The media frenzy over Republican Senators and Barack Obama making nice over the debt ceiling crisis exposes for all Americans to see the extent to which both parties are aligned with Wall Street interests, and against the interests of Main Street and small business. The subject of this latest bipartisan love fest is the Gang of Six plan.
Americans want reform. The Republican majority in the House of Representatives was swept into office by promising reform. The Gang of Six Solution is the antithesis of reform.
Supposedly it offers the "balanced approach" of which Obama rambles on about endlessly. But in reality, the Gang of Six is one-sided. It offers only vague language about spending cuts. At best the Gang of Six plan might cut $500 billion, and even these cuts cannot be guaranteed. In real terms, Government would continue to grow.
Also the Gang of Six Solution would dramatically increase taxes. It calls upon the Senate Finance Committee to craft a tax reform plan that would actually increase taxes by 2.3 trillion over a ten year period. Some members even cynically call it a tax reduction by using a baseline that everyone knows is phony. This is a baseline that predicts all of the middle class tax cuts signed into law by President Bush was repealed.
All of this because rejecting the debt ceiling increase would require the US Government to right size itself and begin a pay as you go diet.
The secret they don't want you to know is that the US Government is currently taking in over $200 billion a month. This could easily service the debt and forestall any default. It could pay current Social Security and Medicare bills. What would have to be cut is discretionary spending, and Congress doesn't like this idea.
Gone would be money Obama wants to expand the EPA. Gone would be ethanol subsidies. Gone would be the billions poured into universities and colleges to subsidize the "intelligentsia." Foreign aid money wouldn't gush out. The cuts would hurt many in government employment, but default would never have to result, and grandma would still get her social security.
Neither party cares much about anything other than perpetuating their power. This discretionary spending money is the key tool they use to stay in power.
The Gang of Six deal is all about kicking tough budget decisions down the road and keeping the Ponzi scheme going for a few more years in the hope that the long suffering American people won't notice that they are indentured servants to a system that is robbing them literally.