Speaker of the House John Boehner shed a couple more tears yesterday as he addressed the opening session of the 113th Congress. The Ohioan talked about feeling "awestruck", he talked about "old truths". He spoke of "doing the right thing." He invoked "the assistance of our Heavenly Father", whoever that is, as he convened a new House session of our secular nation.
"Our government has built up too much debt. Our economy is not producing enough jobs. These are not separate problems.
At $16 trillion and rising, our national debt is draining free enterprise and weakening the ship of state.
The American Dream is in peril so long as its namesake is weighed down by this anchor of debt. Break its hold, and we begin to set our economy free. Jobs will come home. Confidence will come back.
We do this not just to boost GDP or reduce unemployment, but to secure for our children a future of freedom and opportunity. Nothing is more important."
Those words of John Boehner's are lies. There is little, if any, truth to be found in the Speaker's description of America's economic condition. Allow me to deconstruct....
1) Yes, the U.S. has a debt of over $16 trillion and is still running high yearly deficits. Those are undeniable facts. But there is no evidence, whatsoever, that our high debt and deficit are "draining free enterprise" let alone "weakening the ship of state."
For the umpteenth time....our national economy is suffering from a lack of liquidity. Consumers don't have enough money or credit to drive demand. Consumers, not "free enterprise", drive demand. Consumers with money and credit in hand are the only genuine job creators. The national debt, the budget deficits.....have nothing to do with the fact that consumers don't have enough money or credit right now to stimulate growth and create jobs.
Boehner...."The American Dream is in peril so long as its namesake is weighed down by this anchor of debt. Break its hold, and we begin to set our economy free. Jobs will come home. Confidence will come back."
Here Boehner invokes both the confidence fairy and the....'any day now'... bond vigilantes, in a clustermess of disinformation. I prefer to remain reality-based in a nation overflowing with mythology and propaganda.....so I can assure you that the national debt is not the culprit holding back the economy.....let alone "draining free enterprise."
Corporate profits and cash on hand are at, or near, all time highs. Interest rates are at historic lows. Tax rates are as well. If it were true that government borrowing was "draining free enterprise" or holding back our "free economy".....or if it were true that high deficits and national debt were making it impossible for boot-strapping business owners to muster enough "confidence" to go on another day......then government bonds would not be still in such high demand. But they are.
For over four years, we have been told by the "experts" that if government kept borrowing in the wake of our second great depression, investors would lose their appetite for our treasuries which float that debt....resulting in much higher interest rates, which, obviously, would be bad all around. 10 year bond yields are still.....still....below 2%.....after four years of looking for those bond vigilantes. After four years of conservatives looking, looking, looking for the arrival of those vigilante bond traders who will surely gut our modest recovery and leave us economically-bleeding by the side of the road.....alas, they still haven't arrived to ravage our economic future.
Government borrowing has not crowded out the private market from gaining access to capital. Anyone who tells you otherwise is lying to you...just like the Speaker.
2) National debt.....right now.....has nothing to do with job creation. Speaker Boehner says otherwise. He is lying. Boehner and his House and Senate Bungler Buddies are after your entitlements.....they've said so explicitly. They will say anything to snow Americans in their hysterical desire to raise retirement ages and cut retirement benefits. They have no conscience.
America isn't creating enough jobs because Americans don't have enough discretionary cash to drive demand in the market. Americans don't have enough money and credit to drive demand because American corporations have not been sharing productivity gains with employees for some 30 years. Americans don't have enough cash to drive demand because they have lost jobs, lost pensions, lost houses, lost credit, lost net worth and lost hope in the aftermath of Wall Street's looting of the national economy. Remember the financial crisis which almost ate America? Remind Speaker Boehner...it seems he's forgotten.
In the wake of the Wall Street theft of America's future, government has had to borrow and spend to shore up the lives of tens of millions of our citizens....but in spite of that....the bond vigilantes have not been sighted, even though the WAPO's Robert Samuelson stands watch daily, binoculars at the ready. In spite of what Boehner calls a "drain", an "anchor", a "weight"....Treasury yields remain low......which means confidence in America's ability to repay debt is high.
John Boehner is either the densest dunce in the House bunch....or he is a liar. You decide.
Just don't let the tears fool you.
About This Blog