Category Archives: US economy

U.S. Government Shut Down Blues – A Dishonest BBC Song

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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.

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What You Won’t Be Told About The U.S. Budget Deal

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There won’t be a fantastic budget deal tonight, and the President won’t get His big economic victory. The BBC seems to think that only the “newly empowered Republicans” are causing ideologically-driven obstacles to agreeing on a debt package.

When the Congressionally-set debt limit has been reached in the past, Congress has voted to raise it.

This year, however, newly empowered Republicans are determined to prevent any tax increases and want to see aggressive measures to reduce the deficit in exchange for agreeing to raise the debt ceiling.

Actually, they’re prepared to allow some of the class-war taxes (e.g. the expiration of the Bush tax cuts) in exchange for real lowering of the overall tax burden in the near future. The BBC knows that the President needs a big score here, as most people simply don’t trust Him to fix the economy right now.

The Obama administration wanted “the biggest deal possible” on debt reduction, Mr Geithner told NBC’s Meet the Press.

And now it looks like He’s not going to get one. So, who is to blame? The White House version, as told by the Washington Post, is the class war angle.

“We cannot ask the middle-class and seniors to bear all the burden of higher costs and budget cuts. We need a balanced approach that asks the very wealthiest and special interests to pay their fair share as well, and we believe the American people agree,” White House communications director Dan Pfeiffer said in a statement.

The BBC, naturally, echoes it:

But it also involved tax hikes and closing tax loopholes for the wealthiest Americans, something opposed by many Republicans.

In a statement released late on Saturday, Mr Boehner said he was pulling back from the $4tn package because it involved tax increases.

“Despite good-faith efforts to find common ground, the White House will not pursue a bigger debt reduction agreement without tax hikes,” he said.

The quotes from Boehner seem to support the White House’s side of the story. Except here’s the part the BBC doesn’t want you to know about the tax deal.

The White House isn’t giving in on any of the entitlement reforms they promised they’d make in exchange for the Republicans giving in on the quick tax rises I mentioned above. In fact, they want even more tax increases right at the time when the smart money says that’s the worst thing to do.

The Republican source said the Boehner-Obama effort stalled over taxes. After Boehner pushed the president to pursue major entitlement changes in the debt deal, Obama insisted on additional revenues, which Democrats have demanded throughout the deficit discussions. The Speaker, according to the Republican source, said the new revenues must come from economic growth and broad-based tax reform, not straight tax increases. The Republican said the White House rejected a Boehner proposal offered on Friday for “the core elements of tax reform.”

“A gulf also remains between the Speaker and the White House on the issue of medium and long-term structural reforms,” the Republican said. “Consequently, the Speaker believes a package that is smaller but still consistent with the standards he has outlined may now be the most appropriate option.”

The White House says it’s not true, but then read this:

WH is demanding major, unambiguous tax hikes. To get spending caps & entitlement tweaks, greater economic pain appears to be the WH’s asking price. It is increasingly likely that we aren’t going to see a ‘big’ deal if the WH doesn’t budge. Speaker looks to be holding strong. …

Their fierce insistence on higher taxes is beyond bizarre.

After months of demanding ‘clean’ increase to avert economic calamity (default), WH threatens economic calamity (default) unless they get economic calamity (trillions in tax hikes). No wonder these guys are governing over an economic calamity (9.2% & growth malaise), w an economic calamity on the horizon (debt explosion as mapped out in president’s budget).

The President’s own Comission He set up to look into this approved the Republicans’ notion of overall tax reduction and reform, but He won’t do it. None of this is in the BBC’s coverage. They either don’t have good enough sources, or just don’t feel like telling you.

It’s ideological. He’s too partisan, too stubborn, too stuck in class war mode. The result will be that Boehner will walk away tonight and we’ll end up with a smaller quick fix which won’t be the economic home run the President needs. He’ll have done it to Himself, but it will be spun as the Tea Party destroying the country, and Republicans selling out the country to protect the wealthy. That will be the story the BBC will tell you. And they won’t tell you what He really did.

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U.S. News The BBC Thinks You Don’t Need To Know

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While they’re eager to tell you the latest updates from the White House spokesman, celebrity gossip, irrelevant death tattle, a human interest story about a US Communist who moved to the paradise of China, every new detail on a celebrity rape case, and a non-story about how a manufacturing increase really isn’t one (but it made for a good opportunity for a headline to mislead the lazy reader into thinking that The Obamessiah’s economy is on the mend), there are quite a few things going on in the US that might be of more interest and import.

The BBC’s North America editor has been rather silent since his last dismissal of a newly-declared Republican candidate for an election that’s 18 months away. One would think there are a number of issues on which he could comment. For example:

Public sector unions versus the Government is the biggest story in Britain right now (in between live coverage of Kate & Wils’ Canadapalooza, I mean). One would think that the exact same issue coming to a boil in a few US states would be worth your attention. Only the BBC has been silent about the events in Wisconsin and Ohio.

Many people here probably remember a few months back when the BBC actually did report on public sector union protests against the evil Republicans who (insert NUT/PCS talking point about attacking the poorest and most vulnerable here). As was pointed out here at the time, the BBC’s coverage was biased in favor of the unions and censored news of violence and unlawful behavior by union supporters which might harm the cause in the public eye. The point is, though, that the BBC though you should be informed about the union’s cause, all the way until they lost. Then….silence.

The problem for the BBC is that it turns out that at least part of Republican Gov. Scott Walker’s victory has, contrary to the protests at the time, in fact been good for schools. One school district even went from a $400k budget deficit to a $1.5 million surplus. Sure, there are about to be 354 teachers and a number of desk-jockeys laid off because of budget cuts, but there is also going to be a big increase in school vouchers. More independent schools equals more choice for students and parents, and more jobs for teachers: if they’re worth it.

Seeing as how this is directly relevant to what’s going on in Britain right now, this ought to be of interest to you. Except it’s on the wrong side of the Narrative.

In Ohio, another Republican Governor who defeated the incumbent Democrat in November just passed a major state budget in which he cut a lot of stuff and practically made up for a $6 billion+ deficit over the next two years – all without raising taxes. This is the exact opposite of what the President just recommended (and about which the BBC made sure to inform you), and the kind of plan which Justin Webb told you doesn’t exist.

If that’s not enough to make this story relevant, then consider that Ohio is considered by most pundits to be the poster child of “swing states”. Where Ohio goes in mid-term elections, so goes the rest of the country in the next general election. You can bet that Beeboids assigned to the US know all about this concept. They have no problem covering the early fits and starts of the election campaign itself (we’ve already had plenty of coverage of the Republican debate, speeches, appearances, Sarah Palin, etc.), but the BBC is going to be shy about mentioning this because Ohio made a major turn towards Republicans last November, taking the Governor’s seat, as well as winning most of the state’s Congressional seats, and a bunch of other top offices. And yes, the state legislature is majority Republican now. This budget is the exact kind of thing the Tea Party movement has been pushing for over the last two years and more, in a state which is often looked to as a weather vane for the country, and the BBC remains silent.

California has such severe budget problems that they’re practically bankrupt (when did you last hear about this from the BBC?), and need every last dime they can scrape up. So what did the State Legislature do? They passed a law requiring sales tax on online sales from Amazon.com. Sounds simple enough: install a new tax where none existed before, raise loads of revenue. Except Amazon told them beforehand that if the tax was enacted, they’d shut down the accounts of all the Amazon Affiliates in the state because it would Amazon’s profit (this was really about big brick-and-mortar retailers fighting their online competition). So when the tax went into effect the other day, about 25,000 people logged on to find out their accounts were shut down.

Result: The $151 million in income tax these people pay every year just vanished into thin air, in exchange for….um….no sales tax revenue for the state. California, by the way, is run by a far-Left Governor and a Democrat-controlled State Legislature. Whether one agrees with Amazon or California, this is a pretty major deal that has more informative news value than a special feature comparing Michelle Bachmann with Sarah Palin. Although that depends on what one’s newsgathering priorities are.

While Justin Webb can tell you that the Republicans don’t have a plan to reduce the debt, and only raising taxes on the rich is the way forward, nobody at the BBC is going to tell you that The Obamessiah’s plan to bail out Fannie Mae and Freddie Mac – the failed institutions which fueled the mortgage crash that led to the economic crisis we’re all still dealing with – will cost 2.5 times more than He said it would. $317 billion down the toilet, to prop up two failed government-funded organizations, which will only continue the damage they’re doing to the housing market.

His big stimulus package? All that “quantitative easing” Stephanie ‘Two Ed’s Flanders was sure would work? Didn’t do a thing. $2 trillion (!) down the tubes, all thanks to ideology. Not a word from the BBC. Again, this is exactly the kind of thing that fueled the growth of the Tea Party movement, and you can bet will be relevant in the coming election.

The BBC did find time today to mention that corn prices have dropped due to a bumper crop, suggesting that this is a sign that food prices will finally start to drop as well. Except they don’t tell you that ethanol subsidies have screwed things up so badly that both political parties voted at last to drop the massive tax breaks for ethanol farmers. These subsidies mean less people grow the corn we (and beef cattle) eat in favor of “dirty corn” for fuel, so food prices go up. The In this case, the Tea Party-inspired Republicans actually voted to raise taxes. One would think this kind of flip-flop is something the BBC would be eager to report with cries of “hypocrisy!”, never mind how it’s totally relevant to the story of a temporary drop in corn prices. Only they don’t think it’s worth your interest. Why?

Remember last week when the President announced he’d release 30 million barrels from the Strategic Petroleum Reserve in order to help reduce skyrocketing fuel prices? It turns out that He learned a lesson from last year’s Gulf Oil Spill and waved the Jones Act to allow foreign ships to come in and deliver it. One would have thought this is the kind of smart move the BBC would tell you about. Only they’d have to remind you of one of His errors they censored before, so never mind.

That’s enough US news for now, so I’d like to ask everyone here two questions:

1. Does the BBC, with all the staff assigned to the scene, keep you informed on US issues you think are important?

2. What kind of stories does the BBC ignore which you think they ought to report?

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The Dishonesty And Political Advocacy Of Justin Webb

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The latest BBC article about the US economic situation is by that well-known economics and business expert, Justin Webb. Yes, he went to the LSE, so must surely be qualified to prescribe a cure for what ails the US.

But first, his dishonesty:

I should make it clear that my reporting of the United States, in the years I was based there for the BBC, was governed by a sense that too much foreign media coverage of America is negative and jaundiced.

Too much foreign media coverage, eh, Justin? You mean like this?

America is often portrayed as an ignorant, unsophisticated sort of place, full of bible bashers and ruled to a dangerous extent by trashy television, superstition and religious bigotry, a place lacking in respect for evidence based knowledge.
I know that is how it is portrayed because I have done my bit to paint that picture, and that picture is in many respects a true one.

Who said that? Justin Webb in a ‘From Our Own Correspondent’ piece for the BBC. So who said this:

Some Tea Party folk hate Obama, but the movement is a symptom of something much deeper and more worrying for all Americans: they kinda hate themselves.

Justin Webb, in the Mirror (h/t David Vance of this parish). That was back when Webb and the BBC were pushing the lie that the mass murderer who attempted to kill Rep. Giffords in Tucson was a right-winger whose actions were inspired by the Tea Party.

And then there’s this gem:

Washington correspondent Justin Webb said that the BBC is so biased against America that deputy director general Mark Byford had secretly agreed to help him to ‘correct’, it in his reports. Webb added that the BBC treated America with scorn and derision and gave it ‘no moral weight’.

Foreign media, indeed.

Now on to the main point, ol’ Justin’s political advocacy masquerading as expert analysis.

This is a story of debt, delusion and – potentially – disaster. For America and, if you happen to think that American influence is broadly a good thing, for the world.

The debt and the delusion are both all-American: $14 trillion (£8.75tn) of debt has been amassed and there is no cogent plan to reduce it.

Denial? No cogent plan? He’s talking about the Democrats, most especially the President, who initially refused to cut any spending at all. Only that’s not what ol’ Justin wants you think. No, so long as he can convince you that it’s a bi-partisan denial, he can get away with the dishonesty.

In fact, Paul Ryan has had a cogent plan out for a while now. It’s only that Justin doesn’t like it because his personal political beliefs lead him elsewhere. To claim that nobody has one is simply a lie.

Webb’s first expert source is Jeffrey Sachs of Columbia’s Earth Institute. Even without guessing the political leanings of an organization with such a name, we can figure it out because Sachs himself says that Keynes was the “greatest political economist of the 20th century”. How convenient that it matches up with Webb’s LSE schooling.

Sachs says that the debt simply must be brought under control. Seriously, that’s it. No cogent plans offered. It’s as if Webb thinks that many people don’t realize this and need experts to tell us. What the hell does he think the Tea Party movement has been about? Oh, that’s right, I forgot: racism.

Next expert up is someone whom Webb describes only as an “author and economist”, Diane Coyle. What ol’ Justin doesn’t want you to know is that she’s also the Vice Chair of the BBC Trust and is married to BBC technology maven Rory Cellan-Jones (who was it here that coined the phrase “incest interview”?). Sure, she was an adviser to the Treasury during Thatcher’s Government, but did mostly foreign policy analyses and predictions, so not much of a Conservative. Her own website shows her involvement in Left-leaning philosophies. Her new book, “The Economics of Enough”, is all about countries living above their means and how over-spending and too much entitlement expense is not a good recipe for a secure future. Obviously ol’ Justin knows all about her book and its viewpoint, or he wouldn’t have brought her into the discussion. Coyle also offers no answers, only an explanation of one part of the problem and an emphasis that it’s really, really scary. Again, nothing new here, nothing added to the discussion of what to do, and certainly no proof that we’re all in denial, as Webb claims.

The third expert voice is just someone from the Council on Foreign Relations quoted to reinforce Webb’s contention that what happens to the US affects the whole world. Again, this assumes that the reader has no idea and Webb thinks you need an expert opinion to convince you that he’s right. Talk about underestimating the intelligence of the audience.

The only person identified by his political association is….wait for it….Republican David Frum. He’s a favorite of the BBC because he has shifted Leftwards and criticized George Bush. Webb quotes him as an example of stupid Republicans (read: Tea Party denialists and other enemies of the President) who are in denial of the problem.

This is, of course, a lie. Everyone knows there is a problem, which is why there’s such a huge budget battle on Capitol Hill right now. Who does Webb think he’s kidding here? Frum, in fact, is the only one of the voices Webb brings in who actually offers some kind of solution. Only he doesn’t like it, so dismisses it as denial. If there’s a simple solution, it must be no good because the problem is so complex and horrible. According to Justin, anyway.

So what’s this all about? A bit of scare-mongering. But before Webb gives us the answer, he first has a little attack on Alaska. What he says about the state being over-subsidized is true, even if Sarah Palin never existed, so I won’t say he’s focusing on Alaska only as a dig at her. What he is doing, though, is trying to use Alaska as a cudgel with which to beat the non-Left citizens and politicians of the US. He calls us hypocrites because Alaska exists as it does, and is mostly politically conservative. This is not a logical argument, but that’s what he’s saying. At no point does Webb show a Republican or Tea Party voice saying that we must keep federal subsidies at all cost while cutting spending on the poor. It’s just something he made up. Oh, and of course because he can’t resist it, he gets in a little ad hominem at the Tea Party:

The Tea Party movement talks of cuts in spending but when it comes to it, Americans always seem to be talking about cuts in spending that affect someone else, not them – and taxes that are levied on others too.

Yet another lie. The Tea Party movement is made up of people from all walks of life (except public sector unions and far-Left ideologues), many of whom will be affected by spending cuts no matter what Webb claims. He’s really parroting the union talking points you’ve been hearing from Bob Crow and Ed Miliband. No surprise, really.

Finally, ol’ Justin’s solution: more taxes, especially on the rich. He says that it’s Sach’s view the politicians are too scared to raise taxes because the evil rich don’t like it.

America’s two main political parties are so desperate to raise money for the nation’s constant elections – remember the House of Representatives is elected every two years – that they can do nothing that upsets wealthy people and wealthy companies.

So they cannot touch taxes.

Actually, they can: they can cut them. But that’s not part of ol’ Justin’s agenda here. So he closes with a little more dishonesty.

In all honesty, I am torn about the conclusions to be drawn. I find it difficult to believe that a nation historically so nimble and clever and open could succumb to disaster in this way.

Yeah, right. He has an opinion, which is why he’s trying to push the lie that nobody has a budget plan. The Democrats don’t have one that will fix the deficit, but the Republicans do. He just doesn’t like it so wants you to think nobody has one.

But America, as well as being a place of hard work and ingenuity, is also no stranger to eating competitions in which gluttony is celebrated, and wilful ignorance, for instance regarding (as many Americans do) evolution as controversial.

Ah, yes, the classic Justin Webb attack on the religious beliefs of non-Muslims. Except one’s views on evolution have nothing whatsoever to do with economics. It’s just something ol’ Justin threw in to belittle us, a non sequitur, as if he thinks one negative plus another negative equals more negatives, and that’s all there is to proving a point.

The debt crisis is a fascinating crisis because it is about so much more than money. It is a test of a culture.

Yes it is. But I don’t think it’s what Justin wants it to be. But his last line reveals his ignorance in a major way, and pretty much discredits his entire missive.

It is about waking up, as the Americans say, and smelling the coffee. And – I am thinking Texas here – saddling up too, and riding out with purpose.

Careful, Justin, you might just get what you wish for. Texas, you see, is the one state where they’re adding jobs and the economy is growing. In fact, 45% of jobs created in the last two years (i.e. during The Obamessiah Administration) have been in Texas. Because they’re doing it from a low-tax, help business, clean out draconian regulation, fiscally conservative position. Oops.

I think ol’ Justin has no idea about this at all, and was just trying to sound folksy, using an Americanism to add authenticity to his viewpoint. Fail.

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WAVING, NOT DROWNING?

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Let’s be clear where the BBC stands. Obama has done a great job, he has healed some of the wounds created by the evil Bush, oh, and he’s saved the US from another great depression. The rest is detail, or so the BBC would have us believe. Naturally, the reverse is true and so the BBC has to spin even harder to sustain the Obama-delusion. Take THIS report from Stephanie “Two Eds” Flanders. The shock horror news is that “some” parts of the US economy are “slowing down” rather than “moving towards a quicker recovery”. The good news is that “recoveries are never linear, you get setbacks”. Stephanie pretends the US economy has moved out of recession (it hasn’t) but is now going through a soft patch. In this way she seeks to obscure the central fact that Obama has done more than anyone to delay the recovery through his massive injections of QE and the truth is that his “stimulus” hasn’t stimulated anything.

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