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I agree with you. It's maddening that the media report it as a "negotiation" without clearly explaining that this is to pay bills spent mostly by Trump. Not only that, but it's NOT an issue of out of control spending, but one of out-of-control tax breaks for the rich. Also they should repeatedly point out that the Republicans had no problem with spending or the debt limit under Republicans. This is a STRATEGY on their part - and one the Democrats have never used - to hold us hostage - and damages are their responsibilty alone.

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No matter whose fault a default would be, it’s going to hurt all Americans and millions of people around the world just so a few idiot extremists get to flex their muscle. It is unconscionable, evil and they should be stopped.

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Susan McCabe ; Yes, and the "few idiot extremists" are carrying water for the billionaires who have bought them, and helping to distract from their theft from our Treasury and Common Good. They have real power to distract, disillusion and actually cause harm to all of US and those around the world affected by a default on our debts. The billionaires flex their muscle through them. And continue to rob and disenfranchise US, and threaten our children's future.

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Prof. Reich is absolutely right to be outraged by the media mischaracterization of this as a “partisan standoff”. But just as serious is their mischaracterization of the negotiations.

President Biden has on more than one occasion stated some variation of what he said before leaving on his G7 trip: “To be clear, this negotiation is about the outlines of what the budget will look like, not about whether or not we’re going to, in fact, pay our debts.”

In other words, the President is using Kevin McCarthy’s made-up “crisis” to get a budget deal now that will avoid a government shutdown in the Fall. Once that deal is in place, a debt ceiling bill can be passed with a bipartisan majority so everyone (except MAGA) can claim victory.

The only question is whether Mr. McCarthy stands with MAGA, who will never agree to anything that can pass the Senate. If he does, the bill will be brought to the floor without the Speaker's approval through the Discharge Petition. MAGA loses either way.

Joe Biden is in charge, folks. And he knows what he’s doing. Experience counts.

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You believe the same as Lawrence O'Donnell on MSNBC last night. It makes sense.

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Hi Gloria. To be clear, last night, O’Donnell presented his thinking as a theory replete with the caveat that by the next day his thinking could change. His demeanor here is an example of why I hold O’Donnell in such high regard. While he tries hard to be right, he rarely, if ever, claims to be absolutely certain.

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Not to be immodest (well maybe a little), but Lawrence finally has come around to believe what I do. Below is a link to my May 17th comment on Prof. Reich's post "What Should Biden do about the debt ceiling?" The only thing I'd change today is to leave out the word "clean".

(Honestly, it's what should have been obvious to everyone if the media had not misrepresented the negotiations, as well as Mr. Biden's political skills.)

https://robertreich.substack.com/p/office-hours-what-should-biden-do/comment/16207945

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I just read your comments from the 17th. Thank you. Makes total sense now.

I hear commentators who should know better say that the 14th Amendment is circumstantial. They should read the Constitution.

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I hope he is right.

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I really hope so, but until it's a done deal I won't feel secure. Ryan Grim had a great article on Substack recalling how during Obama's presidency in a similar showdown, just as the Democrats had gotten in a favorable position to get a deal that would raise the debt ceiling without any major compromises, Biden got involved & gave the Republicans practically everything they wanted. I hope he learned his lesson, but his messaging has been inconsistent. He should've given up these negotiations long ago.& invoked the 24th Amendment

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This experience has made me nervous as well. I think he has learned his lesson. He can trust the repubs to do anything, anything to take power and money and not to give a darn about the people. I think he understands that now.

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I hope you're right. Some people think as you do, while others feel he'll slip back to his bipartisan ways with an enemy that has no interest in anything but imposing their will on everybody else.

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I agree, Jaime. "I hope so, but..." If Pres. Biden "learned his lesson," why hasn't he pounded the media with what he's learned? Viz, "No debate." "The US doesn't negotiate with terrorists." Etc.

Mr. Reich is 1000% correct. Pres. Biden hasn't owned the Bully Pulpit. If he hasn't, why not? Has he learned you can't negotiate in good faith unless the others at the table are too? Or is he permanently mired in the Dem. mindset of "We're all reasonable people?"

Extremism is NOT reasonable by definition and never has been. Trumpers have brought the USA to the brink of destruction. If Dem. leaders don't or can't see that, they aren't leaders -- they're followers.

Debate/negotiation means acknowledging that the "other side" has a valid position. The fact that another "debt-ceiling debate" has dragged on till the 11th hour is per se proof imo that Pres. Biden may NOT have "learned his lesson," and it scares me. Correction: It TERRIFIES me.

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Please, what is the actual distinction between getting a budget deal and then raising the debt ceiling vs. getting a budget deal as a condition for raising the debt ceiling? Either way, what budget deal is President Biden willing to accept? One that protects billionaire tax cuts while cutting the meager benefits available to the poorest Americans? Whether Biden agrees to anything like this “separately” or as “ransom” will make little difference to those most affected.

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Ooooo I like this. Thank you for a ray of hope

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I hope you're right. . . .

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I hope so.

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Maybe not "all Americans". It won't hurt the rich, in the long run, and Reps know that. If it takes some temporary losses for the rich, in order to keep the "libbies" in line, that is okay.

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Actually, if MAGA GOP extremists do succeed in their sabotage and bring down the whole economy, everybody, rich or poor, will suffer incalculable damage.

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The damage to the poor and marginalized will by far exceed the damage to the wealthy.

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not the rich. they always come out on top.

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Wait until social security checks are late…you can’t reason with bullies, Biden blew this…

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Susan D ; Not Biden alone. How did the 'Republicans' 'win' Congress? Why is Santos still in there in all his illegitimate 'gory'? How many other frauds are in there giving them the slim majority they do not deserve? Rules are broken so often and it goes unchallenged. Even if investigated and challenged, it takes way too long for justice. the rule of law is broken. Don't lay it all on one man.

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Right, Laurie. Santos is not the only Republican who got into power by misrepresenting himself. At least 2 others did, too. Combine that with all the seditionists & their supporters who broke their oath of office & thereby earned expulsion from Congress, & there would be far fewer Republicans in Congress if constitutional law were being followed.

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True there are illegitimates in Congress and the Senate, also the Supreme Court.

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They will not be late. See my other comments.

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I disagree Brad, it won't hurt the rich as much as 99% of us, but expect interest rates on loans, credit cards, and even the ability to borrow will soar out of sight.

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Fay Reid ; and the 1% make even more money.

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Agreed!

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Yep, Fay. 99% of us will take 99% of the hurt. The 1% will be hurt 1%.

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Small minded name calling always helps

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Steve, you are absolutely correct in this!

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The messaging should be clear: Botrh parties grow the deficit. One party believes in growing the deficit to help the rich get richer, the other party believes in growing the deficit to balance wealth. One party serves the rich via tax cuts, the other serves the rest of the people via spending programs.

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I disagree that responsibility for the damages arising from the debt limit fracas lies exclusively with republicans. By “negotiating”, the democrats legitimize the fake, lying, totally dishonest position of Macarthy et al. The democrats, including the president, should turn their backs on the republicans, and address the public with the actual facts. Then just pay the country’s bills as the constitution obliges the government to do.

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Steve Lester ; With the misinformation out there it is easy to pin the blame on Democrats. We all know that Biden and the Democrats can be blamed for a hit to the economy. With an election coming, those who are ignorant of the facts about the 'debt ceiling' may be tricked into thinking it is really Democrat's fault. tfg spent over 7 trillion during his 4 years in office. almost 2 trillion went to billionaire tax cuts. That has to be paid, as the Constitution states. The ball is in Congress' court.

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That debt does NOT have to be paid. Se this TEDxMonterey talk https://www.ted.com/talks/stephanie_kelton_the_big_myth_of_government_deficits.

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Steve Lester, I agree with you. I think the Repugs are assuming that the Democrats are damned if they do and damned if they don’t in the eyes of the citizens. And you know what? They are probably right about that. And that is because too many of our fellow citizens don’t understand. And I lay the blame at the feet of the mainstream and right leaning media.

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On one hand, I agree with you, and the Dems who say there would not be a deficit growth if not for tax cuts, custom-made laws, etc. for the rich. Problem is: Reps say there would not be a deficit growth if not for social programs. Your position depends on who your constituency is: the few rich, or the masses of people.

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Brad ; the masses of people who pay taxes, or paid into Social Security throughout their lives. It would be unreasonable to deny them things they paid for.

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I agree with you completely. We have to find a way to get politicians in office who serve the masses, not just the few rich. One way is to "vote the money", that is: find out where a politician gets their money, and vote accordingly. Not based on what they say, but on who is buying thier votes. But, before that, we have to have campaign finance reform because right now it's hard to know where the money comes from. So, again, if a politician won't clearly say where thier money comes from, don't vote for them.

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And there's Citizens United again... (quite rightly imo).

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Brad, FACTS might prove that one side is right, but facts aren't properly or fairly presented, and most people neither know how nor care enough to dig to find the truth.

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Steve...The Democrats make the same mistake over & over & over....did they & Biden NOT learn from 2011. The fascists knew they could get over on Dems on a debt ceiling debacle....

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100% Agreed BIDEN SHOULD NEVER HAVE negotiated this EXTORTION I am afraid about how this looks like Catering to Theocratic FACISM

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That's what progressives like Reich, Sanders & Warren have been urging Biden to do.

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I am heartsick that Biden has not flat out told Republican to go straight to hell and just start paying the bills with no caving in to those a$$hxxxx who are doing their best to destroy this country!

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Easy peas Do it now!

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The debt ceiling issue is a Trump-orchestrated debacle with McCarthy as the stooge forcing the play. The Republicans with Trump receiving the parties nomination stands no chance of winning anything in the next general election. Their goal is to make the Biden administration look as ineffectual as possible giving them a better chance in 2024. The money is there to be paid all that's missing is the intelligence needed to write the check.

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brad hudson ; It is not equal 'both sides ism'. Money is power, and the GOP has always had more of that. Plus, if workers pay taxes, they should get something for what they pay in. Billionaires do not pay anywhere near a fair share, if any , taxes!

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Laurie, They don't pay AND they get all kinds of taxpayer money through all sort of legal loopholes. I am beyond sick of it. As Prigozhin threatened pukin yesterday, "another 1917" may be brewing, as the Russian soldiers compare their fate to that of the oligarchs. Here's hoping! What could cause that here? Or is civil war, sadly, more likely?

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kdsherpa ; What would a 'civil' war look like when 30% of the population is armed to the teeth with assault war type weapons, and "homeland Security" is nothing but W.'s vanity project and a cruel joke, as far as the country's security goes? Where was "Homeland Security" when Jan 6 hit the fan? How will the humans be protected in the upcoming challenges of prosecutions and the election itself? Media is already forecasting violence on these fronts. Seditionists still hold seats in government, and possibly 'security' agencies!

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"Civil" That meaning of the word is long gone in our nation's politics... Do you read Steve Schmidt's "The Warning"? Everything you write here are things which he discusses regularly. It's terrifying to imagine, but as you write it is completely plausible.

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Same opposition: freedom fighters vs. russofascists/republofascists.

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Federally they do not get taxpayer money because federal taxes do not fund spending.

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Federal taxes do not fund federal spending.

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Then why are the republicans fighting so hard to keep this circus off the normal of Mainstream media.

Most people don’t bother looking up the RWingers game plan. If the shoe fits, wear it!

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Who told you that?

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(What does ROF stand for? Thanks.)

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Not sure where you saw that or what it means in the context. I use the acronym for Retired Old Fart.

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LOL!!!!! (If you press someone's name on these communications, whatever information the person has shared will pop up. I was just curious.)

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Excellent point.

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The deficit is a private sector surplus. The discussion should be about how to make it a surplus for the people.

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You are mostly correct, Kathleen, but the bills are not "spent mostly by Trump" He added some 18 trillion dollars to the debt, but the debt includes payments to Social Security recipients, payments to employees, including the armed forces for their work and time, Interest payments on the debt from countries from whom we borrowed in the past, payments for maintenance on buildings owned by the Federal Government, rent for buildings we use but don't own, supplies and equipment for every Government agency, Medicare and Medicaid payments to doctors and hospitals - I could go on for pages. But we need to understand the gravity of NOT paying our debts as ordered by the Constitution. Just not paying the interest on debts and payments agreed upon to other countries, is the source of worldwide panic and recession.

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See these videos. Greenspan schools Paul Ryan https://youtu.be/DNCZHAQnfGU

Zero Probability of default https://youtu.be/q6vi528gseA

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I watched both links, sorry, they just cemented my opinion that Alan Greenspan's best attribute was double speak. An opinion I have held since College Economics classes (2) taught by a very conservative professor. Strangely, in spite of our differences - I a liberal progressive, and he a diehard conservative, we liked each other. But I still didn't respect or have faith in Greenspan. I have always admired Keynes and Galbraith.

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When you attended college did you take any courses on logical fallacies? One is the ad hominem attacks on people not a critique of their ideas. Greenspan spoke truth and here is another link from someone else who is a real economist unlike what I think your so-called economist that was a conservative. You likely did not understand Greenspan. He made some of the most important points ever made.

Intro to MMT https://youtu.be/7cho7naef_k

And Kelton’s Tedx: Monterey talk. https://www.ted.com/talks/stephanie_kelton_the_big_myth_of_government_deficits

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When the Republicans wanted Jimmy Carter out they kept the Iranian hostages from coming home until Reagan was sworn into office. This time its not Iranian hostages its the whole country held hostage. A bunch of self interested bastards there hasnt been seen. Enough with the "making a case" (DOJ Garland/Smith) against Fraud 45 and his Jan 6th supporting Lackeys they all should be in court right now. Especially congress people and senators involved. Force them to get "anoymous" mega donors to bail them out like George Santos and harp on it 24/7. These people are enemies of the country who have committed crimes are havent been charged AND are still in office. Put Madison Cawthorne under investigation and hed sing like a bird.

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You're absolutely correct!

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Exactly!

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Republicans want to raise the debt 1.6 trillion

Democrats want unlimited spending.

You tell me who is rational!

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Democrats want to raise taxes on the rich to pay for their programs. Republicans think the programs they like - military spending and business subsidies - can be paid for with pennies from Heaven. Now, you tell me who is rational.

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Your comment is not rational.

Federal taxes do not fund federal spending. Believing that mythology is why the GOP is able to pull this fast one using the debt ceiling.

See MMT for Beginners https://youtu.be/E5JTn7GS4oA

and

Intro to MMT https://youtu.be/2HaSqZhfp5U

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Russel Cohen ; Those who pay proportionately more of their income for less and less, while their pay is shrinking are quite rational. Ever hear of beating a dead horse? Just not workable. The 1.6 trillion will just go to subsidies and more tax breaks for the rich.

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Since Democrats control the White house and Senate how will that happen. So you want to print the $$$ to oblivion

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Raising taxes on the very rich & eliminating the cap on Social Security taxes would be a good start. On the spending side reducing military expenditures & eliminating corporate subsidies would help.

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Raising taxes on the rich has two important implications. One, it increases the amount of money in the government treasury WITHOUT INCREASING THE DEBT. Two, it takes some power away from the rich which we MUST do if this country is to survive. Capitalism is an unstable system. Greed and monopoly always combine to create greater and greater inequality. Inequality ITSELF is killing us because the rich have the power to control the government, thus adding even more inequality. Money does not have to lead to power. Those two are connected by permissive laws which allow money to be spent in pursuit of power. It doesn't have to be that way. It could be different, though of course the rich will fight such a change with all the enormous strength at their command. Only a catastrophe (like 1929) can overcome them in practice.

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Russell Cohen ; No, I want President Biden to force the payment of our debts, using the 14th amendment. Then: plainly explain that the debts made worse by tfg must be balanced by repeal of tfg's tax cuts on the wealthy. A wealth tax on billionaires and wealthy corporations should also be promoted, or even imposed, if possible. Attack Citizens United! No more legal bribery !

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Debt only rises when there is borrowing. If fiat money is created, there is no debt. Repubs like borrowing because it is a fat investment opportunity for the rich to lend money to the country. Increasing the amount of fiat money out there means shaving a little of the value off all the of the money that already was in existence to fill the new money with some value. That would probably lead to inflation since there is now more money competing to buy goods. Inflation doesn't happen by itself. Some decision maker HAS TO decide to raise his prices. If decision makers feel a lot of demand for their goods, that gives them permission to nudge the prices up a bit and then a spiral starts. Stephanie Kelton, the economist on TED, was also trying to bring the ethereal economic argument down to earth. Ultimately, deciding to do a project depends on being able to find the trained labor and materials needed or else you have to postpone the project. The economists try to confuse the discussion by suggesting that economic numbers somehow cause things to happen by magic. No, there are REAL limits on how economic changes can occur. Without greed, available resources and people making decisions, nothing can change. This is where Richard Wolff shines. He abjures the flailing numbers and points out the realities.

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I would argue that there is out of control spending on the military. Lets not forget that the 20 years of war the U.S. has been engaged in has added $8 trillion to the debt and deficit. There's no sign of the military budget being cut and it's going to keep going up, which is unsustainable for the nations economy.

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I agree too.

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