America's New Budgetless Reality Is "Betrayal Of American Taxpayers", Says Republican House Leader John Boehner

Tyler Durden's picture

House Democrat leader Steny Hoyer will today announce that the US will not pass a budget in 2010 as “It isn’t possible to debate and pass a realistic, long-term budget until we’ve considered the bipartisan commission’s deficit-reduction plan, which is expected in December." Yet "the House has never failed to pass an annual budget resolution since the current budget rules were put into place in 1974." The real reason of course is that the budget would indicate new and unprecedented trillions in deficits, which would wreak havoc on Democrat chances to contain their upcoming mid-term election loss to just "landslide" status, instead of what is increasingly shaping up as being more in the "apocalyptic" category. Those whose memory spans longer than 24 hours, will recall that Peter Orszag resigned yesterday. Something tells us these two events may be correlated. In the meantime, we are now convinced that realizing the hopelessness of its political situation, the administration and the Fed will now create the most ridiculous, unprecedented, destructive and historic market melt up in history to preserve any chances of demonstrating just how "effective" their market manipulation, pardon, economic resurgence efforts are. If you are short, be ready to have all your shares forcibly called in over the next 4 months. At least the humor of the situation is not lost on one person: House Republican leader John Boehner has taken out a page on his website to lampoon the tragicomedy that US economic and fiscal reality has become.

From John Boehner's Website

Cancelled: There Will Be No Congressional Budget This Year

***The Following Is An Important Fiscal Health Announcement***

(Jun 22)

In light of House Majority Leader Steny Hoyer’s (D-MD) announcement this morning that House Democrats will not pass a budget this year – failing to fulfill what he has called “the most basic responsibility” of governing – the following important fiscal health warning has been issued:








Imposing the fiscal discipline economists say is needed to create jobs and boost our economy

Reining in the out-of-control spending spree that is killing American jobs

Carrying out the “most basic responsibility of governing”

Stopping middle-class tax hikes that will sock family budgets at the worst possible time

Providing the leadership on jobs and the economy that Americans say is sorely lacking

Protecting our kids and grandkids from the enormous debt burden Washington has placed on them

We reserve the right to notify you of additional consequences that may arise in light of this budget failure, which is unprecedented in the modern era.  In the interim, please brace for more spending, more debt, more tax hikes, more broken promises.

For families and small businesses looking for a government that listens
to the people it serves and respects their hard-earned money, House
Republicans are offering better solutions to cut spending now and help small businesses put people back to work.

And here are the comment from Ranking Member, and vocal budgetary farce opponent, Paul Ryan:

Ranking Member Ryan on Democrats’ Unprecedented Budget Failure

WASHINGTON – Since the implementation of the 1974 Budget Act, the House has never failed to pass a budget resolution – until now. House Democratic leaders announced this morning that they will make no attempt to even propose a budget. In response to this unprecedented budget failure and efforts to give the appearance of budgeting while sidestepping the tough decisions that budgets require, House Budget Committee Ranking Republican Paul Ryan (WI) issued the following statement:

“House Democrats have offered no budget, no priorities, and no restraints – yet the taxing, spending, and borrowing all continue unchecked. The unprecedented collapse of the budget process and lack of spending restraint undermines economic growth and job creation, fuels our dependence on foreign creditors, and accelerates our fiscal day of reckoning here at home. A clear signal is being sent to American families struggling to meet their own budgets – and to those financing this borrowing binge – that Washington still doesn’t recognize the severity of our fiscal and economic challenges. Washington needs to wake up.”

Additional key points to consider:

A “deeming resolution” is not a budget. A "deemer” does not set priorities; it does not align overall spending, tax, deficit, and debt levels; and it does nothing to address the runaway spending of Federal entitlement programs. Instead of enforceable restraints and tough decisions, the Majority intends to give a green light to the Appropriators for the spending spree to continue.

This year’s budget collapse is an unprecedented failure. Even when previous Congresses have failed to pass budget conference reports, the House always completed and passed its own budget resolution. Not only will House Democrats fail to pass a budget resolution, they will make no attempt to even propose a budget.

The latest in a string of alarming fiscal abuses. Since January 2009, the President has signed into law $1.8 trillion in new spending and $670 billion in new taxes. The Federal budget deficit has expanded to $1.5 trillion and total debt recently eclipsed $13 trillion. The Majority’s pay-as-you-go charade has been circumvented at least 14 times in the 111th Congress, adding hundreds of billions of dollars to the deficit. The abuse of the budget reconciliation process made possible the passage of the Majority’s health care overhaul.

A failure to budget exacerbates looming fiscal crisis. The Democrats’ failure to budget and get spending under control would be a disaster at any time – a staggering abdication of a fundamental act of governing. It is acutely problematic now, with the Nation facing dire fiscal and economic challenges.


h/t Stephen

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Turd Ferguson's picture

This is truly unprecedented and shameful.

It will, however, be glossed over as "politics as usual", which its not! For the US government to operate without a budget is a sign of utter capitulation. This is ultimate proof that our system of government and finance is not on the verge of collapse, it is collapsing NOW.


Muir's picture


I guess I shouldn't have followed madhedgefundmanager's advice.



29.52 -0.81‎ (-2.67%‎)  Jun 22 12:51pm ET

FrankIvy's picture

Was his advice to sell/short BP?

Could they possible go to anywhere but zero w/out a bailout?

zice's picture

Well, the rifleman’s stalking the sick and the lame
Preacherman seeks the same, who’ll get there first is uncertain
Nightsticks and water cannons, tear gas, padlocks
Molotov cocktails and rocks behind every curtain
False-hearted judges dying in the webs that they spin
Only a matter of time ’til night comes steppin’ in

Time to hold tight.

Rusty_Shackleford's picture

"Crickets are chirpin' the water is high
There's a soft cotton dress on the line hangin' dry
Window wide open African trees
Bent over backwards from a hurricane breeze
Not a word of goodbye not even a note
She gone with the man in the long black coat.


She's gone people.

knukles's picture

Got some real bad news for ya' Stennie!  "No budget, no bond buyers." sayeth the Vigilantes. 
(Kinda like "no tickie no washie" if ya'll wanna put it in Chinese laundry terms.)

What a great way to chase money off shore.  The government dissolves the rights of senior secured debt holders a la GM and Chrysler, then wants folks to buy its bonds, bills and notes with No Disclosure, No Plans whatsoever. 

Now that's new financial engineering at its best.  The perpetual blind pool debt obligation.  Marvelous, bloody marvelous.!

G-R-U-N-T's picture

This adcministration is an absolute disaster. Bend over America cause your about to get poked again, and again, and again......

G-R-U-N-T's picture

This adcministration is an absolute disaster. Bend over America cause your about to get poked again, and again, and again......

IBelieveInMagic's picture

Where was John Boehner when Georgie was at the White House partying? He has found religion now?

Aaron Burr's picture

Atleast with W we actually had a budget--we could have kept HIS ponzi going for a couple more decades but we got hours left in this one.-

DasRipper's picture

No "Atleast".  I'm happy the Dems are going this route.  The solution to this whole mess is the collapse.  They are just making happen much swifter.  I say Bring It On.

BS Inc.'s picture

The time when that equivalence crap would have worked is long past, pal. Time to find a new schtick.

IBelieveInMagic's picture

I would agree if we can get away from the two party circus but if all we have is these two parties to pick from, I will go with Obama any day, thank you. I am thoroughly disappointed with his performance but am also aware of the deep problems that he has to tackle -- it is easy to suggest radical solutions when you are not in position to really do anything...


MsCreant's picture

You really do believe in magic. 


God I really hate being that rude to you but I don't know what else to do. Feels like I am bitch slapping Bambi...

TheGoodDoctor's picture

I'd pay to see that. There is jello or pudding and a swimming pool involved right? Anyway, I digress Lenin called them "Useful Idiots". So true.

svendthrift's picture

I've made the decision to leave the United States. I'm over it. Gotta look out for me and mine.

Sqworl's picture

Costa Rica, no extradition with US and new swiss banking world!!

Cleanclog's picture

I didn't think it possible, but this will make Greece look like the responsible government.

Un-"f"ing believable.  With trillions and trillions in federal, state and local government debt in the United States - we have elected legislators saying they will not build nor present a budget.  No guidance, no roadmap, no nothing.  And we pay them for this crap.

Yes We Can. But Lets Not.'s picture

Yes, unprecedented and shameful.

And astonishing.

This administration appears more and more every day to be dangerously incompetent and craven.

Gwynplaine's picture
Gwynplaine (not verified) Turd Ferguson Jun 22, 2010 3:09 PM

For all you Mel Brooks fans out there:

He inverted that phrase though: "Hope for the best, expect the worst!" (from The Twelve Chairs).

Jim Cramer's picture

Isn't this the President who insisted on transperancy and bent Bush over because he wasn't keep accounts on the budget for the war?  This is not a defense of Bush but a knock on who this guy is.  He says one thing and you can bet he'll do the other.  I absolutely expected all of this to occur during his ruling since he is not deserving of the title of President but deserves to be called a bully or better yet a mobster.  I am just shocked at the speed at which he is doing all of this..........

Ragnarok's picture

NEO: There is no balance sheet.



MsCreant's picture

Never was. It all has been a fiction designed to misdirect our attention for many years now so that the machine could be left to feed on our dreams. We could debate exactly when, but I will go along with my colleagues who call the formation of the Fed in 1913 as the date.

I am an academic. I have participated in all kinds of accounting games that my bosses have demanded of me (even as I have fought it and pissed off my colleagues who just want to do it and go home). We create "units" because they ask us to, even though we don't work that way, so they can account to their higher ups. Then they come back to us and ask us which units do we feel we can cut and still be profitable. We never had the units, we only made them up on paper so that our bosses would have a narrative to take back to the government. Then we are supposed to cut units, that did not exist in the first place?

I tell this story because this crap is happening at the individual level, in families, organizations, systems, etc. It is pervasive.

There is no balance sheet. There is no balance because what we are doing is not sustainable. 

knukles's picture

This is what comes when mankind ceases pretending anything is sustainable.

Rusty_Shackleford's picture



We've gone from having money that said 'Tis Death to Counterfeit on every note to 100% mandatory institutionalized counterfeiting.


We've gone from a country where everyone instinctively knew that there was no such thing as a free lunch, to one where we started thinking "well, maybe there really is a free lunch", and then ultimately to one now where we've actually convinced ourselves eating free lunches is a revenue generating activity.


"The worst day of a man's life is when he sits down and begins thinking about how he can get something for nothing”-Thomas Jefferson


VegasBD's picture

Quote of the day brotha

"we've actually convinced ourselves eating free lunches is a revenue generating activity"

Rusty_Shackleford's picture


That particular concept has been rattling around and causing an itchy spot in my brain since they started talking about how the new ObamaCare entitlement was actually going to save money.  It felt good to form it into words and write it down.  Now I can finally stop thinking about sandpaper all the time.

I remember thinking, we're soon going to see infomercials about "getting started in the lucrative new field of eating free lunches". 

Universities will form entirely new departments and people will graduate with degrees in Liberal Arts with a Minor in Eating Free Lunches.


Hell, eating free lunches could be the next bubble!!!


By the way, I stake an Intellectual Property claim on the CEFLFE (The Chicago Eating Free Lunches Futures Exchange).

onerepublic's picture

Government inflates healthcare costs by mandating employer insurance, crippling free market mechanisms and sees health care costs go from 4% GDP to 16% GDP. Government provides healthcare to remaining uninsured promising program will reduce costs. Then says program will actually not reduce costs. Government then claims war on oil.

OldTrooper's picture

Great TJ quote, Rusty.  I wasn't familiar with that one.  I'd like to add it to my collection.  Do you have a citation?

Rusty_Shackleford's picture

I'm sure it's fairly well established although I can't tell you exactly where he said it (hell, it may even be like his "central banks" quote and be highly contested).  I just googled it.

B9K9's picture

Rusty, I would suggest that no one has been really been convinced. Rather, politicians realized votes could be bought, non-taxpaying voters realized it was theft, but thought it was justified in light of historical grievances, and taxpaying voters paid, grumbled & waited/hoped for the system to eventually fail.

All three parties have always known the truth; our current predicament is a function of gaming calculations being made concerning a specific expiration date. Watch the rats abandoning ship - they are the tell. First Orzag, then ...?

Rusty_Shackleford's picture

Good points.  You know, you're probably right,... although the person would have to be functioning on a conceptual/rational level. 

However, I would venture to guess that a much larger proportion of the population is functioning on the perceptual level only(, and really is 100% truly convinced of it.  It's almost hard to hold it against them.  It has been drilled into their minds for their entire lives.

I think it goes much deeper than just vote buying. 

Hell, I would have more respect for the system if that's all it was.


Kind of like Lysander Spooner and the Highwayman.

Almost Solvent's picture

I have no kids (yet)

Yet I get a $3k property school tax bill every year

State says I have to pay to educate OPK (other people's kids)

Section 8 queen with 4 kids in school pays nothing since she rents and gov't pays her rent


I need more asshats's picture

"Then we are supposed to cut units, that did not exist in the first place?"

Lesson learned: When asked to make up units, make more than expected. Then when the request comes in to downsize you will shine like a supernova. They'll call you the ax-lady who really knows how to take it for the team.

You'll get your big fat bonus(in academic term of course) and the kitty's will be happy while playing with their new ball of Afgani-kush premium catnip.

It is sustainable we just need the US Department of Incremental Control and Enforcement. These guys will smooth out the whipsaws and control incremental growth.

MsCreant's picture

Lesson learned indeed. We are all Ponzi scammers now. 

rapier's picture

 Of course there is no balance sheet.  Government cannot capitalize its assets. So your left with 14th century cash flow accounting.  Since there is no balance sheet, nothing on a page showing worth of assets two generations of business centric people have come to assume nothing the government has or does has 'worth'. Not dollars and cents worth and then any worth at all.

As we come closer to the dream of the Donner Party Conservatives they should consider that they are the fattest ones of all.

rapier's picture

Oh yea, and all non governmental actors have been free to inflate their assets and show great balance sheets, usually, or have it reported they are great.


The false distinctions erected by todays idologies will fade away and history will construct new ones. 

RichardENixon's picture

MsCreant, I beg to differ with you. There is a balance sheet. Unfortunately, the Equity portion is a hundred trillion or so in the red.

MsCreant's picture

In a newer TD post, if you have time, if you feel an inclination to do so, maybe you would post something to us (or to me) that is an on the ground NOLA situation report. Last I heard you were 20 miles away and could occasionally smell it.

Cathartes Aura's picture

brilliant post MsCreant.

the "fiction" of the amrrkn DREAM was a myth sold to the public as distraction, and as more people struggle to wake-up, the illusion gets busted.

dis-illusionment can be devastating, but waking up is preferable to being lied to. 

MsCreant's picture

Thanks. I think I am still waking up myself, I'll get back to you on that.

RichardP's picture

Don't wake up.  There is a reason it is called the American ... Dream.'s picture

Perhaps they should just declare the budget secret because of national security.

Spaceman Spiff's picture

The budget is already secret.   Do you mean they should engage in double secret budgeting?

RockyRacoon's picture

That sounds like one of the old Get Smart episode titles:

"Double Secret Secret Budgeting"

RichardENixon's picture

I expect Obama to bring back the Cone of Silence soon.

RichardP's picture

"The budget is already secret."

In case you are serious - no it is not.  It is printed and distributed.



Assetman's picture

House Republicans are offering better solutions to cut spending now and help small businesses put people back to work.

House Republicans had 8 years to correct out of control spending.  Now, how did that work out, Leader John?

Republicrats = Same Wolf in Sheep's Clothing