Treasury Secretary Timothy Geithner spoke in front of the Council on Foreign Relations Wednesday, and he gave what amounts to an endorsement of the Bowles-Simpson deficit reduction plan.
Addressing the Council on Foreign Relations Wednesday afternoon, Treasury Secretary Timothy Geithner said that the debate about the path to fiscal responsibility “really began with Bowles-Simpson and that’s where it’s going to end.”
He added that while the president’s Fiscal Year 2013 budget “differs in slight–in small respects from that basic framework, [it] is very close to that basic design. That’s the neighborhood in which we’ve planned to govern.”
The Administration’s budget for FY2013 indeed includes a $4 trillion deficit reduction package, and the major complaint that President Obama has had for Bowles-Simpson is that it cuts defense spending too harshly. In February, Geithner echoed that criticism, but did add that the cuts to Social Security were not preferable to him.
The lame duck session has so many fiscal issues expiring at the same time that many view it as an opportunity to put together the long-sought “grand bargain” on deficit reduction. Erskine Bowles and Alan Simpson have recently come out of their shells and resumed a high-profile media tour in an effort to get their framework into the discussion for the lame duck session. The Bowles-Simpson plan does include tax increases of hundreds of billions above the Bush tax cut rates, albeit lower than what would occur if the Bush tax cuts were allowed to completely expire.
Because of this, Democrats like Nancy Pelosi have embraced Bowles-Simpson to tease Republicans for their opposition to higher tax rates. But that also puts Democrats on the hook for embracing cuts to the social safety net, including Medicare and Social Security. And on Wednesday, Geithner said that Bowles-Simpson is “the only path to resolution politically [and] growing essentially economically, and I think that’s where it’s going to end up.” He didn’t make the caveats on Social Security or other entitlements.
Meanwhile, we have 8.2% unemployment due to low aggregate demand, and ultra-low borrowing rates that would allow the government to borrow and spend money to raise demand, with a negative rate of payback.
Max Baucus has scheduled a hearing on Bowles-Simpson in the Senate Finance Committee for sometime in the next few weeks.




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So Obama is determined to ram Bowles-Simpson down our throats. Gah!
He lost the bankers, and now he’s kissing his base good bye. He’s going to be a very lonely man come Fall.
The elites are going to regret putting Obama in the White House!
The idea having the 1st Black President cutting Social Security, Medicare, Medicade, etc. with Bowles Simpson is Insane
“Obama is creating rage on the Left and Right, that is nothing like the USA has ever seen!”
Obama doing a NAFTA deal with the entire world, is just Insane!
The Debate between the two Corporate Mascots Obama and Romney are going to be hilarious!
Will Romney asked Obama will he cut Social Security?
Will Obama asked Romney will he raise Taxes?
Will Obama discuss Romney Care?
the Elites are so out of touch with USA citizens they have no idea how bad these conventions are going to be!
Fire Pups, Firebaggers (take your pick)–
We need to have a major “brainstorming session” in this community. So, to anyone, and everyone:
Any ideas on how we can make this story bleed over into the MSM?
Blue
One million people in Occupy DC.
All of whom understand “MIC CHECK”
And the pundit class piles on.
Synoia–
I have no doubt that you are right. I’ve always believed that the reason behind the “decamping” of the Occupy movement, was the PTB’s fear of chaos in the streets, when they actually implement Bowles-Simpson.
Unfortunately, I don’t know how 1 million people can be persuaded to turn out, unless they fully grasp what is at stake here.
Blue
Tweet it, email it to your friends and family members, and shoot a few to any MSM members you think are amenable.
Four more years of Geithnet/Bernancke!
As Obama recently said:
“We’re still fired up!”"
If you’re a turncoat-progressive/corporatist preznint, why not?
Onyx, I don’t think it will bleed. I think the only place you’ll see it being discussed is here at the Lake and maybe, a few other non-mouseketeer blogs.
That’s all we’ve got, that and the fact that Obama has sustained or enhanced so many bushCo spinning plates, some of which are slowing down, as we speak.
Once they began rolling in our dough, they couldn’t care less what we think.
There are “astronomical” amounts of money that is being extracted from the multitudes. Once they get in a position to get their cut, we become irrelevant.
Wait a minute. Anybody recall that Bowles-Simpson did NOT get the necessary votes from the bipartisan commission members? Therefore, it’s not a valid proposal. Cat-Food going to reconvene and vote again? I think not.
Bowles-Simpson would tax capital gains and dividends as ordinary income.
That’s why it should always be referred to as the failed Bowles-Simpson plan.
Fuck?, what more is there to say.
I really thin we are better off when the democrats are the opposition party.
Opposition to what exactly?
While lowering the top rates for said ordinary income, and also lowering medical cost inflation via magic. No deal.
(Odd that you can decree that you’ll lower medical cost inflation via some unspecified method, and still be considered by the MSM as “very serious people”).
-stewartm
Lonely? Time to put this guy on a path to oblivion.
“Grand Tricks” to come. . . Isn’t there some clever way to upend lame duck? They keep pulling fast ones no normal person would imagine. They’ll be in bed together again on lame duck.
Try not to worry. The rich will have their way. Social Security and Medicare will be gutted, and the funds handed over to them on a platter.
And that’s a good thing.
No, really – it is. Because let’s face it, the American public deserves to lose the safety net and a living wage. The pain must increase astronomically, and the PTB are insuring that it will. Because unbelievable, wide-spread social agony is the only thing that has a chance to wake up the brain-dead public.
When they do, they’ll probably be fairly easily diverted into attacking progressives first. Odds are, plenty of people on Firedoglake will die, or be forced to flee the country. But once that’s done, there’s a good chance that eventually enough of the people will wake up, and the political, financial, and media elite will end up running for their lives.
Not a pretty picture! But since there really isn’t much we can do to change things, at least we can give some serious thought to the eventualities. We’ll either have to start learning how to live as a Resistance under the most brutal and technologically powerful authoritarian state on earth, or plan escape routes for ourselves and our families through a new 21st-century Underground Railroad.
I’m so glad I voted for Obama. Otherwise we might have ended up with Republican policies like endless war, bailouts for bankers, cuts to Social Security, and increased oil drilling. Thank goodness I didn’t waste my vote by going third party.
Me too. Where else could we find such an intelligent leader well versed in economics?
Not only that. He knows how to kill people and also to disappear them.
Anybody paying attention knew Obama was a total whore for the 1% before he ever took the oath. Helping his pals Bush and Paulsen pass TARP, then appointing Turbo Tax Timmie. Couldn’t have been more obvious.
PW–
You’ve got a good point.
I’ve called into liberal talk radio shows countless times–to Schultz, Hartmann, Sam Seder, Peter B Collins (back in the day), Mark Thompson, Norman Goldman, Randi, and regularly to C-Span Washington Journal, and even to the Diane Rehm Show in D.C. Heck, some of the producers know my voice, and most of them know where I’m from, when I give my name. Admittedly, I’m a bit of a one-trick pony, usually calling in to talk about either the ACA, or the so-called Moment of Truth. Or maybe that makes me a two-trick pony. :o) Anyway, I do this in addition to e-mailing, tweeting, and commenting here.
Truthfully, I’ve never tried to communicate via e-mail with anyone in the MSM. So your suggestion is worthy of consideration. It’s about the only thing that I haven’t tried.
I believe that David Shuster (formerly of MSNBC) has a new radio show on Chicago’s Progressive Talk. Maybe I should start with him. Thanks for the feedback.
Blue
tanbark–
You’re probably right. But, I just can’t give up yet.
There’s just too much at stake, for millions of people.
Blue
Team Obama, the GOP, Dems don’t care that it did not pass…the fix has been in since debt commission was formed by Obama. He is using this crap as an excuse to cut SS Medicare. My lies from Obama….The only reason I ever voted for the Dems was I thought they would stand up for SS Medicare and now that are now so I don’t need them….3rd party
incredulis–
Trust me, that won’t matter. The “Gang of Six,” and way too many other Senators (especially Democrats), are behind the push to get a Grand Bargain through the lame duck session. At least, that’s my very strong impression, from all that I read.
Blue
David S is also in with Bill Press’ TV show on Current..the show comes on early around 6am..RT has had people on talking about this subject but RT does not have the draw..I have been telling my Dems friends and GOP friends none know anything about this and don’t know what to do….
alan1tx–
That’s true, but, of course, it raises taxes considerably on the lower and middle classes (by the closing of so many middle class tax expenditures or loopholes), in order to drop the marginal tax rates on upper income folks and corporations. It’s spelled out in the Bowles-Simpson report, The Moment of Truth. So, that’s very little consolation.
Blue
Whether O does it through catfood commission or corporations do it through TPP all social programs are gone.
all hail the corporations. You can not win against a soul less machine.
bluedot12–
Just one thing–WE’RE COOKED IF WE CAN’T STOP IT! :-)
BLUE
Amen, Coach Bill.
Blue
Spot on, stewartm. My response to alan1tx.
Blue
maa8722–
Your comment: “Isn’t there some clever way to upend lame duck?”
That’s the question I have, in a nutshell. And, believe me, I’m open to ALL suggestions. I’ve run out of ideas.
Blue
To increase revinue I believe it would also raise the payroll tax cap to somewhere around $180,000 or 90% of all income.
And to contain costs, alter the benefit formula bend points that would not affect low wage earners, but only upper wage earners.
Quasit–
Heck, you’re so articulate. Please join me, if you will, in trying to use your voice to save our safety net. :-)
(Not that I don’t appreciate a little snark from time to time–I do).
Blue
Oscar Leroy–
We’re in the same boat. Hope you’ll consider looking at a third party candidate, this time.
Blue
How many times have the chattering class commented on voters’ propensity for split government: R or D admin with majority opposition in Congress? The public knows what it’s doing when it sets the presidency against the Congress and every once in awhile, it learns the lesson, again, the hard way. There aren’t too many operational checks and balances left, split government is, however attenuated, the most reliable option for ordinary people pitted against a predatory elite: set them up to fight amongst themselves.
McCain would have been the better option with a Dem majority Congress. And Palin, for all the hysteria about her as a potential president, would have been a perfect foil for a contemptuous Dem Congress.
RJEskow adds to the mix:
Criticism of Dimon, Simpson, Geithner.
I know what you’re saying, bearman. I’ve had folks look at me like I have “three eyes,” or something. My husband has tried to convince folks of what’s coming down the pike, just to see their eyes sort of “glass over.” We’re both at wits end!
Thank’s for mentioning that Shuster is on Current TV with Bill Press. Didn’t know that. We do stream RT from time to time. Problem is that Hartmann will no longer challenge the Democratic Party like he once did, IMHO.
Blue
Hate to break it to you Blue, but unless we can incorporate and raise enough money to either buy our own media conglomerate or provide the necessary graft to an existing news outlet it just ain’t going to happen.
kafka–
That’s true. The video of him talking to the Washington Post Editorial Board about “reforming social security” is dated approximately one week before he took the oath of office.
Blue
CurrentTV won’t challenge the status quo either. They’re owned by Al Gore and their mission is to be MSNBC lite, a wholly owned subsidiary of the “Democratic Party”. Except for temporary forays into objectivity by Cenk on TYT, they are blinded by partisanship and will rationalize Obama’s policies.
You’d be better off contacting Jon Stewart or Stephen Colbert.
No…hang on. I’m reading “Political Revolution for Dummies“.
It says that the first thing we do is take over the radio and TV stations by force. That’s easy.
Now, where do we get tanks and armored personnel carriers????
Not to mention that his knowledge of Constitutional Law prepared him to circumvent it whenever necessary.
I think we should all buy a wardrobe from that tailor in Colombia who makes body armour clothing before we attempt that.
Not to discourage you Blue, but all of these people make enough money by not seriously questioning authority to actually risk their positions.
Our only hope of this is on the grassroots level, like it’s been said, friends, family, etc. hopefully Occupy rallies too.
—
Wasn’t there an article here several months ago that stated if Obama won the next election, he’d be pushing hard for major cuts to the social safety nets? I think it wasn’t just one person’s speculation, either.
and shoot a few to any MSM members you think are
amenablenot too obsequious toward the ruling elite and/or brain-dead.Went ahead and fixed it up for ya.
Hey Timmeh: I got your Simpson-Bowles for ya, right here…
But, alan1tx, if you read it carefully, you’ll see that the raising of the cap is VERY GRADUAL, over 30 or 40 years (maybe 2050 target year?).
Now, if B-S were to make “raising the cap” immediate, it would make a HUGH DIFFERENCE, and pretty much alleviate the need to make any cuts to the monthly benefit formula (so-called means testing, progressive price indexing, etc.).
And reference your comment:
“And to contain costs, alter the benefit formula bend points that would not affect low wage earners, but only upper wage earners.”
Well, I don’t know about you, but I hardly consider folks making just north of $9,000 annually, to be “upper wage earners”–and I don’t mean that sarcastically, just as my honest opinion.
And yet, B-S actually begins to lower the monthly benefit at that pathetic wage level (just above $9,000–some summaries I’ve read, claim just over $11,000. But either way, that’s ridiculously low, to my mind.) It’s only about 3% or so at that level, but increases considerably, at very low income levels.
And, the way that policy wonks and politicians dishonestly describe the reductions, most people THINK that they’re talking about cutting benefits for ONLY THE AFFLUENT, who make $250,000 or more. But that is not at all, the case.
Again, EVERYONE, Google The Moment of Truth PDF, and read it for yourselves. Don’t take my word for it.
But anyway, alan1tx, I do appreciate your feedback. You’ve brought up some very salient points.
Blue
lechero–
There was, and he will.
Blue
hbb, my friend–
Ditto to all your remarks!
Whew! Love the feedback, but about now, I would almost “entertain the thought of being the target of one of those drone attacks” you warned me about, the other day. :o)
Seriously, Murphee and Bailey are giving me the evil eye, not that I should be surprised. They’re only a couple hours overdue to “go out.”
Yeah, hbb, South America looks better everyday! Later–
Blue
Blue, hope you check back. The Daily Show did an expose last night of a privately owned agribusiness in Idaho called Simplot. They have phosphate mines that generate pollution from selenium that’s causing mutations in fish (2 heads, etc.) and are successfully lobbying the EPA to increase the permitted levels in the environment. Something else you won’t see in the MSM.
I keep telling you guys. Obama does not have to use drones on US citizens. All he has to do is arrest you as a “suspected terrorist” and toss your ass in GITMO where they don’t have to indict you, charge you and they can keep you detained indefinately.
Why waste a drone on an American citizen like you.
No offense intended. :-)
Four words…..San Miguel de Allende.
Caribbean vacations for all protesters. I’ve always wanted to visit Cuba.
Two words….Cuenca, Ecuador. Less US influence and the dollar as currency.
hbb–
Haven’t left yet–had to check another diary.
I vaguely remember seeing something on that story, but not sure where. Nothing really surprises me anymore, though.
I’ll probably see you back here later if you drop in at all early evening. Not only do the dogs need to go out, I’ve got to get to the credit union before it closes today.
Blue
Thanks, Blue Onyx, although I think you must have made a mistake and meant to reply to someone else – I can barely spell “articulate”, much less be it.
I would like to believe that there’s something that we can do to save the safety net. If a movement arises, you can bet that I’ll be there. But as it is, I’m in the same position as Saul: the scales have fallen from my eyes. Perhaps I’m delusional. But it seems that I see our true masters now, and their plans for America. Freedom, knowledge, and the social safety net are not on their agenda, and will not be permitted.
So while I wish I was being sarcastic, I’m not. Twenty years ago as a dedicated Democrat I would never have dreamed that the day would come that I’d swear never to support a mainstream-party candidate again. Nor would I have imagined in my most paranoid moment that both parties would support torture, extrajudicial murder of citizens and non-citizens alike by secret executive fiat, and unlimited surveillance.
Things never stand still. This is not the worst that it can get, and this is not the worst that it will get. Imagine the craziest, most obscene and ridiculous thing possible: whatever it is, the odds are that in ten to twenty years, both parties will be in absolute support of it. And some big corporations will be quietly making billions doing it.
Today’s nightmare is tomorrow’s reality. Our only hope is that the common man (and woman) will eventually reach a breaking point. Our masters are betting that they won’t, or that they can control enough of us with police brutality and unlimited spying. Or perhaps, if worse comes to worst, that they can kill off enough of us, one way or another, to cow the rest. I don’t know.
That’s an old bet, one made time and again by the ruling elites throughout history. Sometimes they win that bet. More often (I think), they lose, and die.
How will things turn out this time? Damned if I know. But it seems to me, as a family man, that I have an obligation to plan ahead and consider what I can do to make sure that my descendents don’t grow up in this dystopia that we call America.
ncg–
But the drone strikes are so much more appealing, don’t you think? :0)
Blue
P.S. Have lived in Mexico (Mexico City and Puebla) and loved it, but a little leary of the “drug wars” down there now. We’re thinking more like South America.
fat chance of that happening.
Hey, hbb–
Don’t let the “cat out of the bag” to too many folks (I do the same thing). Wouldn’t want the real estate prices to go up too much, now would we? :-)
Blue
Start by up-armoring old Vette’s?
Actually, the tanks and APCs are what they bring to get you out of the stations. All you need to take over the stations are some small arms. But you also have to take the transmitters, which sometimes may be located many miles away from the studios. And you have to hold the positions, not just militarily but with adequate provisions.
So, okay, where do we start? I’m taking nominations!
Quasit–
Thank you for such a thoughtful reply. All of your sentiments are mine, as well.
I guess that I’m sort of hoping that we can bring on the “breaking point” sooner rather than later. If we can educate enough people NOW as to what is going to come down the pike, maybe they will wake up. It seems to me that “the movement” must start now–somehow. (But maybe, it’s just wistful thinking, on my part).
Blue
You are correct. I’ll just have to be more discreet. “Cuenca is not the expat destination you seek”.
It makes me wonder about the people in France who formed the Resistance during World War II. What techniques did they use? Are any of them adaptable to the world that’s coming (to borrow a Kirbyism)? How can freedom-fighters cope with or hide from drones, including insect-sized ones designed to inject fluids, and team-drones which can perform all sorts of unbelievable stuff like build structures?
There you go – that even sounds paranoid to me. And yet all of it comes from mainstream news sources, albeit in stories that didn’t get prominent placement.
We need to find new ways to think about protecting ourselves against the Monolith – which is my name today for the amalgamated government/corporate entity which is gelling before our eyes.
Wake people up? I don’t know if that’s possible. The media – an intrinsic part of the power elite – seems to be hellishly effective at drowning out all voices of dissent and protest. We’re headed full speed ahead towards a classic fascist state, and most Americans will never know that there’s any other path possible.
We are Rome, doomed to Caesar. But this American fall may be different from similar events in the past. For one thing, the prospect of environmental collapse is a complete wild card.
The future isn’t set in stone. But I can’t believe that we can change it by participating within the system. Some new approach might help, something incredible unconventional and brilliant…but whatever that might be, it’s certainly far beyond me!
Muchas gracias!
You’re right. Transmitters ARE t he key…that was in Chapter Two.
Now, where??????
Kinda hot everywhere now. Let’s wait ’til October and start in Lake Tahoe.
“Mums” the word.
Obama is not going to win the next election because people his past supporters not vote so the one to be concerned about is Paul Ryan ….and Mitts got the teaparty elders behind him so they will drag their feet on SS cuts .
How do critical decisions about the Federal budget affecting millions of Americans get outsourced to non-elected morons like Bowles and Simpson? Again, heck of a job Odumbo.
I didn’t need any more reasons not to vote for Obama, but he just gave me another one anyway.
I volunteer to be the person who reads the Firedoglake posts on the air once we have effectuated our glorious takeover.
If by any chance you can listen to Mike Malloy’s show from Wednesday June 13th, it was an excellent discussion of how the RonPaulists are taking back their party at the state convention level. Brad Friedman of Brad Blog interviewed the chairman of Ron Paul’s campaign.
Regardless of how you feel about Ron Paul, the fact is that state conventions are run by a very strict set of rules, and it might be possible to take back the Democratic Party by employing the methods the Paulists are using.
I feel that in addition to getting some third parties out there, We The People really need to take back the political parties and make them work for us. I know my father spent his life as a Republican, as his dad was a printer who had gone out in the streets of Chicago during the Haymarket riots. And who supported those Chicago workers? The Republican Party! Now, no one in either party cares one bit about workers, but that needs to be changed.
Considering that we should be going further, not only raising the cap on wage income but also taxing dividends, capital gains, and interest to fund SS (which *does* not only make it solvent, but also allows for benefits to be *doubled*, something some present and all future retirees now desperately need, given that the kids nowadays only get crappy 401ks, not pensions–I can give you the math for that, which you asked for once, but I didn’t see your request until comments were closed).
The quickest way to erode the support for SS is to start means-testing it in one way or another.
-stewartm
All RIGHT!!!
Communications Director.
We have got the ball rolling.
As soon as I get to Chapter 3, I’ll get back with you guys.
Have a nice weekend. The 1% will never know what hit them.
De nada.
Cass Sunstein, is that you?
The second thing we do is move into the 1% mansions with them. The people need shelter and cable TV that still being paid for.
Whaaat?
How did you confuse me with that miserable anti-civil liberties asshole Cass Sunstein?
My bad… I figured it was either eleventy-dimensional chess or an agent provocateur :)
Quasit–
So well articulated, again. The solution obviously alludes me, too. The so-called “left” in this country has been so hollowed out, that it is unimaginable that it could ever find its voice, and stand up to the PTB.
I guess I called for this silly exercise today out of exasperation, and because the alternative, just plain giving up, seems even worse.
Blue
hbb–
Good line. I shouldn’t pick on you so much, but I know, that you know that I’m just teasing. Occasionally, my husband has fussed at me, for “advertising” Cuenca so much. And I don’t mean talking to you about it. He just asks that I quit telling (in his words) “every Tom, Dick and Harry that I see” about it! LOL
Blue
Whatever happened to that genius metaphor? Get lost in the pile up of screw ups or the naked cruelty of militarized aggression?