StanCollender'sCapitalGainsandGames Washington, Wall Street and Everything in Between



continuing resolution

Posted by Stan Collender

House and Senate budget conferees will formally get together again this week. This will be their first meeting since the ceremonial opening session on October 30 featured nothing more than politically self-serving opening statements,

Expect nothing to happen at this meeting...unless you believe that a further hardening of the positions each side stated at the last meeting represents something happening. it's simply too early in the process for anyone to offer a concession of any kind. The meeting will also be way too public for anything like a serious discussion, let alone an actual negotiation, to take place.

As I've said before, a budget conference committee of 29 representatives and senators is so unlikely to be able to agree on anything that, unless they want to go hungry, they had better delegate to a single staffer the authority to decide what to order for lunch. That's especially true if the lunch discussion takes place in an open hearing where CSPAN and others are broadcasting the deliberations.

Expecting little to happen should be the mantra for everyone following the budget events scheduled for the next few months.

Posted by Stan Collender

Some quick thoughts this morning:

1. It's still no better than 50-50 ("a coin flip" as @thefix said to me on Washington Post TV last week) that the debt ceiling will be raised by October 17, the date Treasury says it will run out of the ability to use "extraordinary measures" and the government will have to operate just from the cash it has on hand every day.

2. If anything the situation has gotten worse rather than better over the past few days with House Republicans in open warfare against their GOP Senate colleagues. It appears that House Republicans need to get something out of the box the are in with the government shutdown and debt ceiling even if it means extracting a pound of political flesh from their own party to do it.

3. Let me say this yet again as directly as possible: John Boehner (R-OH) is the weakest and least effective speaker in my lifetime, and he may come close to taking the all-time title.

Posted by Stan Collender

This is being written several hours after the Senate summarily rejected yet another proposal from the House to tie funding for the government to changes in Obamacare.

The House then moved to do something it should have done days...or at least hours...ago: officially request a conference with the Senate on the continuing resolution so that formal negotiations over the fiscal 2014 continuing resolution can get underway. Senate Majority Leader Harry Reid (D-NV) then adjourned the Senate until 9:30 am EDT and indicated that he expects that the request for a conference will be rejected until the House adopts a short-term CR that funds the government.

What all of the legislative maneuvering means is that the federal government shutdown many (or perhaps most) people thought would be avoided has started and will be in effect for a while.

It also means that the question has now changed from "Will there be a shutdown?" to "How long will it last?".

Here's what you need to know about the logistics of the shutdown.

Posted by Stan Collender

It wasn't too long yesterday after House Speaker John Boehner (R-OH) announced his support for the president's position on Syria that the blogosphere erupted with speculation that the White House had cut a deal. Boehner, it was said, had quickly signed on to U.S. military action against Syria in exchange for the White House moving closer to the GOP position on the upcoming battles on the continuing resolution, the debt ceiling and sequestration, that is, on #cliffgate.

That's nonsense.

The two issues are so separate, the White House and congressional Republicans are so far apart on everything having to do with the budget, Boehner's and Obama's ability to deliver their respective party's votes on spending and revenues so doubtful and Boehner's and the president's history of negotiating so poor that it's virtually impossible to imagine how the administration and the speaker could possibly have come to any agreement on Syria and #cliffgate so quickly.

Posted by Stan Collender

As I've said before, I'm calling the end of this year's debate two things: budget bedlam and "#cliffgate." No matter which name you use, it will begin when Congress returns to Washington next week.

There will be only 9 legislative days before fiscal 2014 starts on October 1. Approximately 15 calendar (but no more than 10 legislative) days later, the Treasury says the government will not have the cash it needs to pay all its bills. At that point either the federal debt ceiling will have to be raised so the government may borrow more or a technical or actual default will occur.



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