As you know by now, the jobs crisis reality exploded Friday with only 18,000 jobs created for June and an even lower labor participation rate implying more people are falling out of the labor force count entirely.
The latest is Obama, as part of some debt ceiling negotiation offered to raise the age for Medicare. I kid you not.
According to five separate sources with knowledge of negotiations -- including both Republicans and Democrats -- the president offered an increase in the eligibility age for Medicare, from 65 to 67, in exchange for Republican movement on increasing tax revenues.
The proposal, as discussed, would not go into effect immediately, but rather would be implemented down the road (likely in 2013). The age at which people would be eligible for Medicare benefits would be raised incrementally, not in one fell swoop.
Obama said this:
Foreign investors saying America has got its act together and are willing to invest. And so it can have a positive impact in overall growth and employment.
Uh, foreign investors have an opposite economic effect as Krugman pointed out. The last thing the United States needs is to increase the trade deficit.
As it is foreign investment is exceeds U.S. investment abroad:
The U.S. net international investment position at yearend 2010 was -$2,471.0 billion (preliminary), as the value of foreign investments in the United States continued to exceed the value of U.S. investments abroad. At yearend 2009, the U.S. net international investment position was -$2,396.4 billion.
The -$74.6 billion change in the U.S. net investment position from yearend 2009 to yearend 2010 primarily reflected net foreign acquisitions of financial assets in the United States that exceeded net U.S. acquisitions of financial assets abroad.
Even Time Magazine is calling out the GOP economic insanity:
The Republicans have pulled off a major (some would say cynical) miracle by convincing the majority of Americans that the way to jump-start the economy is to slash taxes on the wealthy and on cash-hoarding corporations while cutting benefits for millions of Americans. It's fun-house math that can't work.
Yet notes almost half of America buys into this nonsense. While Mother Jones asks for suggestions on how to stop economic insanity, this site says, improve your math skills. Thinking tax cuts does not mean more greedy, stinky money to the people who just offshore outsourced your job and instead somehow means you is simply delusional.
Bottom line, it seems the great debt ceiling crisis is being used as a Kabuki theater vehicle to attack Social Security and Medicare, by a Democratic administration no less.
While Treasury Secretary Geithner goes on TV and claims Americans will be hurting for years, no one questions that hurt is caused by this administration's refusal to nationalize the banks, stimulate with direct jobs programs, confront China on currency manipulation, along with a host of other bad policies. Remember, Obama caved on repealing the Bush tax cuts during the lame duck session. World of hurt, hell yeah and unfortunately it's now becoming the Obama administration's own making.