The S&P Downgrade is an Excuse to Cut Social Security, Medicare and Medicaid

[jtown1123]

One of the better pieces I've read in a awhile...

Politico
Matt Stoller
An excuse for slashing the safety net

With all the talk of Standard & Poor’s downgrade, no one mentioned that the ratings agency’s business model is, essentially, lying for money.

Instead, many politicians insist that the S&P downgrade is the reason for the market turmoil — not the banking freeze-ups in the Eurozone or political paralysis here. The credibility accorded to S&P by U.S. political elites shows that the rot is indeed deep — and worrisome.


Let’s note, at the start, that this downgrade was absurd. The credit rating of the United States is not in jeopardy. The U.S. government prints dollars — it can no more run out of dollars than a bowling alley can run out of strikes.

What’s really happening is an attempt by both parties to justify slashing Social Security and Medicare. Republicans have long wanted to roll back the New Deal. What is relatively new is that a Democratic president is now dead set on cutting these programs as well.

Read more: http://www.politico.com/news/stories/0811/60924.html#ixzz1UYWwqpkD

[BeyondGeography]

1. Afraid so

[abelenkpe]

2. Whaaat?

didn't the S&P report specifically state that it was republicans blocking any increase in revenues? S&P wasn't calling for slashing entitlements. But our politicians....

[jtown1123]

3. Yeah, I think that was buried on page 4...they still want to feign credibility n/t

[indurancevile]

7. They DID call for cuts in "entitlements". That was their main focus, in fact.

[abelenkpe]

8. Ugh, really?

So we're just justifying ripping off people who have already paid into the system leaving future reciepients to scramble to create extra savings in a world where politicians and the fed are also trying desperately to prop up prices and get people to spend? Can no one see that is impossible? See that there is a huge conflict there? For people who claim to want to make sure our grandchildren aren't burdened with debt they sure do seem determined to make sure our grandchildren are instead burdened with caring for their aging parents and the increasing costs of education, healthcare and energy.

Yeah I see boom times comin' real soon....

[indurancevile]

10. quote from their statement:

"In addition, the plan envisions only minor policy changes on Medicare and little change in other entitlements, the containment of which we and most other independent observers regard as key to long-term fiscal sustainability."

the "plan" refers to the debt agreement signed by obama.

[abelenkpe]

11. So ratings agencys determine policy now?

Because banks have to be paid? Never mind they over-leveraged themselves, caused the initial crisis in 2008, fight regulation, required massive taxpayer bailouts and then turned around and laid off tens of thousands of workers and raised fees and interest rates on existing customers. We gotta make sure the banks will get their due while we ask the elderly to go without?

Who rules this country again?

[dtexdem]

4. That's true -- that's what was intended.

But it could be used by Dems as an excuse to let the Dubya tax cuts lapse -- the assumption that they would be continued was THE major excuse Standards are Poor gave to sticking to their downgrade.

[jtown1123]

6. Let's hope they let them lapse...it seems pretty impossible.

[woo me with science]

5. Yes, it is.

Thank you. K&R

[Old Codger]

9. BINGO n/t

[shinyhead]

12. Maybe something much bigger going on

I am thinking this is less left vs. right and more corporate profiteers just trying to ensure the best way to ensure control over a market.

The health care industry wants to make sure the market they have is as profitable as it can be. They don't give a rats ass if its the left of the right in power as long as they have their profit margin.

First they backed anyone that helped them operate in a deregulated market.

Then they worked a deal to be ensured purchases at your typical 'high prices' with the prescription drug plan

When Obama care was forming, they made sure it was more of a forced purchase of private insurance.

Now I think they and many other corporate entities are trying to weaken ALL governments by scaring the hell out of the people so that they will force the government to cowtow to various corporate demands.

All the power players on the left and right seem to have the same 'wormtongue' advisers whispering in their ears about what is the best way to move forward.

Bitch and complain about the right/left divide all you want, notice that they somehow managed to at least come together enough to avert crisis until the past few years. Suddenly neither side can seem to find that common ground.



Once common ground was found, ugly as it may have been (and I think a set up to make sure events unfolded the way they did), triggers were put in place that would help cripple the sacred cows for both sides of the aisle. I think the super committee is set up to fail at its task and ensure that the American people of all persuasions freak out and take to the streets, or at the very least lose all confidence in their own party and outright hate their opponents. This will ensure government is gridlocked to such a point that it will find itself incapable of standing against the combined efforts of psychologically designed mass marketing and social engineering to create the most profitable environment corporations have ever enjoyed.

I think that the internet grass roots movements by people of all colors scares the crap out of them so they are leveraging us against each other by seeding money into both extremes. This makes government come to a standstill and sets it up for a fall. Unlike many prior times in history, the power vacuum of a superpower losing its status will not be replaced by another superpower, but rather it will appear to go unfilled, while quietly these unholy alliances of trans global corporations will actually fill the void and control things. Their one motive will be profit at all costs. Human rights, type of government, wars and everything else will be a minor annoyance at worst, and a chance for profit at best.

At one time I would have said this was a nutty conspiracy theory, but I am starting to think its what is actually going on and that we are being divided against each other for the ultimate goal of profit for corporations and power for the power brokers. Who gets the most coverage and promotion on both sides? Its the ones that present themselves in ways that are the most unacceptable as possible to the other side.... reasonable people are shut out of the debate on both sides. I do NOT mean moderates, I mean that only those unable and unwilling to compromise are going to be allowed to rise to power.

This is a dangerous train of thought because it is a conspiracy where you don't need absolute control and such, just drop money contributions in the most extreme and get those folks hooked up with advisers that will whisper what you want. You can do it legally and in the open and as a nation we are watching it and letting it happen.

[indurancevile]

13. +1

"At one time I would have said this was a nutty conspiracy theory, but I am starting to think its what is actually going on"

"it is a conspiracy where you don't need absolute control and such, just drop money contributions in the most extreme and get those folks hooked up with advisers that will whisper what you want. You can do it legally and in the open and as a nation we are watching it and letting it happen."

[FormerDittoHead]

17. Disagree on one big point... The left isn't being financed by ANYONE except OURSELVES.

>I think that the internet grass roots movements by people of all colors scares the crap out of them so they are leveraging us against each other by seeding money into both extremes.

Excuse me? I see a LOT of money going to the extreme right.

I do NOT see the big money going to the extreme left, or even the middle.

The "extreme" opposition to the extreme right is THE MIDDLE, and we're "compromising" on the RIGHT.

KEEPING SOCIAL SECURITY AND MEDICARE IS NOT AN EXTREME POSITION.

The "extreme left" is the way it is because WE WENT TO SCHOOL AND DID OUR HOMEWORK.

[shinyhead]

20. I wish I could believe that

But somehow I think that the truth is not so ... pure.

[indepat]

14. Enough to make one feel both queasy and

quislinged. :patriot:

[Karmadillo]

15. K&R

nt

[FormerDittoHead]

16. Good article. k&r n/t

[kenny blankenship]

18. For a clue as to how fucked we are, Alan Simpson blasts 2 Reid picks for the Junta, and get this:

it's Baucus and Murray he doesn't like.

Alan Simpson blasts Max Baucus, Patty Murray

http://www.politico.com/news/stories/0811/61022.html

Deficit hawk Alan Simpson said Wednesday he doubts the congressional debt super committee will be effective, questioning whether two of the three Senate Democrats picked for the panel are interested in finding concrete ways to reduce the deficit.

(snip)

...Conrad moves and does things, and Max is just holding back,” Simpson said. “He didn’t come to many of our meetings. And when he did, he simply said we have to collect taxes that we haven’t collected, and he’s talking about balance and this and that, but I say to my friend Max, boy, I don’t know how helpful that’s going to be.”

(snip)

“And Patty Murray, I heard what you said,” he added, referring to the criticisms of Murray that came from Republican National Committee Chairman Reince Priebus on Tuesday.

(snip)

“John Kerry will be a participant, he will do good work, he really will. I know him well.”

[sfpcjock]

19. Yesterday S&P trashed Fanny and Freddie and a dozen other mortgage banks...

and took a swipe at Warren Buffett's Berkshire Hathaway because Buffett owns Moodys (and Moodys didn't downgrade). Did you happen to catch that phony S&P dude with the Grand Canyon etched on his forhead or the other S&P gay blade from London?

Personally, I think they are N-V-T-S, nuts and trying to trash the New Deal and Social Security which is not even a part of the budget! (Unless you count BORROWING from Social Security as part of the budget).

[mmonk]

21. It's just an orchestrated move to do so, yes.