Ezra Klein cautions his readers not to get too attached to the idea the 14th Amendment’s prohibition on questioning the US debt might offer a way out of, or at least some leverage on, the debt limit hostage taking. Heaven forbid we grasp at straws.
Klein warns us this path might reveal to investors that our political system has run off a cliff, so like Wile E. Coyote, we’d quickly fall to the bottom.
Layering a constitutional crisis over political gridlock may work in the sense that the Obama administration will win the court case. But it’ll fail terribly in terms of sustaining the market’s confidence in our political system. That’s a step toward total breakdown, not evidence that agreement can eventually be reached and economic renewal achieved. The debt ceiling needs to be resolved in a way that assures investors that America’s other economic problems will be resolved, too. A court case that affirms the executive’s right to rack up more debt and the political system’s inability to agree on a reasonable deficit reduction package is the precise opposite of that.
I don’t want to frighten Ezra by asking him to look down, but we are already over the edge of a Constitutional Crisis cliff and headed for the river below. The 14th Amendment may be the closest thing we have to Roadrunner’s unused wings, so we best start flapping or at least learn to glide on the way down.
The Tea-GOP has the federal government under siege and has essentially shut down every democratic process for even keeping the government going, let alone solving real problems. We can’t pass a budget, can’t extend the debt, can’t raise revenues, can’t fund unemployment insurance or rescue Medicaid, can’t allocate money to people, cities and states in desperate need and can’t even get decent people confirmed for key government jobs. And if you’re in one of those groups who might object, they will suppress your vote and bury the elections with well financed propaganda. What more evidence do we need to recognize the Tea-GOP has dragged us over the cliff?
Their price for letting us reach back for terra firm is that we emasculate the government’s ability to function in the future and cripple its ability to use the powers the Founders gave the federal government to address further the public welfare. This is what strangling the government — and our democracy — in a bathtub looks like.
The President and his Party have foolishly, recklessly embraced these scoundrels and their nation-destroying tactics and joined them off the cliff. It’s obvious that if the country does not wish to crash, it must either convince its leaders to let go of these destructive notions, or we must let go of them and grab for whatever safety we can.
But the last thing we need to worry about is telling the markets we’re standing on nothing but thin air and are about to fall. Smart investors already know that and have been sending out warnings, but no one is listening. The rest are watching from their well-anchored positions on Wall Street and gated communities.



45 Comments

Ezra hisself went over the cliff when he took his present job long ago.
I ignore him at all cost, like I do the rest of The Bleating Milk Fed Veal Pen.
;-)
The entire issue about the debt ceiling is just another high-drama pseudo sideshow that the party of one have staged for the rest of us, another version of Hank Paulson’s chicken little sky is falling too big to fail Wall Street Banks TARP side show.
One side wants the debt ceiling raised to “save” the country [Demos]
One side says NO not until you let us cut Medicare and Social Security [Repugs]
In the end we will have “bipartisanship”. The Democrats will get their debt ceiling raised and Wall Street will be all smiles.
Medicare and Social Security will be reduced and the millionaires will be happy.
The thing that most Americans miss is this is all nothing but pure theater, but hey, it gives the pundits on TV something to yammer about and make politicians look like they are really addressing a problem–which they are not.
As I mentioned previously there are at least four solutions to our national debt that could be undertaken that don’t even involve removing the Bush tax cuts, much less cutting Social Security and Medicare:
1. End the War in Afghanistan $104 billion a year saved
2. Cut the farm subsidies that go to the rich: $19 billion a year saved.
3. Start collecting taxes that are owed but not paid. In the USA tax evasion added $3 trillion to the deficit over the past decade alone, an average of $300 billion a year, according to IRS data. This isn’t revenue lost from legal tax write-offs, like the mortgage interest deduction. It’s not even, as the IRS notes, “taxes that should have been paid on income from the illegal sector of the economy.” That $300 billion represents the amount of revenue lost from people deliberately cheating on their taxes every year. This includes underreporting income, hidden offshore bank accounts, sham trusts, and other ways to illegally stiff the IRS.
4. How about taking back what’s left of that $100 billion the American Taxpayers forked over to IMF in 2009?
There are ‘markets’ where those that have nothing better to do than manipulate pieces of paper that don’t represent anything but ‘faith’
and then are the markets where people shop for that which is essential to their lives, such as food.
And here’s but one example of what’s going on with those markets:
http://eon.businesswire.com/news/eon/20110628007189/en
the “national debt” is not an economic problem in need of a solution.
Wile E! Wile E! Don’t look down!
dear ezra,
there is no reasonable deficit reduction package and the problem with our political system is not it’s inability to agree on one.
our real problems include unemployment, healthcare, the environment, real resources, a parasitic fraud based financial system and a political system that has been bought and paid for by those representing a predatory economic class.
I hate it when we have to explain cartoons to Serious People.
Ezra Klein, Malitsas, Chris Hayes, Wolf, and there is another one who I forget, (the worst one) who all look like and act like peas in a pod. (slight, monotone, look dead straight at the camera, lisp a little. )
It must be a sort of a cloud chamber where they create these media guys. That must be the reason, that these several all talk alike, sit alike, look alike, clones.
I don’t care that they have what seems like a unisex subtext, that’s immaterial, it might be even better if they could cultivate some interesting cross gender bender personal gimicks too, be enternainers for Pete’s sakes.
Who wants cookie cutter pundits, I mean it makes it easier for the automated system that monitors everything that they say or read on air but at the expense of having a real live person, if that has value. Why take away from the personal touch of a human news announcer by making it so android that it is superfluous?
I guess that’s what I wonder about those ones.
LOL! You see Ezra on ‘How you know the debt talks have failed’ yet?
http://www.washingtonpost.com/blogs/ezra-klein/post/how-you-know-the-negotiations-have-truly-failed/2011/05/19/AG13r5qH_blog.html?hpid=z1
Ha! The repugs have been telling the world for a year now that we are broke!
Actually, Ezra needs to keep his mouph shut. I want an itemized list of what comprises that Deficit. How else are we gonna find what needs to be cut?
Ezra Klein is under the impression that it is important to maintain “confidence” for the “market”.
The market ain’t God, the market ain’t physical, the market is just a concept. And the people trading in the market would mostly like the darn debt limit crisis to go away …
Now many of them people are Republicans and want to assert their power, turn the ship of state away from entitlements, etc., but that has nothing to do with their “confidence”.
Keep government running, man up, stop negotiating with thugs, the market will be just fine.
Or as I like to call him, “That Idiot Ezra.”
Right! the markets are manipulated just like the Fed does everything else. There is fraud on every level.
ezra aint no pound,and isnt dry behind the ears
I’m just stunned over the way the deficit-debt linkage has become accepted. I mean, you can blame the media but it’s Obama’s fault more than anyone. No turning back. The deficit must be cut in order to raise the debt ceiling. Because….. because…. because idiot President totally let the narrative be written for him.
Home
70% Of All Stock Market Trades Are Held for An Average of 11 SECONDS
Submitted by George Washington on 10/22/2010 15:34 -0400
New York TimesProgram TradingTyler Durden
→ Washington’s Blog
zerohedge
Note to Ezra: Markets are supposed to serve people. People are not here to serve markets.
Like all the other plays on production up there in DC!
There has been no review of what items are in that Deficit, they just need to cut everything everywhere except for the ones that matter to TPTB and MOTU!
Or as I like to call him, “That fucking idiot.”
Klein is obnoxious. The Turk needs new guests.
i repeat!!!!1
Home
70% Of All Stock Market Trades!!!!!
Are Held for An Average of 11 SECONDS !!!
Submitted by George Washington on 10/22/2010 15:34 -0400
New York TimesProgram TradingTyler Durden
→ Washington’s Blog
Ezra says that the POTUS and Senate caving to a minority and needlessly cutting spending by trillions of dollars in a recession will increase confidence. Now, if that doesn’t prove he’s a fucking bought-and-paid-for tool, what ever could?
Jonathan Turley just explained that if the issue of whether the Executive Branch can just use the 14th Amendment to ignore the wishes of Congress went to court – the Executive Branch would lose.
While the language in the 14th is very explicit about not questioning the debt – the Congress isn’t ‘questioning’ per se – they are just deciding whether/when to pay.
According to Turley.
I have heard others discuss this (can’t remember who) but that other person’s reading of the 14th is that what it says/means is that you cannot do anything to cause any ‘question regarding the full faith and credit’.
I would argue that the Rethugs in this Congress are doing exactly that and they should all be prosecuted for doing so. Immediately.
Take that a step farther.
The entire industrialized world’s economy is in the hands of stock trading computer AIs trying to out guess each other.
WORD!
Corrupt and corrupted, and even more corruption.
Ezra has been breathing the beltway air for too long. He’s so into being part of the kewl kids that he isn’t even listening to the drivel that is emanating from his pie hole.
Poor Ezra. So young to be such a waste. Not sure what everyone saw in him to begin with.
Actually, the repugs wish to DEFAULT on the Debt which is grounds to have them all removed from office.
They are also using the full credit of the UNITED STATES as a blackmail leverage to get rid of social programs. That’s all.
I agree – treason by the GOP.
But Ezra says what Obama tells him to say – so the program is to sell the screwing of the sick and aged in the name of the debt limit – and have us buy into the “Obama was forced to do this but his heart is with you – and besides you have no place to go” meme.
“Not sure what everyone saw in him to begin with.”
A compliant, amoral, easily-bought-off, semi-educated, pseudo-sophisticated, little twit. And they got what they paid for
“Congress isn’t ‘questioning’ per se – they are just deciding whether/when to pay.”
The 1935 Supreme Court case opinions do not seem to agree with Turley’s thinking.
But I guess the Turley opinion is straight from the mouth of Obama.
it boggles the mind
forget casino royal….THIS IS computer casino rally all
X2
Hah
Here’s another good headline/title from Yves Smith last week
http://www.nakedcapitalism.com/2011/06/ezra-klein-should-stick-to-being-wrong-about-health-care.html
x2
I suspect the value is as a threat, while the markets complain to the GOP. But I have no certainy about the path and I don’t have a lot of confidence in our court system.
More
http://www.zerohedge.com/article/themis-trading-new-white-paperexchanges-and-data-feeds-data-theft-wall-street
Seems Klein is loosing his bearings faster these days. 2 other recent unhinged posts :
http://www.washingtonpost.com/blogs/ezra-klein/post/wonkbook-is-obama-secretly-the-greatest-republican-ever/2011/06/20/AGxM1ecH_blog.html?wprss=ezra-klein
And this one :
http://www.nakedcapitalism.com/2011/06/ezra-klein-should-stick-to-being-wrong-about-health-care.html
I AM SOOO OVER EZRA KLEIN AND DAILYKOS!
At least over here everyone is civil and don’t try to act like that pompous ass Mark Markisos (?) I wrote an article about how in the hell did Rahm think he gave the house to the Dem in 2006? With GWB approval plus Iraqi war fatique…..A gotdam roach probably would had beat out a rethug! And the next thing I know my account was deactivated, along with some bathell bullshit about how I can reinstate my account…..I POLITELY RESPONDED…..FUCK YOU AND THE HORSE YOU HUMP ON!!!!
This site is sooo refreshing and those at dailykos are soooo damn SMUG…..Mark M. used to call the democrats (piss poor) now they on some sort of obomotrons…fuck them!
THANK YOU FIREDOGLAKE….I HOPE YOU HIT THAT 1000 MEMBER MARK!!!
You don’t even need to appeal to the 14th
The law establishing a debt ceiling has always been an unenforceable dead letter, a purely symbolic measure. That’s because its prohibition on further borrowing only comes into play when meeting govt obligations would require borrowing above the current limit. But those obligations are just that, legal obligations, money the govt has to pay out to comply with some or another law passed by the same Congress that passed the debt ceiling.
Even without appeal to a part of the Constitution, which of course trumps a mere law, the debt ceiling is already trumped by other mere laws. I guess the president could choose to defy the law that requires a particular govt expenditure in order to comply with the debt ceiling law. But why wouldn’t he choose instead to defy the debt ceiling law in order to comply with every law creating a govt obligation to spend money beyond the ceiling? Both choices involve failure to comply with a law, but the difference is that the latter also involves fiscal and economic Armageddon.
This isn’t a real choice. Of course every president would choose, in the face of the national debt pushing up beyond the debt limit, to simply ignore the debt ceiling. In this case, this president has the added incentive, as if preventing the apocalypse wasn’t incentive enough, that having this little House attempted putsch fall flat on its face as he humiliates the House by calling their bluff works to his poluitical advantage. Hell, with the economy it looks like he’s going to have to run on, an opportunity to humiliate the Rs in a failed attempt to cause an economic meltdown may be the only way he wins re-election.
The House R threat to refuse to raise the ceiling is not even slightly threatening. It’s the opposite of threatening to the Ds, it’s the promise of a rich political harvest for the Ds. If the administration and Senate Ds are helping the House Rs pretend that it is a threat, it’s guaranteed to be 100% kabuki, 100% a case of Ds seeking an excuse to grant as if they were concessions, measures they must actually want in their own right.
He is just following the script the Rothschild Financial Cartel has given him :)
If the President can ignore the right of Habeas Corpus, carry out war without a declaration or appropriation of congress, arrest anyone and keep them in prison indefinitely without trial, and order the murder of anyone anywhere in the world without the process of law, why won’t he just ignore this “debt ceiling”. Maybe because it involves money and not just human life. It may also be that it suits his purpose as an excuse to do something he really wants but dare not be seen to do willingly.
Calling this treason is right on (no pun intended) – as scarecrow writes, warnings are being sent out – think about it – what happens if the economy collapses? who wins? the corporations that then create an oligarchy – the intellectuals should truly be scared at what is coming – who is armed, not the liberals and true patriots that believe in our democracy – who have their private armies, not the liberals and true patriots – the oath takers will not follow command and will not arrest fellow citizens and who fills the ranks of the military and the command structure, religious zealots that are blindly following the oligarchs – we need to fight now within the system although it might be too late or we will fight in the streets and our ideas, lack of money, lack of guns and lack of preparation will mean nothing and if we live through it we will watch our nation turn to fascism and oligarchy (if we are not there already)- sorry to be paranoid but it appears the repugs really mean it and are ready to let our government collapse along with the economy – are you prepared?
Then better get guns, ammo, and start practicing..fast! Or else have yourself and your loved ones be gunned down by those mad dogs. I think a lot of liberals and progressives DO have guns for protection against crime. We just need to tune up and,if need be, tool up.
Should they steal my government as they are trying to steal the heart and soul of my nation then let’s do it – tool up and defend our democracy and our form of government – bring it on.
Many of us here are similarly refugees from the OS (orange satan). You’ll like it here. There are some sharp people at Dkos, but the average IQ here is at least 20 points higher – and you don’t get banned for being liberal.