Third Party & Independents Archives

Is A Balanced Budget Amendment In The Wings?

The plot thickens re the deficit and debt ceiling as Aug 2nd draws close. It seems that instead of a ‘grand plan’ to recover us from the ‘great recession’ we are seeing proposals based on hyper reaction and what might stick rather than through wise and well vetted positions.

Some reps are calling for a balanced budget amendment while others are saying there is not enough time, that it would take years to gain ratification by three-fourths of state legislatures. The people could remind the rep’s that 40 states, 2/3rds required, have called for an Article V Convention on a Balanced Budget Amendment. But, congress refuses to call for an AVC. Since the congress and supreme court has refused to recognize Article V of the Constitution, why, the people just need to keep quiet and get over it. The Founder’s saw, as inevitable, the need for amendment power through the people when the courts and congress lost their senses or credibility, as we are now witnessing. It’s clear that congress and the courts intend to keep control of the power and levers of gov’t unto themselves. .

So, the Corpocracy is going to save us even if they can’t/won’t tell us exactly how. The Standard and Poor, Moody’s, the World Bank, the IMF and China are just some of the ‘doubting Thomas’s’ weighing in on the sidelines. The EU is chiming in as well, hoping that decisions on the US deficit will bode well for the EUR. If another PIIGS nation falters, Italy’s debt is now 120% of GDP, the EU will not be able to bail them out as they have done for Greece. Things had better go real well for a w-h-i-l-e.

Say, you don’t suppose the Corpocracy is just posturing, that they are just taking advantage of the latest ‘great crisis’? Do you think they might just raise the debt limit to silence the bond rater’s and pay down a few pennies on the debt, a trillion or two, and proclaim Aug 3rd a ‘new revolution’? Is it possible they have run the consumer/taxpayer into a rathole, pumping that treadmill to pay off $14T of debt over some 180 years? ‘A headlock on the middle class’ for the next century or so, great-grand kids included! A way to fleece us of our liberty and buffalo nickels plus equities, wages, pensions, and other such quality of life entities.

That globalisation thing is a powerful pull. The idea, as I understand it is to involve all the nations of the world in free trade with free ranging capital and free ranging labor at the forefront. The World Bank is complaining that the US has been slacking off in the pursuit of globalisation. And, while getting good grades from the IMF for free ranging labor, is failing in things like removing farm subsidies and pressing for cross investments between the US and other nations. I see where Boeing and Airbus will share in a contract to build some 200 plus commercial aircraft. You’d think China would have been the low bidder on that deal. Nothing much gets said about wages, but aren’t wages the real bugaboo to a successful globalised economy?

Things are getting better, or worse depending on one’s perspective, relative to wages. Michael Cembalest, chief investment officer, J.P. Morgan Chase, recently wrote that US labor compensation is now at a 50 year low relative to both company sales and US GDP. Profits at S&P 500’s are at their highest levels since the mid-60’s inclusive of the burdens of health care costs, environmental compliance and other regulations that presumably weigh down these large companies. Profit margins of S&P 500 companies rose 12 percent between 2000 and 2007. Wage and benefit decline is responsible for 75 percent of that increase. Profits are up because wages are down.

The Corpocracy can, over several decades, twiddle with the debt and the tax code to precisely deliver US wages to something acceptable to the IMF. The Corpocracy’s ‘grand plan’ should come with a warning label that if you are middle class or poor you better be thinking of changing your status. In the Middle East they would protest. Here, we ‘postulate’ on it and on to the next ‘great crisis’. I think that’s how the Romans did it, too.

A balanced budget amendment? Perhaps in a century or two.

Otherwise - - -

Posted by Roy Ellis at July 21, 2011 11:59 PM
Comment #326235

Roy, corpocracy and globalization are done deals, there will be no turning back.

Posted by: jlw at July 22, 2011 2:59 PM
Comment #326240

Here’s the kicker about Article V:

Article V reads as follows (emphasis added):

The Congress, whenever two thirds of both Houses shall deem it necessary, shall propose Amendments to this Constitution, or, on the Application of the Legislatures of two thirds of the several States, shall call a Convention for proposing Amendments, which, in either Case, shall be valid to all Intents and Purposes, as part of this Constitution, when ratified by the Legislatures of three fourths of the several States, or by Conventions in three fourths thereof, as the one or the other Mode of Ratification may be proposed by the Congress…

We know Congress has not and probably will not pass Balanced Budget legislation any time soon, but it doesn’t have to originate in Congress. The State Legislatures can propose a BBA and Congress has to take it up if they do.

Posted by: Kevin Nye at July 22, 2011 4:23 PM
Comment #326245

I don’t think a bba is in the wings right now, as things still need to be right-sized for that to be on the table. Recent notes from the corporate side - direct tv phone number point to this.

Posted by: Jim Duncan at July 22, 2011 8:15 PM
Comment #326417

Article V is not an odometer. This has to be an action by a group of states working together politically, a political movement at large. So far, I haven’t seen the state legislatures acting together.

You should be able to hold a press conference with all those states together, and make that point. Otherwise, it lacks the political unity that was intended.

Besides, some amendments are better off left dead. As bad as the Ryan Budget would be, this is ten times worse, and probably just as ineffective at keeping the government properly and responsibly funded, especially with it’s 2/3rd requirement for tax increases.

Posted by: Stephen Daugherty at July 25, 2011 5:58 PM
Comment #326570

Stephen, headliner from FOAVC,

//What is Happening to Our Country?

Are you aware that We The People are being denied our constitutional right to an Article V Convention to propose amendments, despite a whopping 400+ (or more) Article V applications from the state legislatures of 49 of all 50 states? Only 34 (i.e. two thirds) are required. So why has Congress ignored the Constitution? We need your help. If you want to help reclaim our constitutional rights, then you have come to the right place.//

Congress gets to propose and amend. But, the people are denied, even though they are given the right in the Consitution. Congress is operating outside the Constitution. Where does this place Congress from a legal standpoint?

Posted by: Roy Ellis at July 27, 2011 1:21 PM
Post a comment