Monthly Archives: June 2011

35 Days ’til Default; Even FOX Business Gets It

According to FBN’s Elizabeth MacDonald, if lawmakers can’t reach an agreement on the debt ceiling the bond markets stand to lose $100 billion.  Thus, not raising the debt ceiling could adversely cost the United States even more, from bond holders to mortgage holders, in terms of interest costs on debt.

Typically, loan rates are tied to 10-year Treasury bonds.  With ratings companies poised to downgrade the U.S. Government’s credit rating to double-A, or even worse, single-A, resulting interest rate increases could prove devastating to taxpayers.  Those rate increases would dramatically escalate the size of the US Debt and budget deficits.  But the devastation wouldn’t stop just there, it would impact what each and every one of us pay out each month for our mortgages, our car payments, and everything else we purchase from each and every retailer.  Because interest rates are based on U.S. Treasuries, interest rates on loans to do business across this nation will skyrocket.

FBN’s Elizabeth MacDonald told the audience, “The US missed a payment on $112M in debt back in 1979 and that missed payment basically cost the U.S. $86B mapped across the whole spectrum of U.S. Treasuries.”  We’ve already seen a spike in rates portending what is to come, but GOP members of Congress and candidates like Mark Amodei are blind to the signs and deaf to anything other than that being spewed forth by the GOP’s plutocratic backers.

According to the S&P, bond prices would fall dramatically if the US were to lose its triple-A rating and interest rates will spike even higher.  MacDonald likes to watch what’s happening in the credit default swap market as she feels it acts like a weather vane as to what’s happening or about to happen in the rest of the market.  Click on the GRAPHIC above to watch Elizabeth MacDonald explain the dilemma facing the Congress.  [DEFINITION:  Credit Default Swap—A security that transfers the risk of default on a fixed income product to a different party.]

NV-CD2 doesn’t need representation from someone like Mark Amodei who is willing to pander for votes from the extremes on the right, which would portend economic disaster for the rest of us.  Such a stance would not balance our national budget, nor would it close budgetary deficits.  In fact, it would devastate not just the federal budget via increases in interest rates, it would devastate family budgets all across this nation.

It’s time for a change in leadership and voice for sanity in NV-CD2 .  It’s time to elect someone who understands economics and how to a treasury actually works, that there is both an income stream as well as an outgo stream.  It’s time to put someone in the NV-CD2 seat who has OUR backs, instead someone whose aim is to protect the interests of the banking, finance and oil industries.

So, as this campaign season ensues, turn the channel whenever you see an ad from Karl Rove’s Crossroads organizations or any of the other right-wing organizations attempting to buy your vote.  Just tune it all out and instead vote for sanity by voting for Kate Marshall on September 13th.

Kate Marshall is Democratic Nominee

In a near-unanimous vote at Saturday’s Nevada Democratic Party meeting, Central Committee members decided that Nevada state Treasurer Kate Marshall (D) will be the Democratic nominee in the Sept. 13 special election for Nevada’s 2nd district.

Nancy Price withdrew from the race prior to the election.  That left Kate vying for the nomination against two lesser known candidates, retired Washoe County principal Jacques Maye and Rex Ricks of Reno.  In her introductory speech, State Treasurer Kate Marshall told Nevada Democrats Saturday she wants to be their “gal in Congress” and members of the state central committee have agreed to give her a chance.  Of the possible 122 votes, she received 117.  She accepted the nomination proclaiming, “One down … one to go!”

The NV Supreme Court has yet to rule in the challenge to the  special election law ruling.  So, it’s still up in the air as to exactly who she’ll ultimately face in the September election.  But, at this point, it appears that the major contenders she’ll be facing off against in the special election will be former state GOP chairman Mark Amodei and potentially Kirk Lippold who may not yet be willing to give up a run for the seat.

Nevada’s Congressional District #2 Seat has never been held by a Democrat since it was created 30 years ago. It’s not like we haven’t tried, but NV-CD2 has a significantly higher number of Republican and conservative Indepent American Party voters.  However, this year may prove to be a pivotal year for Democrats given the GOP’s penchant to wipe out and privatize social safety net programs.  GOP/Tea Party candidates are backing Ryan’s ‘kill medicare’ plan and already heralding they would vote against raising the debt ceiling.  Kate, on the other hand, has a clear understanding of economics, understands what it takes to balance a budget, and understands that we need to create an economic strategy that would support job creation, in this nation, not some other nation at our expense.

Roberta Lange, NV Democratic Party Chair, in differentiating our Democratic candidate from Republican candidates said that, “While Kirk Lippold and Mark Amodei are fighting to end Medicare, privatize Social Security and ship American jobs to China, Kate is committed to creating jobs that stay in Nevada and protecting Social Security and Medicare.  No matter what twists and turns this election process takes, Nevada Democrats are united behind Kate Marshall’s campaign and ready to get to work to elect her as Nevada’s next Congresswoman.”

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Dems: “We Can’t Continue to Let GOP Put Jobs Last”

It’s been190 days since the GOP took control of the House using a “Jobs” campaign message … and we’re still waiting on a Republican jobs bill. Democratic Senators are urging that job-creation measures be included in the final debt reduction deal resulting from the bipartisan negotiations led by Vice President Biden.

“Congressional Republicans abruptly pulled out of debt-reduction talks with the White House on Thursday and demanded that President Obama meet directly with GOP leaders to resolve an impasse over taxes,” according to the Washington Post.  Not liking where things were going, Mr. Cantor has acted like a six-year old, picking up his marbles and leaving the game,  threatening not to return until and unless Democrats take tax hikes for the rich off the table. (Just a question, but being rich himself, would that qualify as self-dealing?)  Now they want the President to step in to the fray so they can blame him for their own incompetence.

I’m sorry, but it’s not the President’s job to do the job of the House of Representatives.  The Majority Leader, Eric Cantor, knows or should know that, if that is, he’s read that Constitution he so proudly rants about.  The House of Representatives is the only entity of Government that can appropriate monies with which to fund government.  Hence, they are the only entity that can approve the Nation’s budget and forward it on to the Senate and President for concurrence.   This is a ploy by the GOP to drag the President into the fray so they can blame their financial incompetence on him instead of taking the hit themselves.

I certainly hope Americans are paying attention and learning that the GOP is totally incapable of effective leadership.  They have no forward looking vision for America. The best they can do is to use bullying tactics for force people to go along with their goal of  ‘taking America back.’  Back to ‘where,’ or back to ‘when’?   These guys are drama-queens.  All they’ve done since January is to manufacture one crises after another and then hold critical aspects of our economy hostage until they get their way.  They’re so mired in their benefactors’ nostalgic 1890s views of where American should be, they’re totally deaf and blind to anything contrary to their perception of science, economics, our nations needs, and the world as a whole.

Look out Mr. President, these guys are totally incapable of leadership on the truly critical issues facing our nation, and now they’re looking for a fall guy.

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