Weekly Pulse: GOP Plays Chicken with the Debt Ceiling
By Lindsay Beyerstein, Media Consortium blogger
Sen. Jim DeMint (R-SC) is calling for a "big showdown" over the upcoming vote to raise the nation's debt ceiling to $14.3 trillion from $13.9 trillion. The debt ceiling is simply the maximum amount the government can borrow.
Congress routinely raises the debt ceiling every year. It's common sense: Since the government has already pledged to increase spending, Congress must authorize additional borrowing. (Remember that the government is now forced to borrow billions of extra dollars to pay for tax cuts for the wealthy, which Republicans insisted on.) If the ceiling isn't raised, the United States will be forced to default on its debts, with catastrophic consequences.
Why would default be catastrophic? The principle is the same for countries and consumers alike: If you have a good track record of paying your bills, lenders will lend you money at lower interest rates. If you don't pay your bills on time, or default on your obligations altogether, lenders will demand higher interest rates.
Congressional Republicans say they oppose raising the debt ceiling because they favor fiscal responsibility. This kind of rhetoric is the height of recklessness. The interest on our debts is a big part of government spending. Even idle talk about defaults could spook some creditors into raising interest rates on U.S. debt and cost taxpayers dearly.
Steve Benen of the Washington Monthly quotes Austan Goolsbee, chair of the White House's Council of Economic Advisers, who says that congressional GOP members are flirting with the "the first default in history caused purely by insanity."
Making work pay (for real)
An astonishing 80% of full-time minimum wage workers can't afford the necessities of life, according to new research by labor economist Jeannette Wicks-Lim of the Political Economy Research Institute, featured on the Real News Network.
Wicks-Lim argues for a two-part solution to the crisis of working poverty in America: i) raising the federal minimum wage to $12.30/hr from $7.50/hr; ii) Increasing the earned income tax credit to 40% of income. She estimates that these two policy changes would raise the income of a minimum wage worker from $15,000 to about $36,000 at a manageable cost to employers and taxpayers.
Her proposal is a revamp of President Bill Clinton's attempt to "reform" welfare by cutting social service benefits and shifting government spending to tax credits. Currently, the Earned Income Tax Credit is a subsidy for the working poor that is designed to "make work pay"--i.e., if workers aren't making enough in wages to secure a decent standard of living, the government provides an income subsidy to reward them for working.
However, if a decent standard of living remains out of reach for 80% of full-time minimum wage workers, Wicks-Lim argues that the minimum wage is too low and the subsidies are too modest to achieve the stated goal of making work pay.
Colorado minimum wage inches up
Speaking of minimum wage issues, Scot Kersgaard of the Colorado Independent reports that the minimum wage in the state ticked up from $7.25 an hour to $7.36 on January 1. The modest increase represents the annual adjustment for inflation. Every bit counts, but Colorado families are falling further behind. According to a new report by the Denver-based Bell Policy Center, 8.3% of working families in Colorado live below the federal poverty line, which is $22,050 for a family of four. Fully one-fourth of Colorado families do not earn enough to meet their basic needs, which requires an income approximately twice the FPL, according to the report.
Colorado is one of only 10 states that automatically adjust their minimum wages for inflation.
Wage theft epidemic
Unscrupulous employers are stealing untold millions of dollars from hardworking Americans, Dick Meister reports in AlterNet:
The cheating bosses don't take the money directly from their employees. No, nothing as obvious as that. The employers practice their thievery by underpaying workers, sometimes by paying them less than the legal minimum wage. Or they fail to pay employees extra for overtime work, or even force them to work for nothing before or after their regular work shifts or at other times. Some employers make illegal deductions from employee wages. And some withhold the final paycheck due employees who quit.
In New York City alone, an estimated $18 million worth of wages is stolen every week. Workers in the restaurant, construction, and retail sectors are at increased risk of wage theft. Wage thieves disproportionately target undocumented workers because they assume that these employees will be less likely to report the crime.
Debt collection from beyond the grave
The dead don't tell tales, but they have been known to sign debt collection papers, Andy Kroll reports in Mother Jones. Martha Kunkle died in 1995, but her printed name and signature appear on paperwork filed by the debt collection agency Portfolio Recovery Associates as late as 2006 and 2007. The ruse was discovered and PRA, facing a fraud lawsuit, agreed in 2008 that the "Kunkle's" documents couldn't be used in court. That didn't stop the agency from trying to use them again in 2009.
The attorney general of Missouri has announced that he will investigate whether any of Kunkle's handiwork was used to support debt collection in his state. The attorney general of Minnesota is already investigating whether debt collectors have used fraudulent paperwork in court.
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In the same Good Morning America interview in which he said that Jared Lee Loughner "wasn't on the left, he wasn't on the right," former Loughner friend Zach Osler mentioned a documentary film called Zeitgeist, which he says heavily influenced the alleged Tucson gunman.
Osler, who George Stephanopoulos described as perhaps "Loughner's last close friend," said, "I really think that this Zeitgeist documentary had a profound impact upon Jared Loughner's mindset, and how he viewed the world that he lives in."
And though by Osler's account he and Loughner stopped hanging out two years ago, and there's no way of knowing what Loughner thinks of the documentaries today, there are a few resonances between the film and the online videos attributed to Loughner.
Zeitgeist: The Movie, produced in 2007 by a man named Peter Joseph, is actually the first film in what's now a trilogy. A sequel, Zeitgeist: Addendum, came out in 2008, and a third film, Zeitgeist: Moving Forward, was scheduled to be released over the weekend. Together, they form the foundation for The Zeitgeist Movement, which, according to the movement's website, "works globally to spread information about a new social system called a Resource Based Economy." The website claims 420,000 people have registered as part of the movement, and says "estimates" put the number of online views of the original Zeitgeist: The Movie at over 100 million. (In March 2009, The New York Times reported on a "Z-Day" event in New York City.)
The first film (which you can watch in its entirety here) "debunks" myths and "exposes" conspiracies about religion, monetary policy, wars and 9/11. The film features a nameless narrator, and combines graphics, news footage and trippy animations with words from famous thinkers, stand up comedians and public officials, topping it all off with commentary from various conspiracy theorists. Among other things, the movie critiques the central bank model, controlled by the "ruthless banking interests," which it says leads inexorably to debt.
"The end result of this system is essentially slavery," the narrator says. "For it is technically impossible for a government and thus the public to ever come out of this self-generating debt."
Getting rid of the gold standard, according to the film, was a way to rob the public of wealth, and lock it into a system controlled by an elite few.
"The only thing that gives our money value is the public faith and how much of it is in circulation," the narrator says. "Therefore, the power to regulate the money supply is also the power to regulate its value, which is also the power to manipulate and control entire economies."
In online videos attributed to him, Loughner shows an obsession with "currency" that echoes the arguments from Zeitgeist. He spoke of "mind control" and government control. One video, titled "Introduction: Jared Loughner," was concerned with the creation of "new currency."
"No! I won't pay debt with a currency that's not backed by gold and silver!" Loughner wrote. "No! I won't trust in God!"
[TPM SLIDESHOW: TPM Retraces Shooting Suspect's Steps]
In another video, titled "hello," Loughner writes, "the current government officials are in power for their currency, but I'm informing you for your new currency!"
After Osler mentioned his movie to the press, Peter Joseph issued a statement criticizing the media for making any connection between the massacre that occurred in Tucson and his film.
It has come to my attention that various mainstream news organizations are beginning to run an association between my 2007 performance piece/film, "Zeitgeist: The Movie" and the tragic murders conducted by an extremely troubled young man in Tucson, Arizona. They are also slowly beginning to bleed the obvious line between my 2007 documentary work, my film series as a whole and The Zeitgeist Movement, which I am the founder. Frankly, I find this isolating, growing association tremendously irresponsible on the part of ABC, NBC and their affiliates - further reflecting the disingenuous nature of the America Media Establishment today.
Make no mistake: The Social System is to blame for the rampage of Jared
Loughner - not some famous online documentary which is known as the most viewed documentary of all time in internet history. Are the other 200 million people who have seen the film also preparing for murder sprees? I think not.
Source:http://removeripoffreports.net/
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