to Greece happening to us.
7, what if the Parliament returned all power to the Crown and dissolved itself? Is that a matter of concern, or the Queen is a good girl and there is nothing to worry about? Not concerned about the next King in 10-20 years time.
This bill abrogates our Constitution. And it is a big deal. At least to those of us who care about such things.
The House gave the President the power to raise revenue on the President’s own authority. That authenticity resides solely in the House of Representatives and in the Congress.
US Constitution
Article I: Section 7 – Revenue Bills, Legislative Process, Presidential Veto
All bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills.
====
Section 8 – Powers of Congress
The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;
To borrow money on the credit of the United States;
======
Nowhere in the Constitution, which is a grant of power to the Federal Government, is the power given to Congress to delegate its authority to raise revenue and borrow money to the President.
Practically speaking, the Congress had a responsibility to provide for payment of debts authorized by previous Congressional spending votes. A real reversal of spending and borrowing will not happen until the Senate and the Presidency are in more conservative, and more sensible, hands. To a large extent the financial future of much of the world depends upon the American electorate’s decisions in 2012. Our system does not swing as quickly as a parliamentary system can, especially when one side refuses to face what decades of spending growth larger than economic growth have done.
#9, I think you are missing the point. It matters not one bit what exact title we hang on the one true Messiah Obama. What matters is this: after all this grand theater and duplicity by politicians sent to Washington last November with the specific, very specific mission of getting Government spending under control, will our debt be held constant or will it increase? That is the one important question. Do you know the answer to that?
The answer is this: under the most [i]optimistic[/i] set of circumstances the debt over the next 10 years will increase between $8T-$10T. Now that is some real fiscal restraint, wouldn’t you say?
So you know what happens when lenders get nervous? Given that scenario, will you be buying treasuries from Uncle Sam? If so, I have some prime water front land in Florida you might be interested in. The other thing to watch; the Executive branch of our Government is again getting too strong. Combined with our Judicial branch, the legislative branch is becoming meaningless, a simple stupid appendage with little real power.
#10-12 I try not to comment on internal US politics and parties save where it potentially impacts on us. I suppose as a non-American I feel it is a matter for you, but thank you for the background and explanation, and I do offer my prayers for the US.
11th hour before doomsday. The whole episode from President Obama and the whole of Congress has been deeply unimpressive. It is not just the US which would have been affected if they screwed up playing chicken. Let’s now see if the Senate can manage to pass it.
Yes, it does still have to pass the Senate.
Yet it is interesting to mentally review the last 3 years, in which the GFC occurred, Brooksley Born has been proven correct though she had been bullied by Greenspan, Rubin and Summers (and a now-contrite Leavitt) to prevent any regulation in the 1990s of credit-default swap markets, O’Bama was elected, his first 4 budget advisers including Orszag and Goolsby have all departed DC (is Summers still there?), and Senator Reid declined to raise the ceiling last Dec. hoping instead to split the GOP by forcing them into the voting situation just held…..
The out-of-control US government/financial nexus is an enormous vessel but the captains on the bridge may just possibly have succeeded in maybe, perhaps, starting to correct her course, in a first small increment that needs to be followed up by more increments. This course correction is what the government elected in 2008 actually should have been doing. Still, the Failure-in-Chief (read John Sununu in the Boston Globe for a defense of this title) must not be allowed to re-assume command of the bridge.
Lenders have been spooked, and there may be consequences down the line from this. Let’s hope not. In Europe we know what happens when lenders lose confidence in a country.
#2 Yes, prayers for the US and for wise governance.
4, what would you say if Parliament returned the power to raise and spend revenues to the Crown without any check by Parliament? That is exactly what the US House of Representatives did.
Chalk it up to another Washington victory in the War on Diddly.
#5 Thanks Br Michael. I am not saying anyone has done well in this.
We had a not entirely dissimilar situation after our general election, with no single party able to govern on its own effectively. So in the interests of the country, two quite different parties, sat down and worked out how they could work together and give us a stable government. It took time, and it was not easy, nor has been since, but they did the serious work to see how they could try to cut spending and take the necessary action, to enable us to have a program which would avoid what happened to Greece happening to us.
7, what if the Parliament returned all power to the Crown and dissolved itself? Is that a matter of concern, or the Queen is a good girl and there is nothing to worry about? Not concerned about the next King in 10-20 years time.
This bill abrogates our Constitution. And it is a big deal. At least to those of us who care about such things.
OK Br. Michael – please explain how President Obama has now been made into Charles I by the HOR?
The House gave the President the power to raise revenue on the President’s own authority. That authenticity resides solely in the House of Representatives and in the Congress.
US Constitution
Article I: Section 7 – Revenue Bills, Legislative Process, Presidential Veto
All bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills.
====
Section 8 – Powers of Congress
The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;
To borrow money on the credit of the United States;
======
Nowhere in the Constitution, which is a grant of power to the Federal Government, is the power given to Congress to delegate its authority to raise revenue and borrow money to the President.
Practically speaking, the Congress had a responsibility to provide for payment of debts authorized by previous Congressional spending votes. A real reversal of spending and borrowing will not happen until the Senate and the Presidency are in more conservative, and more sensible, hands. To a large extent the financial future of much of the world depends upon the American electorate’s decisions in 2012. Our system does not swing as quickly as a parliamentary system can, especially when one side refuses to face what decades of spending growth larger than economic growth have done.
#9, I think you are missing the point. It matters not one bit what exact title we hang on the one true Messiah Obama. What matters is this: after all this grand theater and duplicity by politicians sent to Washington last November with the specific, very specific mission of getting Government spending under control, will our debt be held constant or will it increase? That is the one important question. Do you know the answer to that?
The answer is this: under the most [i]optimistic[/i] set of circumstances the debt over the next 10 years will increase between $8T-$10T. Now that is some real fiscal restraint, wouldn’t you say?
So you know what happens when lenders get nervous? Given that scenario, will you be buying treasuries from Uncle Sam? If so, I have some prime water front land in Florida you might be interested in. The other thing to watch; the Executive branch of our Government is again getting too strong. Combined with our Judicial branch, the legislative branch is becoming meaningless, a simple stupid appendage with little real power.
#10-12 I try not to comment on internal US politics and parties save where it potentially impacts on us. I suppose as a non-American I feel it is a matter for you, but thank you for the background and explanation, and I do offer my prayers for the US.