This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

War of Rhetoric on Budget Nears Climax: Opinion

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( TheStreet) -- Americans are getting what they voted for. The insistence of the U.S. electorate in continuing to endorse its two-party dictatorship at the ballot box is what emboldens these hypocritical aristocrats to play their political games.

In one corner, we have the banker-serving Obama administration. Their one and only concern is to serve Wall Street with the utmost fidelity, in hopes that their masters will reward them with a second term in office. Their mouthpiece is the always-inept, Tim-the-tax-cheat Geithner.

The Geithner rhetoric over this impasse at (inevitably) raising the U.S. "debt ceiling" can be characterized as a variation of the same "too big to fail" blackmail which Wall Street successfully parlayed into a $15 trillion bailout/hand-out. If Congress doesn't rubber-stamp an increase in the debt ceiling, then "the sky will surely fall," claims Chicken Little.

In another corner we have the schizophrenic Republican Party. One "personality" fills the role of ventriloquist-dummy for the incoherent rabble which has dubbed itself the (new) "Tea Party." The Tea Party Republicans claim that the "best way" to get the U.S.'s out-of-control debt/deficit crisis under control is to simply "crash" the U.S. economy into its debt ceiling.

By this logic, the "best way" to slow a motor vehicle which is traveling much too fast is to simply steer toward the nearest brick wall. Tea Party zealots insist that the inevitable economic carnage of "crashing" the world's largest economy (and world's largest deadbeat-debtor) by choking off any additional credit is unavoidable. They claim it is "the only way" to get the elected representatives of the U.S. government to "do the right thing."

Essentially, this is simply the mirror-image of the Geithner position. "You must rubber-stamp more debt or the U.S. economy will crash," insists Geithner. "If we crash the U.S. economy, you can't authorize any new debt," counters the Tea Party rabble. Neither position has any merit. Even the most rabid/insane Tea Party crusader understands that it is utterly impossible for the hopelessly insolvent U.S. economy to "balance its budget" today. Thus, this is all just theater and brinksmanship by both sides. The born-again "budget hawks" in the Republican Party are nothing but posers -- vainly attempting to look like they are "getting tough on spending."
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
TSLA $148.02 -9.00%
AAPL $95.24 1.30%
FB $99.80 -4.10%
YHOO $27.05 -3.30%
GOOG $683.10 -0.07%


Chart of I:DJI
DOW 16,027.05 -177.92 -1.10%
S&P 500 1,853.44 -26.61 -1.42%
NASDAQ 4,283.7530 -79.3910 -1.82%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs