MORNING MESSAGE

Richard Eskow

Free the Corinthian 15 – And 41 Million Other Student Debtors

Last month the “Corinthian 15,” in collaboration with the Debt Collective, announced that they would not pay the debts they had accrued while enrolled at schools run by the for-profit corporation called “Corinthian Colleges Inc.” Corinthian … collapsed amid a cloud of allegations after failing to meet regulatory requirements … These strikers have raised issues that go to the heart of our nation’s entire student debt crisis. That crisis affects 41 million Americans, who hold an estimated $1.3 trillion in debt … There is a solution. Most student debt is held by the federal government. We can demand that the government release all student debt borrowers from their obligations … You can sign a petition here calling on the government to cancel all student debt.

GOP Civil War Over Budget

Tensions rise within GOP over budget. Politico:“House Republican leaders are alarmed that they’ll be unable to corral a majority to pass a budget in the coming weeks … defense hawks are clashing with fiscal hard-liners over military spending, Republicans are scaling back their deficit reduction targets, and Democrats are waiting in the wings to hammer GOP lawmakers with politically tough votes on education, infrastructure and health care … blueprints [are] due out this week in each chamber….”

“This is a war within the Republican Party”Senator Lindsey Graham tells NYT.

“Four Reasons The Coming Congressional Budget Battle Matters” from OurFuture.org’s Isaiah J. Poole:“Republicans will try to keep us focused on a fake deficit crisis instead of the real need – sustainable growth and good-paying jobs … We will continue to shortchange the investments we need for sustainable growth … The health care assault is about to get real … We’re going to see upside-down tax policies on steroids, with the rich paying less and the poor paying more…”

“Doc fix” deal also could split GOP. Roll Call:“If the current ‘patch’ expires on March 31, Medicare payments to doctors would be reduced by 21 percent … there have also been some rumors that a deal could come together where the … formula would be repealed and the Children’s Health Insurance Program would be extended. Republicans could win on some yet-to-be-named changes to the Medicare payment system, while the extension — even potential expansion — of the Children’s Health Insurance Program would be a carrot to Democrats. Fiscal conservatives, however, are already raising flags over the impact of a long-term deal, which could add to the deficit billions more than another short-term patch.”

WH dings GOP’s control of Congress. WSJ:“…senior White House adviser Brian Deese offered a blunt assessment of the political landscape, saying that the majority party in Congress has simply been reacting to President Barack Obama’s proposals rather than advancing its own … ‘They have moved no affirmative parts of their agenda forward. That’s a striking thing a couple months into their agenda.’”

Fed Could Hike Rates, Despite Weak Wages

Fed meets this week, could move toward June rate hike. FT:“After some confusion, the Fed’s intentions on the date of ‘lift off’ … now seem to indicate it is more than 50 per cent likely to come in June. The behaviour of the dollar, and of core inflation, are likely to determine whether June or September is eventually chosen for lift off. Once that is out of the way, the markets will turn their attention to a much harder question: how rapidly will rates rise after this lift-off?”

Economists puzzled by severed link between job growth and wages. Bloomberg:“Wages aren’t growing faster in states with lower, sometimes substantially lower, jobless rates than the nation’s … Former Treasury Secretary Lawrence Summers says the link is so weak the Federal Reserve can maintain record-low interest rates to underpin the economic expansion without the risk that wages and inflation start climbing. Policymakers such as James Bullard, president of the Federal Reserve Bank of St. Louis, say wages and the forces driving them are lagging indicators and the Fed should start raising rates soon.”

Wealth gap may be Bibi’s downfall, says NYT’s Paul Krugman:“Israel is now right up there with America as one of the most unequal societies in the advanced world. And Israel’s experience shows that this matters, that extreme inequality has a corrosive effect on social and political life.”

Germans wants Greek exit from euro. Bloomberg:“A poll published March 13 by public broadcaster ZDF found 52 percent of his countrymen no longer want Greece to remain in Europe’s common currency, up from 41 percent last month … The shift in sentiment comes as Greece, at risk of running out of cash this month, battles with European officials over the release of more bailout funds. Tsipras will join European leaders Thursday for talks in Brussels.”

Garcia Pressed In Chicago Mayor’s Race

NYT suggests Garcia is lacking on specifics:“Chicagoans are getting used to seeing Mr. Garcia bounding around the city with a wide smile and peppy good cheer … What voters are not getting is a clear sense of where Mr. Garcia, 58, stands on many major issues, particularly what his plans are to improve the city’s precarious financial condition.”

Pension battle looms over Chicago mayor’s race. Bloomberg:“While crushing debt bears down, including an additional $600 million pension payment the city must make next year, daily campaign discourse has focused elsewhere … [Chuy Garcia] proposed an 18-page financial-recovery plan March 13, saying he wouldn’t support pension-benefit cuts unless they were negotiated … Republican Governor Bruce Rauner, Emanuel’s friend and former business associate, has proposed cutting more than $300 million in income-tax, transit and pension assistance to Chicago and its schools. Nor can the city ease retirement costs without legislative approval.”