Showing posts with label john boehner. Show all posts
Showing posts with label john boehner. Show all posts

Friday, July 29, 2011

Open Letter on the Debt Crisis

Mr. President, Mr. Majority Leader, and Mr. Speaker (and Mr. Chief Justice if it helps):

The noise in Washington this week has been deafening, the heat has been off the charts, the accusations and threats unrestrained, and the rhetoric explosive. And what have we gleaned from it all? So far, nothing. You all saw this coming when the new House was sworn in last January, and what have you done since then? You waited until the self-imposed deadline, and very little leadership among you has been in evidence. Senator Marco Rubio (R-FL) explains just how simple these issues really are:



There are those who claim the freshmen Republicans in the House are irresponsible with their staunch position on "Cut, Cap and Balance," but to date it is the only piece of pending legislation that has passed, until a second attempt passed narrowly late today. Since then a flurry of proposals (and that's all they are -- proposals) have not been put into actionable legislation. Moody's remains unimpressed, saying nothing they've seen so far will work to appease their pending downgrade of the U.S. Treasury's AAA bond rating. What is pathetic in a crisis of leadership that seems to characterize Democrat control of the Senate and the White House is that we haven't yet seen a plan in writing. The budget submitted by this White House earlier this year was so deficient in specifics it was voted down 97-0, and nothing has come out of the Senate since.

Senator Mike Lee (R-UT)
I am grateful for the efforts of Utah's congressional delegation who are leading the way in this fight -- specifically Senator Mike Lee (R-UT), Congressman Jason Chaffetz (D-UT) and senior Senator Orrin Hatch (R-UT). Lee is responsible for the content of the House legislation and it was sponsored courageously by Chaffetz where it passed. Cut, Cap and Balance is the responsible approach, the "balanced approach," if you prefer. Unfortunately, when it was sent to the Senate, Senator Harry Reid (D-NV), House Majority Leader, decided to kill it on a procedural vote without giving anyone in the "deliberative body" a chance to debate or amend its merits or deficiencies.

Then the House Speaker, John Boehner (R-OH), went to work with Reid, feeling betrayed by a "wiggly" Jell-o-like occupant of the White House, to craft yet another Washington COMPROMISE solution. So far, no success on that path has been reached either. We'll now watch the Senate shred this latest attempt and see if they can come up with anything over the weekend that might have a chance for passage in the House.

In the meantime President Obama remains on the sidelines where he deserves to be as a lame duck and out of the discussions because he was summarily excluded (correctly) by Boehner as an impediment.

Since January, the threat of a downgrade in the U.S. Treasury credit rating for its bonds has been on the table. The rating agencies are looking for a commitment for real cuts in spending amounting to $4 Trillion, not ironically the same amount that has been amassed under the Obama administration in a short two and one-half years. I continue to be baffled why anyone would think borrowing $4 Trillion from principally the Chinese government then blaming George W. Bush for everything, as President Obama did last week without even acknowledging his own complicity might be a factor, is a viable campaign strategy by Obama's advisers. The thought makes reason stare. Then after that he demands that wealthy Americans pay their "fair share" in taxes.



It is my considered belief that Mike Lee is the statesman in all this. I define "statesman" as one who takes a principled stand in the face of popular opinion. However, the American people are lined up behind Lee on this one. A recent CNN poll indicates as many as 74 percent favor the general idea of a BBA without even knowing the specifics. You may disagree, but his influence is having a profound impact for a junior senator from a small state like Utah. Those who doubted his effectiveness as a freshman replacing a seasoned Bob Bennett can rest assured there would have been nothing coming from Bennett by comparison. So, kudos to Mike.

I do not speak for Lee (he is fully capable), but it's important to underscore what he is attempting to accomplish without impugning his motives as some have done. He is not in favor of raising the debt limit if he were making an isolated choice. In this climate currently, however, he is willing to make the necessary compromise now if he can get the Balanced Budget Amendment to change the structure of the government's spending habit to finally come under Constitutional control. Click the link (it's not a new idea). Anything short of a Constitutional amendment allows future Congresses to adjust whatever assumptions are put in place today and to change the law at will. That's what got us into this mess in the first place. I think that position is reasoned and worthy of consideration, especially when it authorizes a mechanism to deal with "emergencies" like wars. There are twenty Democratic Senators who are on the record as favoring the BBA idea.



When 49 states require their legislatures to balance their budgets, can anyone explain to me why expecting the same thing from the federal government is such a bad idea? When did it become "reckless" for government to commit to the taxpayers they would not spend more than they take in? Will those same people explain why deficit spending and unsustainable debt and borrowing is NOT reckless? I await your response. We're at a tipping point in America. The word of the year in politics is "UNSUSTAINABLE." Everybody uses that word. So let's bind Congress in the future to a sustainable and sensible process when it comes to spending priorities. Is that reckless?

I have always maintained since first being introduced to Mike's senate candidacy early in 2010, that he would make an impact on Washington if he could remain true to his beliefs. However, I acknowledge he cannot be effective in isolation, nor that any one man can change everything. That would be a truly audacious undertaking. If I were a betting man, I would wager the August 4th deadline is mythical and has no real merit as a drop dead date for solving the problem. If Americans have a few more weeks of watching these positions revealed for what they are -- mostly lies -- we'll see a public ground swell uniting behind Mike's leadership on the BBA. Why? Because President Obama has already caved on including taxes as part of this compromise. That's a reasonable compromise, and he is to be commended for taking taxes out of the equation. However, the spending cuts proposed by Reid have been exposed for what they are -- illusory rather than real cuts to trim the baseline for this year, particularly when an "assumption" about the end of our involvement in Afghanistan is included -- and REAL, tangible cuts out of this year's budget are what the credit rating agencies are looking for. They are certainly not going to be impressed with a promise to impanel more commissions to study the matters.

Everyone knows what is required, it seems, except the Democratic and Republican establishment leadership, who are taking us down a path of more "blue ribbon commissions" to do the hard work the American people elected their representatives to do. There is a committee of 535 elected representatives already in place -- 100 in the Senate and 435 in the House. They need to step up, write their best proposals, debate them in public rather than cutting deals behind closed doors, take the votes up or down, and be accountable instead of hiding behind procedure. The American people are screaming, "NO MORE GAMES!"



I stand with Senator Lee. We must put on the spending brakes immediately against THIS YEAR's baseline, then plan for the future by passing the BBA out of both houses of Congress, realizing that most of its provisions will take a matter of months, maybe years, to be approved by 3/4 of all the state legislatures before its provisions kick in. However, just the act of passing that legislation will signal Washington's commitment to the world and to our citizens we are taking immediate and realistic steps to curb the spending addiction.

If the individual states disagree with the BBA, then let them have their voice, and let the debates be held state by state until we reach the needed number. A return to states' rights and federalism at that level would be a welcomed change from what we are witnessing on the shores of the Potomac today. Yes, withdrawal from our easy credit addiction will be long and painful, but must be undertaken. Like all addictions, the time to quit is now, not tomorrow. I guarantee you those in Washington who are not willing to find the game changing solutions will be swept out of office in 2012.

There is no doubt when the Constitution was approved it baked in all the spending restraints and separation of powers by design to prevent tyranny from ever gaining power in America as it had in England. But the abuse of Constitutional principles defining those important limitations are only effective if all agree to be bound by its provisions. Sadly, that is not the case today.



Therefore, we must determine right now as a nation what course we will take. Will we at long last try to reclaim the liberties we have ceded as free men and women to an out-of-control tyrannical federal government, or will we wait for nature to take its irrevocable course and watch the ship of state sink beneath our feet? The choice could not be more clear to me. We have given money to this government and it was not enough. The government appears to be ready to confiscate and regulate even more, and we have created that voracious appetite by monetizing our debt and printing gobs of worthless paper. We have done this to ourselves, and we have what we have because of our own greed. Only our collective political will as a people can reverse this addiction and stop it in its tracks.

We can debate the merits of the proposed BBA (there are actually many versions afloat now), if a true debate can be had in today's environment, but this much seems clear -- drastic measures are needed now. If you use a percentage of past spending limits as a measurement, maybe that's not realistic, so let's come up with something else to cap what we spend if you like, but unless the spending cuts and caps are real and permanent, and until someone else comes up with a better idea, let's support Senator Lee's efforts to at least get us to the starting line on the debate as a nation.

The political gamesmanship is pathetic to watch. Only this morning I listened to President Obama suggest Americans need to keep up the pressure on their elected representatives. "Keep Tweeting," he encouraged. Really, Mr. President? That's your solution? Tweeting? Wouldn't it be hysterical if he were reported as a Twitter spammer and they shut down @barackobama?

There are some who are far to the right of Senator Lee. They would argue there is no defensible principled position on which we could possibly stand to consider raising the debt ceiling. They would advocate a complete collapse of the federal government as the only option avialable to prove a point and win the ideological argument for "purity."

I would suggest there might be an alternative.

It's called elections. They are free and vouched safe under the Constitution. We may have to wait for sixteen more months before enough like-minded people can be added to the ranks of those who believe as I do, but I have a feeling it will be worth the wait if it means saving the Republic by peaceful means. I don't love the thought of anarchy in the streets, nor do I relish a complete economic meltdown simply to prove your "pure" ideology is better than mine. America renews itself every two years by design. When it makes an egregious mistake in judgment, America can redeem herself. The pendulum swings back and forth.

While you may argue there is no principled room left to entertain a vote to raise the debt limit, I believe there is. Even Senator Lee recognizes it is irresponsible or naive to stamp his feet and refuse to raise the debt ceiling. His rational, if adamant stance on the BBA, makes sense while compromising on a debt ceiling increase tied to the strong medicine of the BBA later on. That's better than specious commissions to study and recommend spending cuts and caps that cannot bind the collective wills of future Congresses. Lost in the clamor of the ideology sometimes is the simple fact that the current proposed increase in the debt ceiling is only to handle what we've already obligated the government to do. We just need to make a stand that we won't continue our irresponsible spending habits.



Going forward, let's find Constitutional principles to stand on relative to the federal government's proper role in our lives. Then when we reduce the size of government we'll attack the silent elephant in the room in the aftermath -- who's got a plan for putting all the downsized federal government workers back to work in the private sector?

But that's tomorrow's problem.

Saturday, July 23, 2011

Showdown at the NOT OK CORRAL

Further evidence that things are seriously broken in the White House. Until this president is retired by the voters in November 2012, the great divide will continue. The evidence could not be more clear in these two dueling news conferences last night:





A Rasmussen poll released yesterday reflects the frustration in the country among likely voters. No matter which Republican candidate is pitted against Obama in the poll, he fails to muster support higher than 47%. The election of 2012 is shaping up as a referendum on the incumbent, and right now they are labeling him a lame duck president and he is being treated as such because of his failure in leadership. Even his liberal base is eroding because his most ardent supporters are seeing him now for what he is. Here's another story with the same conclusion.

The result that was most telling to me was the matchup with Ron Paul -- Obama 41%, Paul 37%. I could be satisfied with ANY Republican candidate right now, and apparently the rest of the country is feeling exactly the same.

And oh, by the way, don't underestimate the influence of a man you've never heard of before on the current discussion over taxes and the debt ceiling. Grover Norquist has marshaled members of Congress who have signed his pledge to NEVER raise taxes anytime, anywhere on anybody.

Bohener is not abdicating his duty and his oath of office -- he's merely excluding the president from the discussion and putting him right where he belongs -- on the sidelines -- while Congress takes the leadership role out of his hands..


WASHINGTON, DC (Jul 23)

House Speaker John Boehner (R-OH) issued the following statement regarding ongoing work on a deficit reduction package:
“As I said last night, over this weekend Congress will forge a responsible path forward. House and Senate leaders will be working to find a bipartisan solution to significantly reduce Washington spending and preserve the full faith and credit of the United States."

Saturday, May 14, 2011

Time to Gore the Sacred Cows


In the financial world of Medicare and Social Security, things just got worse. There's plenty of denial to go around, and no one is willing, it seems, to step up and admit the obvious. There was a report released yesterday by the trustees, heightening the necessity for Congress to rejigger the massive entitlement programs.

The future, long deferred by lawmakers, has apparently arrived at the doorstep. The problems are us -- the baby-boomers. We're all retiring and the taxes collected to support the programs are in a prolonged pattern of weakness -- call it life support if you wish. The bad news couldn't come at a better time for serious reformers, and a worse time for the kick-the-can-down-the-road crowd.

The trustees of Medicare now project it will run out of money in 2024. That's been accelerated by five years earlier than last year's estimate. Social Security trust funds will be drained in 2036, one year earlier than the last estimate. Trust funds? More accurately IOUs to the Treasury, since there are no fungible assets left in the trust fund. The reality? When the trust fund balances finally reach zero, there's only one solution -- collect enough money in current payroll taxes to pay only partial benefits, the report said. Not a rosy future. Of course, not many of us are concerned today because we won't live that long. It's our children and grandchildren who will suffer.

I say "suffer" advisedly, since perhaps the alternative view is they will finally be freed from the obligation of funding entitlements in the welfare state.

Here's the projection in the report for next year: After going two years with no cost-of-living increase in Social Security payments, the trustees are projecting a 0.7 percent increase for next year. Big WHOOP. That will get nullified by higher Medicare Part B premiums.

Here's a comment from Captain Obvious: "There can no longer be any doubt or denial: Our nation's Medicare and Social Security programs are unsustainable and will run out of money sooner than expected," said Senate Republican Leader Mitch McConnell of Kentucky. These guys are the geniuses who have supervised the debacle. McConnell is an echo chamber for Americans, who said when recently polled that 47 percent were opposed to raising the debt ceiling. Can he be trusted to lead the Senate in executing on the will of  the people? I have much more confidence in Speaker John Boehner on the House side if his rhetoric can be matched with deeds. Said Boehner: “I’ve talked to the President all year, privately-- about the fact that we were not going to increase the debt limit without serious changes. I mean, this conversation has been going on for quite a while. I’ve offered to the President, I’ve said, ‘Mr. President, come on, you and I, let’s lock arms and we’ll jump out of the boat together.’ I’m serious about dealing with this, and I hope he’s just as serious. No gimmicks. No automatic claw backs. I’ve had it with all of that. We know what needs to be done. Let’s just do it.” Even Paul Ryan, the House Budget Committee chair is sounding realistic: "Both parties messed this up. This is not a Republican-created problem or a Democrat-related problem. It's both parties and we've got to face up to that if we're going to get this situation under control." Now you're talking like men rather than boys. Keep it up, please.

The backdrop to this latest disclosure yesterday is the negotiation, more aptly, the political theater being played out between Congress and the Obama administration. They are "negotiating" proposals to change Medicare and other benefit programs as the looming request by the administration for an increase in the debt ceiling grows more urgent. That ceiling will be bumped up against sometime Monday. We're at $14.3 trillion in debt right now, and Treasury Secretary Timothy Geithner is claiming the sky is falling on the government's ability to service the debt on outstanding bonds.

Poppycock. The Treasury takes in 10 times what it needs to service the interest payments. Holders of the low-interest rate bonds for the moment still believe they will be paid. That could change if Congress doesn't begin acting like it is serious in cutting spending. It's a matter of prioritizing the spending, meaning making deep cutting decisions the lawmakers are so reluctant to do.

There may be time to put off sweeping changes in how we fund Social Security going forward, but Medicare seems for the moment to be in the cross hairs for reformers.

Here's the deal: If Congress continues to wait and debate, the expiring clock forces America into higher taxes. The other choice is deep cuts to benefits, according to the report. Making critical decisions today on smaller baby steps to get the needed changes made today, gives a longer ramp to run on for future retirees in the next generation.

Who are these "trustees" you ask? Charles P. Blahous III and Robert D. Reischauer. No one you know, but they signed the report with this warning: "The financial shortfalls confronting both Social Security and Medicare are substantial and -- absent legislation to correct them -- quite certain. Elected officials will best serve the interests of the public if financial corrections are enacted at the earliest practicable time."

The only question remaining is this one: Are lawmakers inclined to act on these predictions, or blandly go about the people's business as usual as though there is no impending urgency? The weakened economy with more people out of work for a sustained period of time has added to the problem significantly. With fewer working bees in the hive, paying fewer payroll taxes to support the programs in the short term, the trustees warn the trajectory is quickly turning negative. Medicare is more critical because tax revenues continue to fall in the face of rising health care costs.

Here's their projected fix: Two choices, neither of which is attractive. To put Social Security on a sustainable path for the next 75 years, the trustees recommend an increase in the payroll tax of 2.15 percentage points, OR an immediate and permanent 14 percent cut in benefits. Even more stark are the projections needed to fix the Medicare hospital fund -- an increase in the payroll tax of nearly 1 percentage point, OR a 17 percent cut in benefits. These are not hard math problems. What is needed is the political will to act and act now.

We have a socialist welfare state in America today. The debate should end here and now about whether or not we do. Creeping socialism has nearly engulfed and strangled our national government and what used to be considered a free-market economy. Nearly 55 million retirees, disabled people and children who have lost parents receive Social Security benefits, which average $1,077 monthly. More than 46 million people are covered by Medicare. Just do the simple math. Who says we don't already have a "nanny state?" Both parties have contributed to his current state of affairs because of their willingness to compromise with each other over the years.

Compromise is what got us here. Now we need patriots who will stand on their correct principles of freedom and liberty to lead us out of the wilderness in which we have wandered aimlessly and recklessly in our generation.

The cost of medicine continues to escalate. Medicare has allowed physicians and hospitals to experiment endlessly without restriction on high-tech solutions. People are living longer, and receiving once-complicated procedures such as heart bypass surgery and hip replacements later in life. Those treatments are now routine. Three cheers for life-elongating medicine. But how do we pay for all that charity care? Higher taxes.

The political class has usurped their power and authority from the citizenry. In exchange for all the socialist goodies they have doled out, the electorate perpetuates their longevity in office and rewards them for their largess. Most conservative realists, however, argue the Social Security Trust Fund is nothing more than political myth.

"It is important to note that the actual future costs for Medicare are likely to exceed those shown by the current-law projections in this report," the trustees added. So much for the claims that Obamacare reduces medical costs. Can you say accounting hocus pocus?

Six trustees oversee Social Security and Medicare, in case you wondered. Besides Geithner, Blahous and Reischauer, the others are Labor Secretary Hilda Solis, Health and Human Services Secretary Kathleen Sebelius and Social Security Commissioner Michael Astrue.

Question: Are the trustees trustworthy?

Bigger Question: Are the elected representatives of the people awake and on task in overseeing the trustees?