October 15, noon. I assume the Republicans and Democrats will work something out in the next few hours to prevent a debt default. Media reports say the deal will reject attempts to destroy Obama’s health care law and just fund the government for three more months, to January 15. This is called “kicking the can down the road”. Supposedly this is a big defeat for the Tea Party Republicans and the Cult of No Spending
But it’s more than that. The Budget Control Act of 2011, generally known as “sequestration” will take its second hit on January 15. Here’s a little background. Back in 2010 the new Republican majority in the House started alarming the public to a very scary monster, the growing amount the U.S.government owed in debt. Supposedly the world was about too stop lending to the U.S. and prices would rise like mad. (This never happened and the “world” is still buying U.S. Treasury bonds even though they pay very, very little in interest, but the panic propaganda was effective.). The Republicans were able to make “government debt” the issue of the day and Obama agreed to sign a law that set up a committee that would cut government spending. The kicker was, if the committee couldn’t agree, there would be automatic spending cuts for ten years. That was the “sequester”. Now no one actually wanted the mindless automatic cuts to go into effect. It was just supposed to be a club hanging over the heads of Congress to make them come up with “sensible” cuts.
Well, surprise, the committee never agreed and on March of 2013 the first cuts went into effect. The U.S. Congressional Budget Office estimated that the cuts will cost the country 750,000 jobs. (See how the cuts affected Sioux Indians on the Pine Ridge Internment Camp.) The next cuts will be made on January 15 of 2014.
Obama’s “win” on health care helps freezes in the sequester. Instead of what we really need, massive government public enterprises in climate industries that could employ millions, the government pledges to starve current programs and pull in another notch on Uncle Sam’s belt.
Nineteen million who want full time jobs can’t get them. Over ten million have been evicted from their homes. And the issue of the day is how to respond to the Cult of No Spending’s demands for more slashes to government programs.
And speaking of Obamacare, read or listen to this report on Democracy Now! with the title “Has the GOP Already Defeated Obamacare?”. It talks about the millions of people who will have to buy insurance, who can’t afford it and who won’t get government help.
October 15, at 11 p.m. – And maybe the politicians will get a little too close to the brink, and topple over and drag millions down with them. The Cult of No Spending may really believe it’s best to tear down the system and make it even more to their liking. What does Naomi Klein call it? the Shock Doctrine.