The day of reckoning beckons: Moody has threatened to lower the US credit rating if the debt ceiling negotiations don’t show progress soon.
Good news indeed: The House tonight overwhelmingly voted down an unconditional hike to $14.3 trillion debt ceiling.
The vote was 318-97, with 82 Democrats joining every Republican in rejecting legislation that would have authorized $2.4 trillion in additional borrowing by the federal government. Seven Democrats voted present on the legislation.
Now comes the business of tying the increase in the debt ceiling to some real spending reduction.
The next budget battle begins: A vote on a “clean” debt ceiling increase has been set for tonight by the House Republican leadership.
More than 100 House Democrats recently signed a letter demanding that Speaker John Boehner bring forward a vote for an increase in federal debt levels without any conditions for cuts or future spending curbs. Imagine their surprise when Boehner agreed and will serve up a bill that would provide enough borrowing to cover all of president Obama’s spending requests for next year without any preconditions.
It is expected that the legislation will be defeated soundly in a very bipartisan vote. To quote the article again:
The political reality is that increasing the nation’s swollen $14.3 trillion debt is a political loser. Voters hate it and lawmakers don’t even get anything new to give away since the money is going to cover existing obligations.
If the bill is defeated as predicted, it will be very good news, as that defeat will bolster the efforts of those who want big cuts in spending to go with any debt ceiling increase.
GOP Senators to the White House: Better start planning for no debt ceiling increase and making do on a $2.6 trillion budget.
Obama’s budget request for 2012 received zero votes today when it came up for a vote in the Democratic controlled Senate. Meanwhile, the House budget, proposed by Paul Ryan (R-Wisconsin) was also rejected, but by the much closer vote of 40-57.
I’m not sure if this is good or bad. It suggests that there is increasing recognition in the Senate that cuts must happen, and that Obama’s budget failed in this regard. It also suggests that the Senate is also not ready to make those cuts.
Fifty years ago today, John Kennedy stood before Congress and the nation and declared that the United States was going to the Moon. Amazingly, though this is by far the most remembered speech Kennedy ever gave, very few people remember why he gave the speech, and what he was actually trying to achieve by making it.
Above all, going to the Moon and exploring space was not his primary goal.
For Kennedy — whose presidential campaign included an aggressive anti-communist stance against the Soviet Union — the months before the speech had not gone well. Five weeks earlier, for instance, the CIA-led attempt to invade Cuba and overthrow Castro’s communist government had ended in total failure. When Kennedy refused to lend direct military support to the Bay of Pigs invasion, the 1,200 man rebel force was quickly overcome. “How could I have been so stupid as to let them go ahead?” Kennedy complained privately to his advisors.
In Berlin, the tensions between the East and the West were continuing to escalate, and would lead in only a few short months to Khrushchev’s decision to build the Berlin Wall, sealing off East Berlin and the citizens of East Germany from the rest of the world.
In the race to beat the Soviets in space, things were going badly as well. NASA had announced the United States’ intention to put the first man into space sometime in the spring of 1961. The agency hoped that this flight would prove that the leader of the capitalist world still dominated the fields of technology, science, and exploration.
Originally scheduled for a March 6, 1961 launch, the short fifteen minute sub-orbital flight was repeatedly delayed. The Mercury capsule’s first test flight in January, with a chimpanzee as test pilot, rose forty miles higher than intended, overshot its landing by a hundred and thirty miles, and when the capsule was recovered three hours later it had begun leaking and was actually sinking. Then in March another test of the Mercury capsule included the premature firing of the escape rocket on top of the capsule, the unplanned release of the backup parachutes during descent, and the discovery of dents on the capsule itself.
These difficulties caused NASA to postpone repeatedly its first manned mission. First the agency rescheduled the launch to late March. Then early April. Then mid-April. And then it was too late.
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Republican Presidential candidate Tim Pawlenty today called for phasing out ethanol subsidies — in Iowa.
We need more candidates like this, willing to say these kinds of things face-to-face with the very people who benefit from the funding.
The court jester speaks: Harry Reid said Thursday it would be “foolish” for the Democrats to offer their own budget plan.
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On Thursday Senator Harry Reid (D-Nevada) rejected House Speaker John Boehner’s call for “trillions” in spending cuts.
Once again, I must note that while we can be rightly skeptical of the Republicans expressed desire to cut the budget, we can have no doubt that the Democrats are against it entirely, and will resist spending cuts on all fronts.
TSA does a security drill, and forgets to tell the police.
Obama and ignoring the War Powers Act.
If nothing happens, history will say that the War Powers Act was condemned to a quiet death by a president who had solemnly pledged, on the campaign trail, to put an end to indiscriminate warmaking.
The point here has nothing to do with whether the military operation in Libya is wise or foolish. The point is that Obama has now committed American troops to a war without legal authorization.
Boehner meets with tea party activists from his district. “The mood was less than cordial.”
Surely, there are Tea Party activists with unreasonable expectations of what Republicans can accomplish with control of the House. However, the major beef Tea Partiers have with Republicans is not their lack of accomplishment. It’s their unwillingness to stand and fight, their apparent lack of principle, and the resulting impotence toward shifting the narrative in Washington.
Senate Democrats: Where is your budget?
With the statutory committee deadline having been missed by six weeks, and with 744 days gone by since the Democrat-led Senate passed a budget, it was reported that this week Senate Democrats would finally produce a budget and hold a markup. But no budget was produced and the markup was delayed yet again.
The Republicans might not be very serious about spending cuts, but the Democrats are a downright joke. At least the Republicans have made some effort to deal with the problem, tepid as that effort is. The Democrats not only oppose any suggestion, they can’t even do their job.
From Jeff Foust: Another sign of tight budgets ahead.
The possibility that NASA’s budget might cut by several billion doesn’t bother me a bit. Unlike it seems everyone else, I ain’t gonna be one of those who says “We need to cut the federal budget, but just don’t cut MY favorite program.” NASA shouldn’t be immune to cuts. In fact, NASA could easily lose the several billion dollars per year that’s going to be wasted on the program-formerly-called-Constellation.
And if Congress decided to cut the subsidies to the new commercial space companies as well, I probably wouldn’t cry that much over that either. I think these companies can make it on their own. I think there is a market for their product. By taking NASA’s money up front, they are then forced to take NASA supervision, something I think will be very damaging in the long run.
The House budget for the TSA has deleted funding for more body scanners.
Though I think denying the TSA this money is a good thing, this paragraph from the article stood out to me:
The measure includes $7.8 billion for the TSA, which Republicans said was a $125 million increase from current levels but $293 million less than the administration’s budget request.
In 2008 the TSA’s budget was approximately $6.99 billion. Considering how the Republicans wanted to bring spending back to 2008 levels, how can we take them seriously about getting control of the deficit if they agree to an overall budget increase for the TSA?
More debt ceiling negotiations: GOP senators focused on entitlement cuts in a meeting with Obama on Thursday. I found this quote quite intriguing and a refreshing change from previous such meetings:
Obama was careful not to dominate the meeting, according to Republican senators who attended. The president opened the session with brief remarks and spent most of the session listening to lawmakers’ concerns and responding to their arguments.
Not good: The House GOP has apparently abandoned its pledge to force agency-by-agency budgeting.
Pork and more pork: NASA is considering turning Congress’s heavy-lift rocket requirement, the program-formerly-called-Constellation, into a shuttle-derived rocket that would cost $10 billion and only fly once.
No surprise here: The White House takes a dim view of Boehner’s speech yesterday.
So my question here is there: Who is more serious about controlling spending, Obama and the Democrats or the Republicans in the House? Though it is very easy to find lots of reasons to criticize the various Republican proposals, at the moment they are the only proposals that are willing, even on a tiny level, to consider entitlement reform.
I like the sound of this: “Without significant spending cuts and reforms to reduce our debt, there will be no debt-limit increase.”
Also this: “We should be talking about cuts of trillions, not just billions. They should be actual cuts and program reforms, not broad deficit or debt targets that punt the tough questions to the future.”
And this: “And to those who contend that the economy is too weak to take on the challenge of entitlement reform — I would simply say, you’ve got it backwards. The truth is that making fundamental reforms to these programs would be good for the economy — and good for the next generation.”
A past House GOP parliamentary tactic is proving useless to Democrats.
This article is instructive in giving a sense of where the political winds are strongest. The Republicans stand firm, because they feel the public will support them in their votes. The Democrats, meanwhile, caved frequently in the last Congress out of fear of losing the next election, a fear that was proven justified.
This is hopeful news: More Democrats are threatening to hold up the debt ceiling vote unless there are more spending cuts.
No deal. Key quote:
If Democrats are not going to do even minor surgery on Medicare and Medicaid and Republicans are not going to raise taxes, there is no hope of big budget deal to cut a deficit now running at 11 percent of gross domestic product.
And that raises another question. How long can the Federal Reserve continue financing these deficits? China, choking on U.S. debt, is reportedly beginning to divest itself of U.S. bonds. Japan will need to sell U.S. bonds to get hard currency to repair the damage from the earthquake and tsunami. And the Fed is about to end its QE2 monthly purchases of $100 billion in U.S. bonds. Where is the Fed going to borrow the $125 billion a month to finance this year’s deficit of $1.65 trillion, and another of comparable size in 2012? Bill Gross’ Pimco, the world’s largest bond fund, has sold all his U.S. bonds and begun to short U.S. debt. Pimco is betting that the value of U.S. Treasury bonds will begin to fall.
We may be about to enter a maelstrom.
A revolt on the right over budget deal?
“There is a gut feeling in some quarters today that the Boehner-Obama deal could be in bigger trouble than anybody realizes.”
They really do think we are all fools: Last week’s budget deal actually cuts this year’s deficit by only $352 million, not $38 billion, according to the Congressional Budget Office.
And they might be right.
As I have been traveling for the past week, I have fallen behind in posting stories of interest. Two occurred in the past week that are of importance. Rather than give a long list of multiple links, here is a quick summary:
First, NASA administrator Charles Bolden yesterday announced the museum locations that will receive the retired shuttles. I find it very interesting that the Obama administration decided to snub Houston and flyover country for a California museum. In fact, all the shuttles seem to be going to strong Democratic strongholds. Does this suggest a bit of partisanship on this administration’s part? I don’t know. What I do know is that it illustrates again the politically tone-deaf nature of this administration, especially in choosing the fiftieth anniversary of Yuri Gagarin’s spaceflight to make this sad announcement.
Second, the new budget deal (still pending) included NASA’s budget, with cuts. While requiring NASA to build a super-duper heavy-lift rocket (the program-formerly-called-Constellation) for less money and in less time than was previously allocated to Constellation, the budget also frees NASA from the rules requiring them to continue building Constellation. Since the Obama administration has no interest in building the super-duper heavy-lift rocket and has said it can’t be done, I expect they will use the elimination of this rule to slowdown work on the heavy-lift rocket. I expect that later budget negotiations will find this heavy-lift rocket an easy target for elimination, especially when it becomes obvious it is not going to get built.
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The fat lady hasn’t sung yet: The budget deal fine print is “still under negotiation.”
A government shutdown is averted as congressional leaders have reached an agreement on a budget deal. Here’s some analysis of the political ramifications.
More progress, if true: The Republican 2012 budget proposal includes nothing for Obamacare.
