DeMint Won’t Listen As Geithner Explains
Why Failing To Hike Debt Ceiling Would Impair American Credit

post from ThinkProgress on 29 June 2011 04:00:03 PM. © ThinkProgress

Failing to increase the debt ceiling in a timely manner does not, as such, require the United States to default on the interest it owes on existing debt. The Treasury Secretary has the authority to “prioritize” payments and could, therefore, reneg on monies owed to defense contractors, Social Security recipients, doctors who treat Medicare patients or anyone else who’s legally entitled to funds Congress has appropriated. In terms of America’s standing in international financial markets, this decision to pay bondholders rather than other legitimate claimants would probably be preferable, but as Treasury Secretary Timothy Geithner explained today in a letter to Senator Jim DeMint that’s not to say it would have no consequences.

For example, “there is no guarantee that investors would continue to re-invest in new Treasury securities” once it became clear that the US political process was prepared to stiff people who are owed money. Ratings agencies have already made it clear that they would regard any prioritization scheme with suspicion. And as Geithner says “we should not and must not gamble with the full faith and credit of the United States” which is “too precious an asset to risk.”

In response, DeMint essentially stuck his fingers in his ears:

Sen. Jim DeMint (R-S.C.) maintained Wednesday that the government has “numerous tools” available to avoid a default, and that one would only occur if Geithner was unwilling to use them.
“Secretary Geithner’s approach to dealing with the looming debt crisis is to take his hands off the wheel and let the car careen over the cliff,” he said.

This completely fails to grasp the force of Secretary Geithner’s point. But to try to restate it, markets charge different interest rates to different sovereign states. Generally speaking, large high-income politically stable sovereigns get the best rates. That’s because large rich countries have the greatest ability to raise the funds needed to pay off debts, and politically stable countries are the most reliable in terms of actually living up to their commitments. And the United States as the largest, richest, and longest-running political democracy in the world pays the lowest rates. German rates are higher than ours, and Britain and France pay higher rates than Germany’s. What Geithner is saying is that even if he avoids technical default by stiffing someone other than bondholders, this will still naturally lead some people to re-evaluate the theory that we’re the most creditworthy country on earth. People who don’t pay what they owe start looking like bad credit risks no matter who it is exactly who doesn’t get paid.

Read The Full Article:
http://thinkprogress.org/yglesias/2011/06/29/257678/senator-demint-wont-listen-as
-secretary-geithner-explains-why-failing-to-hike-debt-ceiling-would-impair-american-credit/

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Dem super PAC launches ads attacking Republicans
on Medicare

post from Daily Kos on 29 June 2011 03:55:02 PM. © Daily Kos

Attesting to the value of fighting off Republicans' efforts to cut Medicare in the debt ceiling negotiations for Dems, Priorities USA has launched tv ads in five swing states attacking Republicans for voting to abolish Medicare.

The ads, which will run in Iowa, North Carolina, Virginia, Florida and Colorado for the next two weeks, are designed as a response to commercials put on the air in 10 states late last week by Crossroads GPS, a conservative-minded organization, that attacked President Obama?s handling of the economy.
They also mark the first significant spending by Priorities USA, a group formed in the aftermath of the 2010 election with the specific purpose of rebutting Republican outside expenditure efforts. The ad buy is $750,000.

That's hardly a drop in the bucket compared to Rove's Crossroads GPS spending, but it's a start, one that's likely to bring on calls of hypocrisy. But as Greg Sargent says, Dems have to be willing to bring guns to this fight: "Dems have not changed their position on secret outside money: They would halt these ads tomorrow if the other side agreed to do the same. Not responding in kind would amount to unilateral disarmament."

Read The Full Article:
http://feeds.dailykos.com/~r/dailykos/index/~3/vWYSChPpJtY/-Dem-super-PAC-launche
s-ads-attacking-Republicans-on-Medicare

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Appeals Court Upholds ACA

post from Taylor Marsh on 29 June 2011 03:51:34 PM. © Taylor Marsh

From the New York Times: The Obama administration won the first appellate review of the 2010 health care law on Wednesday as a three-judge panel from the United States Court of Appeals for the Sixth Circuit in Cincinnati held that it was constitutional[...]

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http://taylormarsh.com/blog/2011/06/appeals-court-upholds-aca/

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Report Shreds Argument Tasers Result in Less Use
of Lethal Force by Arizona Police

post from Firedoglake on 29 June 2011 03:50:59 PM. © Firedoglake

The debate about Tasers has always been that they don't do as much harm as a bullet. Too bad that is mostly marketing hype. When used on children and pregnant women they can be devastating.[...]

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http://feedproxy.google.com/~r/firedoglake/fdl/~3/ywX-45aMj_Q/

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Democrats Consider the Constitution Card

post from Taylor Marsh on 29 June 2011 03:45:30 PM. © Taylor Marsh

This is brilliant and worth the effort. From Ryan Grimm and Samuel Haas: By declaring the debt ceiling unconstitutional, the White House could continue to meet its financial obligations, leaving Tea Party-backed Republicans in the difficult position of[...]

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http://taylormarsh.com/blog/2011/06/democrats-consider-the-constitution-card/

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Bachmann gets it wrong again (update)

post from Where's the Outrage? on 29 June 2011 03:44:00 PM. © Where's the Outrage?

Visit msnbc.com for breaking news, world news, and news about the economy I know that Michele[...]

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http://www.whereistheoutrage.net/wordpress/2011/06/29/bachmann-gets-it-wrong-agai
n/

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Which Index is the Best to Use: the HUI, XAU or
the GDX

post from Jutia Group on 29 June 2011 03:43:11 PM. © Jutia Group

The number, market cap and currencies of the constituents of the HUI, XAU, GDX, XGD and CDNX indices differ considerably from each other and, as such, each index presents a different picture of what is really happening in the precious metals marketplace. This article analyzes the make-up of each index to reveal the biases of each to arrive at the answer to the question in the title.

The HUI Index The AMEX Gold BUGS (Basket of Unhedged Gold Stocks) Index (HUI) is a modified equal dollar weighted index of 16 large-cap (80%) and medium-cap (19.5%) gold mining companies that do not hedge their gold beyond 1.5 years. The 3 largest companies make up 41% of the index by . . . → Read More: Which Index is the Best to Use: the HUI, XAU or the GDX?

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http://jutiagroup.com/20110629-which-index-is-the-best-to-use-the-hui-xau-or-the-
gdx/

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Today on The Stars Hollow Gazette

post from Docudharma - Front Page on 29 June 2011 03:34:54 PM. © Docudharma - Front Page

Our regular featured content-On This Day In History June 29 by TheMomCatPunting The Pundits by TheMomCatEvening Edition by ek hornbeckWednesday is mishima's well deserved day of restThese featured articles-MBIA by ek hornbeckPet Peeves by ek hornbeckTake[...]

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http://feedproxy.google.com/~r/Docudharma/~3/onA5uPM0-_o/today-on-the-stars-hollo
w-gazette

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Doug Groh: Will Gold Benefit from the European
Debt Crises

The Gold Report: The situations in Greece, Ireland, Spain and Portugal are proving the unsustainability of deficit financing and are effectively killing the euro as a safe haven currency. As these worries escalate, have you seen more money come into your fund?

Doug Groh: Yes, we’ve seen funds flow into our gold fund product, but that’s been the case over the last year or so. I attribute it primarily to the rise in the gold price. Some investors see gold as an attractive alternative to other investment vehicles and they’re buying the gold ETF (exchange traded fund) and gold equities.

Gold bullion itself has outperformed equities this year. Some people feel there’s security in owning gold, but . . . → Read More: Doug Groh: Will Gold Benefit from the European Debt Crises?

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http://jutiagroup.com/20110629-doug-groh-will-gold-benefit-from-the-european-debt
-crises/

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What victory in Wisconsin will mean for all of us

Wisconsin protest picture (This is what winning needs to look like. Photo: SEIU)

Please take a moment and imagine what it means if we win the Wisconsin recall elections.

Keep in mind that it all started as a spontaneous, grassroots protest by students and teachers in Madison, but quickly morphed into the largest, continuous American demonstration for workers' rights in decades.

Don't forget that the protest connected with a unified Democratic Party that was willing to stand up and fight back harder than we've seen Dems do in a while.

Remember how the local students, union members and Democratic elected officials taking part in the protests inspired tens of thousands of people around the country to join their cause.

With that all in mind, imagine how important it will be that all of these different players?the protesters, the unions, the Democrats and the activists nationwide?worked together to shift public opinion away from the Republicans who slashed workers' rights, and actually removed those Republicans from office in a special election only a few months later.

That's what victory in the Wisconsin recall elections will mean. It will mean that we can actually stop this wave of austerity, this rising inequality, this shredding of workers' rights, this theft of our social safety net by billionaires and big corporations. It will mean that victory is at least possible, even if the forces that stand up to it at first are a few student teachers in a mid-size city somewhere in the Midwest.

That's a victory that I know I need. It's also why I'm contributing $1 to each of the nine Democratic candidates in the Wisconsin recall campaigns. I hope you will join me.

Please, contribute $1 to each of the nine candidates in the Wisconsin recall campaigns. We need this.