Showing posts with label Lynn Woolsey. Show all posts
Showing posts with label Lynn Woolsey. Show all posts

Wednesday, June 08, 2011

The Personal Debt Ceiling

A conservative blog dedicated to tossing California Rep. Lynn Woolsey (D) has some harsh words regarding her proposal that we raise the American debt ceiling:
Here is what Americans know. Americans know that when they go into debt, they don’t have the luxury of endlessly raising their own debt ceiling. Only the federal government does that.

Perhaps I'm mistaken, but I think this clearly, factually wrong. A debt ceiling is a self-imposed limit on the amount of debt one is willing to take on. But one always has the option of taking on more debt, if -- and this is the critical part -- there is a willing lender (charging interest rates you're willing to pay). That's the point behind it being "self-imposed".

Suppose I take out a loan for $10,000. A year later, I haven't finished paying off that $10,000, but I decide I want another $10,000 loan. Can I do that? Yes, of course I can -- if I can find a lender who is willing to make the loan and I'm willing and able to make interest payments.

The United States is in the same boat -- like the average family, we can take on debt so long as we have willing lenders and can make interest payments. Which there are, and we can -- indeed, interest rates on American debt are very low because the market seems to think we're good for it.

In a market-based economy, the real "debt ceiling" is a function of market forces -- you hit your limit when you can't form a transaction where the debtor can pay interest that the lender is willing to accept in exchange for the loan. The statutory debt ceiling is a governmental regulation that substitutes a centralized legislative command for basic market forces.

Monday, June 06, 2011

Bibi Refuses To Meet With American Representatives

A group of five American Representatives travelling to Israel sought but were unable to attain a meeting with Prime Minister Bibi Netanyahu, or, it seems, any members of his cabinet (it is still possible they'll meet with Likud's Miki Eitan, Minister of Improvement of Government Services). The snub appears to be prompted by the quintet's association with J Street, which is sponsoring the trip. The five Representatives are Reps. Steve Cohen (D-TN), Betty McCollum (D-MN), John Yarmuth (D-KY), Sam Farr (D-CA), and Lynn Woolsey (D-CA). Cohen and Yarmuth are Jewish.

In lieu of Netanyahu and his cohorts, the five will meet with various opposition members, including MK Tzipi Livni of Kadima. To me, this just demonstrates the fundamental truth that the "split" between Republican speakers on Israel, and those more aligned with J Street, is not one of "pro-Israel" or "anti-Israel", but simply identifying with Likud (Bibi's party) or Kadima (Livni's party). Since that represents the major faultline in mainstream Israeli politics, it makes sense that it'd be the major faultline in American politics about Israel.

Notably, I don't place AIPAC or groups like the ADL on this graph, for the simple reason that such groups tend to focus less on identifying with this or that Israeli political movement, and more about maintaining a general positive relationship between the US and Israel. That's why J Street, accurately in my view, cast its formation not as something in opposition to AIPAC, but doing something different than AIPAC -- forwarding a particular normative and policy agenda with respect to Israel. Both are valuable goals, and I think both have a role to play in American politics. By contrast, the Republican attempt to fracture the liberal pro-Israel consensus has done so on the basis of its own particular normative goals (e.g., opposition to a two-state solution on basis of '67 lines), and so it makes sense to locate them alongside their Israeli political analogues (the more conservative Likud factions and parties right-ward) -- and J Street is accurately cast against groups such as these.

While some assert that true "pro-Israel" advocates cannot have independent beliefs regarding proper Israeli policy and should only trumpet the policy choices of the current government (a demand whose sincerity is questionable, given how it disintegrates when the criticism comes from the right), I personally find this outlook perplexing, if not bizarre. If I told you I care about America, and you asked "well, who do you prefer to win the presidency in 2012", and I responded "oh, it doesn't matter to me -- I'll support the policies of whoever wins" -- I think you'd rightfully wonder how much I really do care about America and its flourishing. Caring about something means having opinions about it! I care about Israel, which means I have opinions about what actions it should take, and support political movements (in my case, Kadima) which are in line with those appraisals. This is normal behavior.

To the extent J Street is acting as, more or less, an adjunct of Kadima in the U.S., I have no real objection -- I'm an avowed Kadima supporter, after all. But this is yet another example of Bibi placing his private political interests above those of the country he leads. As a matter of short-term politics (Likud vs. Kadima), obviously, Bibi wants to isolate Kadima supporters and bolster Likudniks. But as leader of Israel, he can ill-afford to alienate allies in the U.S. Congress. Unfortunately, sacrificing the national interest for short-term political expediency is sort of Netanyahu's signature move at this point, so I can hardly act surprised. But it is yet more reinforcement that Livni and Kadima are the only serious political actors that can provide effective leadership in these unsettling times.