Wall Street's Plan to Push Obama to Betray Those Who Elected Him
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The Third Way lobbies for Wall Street and is used to discredit Democratic polices. The Wall Street response (via Third Way) to our warning of the Great Betrayal repeats its central assertion that there is no alternative – the safety net must be cut. The Wall Street Wing of the Democratic Party alleges that if Obama wields the knife, he will do less damage to the safety net than would Romney. That, of course, does not respond to our point. Once Obama endorses Wall Street’s false claim that the safety net is unsustainable and a grave danger to our economy he legitimizes future Republican assaults on the safety net. Third Way admits that these assaults would wield a chainsaw. Indeed, if Wall Street (via Third Way) is correct that the safety net is destroying our nation’s ability to make productive investments, then Republicans should take a chainsaw to the safety net. Third Way, therefore, has implicitly admitted and even supported our analysis.
The Wall Street response to our warnings of the coming Great Betrayal did not attempt to rebut the point I (and many others before me) made about Wall Street’s quest for the riches it would obtain when Social Security privatization began. Third Way cannot rebut the point because it proposes that we should begin to privatize Social Security. The Third Way is faithful to the interests of Wall Street.
4. It's Time to Orgazine
Obama has told us he will try to commit the Great Betrayal as soon as possible. We have to organize now to be able to act immediately to prevent it. Again, the point I and others have made in our warnings is not that Obama wants to unravel the safety net or that the initial concessions to the Republicans will destroy the safety net. The point we made is that by accepting the false Wall Street (via Third Way) and Republican claims about the safety net, Obama would be legitimizing continued assaults on the safety net by Republicans and Democrats that would eviscerate it.
Third Way warns that if Obama does not commit the Great Betrayal the Republicans will destroy the economy:
“The alternative to a grand bargain is a grand throwdown, one like the debt ceiling debacle of 2011. Only this time, the threat of default would be joined by the double threat of sequestration and tax hikes on the middle class.”
Giving in to Republican extortion would only prompt repeated Republican extortion. President Clinton followed the correct strategy against similar attempts at extortion by refusing to give in to it. The extortion strategy blew up in the Republican’s faces. They remember what happened. Third Way’s proposed appeasement strategy would encourage relentless Republican extortion.
5. Third Way Spreads False "Moral Panic" and Protects Fraudsters
Pete Peterson, a Republican Wall Street billionaire, has long led an unholy war to eviscerate the safety net. He has pledged a billion dollars to the effort and funded many groups. The “Third Way” was founded and run by Jonathan Cowan, one of his “acolytes", and its board of trustees is dominated by Wall Street executives. Third Way refuses to disclose its donors.
Third Way represents the Wall Street wing of the Democratic Party and has pushed successfully for the worst domestic failures of the Obama administration, including continuing the Bush administration policy of granting the elite banksters whose frauds drove the crisis de facto immunity from criminal prosecution. Third Way has been conspicuously silent in pushing either administration to prosecute these elite financial frauds. Its board of trustees is peppered with senior executives of systemically dangerous institutions that the federal government has charged – but only in civil cases – engaged in fraud. Third Way has applauded the administration’s grant of immunity from criminal prosecution for the massive foreclosure frauds (hundreds of thousands of frauds) committed by several major banks in a November 9, 2012 press release entitled: “Third Way Lauds Landmark Foreclosure Deal.”