Wednesday AM Stuff

I'm a little late with this I know, but J.D. Mullane concocted the following idiocy here last Sunday...

If we believe the Washington wise men, Aug. 2 will be a day of economic apocalypse for America.

“Lights out” for the economy and a “new Depression,” Treasury Secretary Timothy Geithner told Democrats.

President Obama, too, predicts catastrophe on Aug. 2 for Americans relying on government-issued checks for Social Security and others.

“I cannot guarantee that those checks go out on Aug. 3 if we haven’t resolved this issue,” he said.

The reason for the predicted apocalypse is that Obama wants to raise the U.S. government’s debt ceiling — the nation’s credit card limit. If not, the federal government (allegedly) will default on its financial obligations.

I doubt it. This is at least the third deadline Obama has given for this. Each deadline has passed and the Republic stands.

It’s why most of us yawn at such dire predictions. For more than 40 years we have been subjected to doomsday prophecies. None have come to pass.

The fact that this column ever saw print is pathetic for something that purports to be an almost-daily newspaper.

For the reality point of view, I give you the following here...

The financial website Zero Hedge reports that the cost of the U.S. debt being downgraded from our current AAA rating (in the event of a failure to extend the debt limit) would be a whopping $100 billion a year. That’s according to JP Morgan Chase expert Terry Belton who spoke to reporters on a conference call this morning. In short, even if the U.S. does not default, a downgrade alone “will offset any beneficial impact from any deficit reduction that will have to happen for the debt ceiling to be increased.” Belton predicted that a downgrade would cause “a permanent increase in borrowing costs,” which will make it more costly for consumers and businesses to borrow money, risking another recession.

At this point, Obama should just find a way to unilaterally raise the debt limit under the 14th amendment to the Constitution. No, I don’t know how he’s going to do that either, but I assume Geithner knew something about that or else he wouldn’t have opened his mouth on the subject awhile back.

Also, this tells us that PA-31 State House Rep Steve Santarsiero will hold a public hearing about Marcellus Shale drilling tonight in the Chancellor Center, Board Room, 30 N. Chancellor St., Newtown, PA.

In addition, check out this ad against Wisconsin State Sen. Luther Olsen (to help out, click here)...



...and here is a neat new tune by the Red Hot Chili Peppers (sorry, no video - gotta have that cowbell)