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***
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:
THE BUDGET HAS BEEN
WE REGRET TO INFORM YOU THAT
THE CONGRESSIONAL BUDGET
PLANNED FOR FISCAL YEAR 2011 HAS BEEN CANCELLED DUE TO WASHINGTON DEMOCRATS’ OUT-OF-CONTROL SPENDING SPREE.
AN APOLOGY FOR THIS BETRAYAL OF AMERICAN TAXPAYERS DOES NOT APPEAR TO BE FORTHCOMING AT THIS TIME.
BE ADVISED THAT THE FOLLOWING SERVICES WILL BE INTERRUPTED:
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.