28 Jul 2011
The Real News Network (TRNN) interviews Rob Johnson, senior fellow at the Roosevelt Institute, who argues that America's debt ceiling crisis is fake. In Johnson's view, America does not have an acute problem with default anytime in the next 15-20 years.
Meanwhile in order to have America's debt ceiling increased to prevent a debt default. President Obama is making concessions to the Republicans who control the American Congress. These concessions include budgetary cuts to social security programs. Obama and Congress leader, John Boehner, are close to a three trillion dollar debt reduction package as part of a deal to reduce social spending.
America's Democrats are split between those who want to keep their social security promises to the people of America, and those, including president Obama, who are making deals with the Republicans.
This reduction in social spending would, for example, affect teachers' pensions and health insurance. Surprisingly, there is no talk about reducing the country's massive military budget. However, polls show that the average American would rather have the military budget cut as opposed to social security.
Unfortunately none of this is filtering up to the politicians whose priority is staying in office by making concessions to their campaign funders on Wall Street and other big business interests linked to the military industrial complex and big pharma.
Editor's Note: You might also be interested in this TRNN interview with Yves Smith, founder of Naked Capitalism, who says that the debt ceiling crisis is manufactured. In addition, Democracy Now talks to economist Michael Hudson, in an interview under the banner, "Pushing Crisis: GOP Cries Wolf on Debt Ceiling in Order to Impose Radical Pro-Rich Agenda." Democracy Now also talk to Richard Wolff who, in a very informative interview contends that the "Debt Showdown is 'Political Theater' Burdening Society’s Most Vulnerable."