On July 9, 2011, Republican extortionists threatened the Nation with financial ruin and international disgrace unless their demands were met. They refused to raise the debt ceiling unless Democrats agreed to massively cut social programs for the elderly, poor and disabled.
If Congress failed to raise the borrowing limit of the federal government by August 2, the date when the U.S. reached the limit of its borrowing abilities, it would begin defaulting on its loans.
As Warren Buffett, CEO of Berkshire Hathaway, explained the looming economic catastrophe: “If you don’t send out Social Security checks, I would hate to think about the credit meeting at S&P and Moody’s the next morning.
“If you’re not paying millions and millions and millions of people that range in age from 65 on up, money you promised them, you’re not a AAA,” said Buffett.
Warren Buffett
A triple-A credit rating is the highest possible rating that can be received.
And while Republicans demanded that the disadvantaged tighten their belts, they rejected any raising of taxes on their foremost constituency–the wealthiest 1%.
To raise taxes on the wealthy, they insisted, would be a “jobs-killer.” It would “discourage” corporate CEOs from creating tens of thousands of jobs they “want” to create.
Republicans knew this argument was a lie. And so did the editors of Time. The difference between them: The editors of Time were willing to reveal the truth.
In its June 20, 2011 cover-story on “What U.S. Economic Recovery? Five Destructive Myths,” Rana Foroohar, the magazine’s assistant managing editor in charge of economics and business, delivered this warning: Profit-seeking corporations can’t be relied on to ”make it all better.”
Wrote Foroohar:
“There is a fundamental disconnect between the fortunes of American companies, which are doing quite well, and American workers, most of whom are earning a lower hourly wage now than they did during the recession.
“The thing is, companies make plenty of money; they just don’t spend it on workers here.
“There may be $2 trillion sitting on the balance sheets of American corporations globally, but firms show no signs of wanting to spend it in order to hire workers at home.”
As the calendar moved ever closer to the fateful date of August 2, Republican leaders continued to insist: Any deal that includes taxes “can’t pass the House.”
One senior Republican said talks would go right up to–and maybe beyond–the brink of default.
“I think we’ll be here in August,” said Republican Rep. Pete Sessions, of Texas. “We are not going to leave town until a proper deal gets done.”
President Obama had previously insisted on extending the debt ceiling through 2012. But in mid-July, he simply asked congressional leaders to review three options with their members:
- The “Grand Bargain” choice—favored by Obama–would cut deficits by about $4 trillion, including spending cuts and new tax revenues.
- A medium-range plan would aim to reduce the deficit by about $2 trillion.
- The smallest option would cut between $1 trillion and $1.5 trillion, without increased tax revenue or any Medicare and Medicaid cuts.
And the Republican response?
Said Rep. Darrell Issa, chairman of the Oversight and Government Reform Committee: “Quite frankly, [Republican] members of Congress are getting tired of what the president won’t do and what the president wants.”
Noted political analyst Chris Matthews summed up the sheer criminality of what happened within the House of Representatives.
Speaking on MSNBC’s “Hardball,” on July 28–five days before Congress reached its August 2 deadline to raise the debt-ceiling–Matthews noted:
“The first people to bow to the demands of those threatening to blow up the economy were the Republicans in the House, the leaders. The leaders did what the followers told them to do: meet the demands, hold up the country to get their way.
Chris Matthews
“Those followers didn’t win the Senate, or the Presidency, just the House. But by using the House they were able to hold up the entire United States government. They threatened to blow things up economically and it worked.
“They said they were willing to do that–just to get their way–not by persuasion, not by politics, not by democratic government, but by threatening the destruction of the country’s finances.
“Right. So what’s next? The power grid? Will they next time threaten to close down the country’s electricity and communications systems?”
With the United States teetering on the brink of national bankruptcy, President Obama faced three choices:
- Counter Republican extortion attempts via RICO–the Racketeer Influenced Corrupt Organizations Act.
- Make a “Cuban Missile Crisis”-style address to the American people, seeking to rally them against a criminal threat to the financial security of the Nation.
- Cave in to Republican demands.
Unfortunately for Obama and the Nation, he chose Number Three.
But he could have countered that danger via the Racketeer Influenced Corrupt Organizations (RICO) Act.
In 1970, Congress passed RICO, Title 18, United States Code, Sections 1961-1968. Its goal: Destroy the Mafia.
U.S. Department of Justice
RICO opens with a series of definitions of “racketeering activity” which can be prosecuted by Justice Department attorneys. Among those crimes: Extortion.
Extortion is defined as “a criminal offense which occurs when a person unlawfully obtains either money, property or services from a person(s), entity, or institution, through coercion.”





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REPUBLICANS: EXTORTION IS US: PART THREE (OF FOUR)
In Bureaucracy, History, Law, Law Enforcement, Politics, Social commentary on March 24, 2016 at 12:30 amOn July 9, 2011, Republican extortionists threatened the Nation with financial ruin and international disgrace unless their demands were met.
President Barack Obama could have countered that danger with the Racketeer Influenced Corrupt Organizations (RICO) Act. Among the crimes it authorizes for prosecution: Extortion.
Extortion is defined as “a criminal offense which occurs when a person unlawfully obtains either money, property or services from a person(s), entity, or institution, through coercion.”
And if President Obama had believed that RICO was not sufficient to deal with extortionate behavior, he could have relied on the USA Patriot Act of 2001, passed in the wake of 9/11.
President George W. Bush signs the USA Patriot Act into law – October 26, 2001
In Section 802, the Act defines domestic terrorism. Among the behavior that is defined as criminal:
“Activities that…appear to be intended…to influence the policy of a government by intimidation or coercion [and]…occur primarily within the territorial jurisdiction of the United States.”
The remedies for punishing such criminal behavior were legally in place. President Obama needed only to direct the Justice Department to apply them.
Prosecuting members of Congress would not have violated the separation-of-powers principle. Congressmen have in the past been investigated, indicted and convicted for various criminal offenses.
Such prosecutions–and especially convictions–would have served notice on current and future members of Congress that the lives and fortunes of American citizens may not be held hostage as part of a negotiated settlement.
On August 1, Chris Matthews, host of MSNBC’s “Hardball,” wrapped up his program with a search for “options” to avoid another round of Republican extortion tactics.
Chris Matthews
“I want to know what steps the president ‘could’ have taken to avoid this hostage-taking.
“…Is there another way than either buckling to the Republicans or letting the government and the country crash?
“How does he use the power of the presidency, the logic, emotion and basic patriotism of the people, to thwart those willing to threaten, disrupt, even possibly destroy to get their way?”
The answer to his questions–then and now–is: Replace the law of fear with the rule of law.
But there was another way Obama could have stood up to Republican extortionists: By urging his fellow Americans to rally to him in a moment of supreme national danger.
President John F. Kennedy did just that–successfully–during the most dangerous crisis of his administration.
Addressing the Nation on October 22, 1962, Kennedy shocked his fellow citizens by revealing that the Soviet Union had installed offensive nuclear missiles in Cuba.
John F. Kennedy
After outlining a series of steps he had taken to end the crisis, Kennedy sought to reassure and inspire his audience. His words are worth remembering today:
“The path we have chosen for the present is full of hazards, as all paths are, but it is the one most consistent with our character and courage as a nation and our commitments around the world.
“The cost of freedom is always high, but Americans have always paid it. And one path we shall never choose, and that is the path of surrender or submission.”
President Obama could have sent that same message to the extortionists of the Republican Party.
Yet this was another option he failed to exploit. And he and the Nation have continued to pay the price for it.
In the fall of 2013, Republicans once again threatened to shut down the Federal Government unless the President agreed to defund the Affordable Care Act (ACA), better known as “Obamacare.
They were enraged that millions of uninsured Americans might receive medical care on a par with that given members of the House and Senate.
So on September 20, the House voted on a short-term government funding bill that included a provision to defund Obamacare.
That provision was a no-go for Senate Democrats and President Obama. If the House and Senate couldn’t reach a compromise, many functions of the federal government would be shut down indefinitely on October 1.
The official reason given by Republicans: They wanted to save the country from bankruptcy–although the Congressional Budget Office stated that the ACA would lower future deficits and Medicare spending.
After passing the House and Senate, the ACA had been signed into law by President Obama on March 23, 2010.
On June 28, 2012, the United States Supreme Court–whose Chief Justice, John Roberts, is a Republican–had upheld the constitutionality of the ACA.
Yet House Republicans continued searching for a way to stop the law from taking effect. By September, 2013, they had voted 42 times to repeal “Obamacare.”
But their efforts had failed; the Democratic-led Senate made it clear it would never go along with such legislation.
Finally, unable to legally overturn the Act or to legislatively repeal it, House Republicans fell back on something much simpler: Threats and fear.
Threats–of voting to shut down salaries paid to most Federal employees. Most, because they themselves would continue to draw hefty salaries while denying them to FBI agents, air traffic controllers and members of the military, among others.
And fear–that would be generated throughout the Federal government, the United States and America’s international allies.
On October 1, 2013, House Republicans made good on their threat. They “shut down the government.”
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