15 April 2013

Just When You Thought that Obama Could Not Get Any Worse………

He is proposing to sell the Tennessee Valley Authority to Wall Street for some magic beans:
The headline issue, cutting Social Security benefits by changing the measurement of inflation (the “chained CPI”), is something that writers on Naked Capitalism have been predicting for a long time. What has come as a shocking (but not surprising) twist is a bombshell buried in Obama’s budget: the proposed privatization of the Tennessee Valley Association. At this point I think it’s important to quote a part of this section of the budget at length:
TVA is a self-financing Government corporation, funding operations through electricity sales and bond financing. In order to meet its future capacity needs, fulfill its environmental responsibilities, and modernize its aging generation system, TVA’s current capital investment plan includes more than $25 billion of expenditures over the next 10 years. However, TVA’s anticipated capital needs are likely to quickly exceed the agency’s $30 billion statutory cap on indebtedness. Reducing or eliminating the Federal Government’s role in programs such as TVA, which have achieved their original objectives and no longer require Federal participation, can help put the Nation on a sustainable fiscal path. Given TVA’s debt constraints and the impact to the Federal deficit of its increasing capital expenditures, the Administration intends to undertake a strategic review of options for addressing TVA’s financial situation, including the possible divestiture of TVA, in part or as a whole.
Notice how nonsensical the justification for the “divestiture of TVA” is. The authors clearly acknowledge that the Tennessee Valley Authority is a “self-financing Government corporation”. The TVA issues its own debt and also has income from electricity sales. Yet because its capital expenditures are counted as part of the federal deficit for accounting purposes, privatizing the TVA supposedly counts as a “spending cut”. This is the willful blindness of orthodox thought taken to extreme levels. Privatizing the TVA doesn’t shrink the amount of debt in the economy one cent; all it does is bring that debt onto private balance sheets. In fact, private investors will buy the Authority on mainly on credit, increasing the amount of private debt.
Note also whoever buys this will pay far less than market value, because that is how this sh%$ works, and since they get it on the cheap, their goal will be to suck the marrow out of it, and to raise rates on the people it serves as fast as it possibly can.

That's more than 9 million people he wants to f%$# like a drunk sorority girl.

Thatcher was too smart to privatize Britrail, but John Major was not, and the result was crappy service and fatal accidents.

It is so bad that even the Tories have disavowed selling off rail.

You will see the same from privatizing the TVA.

So, he's going after two of the remaining jewels in the crown of the New Deal, the TVA, and Social Security.

He's doing it because he wants to, because, except for the appeals to racial bigotry and abortion criminalization, he's well to the right of Ronald Reagan, and he hates the liberal wing of the Democrat Party in general, and the New Deal in particular.

I'm beginning to think that I should add the tag "Manchurian Democrat" to posts like this.


Anonymous said...

Another example of throwing the people under the bus.... especially rural america.. let see.. not available to those who don't live in the cities (if present powers-that-be have their way)include: internet/broad band access, health care, education, electricity, the right to GMO free farming, raw milk, and on and on... don't get me started... Arrrgh.. ..
Time to mail stinky energy patties to those writing STUPID bills....

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