Economists: Gridlocked Congress "Playing With Fire" As Failure To Legislate Could Devastate Econom

huffingtonpost

NEW YORK -- Political infighting in Washington may seem irrelevant to many Americans. But in the coming weeks, as Congress attempts to pass a budget and debates whether to increase the federal debt limit, these rivalries now have the potential to devastate the U.S. economy.

If lawmakers don't reach an agreement to fund the government by Friday, an array of programs will shut down. The freeze, if it lasts for several weeks, could wound Americans' confidence enough to tip the economy into recession, Mark Zandi, chief economist of Moody's Analytics, said last week.

But even that scenario wouldn't be as damaging as if the government defaulted on its debt, a consequence that could come sometime in the next several months if lawmakers, locked in a political stalemate, fail to increase the federal debt limit.

A government shutdown has the potential to cause a recession if it lasts long enough, experts say. A default would likely ravage the economy almost immediately. Both could be caused by gridlock in Congress.

Great. While Congress is enmeshed in playing political games, our economy can just go down the tubes. At this point, who cares that Boehner is caught between the Tea Party and the deep blue sea? Somebody has got to be the grownup at the table.

I think Obama is trying to be that grownup, but he needs to make more clear his strong defense of hugely important social programs like Social Security that affect so much of the population.

I say make the rich pay their fair share of taxes, and not run up our deficit by trillions through giving them one tax cut after another. Millionaires and billionaires can afford higher taxes; the middle and working classes cannot afford to lose what little social safety net that is left for them.

Everybody seems to miss the point. The president has shown he wishes to strip congress of all of their powers through executive order and by just flat out ignoring the constitution. A recent example of this is war he had entered our country in in Libya without any consultation with congress.

He wants the government to shutdown since he will claim the shutdown is detrimental to the national security and then by executive order or other method declare he has the authority to authorize spending as well as raise the debt limit since congress is unable to act.

This is the reason the completely democratically controlled government did not pass a budget last year before the elections. They knew through executive order that he can seize more power with a deadlock in congress.

He has ignored the court on Obama care, ignored the constitution when it comes the Libya war, and will have no problem ignoring the court, the congress and the constitution once there is a government shutdown.

www.freerepublic.com...

reply to post by EssenceOfSilence


The OP makes good points, but you have an interesting theory. We'll have to see how that plays out. I can see if Obama did that so that government didn't have to shut down that some may see him as a hero and some may see it as him trying to usurp power for the executive branch. It would certainly be usurpation of power since it's unconstitutional, but I don't know we'll see.

There is an executive order where he can suspend congress and rule from the Oval Office if a National Emergency occurs. Bush actually changed it from FEMA when he was in office. One of those emergencies is an Economic Emergency. I am sure someone knows which Exec. Order it is that he can use. So, this whole thing can be a facade to totally negate congress all together and leave Obama in charge of the country and all that is in it. That is a serious worry because what would the people do then. If they riot in time of National Emergency, they could find themselves on the way to a FEMA camp.

Here it is:


Executive Order 12919: "National Emergency"

Should President George W. Bush proclaim and put into effect Executive Order 12919, "the President would put the United States under total Martial Law and Military Dictatorship." [2]

"The President need not wait for some emergency to occur, however. He can declare a National Emergency at any time, and freeze everything. Congress, and the States, are powerless to prevent such an Executive Dictatorship, as long as the President advises Congress in a timely matter."

Source: www.sourcewatch.org...

90% of people will go about the daily routine without even noticing. If anything it will make people realize that they can live with less gov, which isn't a bad thing. Maybe I'm a little too optimistic.....

First off, these "tax the rich" plans don't work for one simple reason: the "rich" don't pay the tax. Look at your electric bill, your water bill, your cable bill, your phone bill, etc. See how these companies make you pay the taxes they have to pay? The "rich" just pass the tax along. So, when you speak about taxing the "rich", ask yourself who will ultimately wind up paying that tax.

Second, you will notice that whenever the government talks about spending cuts, the primary target of those cuts are always social programs. You want to make a real dent in the deficit? Start looking at our military spending. Last I heard, we were spending about $2 billion a week in our Middle East wars, but cutting money from that is not even up for discussion. Instead, we're being prepped for Greece style "austerity measures." We will be told to work harder and longer for less, but the government will need to take more from us.

Personally, I don't see where a government default would be as bad as the path we're on now. Let's just declare the US bankrupt and start all over. End our relationship with the Fed, since it hasn't worked out well for us. The entities holding our debt can just collect from the Federal Reserve Bank, after all, they are holding Federal Reserve Notes, right? We can start over with US Dollars as mandated by the Consitution.

It would be painful at first, but I think it would be the best thing for America in the long run. The Fed is a cancer on this nation. Cancer treatments are often painful and make you feel worse, but the cancer will definately kill you.

Executive Order 11921: Provides that the President can declare a state of emergency that is not defined, and Congress cannot review the action for six months.

* Executive Order 12919: Directs various Cabinet officials to be constantly ready to take over virtually all aspects of the US economy during a State of National Emergency at the direction of the president.

* Executive Order 13010: Directs FEMA to take control over all government agencies in time of emergency. FEMA is under control of executive branch of the government.

* Executive Order 12656: "ASSIGNMENT OF EMERGENCY PREPAREDNESS RESPONSIBILITIES", "A national emergency is any occurrence, including natural disaster, military attack, technological emergency, or other emergency that seriously degrades or seriously threatens the national security of the United States. Policy for national security emergency preparedness shall be established by the President." This order includes federal takeover of all local law enforcement agencies, wage and price controls, prohibits you from moving assets in or out of the United States, creates a draft, controls all travel in and out of the United States, and much more.

The list goes on: Bush's Mein Kampf: The Patriot Act - Guilty without the right to prove innocence; Torture; SEC's global dominance through SOX etc.

Source:www.libertyforlife.com...

Yea, it's always over reacting until it happens! Obama would love to take total control and really change the country the way he wants to without Congressional interference. And it would remove many barriers to the Dems Agenda, and if it is like some say, the elite's agenda and leave the rest of the people subservient to them. Obama is the one during the election that wanted a National Security structure equal to the armed forces of the US for domestic security. Just Sayin...

reply to post by spirit_horse


Hm...if i was someone living in the US,i would get out right about now...connecting the Dots and all that

Edit: Ah yes...the IMF is now calling the US on its BS,the second Time in a few Days... New ATS Thread here

There you have your National Emergency...Well Timed indeed...

reply to post by Shenon


Problem is, there is nowhere to go. Is there any country that doesn't treat their people as debt slaves? It's like Orwell's Animal House, every country is trying to create the most efficient labor camp.

Originally posted by VictorVonDoom
reply to post by Shenon

 

Problem is, there is nowhere to go. Is there any country that doesn't treat their people as debt slaves? It's like Orwell's Animal House, every country is trying to create the most efficient labor camp.

Read the Thread i linked...and voila. Dots connected

reply to post by VictorVonDoom


You make a lot of good points VVD, but no matter how much they tax the rich or don't tax them, it's us, the common man that gets bent over from all directions in the end. And unfortunately, no, there is no place better to go.

I for one hope these knuckleheads do screw up and shut down the government. As Rahm once said, "never let a crisis go to waste"

I would hope at that point the American people say, "I've had enough and won't take it anymore" and get mad enough to get rid of all of them, through the elctoral process of couse.

These peoples decisions no longer reflect the will of the prople, they are showing us that right now!

Frankly I think not raising the debt ceiling is not such a bad idea. The US government borrows half the money it spends. Take a look at who buys Treasury bonds; the Federal reserve is buying about 85% of them. And what does the Fed use to pay for those bonds? An I.O.U. with your name on it!

Slashing federal spending drastically sounds draconian, but it's better than having the dollar crash and the US default on its debts.

Legal Tender

I'm trying to figure out when, exactly, "legislation" became the backbone of the U.S. economy and when, exactly, "failure to legislate" could "devastate" it.

Whenever that was, could we please rewind to sometime before then and never see another headline like this again?

reply to post by Majic


If Congress cannot reach an agreement on the budget then that will shut the whole government down. Shutting down the government will impact the economy enormously, as so much of it is fueled by government spending.

The best thing that could happen is if the government shut down for a year or so.
Birds would sing, unicorns would frolic, and happiness would reign upon the land. Plus, we'd have no new laws, no new talking points, people would haver to think for themselves and realize that they don't need government as much as they thought they did.

reply to post by spirit_horse


It would be useful to know when, exactly, those executive orders were issued. I believe some of them, at least, came out of the Bush administration.

I think it's a little paranoid for all of you imagine that such a takeover by the president is very likely, short of a nuclear attack on the United States.

The last time a president took over the government due to a national emergency was Abraham Lincoln at the outbreak of the Civil War. That was about 150 years ago, and it wasn't for a long period of time.

Good, the whole thing needs to come down. Maybe when people can't shop at the grocery store they will form tight communities and grow their food while shunning the government with bullets if necessary OR every one will freak out and submit to FEMA meals-on-wheels and welcome a new currency?

reply to post by EssenceOfSilence


What happened the last time, when the government was shut down due to a budget impasse, was in the mid 1990's, under President Clinton.

President Clinton did not take over as a dictator.

What did happen was that millions of government employees weren't paid, people didn't get their social security checks, schools, libraries, post offices, museums, national parks and monuments, along with the privately owned hotels, gift shops etc. that depended upon them, were all shut down; people didn't get their tax rebates, their passports, their FDA loans, or any other service that relied on the government, business people with contracts with the government had to close down at least temporarily, defense projects were halted, highway construction ceased, and on and on. A whole lot of the economy is dependent on government facilitating and government spending. Nobody realizes how much until it stops.

The upshot of that government shutdown was that people blamed the Republicans for the stalemate and they were thoroughly drubbed in the next election. President Clinton came out smelling like a rose.