As The Daily Reckoning’s Addison Wiggin pointed out in Monday’s DR, the debt deal has no teeth. “The $2.5 trillion in spending cuts are, in the immutable logic of Washington, not cutbacks at all… but limits to the planned rate of spending increases,” and worse, “…they don’t kick in until 2013. At that time, a new Congress will be in place, unbound by the promises of the current one.”
With the understanding that few cuts were made despite all the political grandstanding, we instead turn our attention to what Dr. Ron Paul (R-TX) refers to as “perhaps the most disturbing aspect of this deal,” the “Super Congress” provision.
This is how he describes it:
“It cedes power to draft legislation to a special commission, hand-picked by the House and Senate leadership. The legislation produced by this commission will be fast-tracked, and Members will not have the opportunity to offer amendments.
“Approval of the recommendations of the “Super Congress” is tied to yet another debt ceiling increase. This guarantees that Members will face tremendous pressure to vote for whatever comes out of this commission– even if it includes tax increases.”
The possibility of un-debated — and potentially unconstitutional — tax increases could be only the beginning of the powers exercised by the 12-member special congressional committee.
Addison also notes its recommendations are due to be announced the day before Thanksgiving — to provide for the suitable cover of smoke — with the up or down vote to follow the Friday before Christmas… to, of course, also introduce a healthy dose mirrors into the mix.
In this process the “Super Congress” could potentially circumvent any number of congressional procedures under the guise of its $1.5 trillion budget-cutting mandate. While there’s no reason to necessarily leap to the conclusion that the “Super Congress” is a government attempt to crack down on the right to keep and bear arms, for example, it does smell more than a bit fishy.
The video clip below covers its unconstitutional elements, which came to our attention via an Economic Policy Journal post on how the ‘Super Congress’ could fast track tax increases.
Rocky Vega,The Daily Reckoning
Rocky Vega is publisher of Agora Financial International, where he advances the growth of Agora Financial publishing enterprises outside of the US. Previously, he was publisher of The Daily Reckoning, and founding publisher of both UrbanTurf and RFID Update -- which he ran from Brazil, Chile, and Puerto Rico -- as well as associate publisher of FierceFinance. Rocky has an honors MS from the Stockholm School of Economics and an honors BA from Harvard University, where he served on the board of directors for Let?s Go Publications, Harvard Student Agencies, and The Harvard Advocate.
isn’t this something that been evolving over the last ten years, political decision making power being put in as few hands as possible. until ultimately only one person calls all the shots. i know a few people who say “what’s the point in voting, it’s not going to make a difference”. pretty soon that may be a true statement.
THEN LETS DO SOMETHING ABOUT IT!!!!! THESE CORRUPT MONSTERS ARE NO BETTER THAN YOU OR ME.
WE the People,
Need to demand a repeal of laws that are unconstitutional and challenge them. With organized movement, MAKE our voices HEARD!!!
MILLION MAN MARCH ON WASHINTON!!!!!
http://larouchepac.com/node/18977 The Super Congress is Obama’s latest unconstitutional effort to work with Wall Street and the corrupt credit rating agencies of London to collapse the U.S. economy. This is a foreign-led British coup against the U.S. Constitution and our sovereign nation. It is unnecessary to sell government bonds to raise capital, when there is a clear directive of the Federal Constitution to have an economic policy based on a credit system. The U.S. government needs a credit system to directly fund the real physical economy in areas of agriculture, industry, transportation, and scientific research.
Further understanding the impact the debt can have and its characteristics undoubtfully helps. Nice post. Another good post Rocky.
When you've got a room full of 200 oil insiders scratching their heads at current high prices, something's gotta give.
For most investors, it’s weird to think of stocks as their go-to investing option.
The petropoly has bills to pay and setting the price of oil was a simple way to balance their budgets.
Investors don’t seem to care that what's propping up their investments is what will ultimately destroy them: government monetary policy.
For the next decade the energy revolution will be likely confined to the US, displaying the robustness of American entrepreneurship.
Why the Sage of Baltimore’s commentary persists through America’s changing times.
After attending Platt’s oil conference in London I want to relay two important themes you need to know.