From the latter post we learned:
On the Senate’s last day in session in December, it approved the government’s $1.1 trillion budget for coming fiscal year.Today on the Real News interview Hudson goes into more detail on the following:
Few people realize how radical the new U.S. budget law was. Budget laws are supposed to decide simply what to fund and what to cut. A budget is not supposed to make new law, or to rewrite the law. But that is what happened, and it was radical.
They rewrote two laws. One of the laws was about bank derivatives that Elizabeth Warren has spoken about, promising to bail out Citibank and other banks. If they lose on derivatives, they're going to get bailed out like they did in 2008.
And the other was a decision not to bail out the Pension Benefit Guaranty Corporation, the government's pension fund insurer. They've decided--they passed a new law. They rewrote the law. They declared the 1974 ERISA act protecting pensions illegal, and they said if pension funds cannot pay their retirees, they get to be cut back and they don't get to go to the government to get guarantee. We've abolished the government guarantee on ...a multiemployer fund that has more than one employer contributing to it, like airline funds, truckers funds, Teamsters funds if you're a truck driver, insurance employees, we're going to give the fund managers, mainly the financial managers on Wall Street, the right to cut back on these pensions that are due.