Published on World Socialist Web Site WSWS, by Patrick Martin, July 14, 2011.
Representatives of the Wall Street financial oligarchy are laying down the law to the Obama administration and Congress, demanding speedy action to raise the federal debt ceiling before an August 2 deadline, and massive cuts in spending on social programs like Medicare, Medicaid and Social Security, to slash the federal deficit.
Moody’s Investor Service put the Aaa bond rating of the US government on review for a possible downgrade Wednesday, the first time such a step has been taken by any of the bond rating agencies. A statement from Moody’s—which has spearheaded demands for austerity and budget cuts in Europe as well—warned of a “rising possibility that the statutory debt limit will not be raised on a timely basis, leading to a default on US Treasury debt obligations” … //
… This statement is a declaration of bankruptcy for both the Obama administration and for the capitalist system as a whole. This American ruling class is opposed to taking any action to alleviate the mass suffering caused by the 2008 Crash and the ensuing economic slump.
As the budget “debate” demonstrates, the policies demanded by big business and embraced by both political parties, Democrats as much as Republicans, will mean the destruction of programs like Medicare, Medicaid and Social Security, even as mass unemployment continues at the highest levels since the Great Depression. (full text).