Category: Budget

Pelosi Got Played

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It appears that John Boehner convinced Nancy Pelosi that he could supply the required majority for the debt ceiling deal:

I also think, though, that passing something and getting it over with and moving on was necessary and compared to default it is preferable because default would really lose a lot of jobs. That is my way of saying, I don’t think this is the best path we could have taken. And especially I’m unhappy about the fact that this was developed with a premise that the Republicans would have the 218. Since they didn’t we should’ve had more influence.

I was in all the meetings, I’m not saying that isn’t the case. But if we had days, instead of backed up to hours, we could have said ‘you don’t have the votes, let’s go back in and how do we move this way in order to cut some of those cuts and have a better bill and get the votes.’ So I think we could’ve done better. I think they were successful at just prolonging it to the last minute so that we didn’t have that option and it was default or no default.

While I do think that Pelosi is the best of the Democratic leaders in Washington, it’s clear that she got played.

It was clear from early in this debate that there would have to be a significant number of Democratic votes for this to pass. The Teabaggers were saying that they would vote against this under any circumstances, and Eric Cantor doing his level best to sabotage Boehner, because he wants to displace him as speaker. (Not gonna happen. Republicans will never vote to put a Jew 3rd in line to the presidency)

Not one of her finer moments.

S&P Downgrades the US, Well, Isn’t That Special

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Well, Isn’t that Special!!

Standard and Poors has just downgraded the United States from AAA to AA+.

I think that Jane Hamsher and Scarecrow have nailed what is going on here. This is a shakedown by the credit ratings agencies:

On July 21, 2010 President Obama signs Dodd-Frank into law. Prior to Dodd-Frank, the courts found that credit ratings are expressions of opinion that were protected under the first amendment, subject to a demonstration of actual malice:

The Dodd-Frank Financial Reform Act stripped away those protections, so that CRA’s were now subject to the same expert liability as an auditor or securities analyst, and required only a “knowing” or “reckless” state of mind for liability, rather than proof of scienter. It also repealed Section 436 of the Securities Act of 1933, which granted “safe harbor” for ratings, which were part of a prospectus.

Which, for obvious reasons, made the ratings agencies extremely nervous.

In October 2010 S&P issued its first threat to downgrade US debt: “If the U.S. government maintains its current policies for the next 40 years in the face of rising health care and pension spending pressure, it is unlikely that Standard & Poor’s Ratings Services would maintain its ‘AAA’ rating on the U.S.” The report paints a target on the back of Social Security and Medicare, says nothing about the wars, the Bush tax cuts, private health care costs or the absurdity of 40 year projections.

………

It’s becoming more and more obvious that Standard and Poor’s has a political agenda riding on the notion that the US is at risk of default on its debt based on some arbitrary limit to the debt-to-GDP ratio. There is no sound basis for that limit, or for S&P’s insistence on at least a $4 trillion down payment on debt reduction, any more than there is for the crackpot notion that a non-crazy US can be forced to default on its debt.

Whatever S&P’s agenda, it has nothing to do with avoiding default risks or putting the US on sound fiscal footing. It appears to be intertwined with their attempts to absolve themselves from responsibility for their role in the 2008 financial crisis, and they are willing to manipulate not only the 2012 election but the world economy to escape the SEC’s attempts to regulate them.

It’s time the media and Congress started asking Standard and Poors what their political agenda is and whom it serves.

Note that Dodd-Frank also lifted some statutory requirements mandating the use of  ratings from accredited agencies as well, so the big 3 (S&P, Moodys, Fitch’s) have even more reason to hate the bill, and are trying to sabotage them at the rule-making stage.

Note that this was written a week ago, and a quick read of the S&P statement (first link) sounds like a hit job, some to the effect of, “That Dodd-Frank thing displeases us, it would be a shame for anything to happen to your credit rating.”

And the Debt Deal Keeps On Giving

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There are now serious concerns that Obama’s debt capitulation, which is rather similar to much of the Republican agenda passed in Wisconsin in the last two months, is likely to demoralize potential voters and volunteers.

It’s bad enough that the Republicans are once again corruptly trying to misinform voters and suppress voting, but now the we’ve got Obama’s cave to further discourage the Democratic party grass roots.

He’s the Manchurian Democrat.  Cuel Tom Tomorrow:

The House Passed the Debt Deal

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And about half the Democratic caucus voted for it.

Looking at the tally, my Congresscritter, Jon Sarbanes, voted against it, but Hoyer, Ruppersberger (no surprise there) and DCCC chair Van Hollen all voted for this sh%$ sandwich.

Any Democrat who votes for this deserves a primary challenge, and the fact that Van Hollen is running the DCCC means that you should not give to that organization, but instead choose your candidates a la carte, because the DCCC will continue to spend their money on spineless wimps with no moral compass.

As to the substance of the deal, words fail me, but they don’t fail the Rude Pundit (NSFW, but if you know the Rude One, you knew that).

Also, read Krugman, whose New York Times OP/ED, The President Surrenders, is a marginally more polite take down.

Me, I don’t think that Obama is as bad a negotiator as we would like to think.  I think that he is getting much of what he wants, and using Boehner as a useful idiot for political cover from his own base.

It Looks Like There is a Debt Limit Deal

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And it looks like it sucks.

I’m still digesting it, but it appears mandate cuts, and not taxes, and it gives the Republicans to pivot away from their disastrous vote to kill Medicare, and accuse Democrats of doing the same.

I guess that’s what serves as bipartisanship in Obama’s mind.

About the only bright spot is the possibility that House Democrats may desert this bill en mass, which has the possibility of changing the dynamic in a positive way.

When Joke Line Calls Out Republicans, They Have Jumped the Shark.

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This is one big shark that they jumped.
One With Frikken Lasers!

In fact, this is an indication that they are jumping C. Megalodon.*

Because Time Magazine‘s Joe Kline, the man who has made a career of hating on liberals and sucking up to Republicans, to the degree that he wrote a bio of Woody Guthrie that treated his politics (“This machine (his guitar) kills fascists”) as a sort of an idiot-savant phenomenon, has finally been forced to find the current behavior of Republicans to be beyond the pals:

And so, here we are. Our nation’s economy and international reputation as the world’s presiding grownup has already been badly damaged. It is a self-inflicted wound of monumental stupidity. I am usually willing to acknowledge that Democrats can be as silly, and hidebound, as Republicans–but not this time. There is zero equivalence here. The vast majority of Democrats have been more than reasonable, more than willing to accept cuts in some of their most valued programs. Given the chance, there was the likelihood that they would have surrendered their most powerful weapon in next year’s election–a Mediscare campaign–by agreeing to some necessary long-term reforms in that program. The President, remarkably, proposed raising the age of eligibility for Medicare to 67.

(emphasis mine)

Joe Klein has made a career out of saying that both sides are wrong, and when you’ve lost him, it says that you not only crossed a line, but you crossed that line a very long time ago.

*The largest shark, and likely largest predator fish ever. It died out some 1.5 million years ago. The Genus is still in dispute, between either Carcharodon (Great White) or Carcharocles (broad toothed Mako). But in either case, you are jumping C. Megalodon, you have jumped the biggest shark ever.

Guess Who Loses If There Is a Default?

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Surprise, surprise, it won’t be the Banksters, because the bond holders will get priority over the people who will actually suffer as a result:

The U.S. Treasury will give priority to making interest payments to holders of government bonds when due if lawmakers fail to reach an agreement to raise the debt ceiling, according to an administration official.

The official requested anonymity because no announcement has been made. The Treasury has said about $90 billion in debt matures on Aug. 4 and more than $30 billion in interest comes due Aug. 15. Overall, more than $500 billion matures in August.

The $90 billion in six-month Treasury bills maturing Aug. 4 pared losses after the comments. Obama administration officials will brief the public no earlier than after financial markets close tomorrow on priorities for paying the nation’s bills if the $14.3 trillion limit isn’t raised, a Democratic Party official said earlier.

“The announcement is reassuring, but there’s really no alternative to favoring the bondholders,” said Christian Cooper, head of U.S. dollar derivatives trading in New York at Jefferies Group Inc., which as one of the 20 primary dealers is obligated to bid in Treasury sales. “The alternative would point to a default”

The alternative would be children not going to bed hungry, uninspected meat poisoning people, and old people not eating cat food, but no one in Washington, DC gives a crap about them.

It Sucks to be John Boehner

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I guess we already knew this, but today, it sucked even more than usual to be John Boehner.

You see, John Boehner had to postpone the vote on his debt ceiling plan because he didn’t have the votes to get it passed:

Despite a days-long push to force their conservative members into line, and sneak Speaker John Boehner’s (R-OH) debt limit bill through the House of Representatives, GOP leadership has postponed a scheduled vote on the legislation — a sign that their efforts have thus far failed.
TPM SLIDESHOW: Debt Negotiations At The White House

This evening, members were alerted that Boehner and his leadership team were delaying the vote, which had been scheduled for 6 p.m.

“Members are advised that the House GOP Leadership has postponed the votes on the motion to recommit and final passage of S. 627 – Speaker Boehner’s Short Term Default Act (amending the Faster FOIA Act of 2011),” reads a notice from Minority Whip Steny Hoyer’s (D-MD) office to his whip team.

You would think that as speaker of the house, he would be able to get his own caucus to vote for him, or at least he would be able to count votes, but this is apparrently beyond the Congress’s orange avenger.

He’s the most incompetent Speaker of the House ever.

This is a good thing, because he’s an evil son of a bitch, it’s better when evil people are incapable of doing evil well enough.

I expect the Todal to so totally Gleep his ass.*

*The Todal is, “an agent of the Devil, sent to punish evildoers for having done less evil than they should.”   It Gleeps said unfortunate souls.  Go read James Thurber’s magnificent book, The 13 Clocks.

Yes, I Heard His Speech, and It Pissed Me Off…

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Same sh%$, different day, it’s the culture of Washington, both sides are at fault, if we do nothing disaster looms.  (False: doing nothing means letting the Bush tax cuts expire in 2012, and deficits drop by a lot)

It seemed to be more of a plaintive whine that people just don’t get how awesome he is, or they would go all happy non-partisan.

This is all largely an artifact of his own making, he could have gotten this all done in December, but Obama wanted an opportunity to cut Social Security, Medicare, and Medicaid, so we have this hostage situation.

That’s not what pissed me off the most though, it’s that, because of the speech, Maddow was preempted by that fatuous f%$# Lawrence O’Donnell.

I know that it’s not rational, but his voice sets my teeth on edge.

We Need to Primary Him Now!!!

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I’m beginning to think that the Republicans, the ½ sane ones anyway, may have been right in their criticisms in 2008 when they tried to portray him as a self-absorbed narcissist.

I am increasingly convinced that he obsessed with his own legacy such a degree that he just does not care about right and wrong.

He thinks that he is so damn awesome that he can somehow create a post partisan partisan paradise, with sparkle ponies!

To be fair, it could be that he’s just enamored by the idea that government should be private companies run by his Harvard buddies, but the effect is the same.

The latest episode in this is that he is trying to cut a deal with Republicans on the debt ceiling which is all cuts, including Social Security, Medicare, and Medicaid:

President Obama and House Speaker John A. Boehner rushed Thursday to strike agreement on a far-reaching plan to reduce the national debt but faced a revolt from Democrats furious that the accord appeared to include no immediate provision to raise taxes.

With 12 days left until the Treasury begins to run short of cash, Obama and Boehner (R-Ohio) were still pursuing the most ambitious plan to restrain the national debt in at least 20 years. Talks focused on sharp cuts in agency spending and politically painful changes to cherished health and retirement programs aimed at saving roughly $3 trillion over the next decade.

More savings would be generated through an overhaul of the tax code that would lower personal and corporate income tax rates while eliminating or reducing an array of popular tax breaks, such as the deduction for home mortgage interest. But the talks envisioned no specific tax increases as part of legislation to lift the debt limit, and the tax rewrite would be postponed until next year.

Democrats reacted with outrage as word filtered to Capitol Hill, saying the emerging agreement appeared to violate their pledge not to cut Social Security and Medicare benefits as well as Obama’s promise not to make deep cuts in programs for the poor without extracting some tax concessions from the rich.

………

After a lunchtime meeting between Lew and Senate Democrats, Majority Leader Harry M. Reid (D-Nev.) made no attempt to hide his anger, telling reporters that his caucus would oppose the “potential agreement” because it appeared to include no clear guarantee of increased revenue.

“The president always talked about balance, that there had to be some fairness in this, that this can’t be all cuts. There has to be a balance. There has to be some revenue and cuts. My caucus agrees with that,” Reid said. “I hope that the president sticks with that. I’m confident that he will.”

Congressional and administration officials said the White House informed Democratic leaders about the talks after Obama met privately with Boehner and House Majority Leader Eric Cantor (R-Va.) late Wednesday. Congressional aides, speaking on the condition of anonymity to detail private discussions, said the White House acknowledged that the emerging agreement is “to the right of the Gang of Six” — a bipartisan Senate debt-reduction framework unveiled this week — and far removed from what Democrats have said would be acceptable.

Obama summoned top Democratic leaders in both the House and the Senate back to the White House later Thursday for further discussions.

Barack Obama is the Manchurian Democrat.

To be fair, sources within the Obama administration are denying this, but as John Aravosis notes, in terms identical to when they killed the public option in secret:

Obama White House’s Dan Pfeiffer on rumors that they sold out the public option:

A rumor is making the rounds that the White House and Senator Reid are pursuing different strategies on the public option. Those rumors are absolutely false.

In his September 9th address to Congress, President Obama made clear that he supports the public option because it has the potential to play an essential role in holding insurance companies accountable through choice and competition. That continues to be the President’s position.

We all know how that went.

Obama White House on the rumors that the President has sold out on the budget deal:

A White House spokesman called the claims from aides “not credible” — the result of having a “3rd hand version of the facts.”

And here’s more on the record from – wait for it – Dan Pfeiffer:

pfeiffer44 Dan Pfeiffer
Anyone reporting a $3 trillion deal without revenues is incorrect. POTUS believes we need a balanced approach that includes revenues.

Barack Obama is going to f%$# the American people, and he’s going to f%$# the Democratic party, and while he does not understand it, he’s going to make Sarah Palin President, because the American people hate the idea of cutting entitlements, and like taxing the rich, and he’s decided that we are all idiots, so he’s setting it up so that Republicans will be completely insulated from the consequences of gutting Social Security, Medicare, and Medicaid.

Lucy Will Hold The Football This Time … Really

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The “Gang of Six” in the Senate, it’s back:

The once moribund Senate “Gang of Six” gained new life Tuesday after Oklahoma Sen. Tom Coburn unexpectedly rejoined the group and President Barack Obama praised a new effort to cut the debt by as much as $3.7 trillion over the next decade.

Speaking at the White House Tuesday afternoon, Obama gave the Gang of Six a big boost, saying its proposals were “roughly” in line with his negotiations during the stalled debt-ceiling talks. But he said there would need to be broader buy-in to the proposal and he said Congress needed to have “fail-safe” plan, being drafted by Senate Majority Leader Harry Reid and Senate Minority Leader Mitch McConnell, to avert a default.

“I think we’re now seeing a potential for a bipartisan consensus,” Obama told reporters.

And Obama is not just positive about this development, he is a “ferocious advocate” of capitulation masquerading as bipartisanship:

President Obama heaped praise on a deficit-reduction proposal produced by bipartisan group of senators known as the “Gang of Six,” calling it a “significant step” and arguing that members on both side of the aisle are beginning to coalesce around a balanced approach involving cuts to entitlements and tax increases.

“We’re in the same playing field and my hope is that we start gathering everybody in the next couple of days” on an agreement, Obama told reporters in a brief appearance in the White House briefing room Tuesday.

This is just pathetic.

In response to Republicans taking “a shellacking” because of their attempts to dismantle Medicare and Medicaid, Obama has signed on to a plan that calls for cuts to Medicare and Medicaid.

Yesterday’s quote of the day shines a bit more light on this problem.

Barack Obama’s fetish regarding “Responsibility without conviction,” is more than “weak”.  It is in fact profoundly irresponsible.

Speaking as a parent, and someone who plays an adult on the internet, sometimes adults actually have to deal with children, and, “I’ll give you another ice cream if you stop ……… Well OK, you did not stop, but here is your ice cream anyway,” is not responsible anything.

I think the idea that Barack Obama is the responsible adult in the room is a delusion, and one that is most firmly held by one one Barack Hussein Obama.

He’s Proposing Means Testing Medicare? Is He Nuts?

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One of the reason that Social Security and Medicare are popular are because they both apply to everyone.

When you start trying to exclude people for being too rich, you remove a powerful constituency that supports the programs, and save next to no money, and set the stage for a lower level, until finally the programs are just for the poor, and they are easier to kill.

Well, at his press conference, this is what Barack Obama proposed:

“The fall back position, the third option, and what I consider the least attractive option, is one in which we raise the debt ceiling without making any significant progress on reducing the deficit,” he said.

Obama specifically highlighted the possibility of additional means-testing for Medicare as a way to achieve savings, noting that his proposal would not affect current beneficiaries.

“You can envision a situation where for somebody in my position — me having to pay a little bit more — would be appropriate…and that could make a difference,” Obama said during a Friday press conference.

Will someone please primary the bastard before he destroys the last vestige of the New Deal? Please?

His narcissistic interest in accomplishing big things, even when they are bad big things, is profoundly troubling.

Obama says debt impass could stop social security checks

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Talk about a Shot Across the Bow

I really don’t think that he had it in him, but Obama just fired one f%$# of a shot across the Republicans bow on the debt ceiling:

It was a striking thing today to see the President of the United States say that he cannot guarantee the 27 million Social Security checks that are due to be mailed on August 3rd.

August 3rd is the day after the U.S. government will default on its debts if Democrats and Republicans do not agree to increase the nation’s borrowing limit. Both sides say they won’t raise the limit without a deal to massively cut the federal deficit. A U.S. default could shake the world economy. The stakes couldn’t be higher. Time is growing short.

CBS Evening News anchor Scott Pelley met the president this morning at the White House on another day of deadlock. The question is whether a deal to cut the federal deficit will include tax increases as Democrats insist or rely only on budget cuts as Republicans demand. The Republican Speaker of the House, John Boehner started the day with a vow that the house will not raise taxes – period.

You know, I really did not expect him to pull out that one.

His normal course of action is to negotiate with himself, and bring a knife to a gun fight, but he just pulled out an AN602 Tsar Bomba.

I really did not think that he had it in him.

What’s more it appears between this threat, and the fact that raising taxes by a penny will enrage the base, has Senate minority leader coming up with a Blackadderesque* cunning plan to obscure the fact that he feels compelled to capitulate:

Desperate to get out of the political box they helped to create, Senate Republicans are actively pursuing a new plan under which the debt ceiling would grow in three increments over the remainder of this Congress unless lawmakers approve a veto-proof resolution of disapproval.

In effect lawmakers would be surrendering the very power of approval that the GOP has used to force the debt crisis now. But by taking the disapproval route, Republicans can shift the onus more onto the White House and Democrats since a two-thirds majority would be needed to stop any increase that President Barack Obama requests.

“It gives the president 100 percent of the responsibility for increasing the debt limit if he chooses not to have any spending reductions,” Tennessee Sen. Lamar Alexander, the Republican Conference chairman, told reporters Tuesday.

This is the about the lamest example of “declaring victory and beating a retreat” that I have heard in a long time ………… OK, it’s the lamest example by a Republican. I think that we get this sort of sh%$ from Democrats, and in particularly the Obama administration, on an almost weekly basis.

And then we have John Boehner doing his best 13 year old throwing a tantrum:

Burned by the fact that their prescription for reducing the deficit and increasing the national borrowing limit either can’t pass in Congress or doesn’t cut spending enough to warrant, in their minds, a significant debt ceiling hike, House Republicans returned to the Capitol Tuesday to ratchet up their demands, and shirk responsibility for avoiding default.

“Where’s the President’s plan?” asked House Speaker John Boehner (R-OH) at a press stakeout after a GOP caucus meeting. “When’s he going to lay his cards on the table? This debt limit increase is his problem.”

This is a massive departure for Boehner and the GOP, who before the debt limit brinksmanship became central to U.S. politics, regularly acknowledged that raising the debt limit was his, and Congress’, imperative. Today, he and other caucus leaders answered President Obama’s demand that the GOP figure out a way to raise the debt limit through 2012 by offering to toss non-starter Republican wish-list items back into the negotiating mix.

This is certainly a welcome event.

If we see more of this, then I will see it as evidence of a learning curve, but for right now, absent any sort of a pattern, I will put it down to dumb luck.

Still, it’s better to be lucky than it is to be smart in the short term.

*Only his writing is a lot worse than the show, and Rowan Atkinson (Blackadder) has a lot more personal appeal.†
†Hell, Tony Robinson (Blackadder’s dogsbody, Baldrick) has more personal appeal than Mitch McConnell.

The Incredible Shrinking Speaker

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John Boehner has decided to drop any attempt at a grand bargain with Obama, because he could get no one, not even the Majority Whip or Majority Leader, his closest lieutenants in the house, to agree to close a few tax loopholes in order to have Obama cut the Democrats throats with Social Security and Medicare cuts:

House Speaker John A. Boehner abandoned efforts Saturday night to cut a far-reaching debt-reduction deal, telling President Obama that a more modest package offers the only politically realistic path to avoiding a default on the mounting national debt.

On the eve of a critical White House summit on the debt issue, Boehner (R-Ohio) told Obama that their plan to “go big,” in the speaker’s words, and forge a compromise that would save more than $4 trillion over the next decade, was crumbling under Obama’s insistence on significant new tax revenue.

“Despite good-faith efforts to find common ground, the White House will not pursue a bigger debt reduction agreement without tax hikes,” Boehner said in a statement released less than 24 hours before the White House meeting was scheduled to begin. “I believe the best approach may be to focus on producing a smaller measure, based on the cuts identified in the Biden-led negotiations, that still meets our call for spending reforms and cuts greater than the amount of any debt limit increase.”

Boehner’s decision leaves negotiators reexamining a less-ambitious framework — aimed at saving roughly $2.4 trillion over the next decade — that had been under discussion between Vice President Biden and a bipartisan group of lawmakers. But that framework is hardly complete; the group broke up last month when Republicans walked out over the tax issue.

The sweeping deal Obama and Boehner had been discussing would have required both parties to take a bold leap into the political abyss. Democrats were demanding more than $800 billion in new tax revenue, causing heartburn among the hard-line fiscal conservatives who dominate the House Republican caucus. Republicans, meanwhile, were demanding sharp cuts to Medicare and Social Security, popular safety net programs that congressional Democrats have vowed to protect.

There is only one way that I can see this debt limit thing, which is an artifact of what Obama wanted in December, turning out well, and that is by generating an export led recovery, and no small amount of inflation, if the dollar drops by 30+%.

That being said, while there House Speakers who have been profoundly weak, Tom Foley comes to mind, as does Tip O’Neill from 1981-83, I have never seen such a profoundly impotent speaker as Boehner. 

It’s stunning.

When I Called Him the Manchurian Democrat, I Had No Idea…

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Nancy Pelosi heard that Barack Obama was looking at gutting cutting social security, and it sounds like her response was to call him out:

After a contentious White House meeting with President Obama and other Congressional leaders, House Minority Leader Nancy Pelosi (D-CA) returned to the Capitol and drew an important red line: Members of her caucus won’t vote for a grand bargain to raise the debt limit and reduce future deficits if the final deal includes cuts to Medicare and Social Security benefits — and that means it probably won’t pass.

“You [asked], ‘could the changes compromise the vote?'” Pelosi said at a Thursday afternoon briefing near the House chamber. “I said yes.”

It’s widely believed that House Speaker John Boehner (R-OH) will need Democratic votes to raise the debt limit. Democratic leaders, including House Minority Whip Steny Hoyer (D-MD) have offered to help him out — but not on Boehner’s terms alone. Pelosi has her own terms.

“We have been very clear Democrats are not supporting — House Democrats are not supporting any cuts in benefits for Social Security or Medicare,” she said.

I think that her calling him a bitch, which is what she did, might have something to do with the fact that he gave no advanced warning of his decision to Congressional Democrats:

Multiple senior House Democratic aides tell TPM that caucus members were caught off guard by news stories about President Obama’s push for deeper deficit and spending reductions — and particularly about the White House’s willingness to cut Social Security as part of a grand bargain to raise the debt limit.

At a private caucus meeting Thursday morning, House Minority Leader Nancy Pelosi (D-CA) told her members that if Obama’s serious about putting Social Security on the chopping block, he’d left her in the dark about it. And after an at-times-contentious meeting about how open Dems should be to significant entitlement cuts, leaders departed to the White House to read Obama the riot act.

And just to ensure that the day is a complete mess for Barry, his proposal to kill the New Deal and give it to the bankers was just enthusiastically endorsed by the craziest motherf%$#er in Congress, Allen West:

Reports that President Obama could discuss with Republicans the idea of cuts to Social Security and Medicare is picking up praise from a source that doesn’t usually have anything good to say about the President: Rep. Allen West (R-FL).

In fact, this is coming from a man whose military career ended after a torture-related incident, who has called Obama a “low-level socialist agitator”, and who has said that Medicare will destroy America: “I gotta tell you something: if you support Medicare the way it is now, you can kiss the United States of America goodbye.”

Seriously, when you look at how this is handled has me wondering if the production staff who created Gigli are running the White House staff.

It’s not only bad policy, it’s criminally stupid politics.

At some point, you have to start wondering if this crap is just stupid, or it’s what he really wants.

He Doesn’t Care About Policy, He Wants a “Legacy”

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And he knows that “only Nixon could go to China,” so Obama wants to be the President who gut social security:

President Obama is pressing congressional leaders to consider a far-reaching debt-reduction plan that would force Democrats to accept major changes to Social Security and Medicare in exchange for Republican support for fresh tax revenue.

At a meeting with top House and Senate leaders set for Thursday morning, Obama plans to argue that a rare consensus has emerged about the size and scope of the nation’s budget problems and that policymakers should seize the moment to take dramatic action.

As part of his pitch, Obama is proposing significant reductions in Medicare spending and for the first time is offering to tackle the rising cost of Social Security, according to people in both parties with knowledge of the proposal. The move marks a major shift for the White House and could present a direct challenge to Democratic lawmakers who have vowed to protect health and retirement benefits from the assault on government spending.

“Obviously, there will be some Democrats who don’t believe we need to do entitlement reform. But there seems to be some hunger to do something of some significance,” said a Democratic official familiar with the administration’s thinking. “These moments come along at most once a decade. And it would be a real mistake if we let it pass us by.”

(Emphasis mine)

Barack Obama is the Manchurian Democrat.

There is no formulation of right or wrong, there is no formulation of good policy, there is simply a “to do” list, where what is actually done does not matter.

Steny Hoyer tells Boehner to Go Cheney Himself

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Hoyer just said that Boehner won’t get the votes for raising the debt limit from his teabagger freshman, so he needs Democratic votes, and he won’t get any without a tax increase:

“I’ve told Mr. Boehner that I will help,” Hoyer said. “Now I’m not going to help on some draconian do it my way or the highway vote, but we Democrats are prepared to co-operate in order to assure that the creditworthiness of the United States is not put at risk and to move towards a fiscally responsible path…everything needs to be on the table, and when I say everything I mean everything…. Revenues need to be a significant part of it.”

…………

The Democrats’ vote-counter in the House of Representatives says the GOP will need his help to raise the national debt limit — but they won’t get it if they don’t put everything on the table, including tax revenues.

“Speaker Boehner needed Democratic votes to pass keeping government running, even at minimal levels,” Rep. Steny Hoyer (D-MD) told reporters at his weekly Capitol briefing, in response to a question from TPM. “So my presumption is [Senator] Schumer is right.”

That’s more balls than I expected from Hoyer, who seems to spend most of his time sabotaging the efforts of real Democrats.

Finally, a Lawsuit

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Two Michigan counties have filed lawsuits against many the GSEs accusing them of defrauding them of title transfer fees:

Two Michigan counties, Oakland and Ingham, are suing some of the biggest players in the mortgage industry for what one official called a “fraudulent conspiracy” to avoid paying state and county property transfer taxes.

Oakland County Treasurer Andy Meisner is suing mortgage giants Freddie Mac and Fannie Mae in the nation’s first federal lawsuit seeking to recoup tax payments never paid on properties that were transferred several times during the height of and during the foreclosure crisis that has gripped the nation over the last few years,

“I do think it’s fraudulent and I do think there is strong evidence to suggest there has been fraud. I do think it is a fraudulent conspiracy,” Meisner said. “We are identfying the people involved and we are systematically working to hold them accountable.”

While Ingham County Register of Deeds Curtis Hertel Jr. would not go so far as to allege a “fraudulent conspiracy” he says that the aim of his lawsuit is to find out just how deep the malfeasance went.

“This is about getting to the truth,” Hertel said Wednesday, standing in front of one of the many foreclosed and empty houses in the city of Lansing. “I believe the crisis has been further exacerbated by a systematic attempt to avoid state transfer taxes in my office.”

Gee, you think?

Not that this lawsuit is only against Fannie Mae and Freddie Mac, and does not reference the fraudulent (at least on a transfer tax basis) conveyances that were done through MERS, which should be at the top of the list, because, as Willie Sutton said, “It’s where the money is.”

In the case of Fannie and Freddie, they are claiming that they are exempt because they are government agencies (they are not), and because there is statute exempting them (I cannot find one).

H/t Naked Capitalism.