The BBC keeps reporting on the debt and budget talks between the President and the Republicans in the House of Representatives. The latest report covers the announcement by Moody’s that they’re going to review the US credit rating with an eye to downgrade it to a default risk.
My position is that the BBC has an ideological stance when it comes to government borrowing, spending, and debt. Stephanie Flanders has trumpeted the Keynesian solution on a number of occasions (just search her name on this blog and read the links to her pearls of wisdom), thinks the Greek bailout worked (yeah, I know, which one?) and at one point even told us that the US would never default.
With this in mind, let’s look at the BBC’s report on the Moody’s news. As everyone here knows, the problem is that the US is at an impasse regarding the debt ceiling. We either have to raise it, or do some serious cutting in spending right now. There are ideological opponents on each side, but there are also hard facts which are not debatable. The BBC says this about the President’s side of the argument:
He has said he is willing to countenance cuts to social safety-net programmes dear to Democrats, as long as there are tax rises for the rich.
Republicans have rejected the latter proposal, saying that would stifle investment and job growth.
This is false. In fact, it’s more than the class war stuff. As I posted the other day, the President said Himself that He wants to raise taxes on a lot more in 2013, which, you know, is what the whole budget deal is about. Yeah, the BBC censored that bit out of the speech video they showed you. So all you know is that Republicans are holding the country hostage over protecting the evil rich. But since it’s the White House Narrative, that’s what they’re going to report.
Now, about that debt ceiling:
When it came to the crunch in the past, Congress regularly voted to raise the debt ceiling, giving government access to the cash it needed.
How about some context, BBC? The current situation is unprecedented, and Congress never rubber-stamped (that’s implied by the BBC sub-editor’s choice of words) an increase when the country’s finances were in such dire straits. It’s completely dishonest to compare today with the past, and act as if the Republicans are somehow an anomaly and not the situation itself. But they do it anyway.
This year, however, newly empowered Republicans have demanded steep cuts in government spending in return for raising the limit.
“Newly empowered”, eh, BBC? I think we all know what that means: Evil Tea Party Influence. It’s funny, because the BBC and Obamessiah worshiper Mark Mardell initially claimed that the Tea Party hurt the Republicans in the mid-terms. But never mind that. I don’t need to remind anyone here what the Tea Party movement represents to the Beeboids. So back to BBC dishonesty.
Mr Obama has proposed a package of up to $4 trillion in budget deficit reduction over the next 10 years, but Republicans have rejected that and other proposals because it calls for raising taxes.
Again, false. I posted a few days ago about how this White House/BBC Narrative is also false. He’s not giving in on the entitlements at all. But the BBC doesn’t care, they just keep spinning for the leader of a foreign country. Notice also the appearance of “newly empowered Republicans” in a previous BBC
propaganda piece report about the budget talks. I’d say this code for “Evil Tea Party Influence” has made its way into the BBC style guide, but it’s probably just the same Beeboid writing it. But still: Narrative? What Narrative, eh?
And then Keynes raises his ugly head again, in the form of Ben Bernanke.
In his testimony to Congress, Mr Bernanke said the Fed would renew stimulus efforts if the economy remained weak.
The Fed’s second quantitative easing programme (QE2) ended two weeks ago, and there has been much speculation about whether a QE3 programme is on the cards.
Now, to someone who is trying to follow reality and is not ideologically locked into policy, this might sound like the captain of the Titanic saying that he’s just going to cut another hole in the hull to help the water flow out the other side. At least the BBC didn’t censor news that people in the real world see it that way:
The dollar extended earlier losses against the euro following Mr Bernanke’s comments, with the euro rising more than a cent to $1.4088.
Now, if, as we heard before from the BBC,
printing money and throwing it around increasing borrowing for more stimulus works, why would the dollar tank against a currency that’s the shakiest thing going when the Fed suggests more of it?
Analysts said that Mr Bernanke had only raised the possibility of a further stimulus, and was not saying that it was necessary.
Oh, right, it’s not really his fault, just stupid speculators over-reacting.
Alternatively, it could be because the previous “stimulus” efforts failed and only added another couple trillion dollars to the debt.
Morning Bell: Why Obama’s Stimulus Failed
Oops, my bad. That’s about how the first stimulus failed. Here’s something on QE2:
Obama’s People Admit Stimulus Failed Miserably In Creating Jobs
So we can see how….hang on…what the hell is this?
Democrats Press Obama to Include Stimulus in Debt Deal After Jobs Report
Democrats pressed for some form of economic stimulus in the debt deal President Barack Obama is negotiating with Republicans following a U.S. Labor Department report yesterday showing job growth slowing.
Senator Charles Schumer of New York, the chamber’s third- ranking Democrat, called for an “immediate jolt” to the economy by extending and enlarging a one-year payroll-tax cut that’s set to expire Dec. 31. He asked for action “as quickly as possible by including it in the final debt-limit agreement.”
You have got to be kidding me. No wonder we’re heading towards a Weimar-type situation. So it’s not Republican intransigence to protect the evil rich at all. And the BBC has told you none of this. All you know is the heroic Obamessiah has been trying to save us from ourselves.
Don’t trust the BBC on US issues.