Dear Learnyerfacts:

The GOP's going-in position on debt ceiling negotiations was, absolutely no new taxes, or even allowing the Bush tax cuts to expire as initially planned. This was widely reported. Against that, here are the more relevant quotes from the S&P Research Update, under the section titled Rationale:

"We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress containing the growth in public spending, especially on entitlements, or on reaching an agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process."

"It appears that for now, new revenues have dropped down on the menu of policy options."

"The act contains no measures to raise taxes or otherwise enhance revenues, though the committee could recommend them."

"Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act."

"Our revised upside scenario--which, other things being equal, we view as consistent with the outlook on the 'AA+' long-term rating being revised to stable--retains these same macroeconomic assumptions. In addition, it incorporates $950 billion of new revenues on the assumption that the 2001 and 2003 tax cuts for high earners lapse from 2013 onwards, as the Administration is advocating."

The implication of these statements -- namely, that the Republican refusal to even put increased revenue on the table, making the country fight for its economic life with one hand tied behind its back, was a significant factor in the downgrade -- should have been irresistible fodder for the media. It's genuine and important news, and a helluva story: the GOP's Number 1 agenda, their big play and supposed victory in the budget talks, burned their country. They were wrong, and spectacularly so. But that part got a small fraction of the visibility.

So yes, the S&P report does in any way say that the GOP resistance to tax hikes was a factor in changing the ratings. And while my usual goal in a forum is to persuade, not flame - I'm about equal parts embarrassed for you, and contemptuous. If you're going to call someone out, especially in an insulting manner, learn your facts.

Thom you might want to include a 8 % (you pick the number) of the import tariff / tax to cover pensions, minimum 30 % of gross hourly wage for minimum wage workers to a maximum of 1 % for high wage wage earners (over 3 times the states / County average hourly wage) health care, child care, workman's comp., unemployment insurance and life insurance, plus 401K plans that must be funded in reverse order to compensation of all types including all forms of income or delayed payments and bonuses indexed for hourly wage comparisons. As you would also include to the minimum tax on capital gains high payment taxes based on actual dollar amounts 99% of the tax for a payment that is 3 times the average income of the American family to 1% for the capital gains tax less than or equal to the poverty level of income. keeping the same reverse order for the existing tax percentage of taxes on Bankster trades, putts, takes, transfers, in the securities and bond industry the same reverse order 99% of the existing tax on high volume and or high value trades down to 1% for small 100 or less trades taking into account the dollar value of the stock bond or other security. We would not increase these taxes but we would take a necessary percentage of them to fund these necessities. This would also apply to US corps with oversea companies 99% of the existing tax to fund necessities in the minimum wage this would include county state and federal tax rates now in effect for that wage level in reverse order to the number employees over seas vs the number herein America as to gross receipts. Banks doing business in or within the US take the tax they are now paying and apply the same principle put the percentage of the money that stays in the local community(city county state) and tax it at 1% and what ever the tax is on what is left that leaves the city county and state and put that tax at 99% this must apply to State and Federal income tax in the same manner.

I know you might think this as far fetched but it is not: example; Negotiated IBEW union members have 30% of their gross hourly wages put in a annuity that is invested for them to grow as a retirement fund. they also get full health care and all other employment perks. this compensation is just for the "tramps" who are not employed because they either choose not to work full time and take advantage of natural disasters mutual assistance calls that pay time and one half and double time pluss meals and housing or utility contract lineman that are employed daily but get to go on mutual assistance disaster call such as hurricanes for the same good benefits. Detroit Edison lineman do not get this nor do other lineman employed by major utilities. they are under local agreements.

Detroit Edison is a self insured health care and life ins and pension program company, which is not unusual in the utility world. Back in 1990 I tried to get Det. ed. to put the union in charge of the health care and pensions as they were currently funded by negotiated contracts according to congress Erissa (i am sure i miss spelled the law name) and Redissa laws. Congress sets each year. Much to my surprise Detroit Edison was very interested and the deal only fell threw because a strike vote came and when the settlement came all negotiations were discontinued. Two years ago (2008)after they (Det. ED.) eliminated the 60 full time health care employees and changed management firms several times they informed the union they were willing to participate in a Verba health care program. because of union politics I was not asked to participate. the point being companies are victims of right wing politics and there costs and inability to find competent outsourced companies that don't cost them a arm and leg are affecting their bottom line to the point they are looking for better answers.

these are costs of doing business. If people like you, who have the public's ear speak often enough and clearly enough on how the "new" economic practices that governments must include to insure all the things that a economic powerhouse like the U.S. must have to compete in a world economy. "progressives may wright the new policies." I honestly believe if i could use what you, Big eddy and other progressives have helped me understand I could create a "venue" that would put the nation back to work in less than a year. I have experience at doing just such things at a considerably smaller scale but all the same parameters used before are still there. "The venue" Jobs, fair taxes, debt, necessities of today's world, the picture the masses hold of not for America are my parameters. Its like an old time paperboy who new every customer on his paper route, what each bread earner did for a living all their children the effects of rock and roll and how digital watches and color TV's tubeless tires new roads and two car families effected his bottom line. How capitalist like Henry Ford, paperboys, nonprofits like soccer clubs trying to start and compete with all the other existing things available to families, "become successful", to-days small business owners who would give you anything you asked for for a good high quality minimum wage employee. Progressives must take the parameters of the world we live today and come up with a plan that all Americans with out knowing what is happening around them bite into.

Thom, for the last week or three, the production value of your Ustream website has become almost useless! It's bad enough that the out-of-control, audio volume of the commercials is about double the sound volume of the rest of the show (Didn't someone pass a law about that?), but they seem to just arbitrarily break into the middle of some of your live broadcast.

Also, at times, your live show will stop, a high volume, obnoxious commercial will break in and THEN when the show resumes -- it is often some recorded segment which is sometimes even from a different day!

I enjoy watching your show, but it is rapidly becoming more of a chore than it is worth ...

Revolutions are happening every day now, they are happening all over the world. When we surfed on the north coast of California we would count and watch the waves, (all the little revolutions) in order to try and predict when the best wave to catch was coming. But no matter how long we looked for patterns or how we changed our perspectives to try to predict them, we would only have seconds before the sleeper waves would rise out of the chaos to clean off the beach. On the north coast the waves come from lots of different directions and at different speeds all at the same time and it's very chaotic. Every once in a while the waves will combine and stack up into a big beach cleaning wave. I don't think anyone has what it takes to predict how far the revolutions will cascade, how big they will break, or how much will be washed out to sea when they recede again. All we can do is be prepared for not being prepared.

@candyshad I think the bonds were US Treasury Bonds.

I don't know about other nations, but we will be lectured on how the "US is a republic, not a democracy" as if that were a justification for any act in defiance of the majority will.

please give a very brief over view of rava batra's economic view and his market basket us older folks are some what hard of hearing thanks diverd

"This country is on the road to 3rd world status."

I would assert we are already there, thanks to Reaganomics. We went from the largest creditor nation to the largest debtor nation. We went from the largest importer of raw materials and exporter of finished goods to the largest importer of finished goods and largest exporter of raw materials. How did this happen? Greed. Reagan took the top marginal tax rate from the 70's to the 30's. Then George W. Bush lowered them even further. Now you see massive wealth accumulated at the top and the rest to fight over the crumbs. The only reason you don't see the extreme poverty in the streets like other third world countries is because of the few left-over effects of when the U.S. was a great progressive country. You know, social security, medicare and the like, that the Republican party now wants to privatize. Out of greed.

And now AIG is suing Bank of America over the bad mortgages.....let the games begin...but what will it mean? Is this just the beginning of sharks eating sharks and all us little fish are getting swallowed up along the way? I sure hope FDIC can handle the fallout!

"American International Group Inc. said Monday it sued Bank of America Corp. for more than $10 billion, saying the bank cheated it by selling residential mortgage-backed securities that were overvalued.

Bank of America denied the allegations, saying AIG "recklessly" chased investments with high returns, and was big and sophisticated enough to know the risks."

http://www.huffingtonpost.com/2011/08/08/aig-bofa-lawsuit-mortgage-secur...

You got it!

Now we got to get the, Lame News Media ,or Pharma Media ,to tell the real truth to the

American People.

Do you think they would dare go against there "masters" Orders &

Broadcast real News ??

I do not think so,& it will get worst with the Powers of Plutocracy !

Thom's point also was subject of article by Paul Krugman in an article in The New York Times and Houston Chronicle titled : Media Balance plays role in push to edge of disaster". He states unequivocably that the media appears to be incapable of blaming the Republicans for anything, including the debt crisis debacle. It is evident the Democrats and Obama will never get a fair hearing in the press and t.v. news programs. They must go on the offense when false accusations are made. I fear the failure to do so will have serious consequences. We are past the time to be the adult in the room.

Anyone that thinks our mainstream media has not played a major role in steering this country onto the highway to hell must either be Rupert Murdoch or they have not talked to an average person in at least a decade. Does anybody remember the dialogue during the health insurance reform debate? All I heard from average low info citizens including some of my own friends and relatives were echoed sentiments such as, thaaaaats socialism, it's a Govt. takeover, death panels, Obama pals around with terrorists, and is a moslem from Kenya, and on and on. Wake up, where the hell do you think that crap came from? Well guess what, the mainstream media both covered and was able to create a huge amount of false hype regarding a tiny group of easily manipulated souls called the tea party. These poor bastards still don't realize they're doing the Kochs dirty work. The right wing mass media is and continues to be a tool off and partner with a few wealthy special interests who remain hellbent on power and destroying our democracy for their own gain.

I'm sorry it's no accident the media refuses to connect the two gigantic dots for the viewers...... ........#1 REPUBLICAN PARTY..........#2 CRASHED ECONOMY!

Reporting that the republicans refuse to raise revenues is too much like FREEDOM OF THE PRESS!