Punting the Pundits

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting thea Pundits”.

Follow us on Twitter @StarsHollowGzt

Paul Krugman: The Damage Done

The government is reopening, and we didn’t default on our debt. Happy days are here again, right?

Well, no. For one thing, Congress has only voted in a temporary fix, and we could find ourselves going through it all over again in a few months. You may say that Republicans would be crazy to provoke another confrontation. But they were crazy to provoke this one, so why assume that they’ve learned their lesson?

Beyond that, however, it’s important to recognize that the economic damage from obstruction and extortion didn’t start when the G.O.P. shut down the government. On the contrary, it has been an ongoing process, dating back to the Republican takeover of the House in 2010. And the damage is large: Unemployment in America would be far lower than it is if the House majority hadn’t done so much to undermine recovery.

William K. Black: The Tea Party’s Tactical Brilliance and Strategic Incompetence

The Tea Party and its (non) think tanks have proven that they are tactically brilliant in manipulating the Republican Party, but strategically incompetent.  Today’s Senate Bill, which will be forced down the House Tea Party members’ throats, is the result of that strategic incompetence.  The Tea Party has learned that there are a few things many GOP elected officials are still unwilling to do.  Specifically, once the admittedly slow-witted House GOP leadership realized that the Tea Party had marched it to the far edge of a bridge to nowhere and the choices were (Option One: suicide) to keep marching off the bridge into the river (doing grave harm to the Nation and the world, ruining the GOP “brand,” returning the House to control by the Democratic Party, and threatening their own seats or (Option Two: truce) to stop and beg the Democrats for a truce – the GOP leadership would abandon the Tea Party and blame it for the humiliating rout. [..]

The Tea Party’s transcendent strategic failure however was picking Obamacare as the objective rather than the safety net.  I have been warning that Obama’s confidants have repeatedly revealed that Obama believes his best hopes of a positive “legacy” is what he calls the “Grand Bargain” (which I explained actually represented the “Grand Betrayal”).  The Grand Betrayal would raise some taxes, make materially deeper discretionary spending cuts in social programs, and make very large but opaque cuts in the safety net.  The Grand Betrayal would inflict triple damage on our Nation.  It would inflict even greater austerity, further weakening the recovery.  It would harm effective social programs at a time when they are most needed give the large increases in poverty.  It would harm the safety net directly and would serve to legitimize much deeper cuts in the future when the GOP controls the federal government.  Only a president that the GOP can portray as a “liberal” can make it safe for Republicans to attack the safety net and to work towards their great dream – privatizing Social Security so that Wall Street’s billionaires can get even wealthier by looting our retirement savings.

Obama has been eagerly seeking to inflict the Grand Betrayal since 2011.  The irony is that had he succeeded the resultant second recession would have made him a one-term president.  The Tea Party has prevented the deal by being unwilling to take “yes” for an answer from Obama.  The Tea Party could have skipped all the extortion and negotiated the Grand Betrayal with Obama.  The Republican leadership has attempted to negotiate the deal, but the Tea Party keeps blocking it.  Nevertheless, the Grand Betrayal is so available and so obviously in the political interests of the GOP and the Tea Party that the odds remain good that even the Tea Party will eventually say yes and give Obama the legacy he desires as the Democrat who led the unraveling of the safety net.  Obama may yet snatch defeat from victory and the Tea Party, when all else fails, may snatch victory from defeat by agreeing to the Grand Betrayal.

Dylan Ratigan: Debt and Taxes: Symptoms of Our Core Problem

The three charts below offer insight to the rottenness at the core of a banking and political system that relies entirely on the money of others–taxpayers, pensioners, those who pay insurance and, most disturbingly, future American earnings–to create short-term, private-sector income around housing and finance. With these profits, the banking system deals in politicians by offering political bulletproofing in the form of low-cost financing for housing using–you guessed it– other people’s money.

Until we deal with this problem, which is deeply entrenched in our election finance system, our government will continue to borrow and tax us to serve its short-term interests even as our lives become more expensive and offer less in return.

Robert Reich: What to Expect During the Cease-Fire

The war isn’t over. It’s only a cease-fire.

Republicans have agreed to fund the federal government through January 15 and extend the government’s ability to borrow (raise the debt ceiling) through Feb. 7. The two sides have committed themselves to negotiate a long-term budget plan by mid-December.

Regardless of what happens in the upcoming budget negotiations, it seems doubtful House Republicans will try to prevent the debt ceiling from being raised next February. Saner heads in the GOP will be able to point to the debacle Tea Partiers created this time around – the public’s anger, directed mostly at Republicans; upset among business leaders and Wall Street executives, who bankroll much of the GOP; and the sharply negative reaction of stock and bond markets, where the American middle class parks whatever savings it has.

Gary Younge: And so America’s skewed democracy lurches on toward its next crisis

A last-minute deal to raise the debt ceiling and end the shutdown solves nothing. US politics is stuck in chronic dysfunction

Because America is powerful, the world has to take notice of these self-inflicted crises. But because it has become so predictably dysfunctional and routinely reckless, they are difficult to take seriously or, at times, even fathom. To the rest of the world and much of America, this is yet another dangerous folly. The fact that the nation did not default should come as cold comfort. The fact that we are even talking about it defaulting is a problem.

This particular flirtation with fate was driven by a visceral opposition to the moderate provision of something most western nations take for granted: healthcare. The reforms they opposed had been been passed by the very body of which they are a member and had been been approved by the US supreme court, the guardian of the very constitution they claimed to be defending. For this, they started a fight they never had the numbers to win and carried on waging it long after it was clear they had lost.

Richard (RJ) Eskow: Winning the Peace: The Post-Shutdown Challenge

It’s a major victory. The shutdown’s ending, the government isn’t defaulting (at least not yet), and Democrats didn’t yield in the face of threats and bullying. But what happens next could shape our fate for many years to come.

Congratulations are in order. The President vowed not to negotiate over the debt ceiling, and he was as good as his word. He stood up to the closet ideologues of the artificial “center,” the ones who unwisely argued that being the “adult in the room” meant surrendering to the tantrums of children. [..]

But the celebrations are premature. Yes, the public is furious at Republicans – Tea Partiers and plain-vanilla GOP extremists alike – for causing so much damage in pursuit of an ideology so far outside the political mainstream. Most Americans have rejected the things Republicans stand for: their values, their priorities, and their apocalyptic economic vision.