Krugman: "To the Limit"

"To the Limit" By PAUL KRUGMAN

"During the administration of former President George W. Bush — who added more than $4 trillion to the national debt — Congress, with little fanfare, voted to raise the debt ceiling no less than seven times."

"So the use of the debt ceiling to extort political concessions is something new in American politics. And it seems to have come as a complete surprise to Mr. Obama."

"Republicans believe, in short, that they’ve got Mr. Obama’s number, that he may still live in the White House but that for practical purposes his presidency is already over. It’s time — indeed, long past time — for him to prove them wrong."

The House won't raise the U.S. debt limit.
The Senate can't raise the U.S. debt limit.
The President has few options. He can let the economy crash on August 2, 2011 or he can take drastic action. Perhaps he is waiting until the last minute to do something to avert economic disaster.
The only thing the President can do now is declare a state of national emergency, which would take the matter out of the hands of Congress.
See this petition for details:
"Declare a state of national emergency to deal with the economic crisis"
http://www.change.org/petitions/declare-a-state-of-national-emergency-to-deal-with-the-economic-crisis

This would allow the President to take drastic actions including the creation of jobs as was done by FDR with the New Deal.

We know that HR 589 is not going to be passed by the House. We know that Congress won't extend unemployment insurance benefits. We know that the unemployed are being forced into poverty and homelessness. We know that President Obama is the only person who can do anything about the American economic catastrophe.

The President could enforce the "Humphrey–Hawkins Full Employment Act"
http://en.wikipedia.org/wiki/Humphrey-Hawkins_Full_Employment_Act
-"If private enterprise appears not to be meeting these goals, the Act expressly allows the government to create a "reservoir of public employment." These jobs are required to be in the lower ranges of skill and pay to minimize competition with the private sector."

It is indeed long past time. The President is holding a "tweet town hall on July 6th. We all, as a group need to submit our questions as long term unemployed and as 99ers. He needs to see our numbers, he needs to get nothing but questions on benefits and job creation and not job creation that will leave us with no benefits for two additional years while these new jobs are created. We need immediate action and immediate help. One plus years with nothing is too long. They need to address this situation regardless of the debt ceiling. They can argue that and ruin the world's economy on their time, our time is running out and we as a group need to act now, then they need to act right after.

If President Obama lets the U.S. default by not raising the debt ceiling, then he loses his respect and legitimacy as President. He will be referred to as worse than Jimmy Carter in the Iran hostage crisis.

At this point the issue isn't about new legislation to create jobs or extend Unemployment Compensation benefits, it is about enforcing existing laws that regard the current situation. We can call for job creation until we are all hungry and homeless, but Congress is not in the mood to do anything in that regard. The "Humphrey–Hawkins Full Employment Act" is law and only needs to be enforced. The President can't make Congress pass new legislation, but he can enforce existing laws. The time for giving concessions is over. The Republicans walked out of the debt ceiling talks and are willing to watch America collapse so that they can secure more tax breaks for their rich contributors.

Although the President is great with rhetoric and sends a mean tweet, there is not much he can do. It may take years for new jobs to be created, but the unemployed need immediate action and immediate help. Now is the time for President Obama to act like FDR.

I don't think the Repubs or Dems will allow a default, I believe that both parties are the same monster and that they both are acting like they are holding out when in reality they are ready have agreed to a plan; it’s like watching wrestling on cable.

Ive been feeling the same way about it lately tristen. While I do believe some of them are not acting, for the most part I am starting to think its all just a part of the show. It is quite sickening

So then what that means we really have no rep. and really no where to turn

McCain: Americans 'don't want compromise' on tax revenue hikes
By Tom Cohen, CNN
http://www.cnn.com/2011/POLITICS/07/03/mccain.debt.deal/index.html?hpt=hp_t2

"On C-Span, Paul said Obama should remove the specter of government default by ensuring that bond obligations and other foreign-held debt would be paid even without a deficit reduction agreement.

When asked if Congress could then decide how to spend the reduced pool of money to run the government, military, entitlements and other programs, Paul smiled in agreeing it would bring some touch decisions.

"For a change up here we might have to prioritize," he said. "We might have to be true legislators and decide what we have money for."

"On C-Span, Tea Party favorite Sen. Rand Paul, R-Kentucky, said he and other freshmen senators are frustrated with the lack of debate on the debt ceiling issue and will filibuster any other issues in the Senate this week. "
"Paul said he'd be willing to support an increase in the debt ceiling, which would allow the government to borrow more money in order to pay for spending already accrued, in exchange for congressional approval of a constitutional amendment requiring a balanced federal budget."