This is getting ugly. Republican lies are out of control, but the Democrats only want to talk about the Russia-gate farce.
Everyone agrees that the purpose of the Republican tax cuts is to increase the federal deficit so Republicans can use it as a pretext to cut Medicare and Social Security. Marco Rubio has admitted that this is the plan. Paul Ryan is even blunter. Ryan claims that the cause of the (fake) “national debt crisis” is Medicare and Social Security. In order to address the (fake) “national debt crisis,” we must  cut taxes for the rich, which will “spur growth” and  cut Medicare and Social Security.
Note the contradiction. The masses are saying (correctly) that lower taxes will cause higher deficits. The masses are also saying (incorrectly) that higher deficits will cause a higher “national debt.” Paul Ryan says yes, tax cuts will increase the “national debt,” but we need tax cuts for the rich in order to “reduce the national debt.”
The masses submit to this absurdity because they insist on deluding themselves about federal finances. Since the masses think the U.S. government runs on loans and on tax revenue, the masses agree that federal spending must be cut. And since military spending in untouchable (the greatest “entitlement” of all) we must cut Medicare and Social Security.
I’m seeing a growing campaign in the blogosphere to set everything up for an attack on Medicare and Social Security. Here is The Hill blog…
Oh no! No one works anymore, since everyone is getting government handouts! The debt nightmare is coming soon!
It gets worse…
Check out the video below. At almost 83 years of age, Sen. Orin Hatch sounds like he should be in a nursing home. The evil geezer is chairman of the Senate Finance Committee, which wrote the Senate’s version of the Republican tax cut plan. Hatch knows that the U.S. government creates its spending money out of thin air. That’s why the government sets new records every year in its giveaways to military contractors.
In the video below, Hatch talks about the Children’s Health Insurance Program (CHIP) which until two months ago paid for health care for 9 million poor children, and cost about $14 billion a year (which is about one sixth of each year‘s increase for the Pentagon). The program expired two months ago, and the Republican-controlled Congress has not renewed it.
At 0:43 Hatch whines, “The reason CHIP’s having trouble is because we don’t have money anymore…”
This is after Hatch pushed through the Senate version of a $1.5 trillion tax cut! And of course there is infinite money for wars and weapons.
Hatch goes on to say that people who get government benefits, and are not rich are lazy parasites. “For decades now we’ve been spending more than we have, with more and more federal programs…”
Some progressives say that because of antics like this, Republicans have lost their authority to tell us what the U.S. government can and cannot afford. I wish that was true, but both sides (progressives and right wingers) defend the lies about U.S. government finances.
Meanwhile the corporate media outlets are doing their part to advance the Republican lies. Here’s the New York Times…
The United States is already facing a gloomy fiscal landscape. The federal deficit this year topped $660 billion, despite healthy economic growth, and the national debt now exceeds $20 trillion. Janet L. Yellen, the outgoing chairwoman of the Federal Reserve warned last week that the national debt “is the type of thing that should keep people awake at night.”
Progressives also keep the lies alive. From the Global Research blog: The Real Causes of Deficits and the US Debt.
Social security has created a multi-trillion dollar surplus since 1986, which the US government has annually ‘borrowed’, exchanging the real money in the fund created by the payroll tax and its indexed threshold, for Treasury bonds deposited in the fund.
No. There is no “surplus” or “shortage” in the (non-existent) “fund.” Federal finances work like a scoreboard…
This is depressing, so let’s have some cartoons…
CHANGE OF TOPIC
Do you see anything wrong with the following assertion?
When Mexico declared in 1982 that it would be unable to service interest payments on its national debt, it sparked a global initiative that led to legislation such as the International Lending Supervision Act of 1983. From Investopedia
So maybe there’s something to this “national debt crisis” after all, yes?
On 12 Aug 1982 Mexico announced that it could not pay interest on its foreign debts in foreign currencies.
Mexico’s “national debt” in Mexican pesos can never be a crisis, since Mexican government and the Bank of Mexico can create infinite Mexican pesos out of thin air.
The failure to distinguish between (1) foreign debts in foreign currencies and (2) domestic debts in domestic currencies is sometimes a product of ignorance, and sometimes is done intentionally, in order to sustain the delusion that the “national debt” in domestic currency is a “crisis.” In reality it can never be a crisis in any nation whose government creates its own currency.
This fake U.S. “national debt crisis” is why we get this…