Never Say Never

Power right - amend the Constitution or we won't pay the bills

Power left - must get re-elected

Is it too late to be from Canada? Right now, I live in a banana republic. But, no free bananas.

This debt limit deal - its not about rational compromise, or "revenue" or "no taxes" or "corporate jets" or even "federal spending". Sorry if you thought that.

Don't listen to any of the words that are tossed out. For the tea party - its all about gaining control. They get what they want, and they want some more. It never ends. Thats the way it is with freshmen!

Well, when I was in college, most of the freshmen that spend that year, newly away from home - running up and down the hall, doing drugs all hours. Most of them didn't make it to Year 2. Went back home.

For the Democrats, did you think "oh, we don't want to have to raise the debt limit *again*" was some sort of real story? As CNBC said, in their finest British accent, "Americans can't do maths" - pointing out that Reagan, the Republican overlord, raised the debt limit 18 times over 8 years. Over and over (and over and over and over and over and over and over... you get the idea). Now just *why* would those Dems not want a debt limit that stalls out in December 2011, but one that defers stalling out till December 2012? Oh! There is that Presidential election in November 2012.

Just about power - on both sides. Using the federal budget as a tool in their political play.

Today I am a Progressive. I wonder who the Progressive Party will run for "Oregon1" - the 1st Congressional District of Oregon, to replace Wu. Once they vote on the debt deal, our congressman will be stepping down. New candidates wanted. No one who has ever worn a tiger suit that was photographed need apply.

The Grown Ups have Left the Room

Today, the U.S. government ran out of credit limit! And, at $14 Trillion and change, I guess Capital One is not sending them daily solicitations for new lines of credit (like they send to me, and each member of my family, even the ones that no longer reside here..)

So failing that, our Treasury Secretary Tim Geithner has said all along he could prolong the "absolute end" by shuffling money around between accounts. So everyone went about their merry way, and today is that day, and the shuffling begins.

I wish he had told me what this means earlier, cause it sounds like a crime. Or like the U.S. Treasury is being run like a stock market or a giant slot machine or something.

http://1.usa.gov/lK7vnD
To get the actual statement he wrote to Congress. Basically the shuffling consists of borrowing money from the Civil Service Retirement Fund. And diverting interest that would have accrued to that fund. And other related measures. To keep the OPERATIONS of the government funded. Like those salaries of federal employees. Like I suppose keeping the heat on and the electricity on at the White House. Like paying social security benefits to retirees, widows, orphans. Basic operations.

Now, if this were an actual stock market, and you had a chance to invest in the U.S. government, or, say, the biotech startup in Silicon Valley. You might look at things like - what products have they actually brought to market? What is their return on equity? What is their profit to earnings ratio. And are they actually making money on operations? Or are they living on credit from some wealthy Chinese investors?

If you looked at the portfolio you would never place your bets on the U.S. Government, or as they say in Wikileaks speak, USG. Not sustainable, you would say, and move on.

Here we are. Federal employees, speak up - do you want your pension fund raided? The money has to be paid back to make the fund whole, says Mr. Geithner. How exactly is that going to happen?