Categories
Politics

How Ted Cruz Orchestrated The Republican Government Shutdown

Tim Dickinson of the Rolling Stone broke it down.

The day before Congress broke for its August recess, on an afternoon when most of official Washington was tying up loose ends and racing to get out of town, Sen. Ted Cruz was setting the stage for the chaos that has consumed the nation’s capital in recent weeks.

The tall Tea Party-backed Texan – the state’s junior senator, with less than a year in office – worked his mischief in a windowless Capitol basement, where dozens of the most radical members of the House had gathered for a meeting of the Republican Study Committee. Once a marginal group known for elevating anti-government dogma above party loyalty, the RSC now counts among its members 174 of the 232 House Republicans.

“Father, we thank you,” says Rep. Michele Bachmann, opening the meeting. “You are the most important presence in this room.” In a pinstriped suit and yellow tie, Cruz sits at the center of a long conference table, flanked by RSC chair Steve Scalise and by the group’s most powerful member, former chair Jim Jordan of Ohio – who has routinely marshaled House rebels into battle against leadership. Jordan flashes the visiting senator a conspiratorial smile.

Soft-spoken but passionate, Cruz derides the work of House leadership, who this same week have scheduled a 40th, futile bill to roll back Obamacare. Instead of “symbolic statements” that “won’t become law,” Cruz says, the time has come to force a real fight – one that Republicans can “actually win.” It’s imperative to act now, Cruz warns, before the full benefits of Obamacare kick in and Americans get “hooked on the sugar, hooked on the subsidies.” His plan: Yoke the defunding of Obamacare to the must-pass budget bill the House will take up in September. The endgame? To force a government shutdown so painful and protracted that Barack Obama would have no choice but to surrender the crown jewel of his presidency. “As scary as a shutdown fight is,” Cruz insists, “if we don’t stand and defund Obamacare now, we never will.”

With those words, Cruz fired the first shot in a civil war that has cleaved Republicans in both chambers of Congress – a struggle that threatens the legitimacy of the Grand Old Party and the stability of the global economy. The fight has little to do with policy, or even ideology. It pits the party’s conservative establishment against an extremist insurgency in a battle over strategy, tactics and, ultimately, control of the party. Each side surveys the other with distrust, even contempt. The establishment believes the insurgents’ tactics are suicidal; the insurgents believe the establishment lacks the courage of its alleged convictions – while its own members are so convinced of their righteousness that they compare themselves to civil rights heroes like Rosa Parks. The establishment is backed by powerful business concerns with a vested interest in a functioning government. The insurgents are championed by wealthy ideologues who simply seek to tear down government. Both sides are steeled by millions in unregulated, untraceable “dark money.”

Having backed the GOP into a shutdown fight that congressional leaders never wanted, the insurgents are winning, and establishment leaders are running scared. America is now careening toward a catastrophic voluntary default on our debt because no one in the Republican Party with the authority to put on the brakes has the guts to apply them, for fear of being toppled from power.

“I’ve never seen anything like it, and neither has anybody else around here,” says the House’s eldest statesman, 87-year-old John Dingell, who has represented Michigan since 1955. “It’s a grave misfortune for the country.”

Categories
Politics

Jon Stewart – “Congress Functions at a Kindergarten Level” – Video

On his show The Daily Show, Jon Stewart continued his nightly hammering of the Republican shutdown and on the video below, he includes commentary about President Obama and his role or lack thereof in the shutdown. And in his ever clever way, Stewart stumbled upon some truths about the Republicans in Congress – that they are functioning “at kindergarten level!”

Truth!

The Daily Show
Get More: Daily Show Full Episodes,The Daily Show on Facebook

Categories
Politics

Republican Shutdown Adding Unnecessary Costs to Treasury

A lot of the market indicators of how much the financial world is worrying about a debt default have been quite calm over the last week. The Standard & Poor’s 500 index, for example, is only about 1 percent below its close eight days ago, when the government shutdown began.

But in the less widely followed — but in many ways more important — market for Treasury bills, things are starting to get scary. These are short-term IOU’s of the U.S. government, bills issued for 30, 60 or 90 days. They enable Uncle Sam to manage cash flow much the way a homeowner might use a credit card. They also form the backbone of trillions of dollars in transactions: Major corporations and banks use them as a place to park short-term cash; they are held by money market mutual funds; and they serve as collateral for millions of transactions in markets around the world.

Normally, the interest rate the government pays on bills is around the same as the short-term interest rates in other money markets (for example, the interest rates banks charge each other for overnight cash, or the interest rate that the Federal Reserve targets). Both of those are near zero right now, which is why on Sept. 30, eight days ago, the interest rate on Treasury bills maturing Oct. 17 was a mere 0.03 percent. Nothing, in other words.

But since then, the possibility that the Treasury might have trouble paying or might not be able to pay its bills over the next few weeks has grown — and the interest rate has skyrocketed. It was at 0.16 percent at Monday’s close. On Tuesday the rate so far has been almost double that, as high as 0.297 percent.

There are reports, including this one from Reuters, indicating that some of the biggest money managers in the world are starting to avoid U.S. government debt that matures in the near future out of fear they will not be repaid promptly.

Categories
Politics

Republican Peter King – ‘I Honestly Don’t Know’ What GOP Wants From Shutdown

Yet another Republican who cannot figure out what they are trying to get from shutting down the government. We previously heard Marlin Stuzman of Indiana say he doesn’t know what Republicans want. And now Peter King of New York is joining that chorus.

If these Republicans don’t know what they want, why are they insisting on keeping hundreds of thousands of workers furloughed and causing even more damage to the economy?

Video

Exit mobile version