Austerity Grand Bargain Feared Between Republicans, White House

[Donnachaidh]

http://news.firedoglake.com/2010/12/20/austerity-grand-bargain-feared-between-republicans-white-house/

Robert Kuttner articulated a growing rumor that’s been floating around in liberal circles, something that the Obama Administration has actually telegraphed since the beginning of the Presidential term:

The tax deal negotiated by President Barack Obama and Senate Republican leader Mitch McConnell of Kentucky is just the first part of a multistage drama that is likely to further divide and weaken Democrats.

The second part, now being teed up by the White House and key Senate Democrats, is a scheme for the president to embrace much of the Bowles-Simpson plan — including cuts in Social Security. This is to be unveiled, according to well-placed sources, in the president’s State of the Union address.

The idea is to pre-empt an even more draconian set of budget cuts likely to be proposed by the incoming House Budget Committee chairman, Rep. Paul Ryan (R-Wis.), as a condition of extending the debt ceiling. This is expected to hit in April.

White House strategists believe this can also give Obama “credit” for getting serious about deficit reduction — now more urgent with the nearly $900 billion increase in the deficit via the tax cut deal.

I would add that the President may not just be pre-empting Paul Ryan with this move, but a bipartisan group of Senators who are basically carrying on the Catfood Commission after its demise.

More at the link --

[TheWraith]

1. The world according to the Firebaggers.

Where Obama is an enemy and Grover Norquist is our best friend. :eyes:

[Poboy]

2. The world according to the delusional.

Where liberals/progressives are an enemy and Republicans our best friend.

[Hannah Bell]

3. the actual source of the report is robert kuttner, founder of the american prospect,

a left-leaning news magazine.

[TheWraith]

4. Kuttner being the new leader in making up complete bullshit and attributing it to Obama.

According to him, Obama wants seniors to starve in the streets, and no doubt also beats puppies. When he can find one single piece of non-delusional argument, let me know.

[Hannah Bell]

5. no, according to him, obama has signed on to the establishment plan to cut social spending.

a bit different from "obama wants seniors to starve".

a bit different.

i'm sure all the people pushing this would deny they "want seniors to starve".

but eggs will be broken.

[TheWraith]

6. The "establisment plan"? And what exactly is that?

Other than a somewhat paranoid concoction based on the belief that a one year temporary tax reduction is going to destroy the largest and most stable government program in American history.

[Hannah Bell]

7. lol. the plan the cato institute wrote about in 1983.

the same year reagan-greenspan & a bipartisan congress started taxing SS & jacked up taxes to produce ever-growing surpluses.

[TheWraith]

9. So you believe the Social Security Trust Fund is part of a conspiracy to destroy Social Security.

Seriously? Where do people come up with this stuff?

[Hannah Bell]

11. the trust fund has always existed. it didn't always generate an ever-increasing surplus.

that was a product of the reagan-greenspan commission & the bipartisan congress of 1983.

but nice try on the strawman.

sop for those with no argument that will hold up to scrutiny.

[TheWraith]

12. The reason for the surplus, & establishing the trust fund, was to build up cash to pay for boomers.

Please explain how keeping Social Security solvent through the Baby Boomers is a conspiracy to destroy it.

[Hannah Bell]

15. Collecting extra money to be borrowed into the general budget for 30 years & paid back

out of the general budget 30 years later is *not* "keeping social security solvent" or "building up cash to pay for boomers".

It's picking Boomer & Gen X-er pockets for 30 years in order to give tax cuts to billionaires.

It did *nothing* to make SS more solvent or "build up cash".

It is what allows the enemies of SS today to scream that there's "no money!" because SS has to be repaid from income tax money.

It was a scam. A purposeful one.

[Lasher]

16. The trust fund is not an illusion.

Your description is not accurate. Yet. But I fear Obama and Congress are going to make it so.

[Hannah Bell]

19. my description is completely accurate. the reagan-greenspan legislation

was indeed a scam. there was *no* reason to build an ever-growing surplus in the TF that would have to be paid back 30 years later.

it's completely obvious from what's going on now -- which is cries that SS is going bust, that the country can't afford to repay, & cries to cut benefits or raise SS taxes, despite the presence of nearly $3 trillion in debt to SS in the TF.

The rising TF balance was historically unprecedented. The TF is *not* social security, which had historically been paid from current collections with the TF being used to park no more than 1 years' reserves or cover small shortfalls in collections.

[Lasher]

21. Those cries are meaningless unless our government heeds them.

If Congress and the President do nothing, the bonds must be redeemed from the general fund. That is the law as it now stands. The only real danger to Social Security comes from those who say they want to reform it. This massive betrayal is in the works but is not yet a done deed.

[Hannah Bell]

23. our gov't will heed them if people don't wise up & make a ruckus.

pretending like the trust fund *is* social security & reagan-greenspan saved it = encouraging stupidity.

[eridani]

17. Obama = Norquist n/t

[jtown1123]

20. I guess we'll just see in 4 weeks right? Obama has already said he needs to "address"

Social Security and Medicare (code for "cuts")

[asjr]

8. When the President goes on national

television and says "I am going to cut the social security plan." I will believe it. Other than that I will not say more.

[blindpig]

10. Feared? More like guaranteed. n/t

k&r

[MineralMan]

13. Rumors abound. You can almost always find one to suit your

position somewhere. Firedoglake is a great source for rumors. That's why so many people post stuff from there. Something for everyone, it seems.

You let me know when this nonsense actually happens, OK. Until then...feh!

[girl gone mad]

18. ok.

You just get back to your nap.

Someone will let you know when the austerity kicks in.

[MineralMan]

14. "Robert Kuttner articulated a growing rumor..." Shouldn't that read:

"Robert Kuttner started a misleading rumor...?"

[DirkGently]

22. We can all agree any proposed SS cuts in the name of "deficts" are unacceptable. Right?