Is The Budget Deal On The Verge Of Collapsing?

Tyler Durden's picture

Something rather troubling for the "kick the bankrupt (and only modestly radioactive, still way below the unrevised legal threshold though) can down the street crowd"- Commentary Magazine reports that the "Budget Deal", won after so much theatrics, soap opera, and Razzie nominations, may in fact collapse shortly. "The big news today is that the $38.5 billion in
budget cuts announced with such fanfare on Friday night mostly aren’t
real. A good deal of it involves money from previous years and previous
budgets that hasn’t actually been spent." Commentary refers to an AP article in which it is made clear that the proposed legislation is one 'financed with a lot of one-time savings and cuts that officially "score" as savings to pay for spending elsewhere, but that often have little to no actual impact on the deficit...cuts to earmarks, unspent census money, leftover federal construction
funding, and $2.5 billion from the most recent renewal of highway
programs that can't be spent because of restrictions set by other
legislation. Another $3.5 billion comes from unused spending authority
from a program providing health care to children of lower-income
families." And once the more vocal fringers realize they have been cheated once again by both parties, it is possible that the whole thing could just as easily fall apart, and just in time for the US debt ceiling to be breached within 1-2 weeks tops.

The bottom line is that even the woefully inadequate number of cuts previously cited, as great success for the GOP, is big fat lie:

The total amount actually cut appears to be somewhere between $8 and $14 billion.

The politics here are very complicated now. On the one hand, polls suggest the public is overwhelmingly in favor of there having been a deal, around 60 percent or so. On the other, politically engaged people on both the Right and the Left are profoundly upset by what they take to be unprincipled caving on the part of the leaders of the two parties.

That profound concern is likely to spur a populist revolt this week, over the next 72 hours, before the vote is taken. Already there are indications that a great many House members are going to vote against the deal. What we don’t know, or can’t know, is whether grass-roots velocity has sped up to such a degree over the past several years that we could be looking at a major meltdown of support when the votes are cast, as Republican members honestly balk at the clear deceit of the negotiators in making non-existent cuts in federal spending—and as they fear the wrath of the voters (particularly tea partiers). Meanwhile, Leftist Democrats who feel betrayed by Barack Obama and Senate Majority Leader Harry Reid might also decide to teach them a lesson by withholding support.

And then, all of a sudden, there will be a shutdown. And no plan to end it. And make no mistake—the public will blame the GOP.

Those who wish to replicate the math can do so using the GOP Summary of the Continuing Resolution.

Republican Budget Deal Summary

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beastie's picture

I was wondering why both parties were so quiet about their "victory".

Fucking idiots. Shut it down.

Send all the non essentials home and not to come back. That includes the Post Office.

Misean's picture

There are "essential" government drones? Really?!?! Can't think of one...

Milton Waddams's picture

Ah the post office.  The information age's make-work program.  I may serve time in prison were I to flood your email with worthless spam yet I can lawfully stuff your mailbox with an endless stream of ground-up lumber.  Yet as a society we are encouraged to be environmentally concious.  The hyprocisies abound.

SME MOFO's picture

I don't care what you say, I love the Post Office!  Hooray Flat Rate Boxes!  Props to all those peeps out there in the snow. rain. and dark of night (?) etc etc.

word.  Peace out.

superflyguy's picture

Buy a wood stove and collect that paper, it's excellent for starting fire. I especially love the spam from the local grocery stores, nice thin but large paper. Just squish it a bit from each side and put kindling underneath and light it up... wonderful. Can't do that with e-mail! :-)

Id fight Gandhi's picture

Money honey says stocks are down but off their lows... She can blow me...

Fraud, close the damn thing down already. Just close the fucking thing.

NOTW777's picture

if this is true PMs should fly

apberusdisvet's picture

This article plus the one in Rolling Stone should be on 60 Minutes, but of course they won't be; CBS is of for and by the GubMint, just like all the rest.

RobotTrader's picture

Says 6.4% here....

zeek's picture

...just another reason for the O to ask the Fed to "make me look good" via a reduced POMO until we can change that pesky ceiling...

Miss Expectations's picture

The images in that video are chilling.  Have we forgotten everything?

Zero Govt's picture

Yes by the looks of it ....this is the pervert end of Bush Statism for 'national security' followed seemlessly by Obummas 'Change you can believe In' ...fuking State perverts

Shell Game's picture

Market on the verge of a plummet, government about to close....a nicely orchestrated set-up for the QE3 pill.

squexx's picture

Those "non-essential" government employees should stay laid off!

trav7777's picture

nobody seriously expected the GOP to actually cut did they?

Shell Game's picture

even less likely than an American uprising.

Cdad's picture

nobody seriously expected the GOP to actually cut did they?

 

I don't know....did anyone think Jefferies was actually buying Apple today with their glowing remarks...or do folk understand that if the NASDAQ is not fueled each day buy the flames of yet another criminal syndicate Wall Street bagholding firm torching its cred, the whole Ponzi falls?

Which?  I dunno.  I did not buy Apple today, but the politics of the budget debate suggest that the GOP is about to lose a lot of its members on the vote...and the Dems want a shutdown to pin on the GOP...so who cares about the actual budget.

Do folks really think that the government will adhere to congressman Ryans 10 year plan.  LOL!

...oh, sorry....you were being existential.  Never mind.

earnyermoney's picture

You mean the fascists masquerading as democrats and republicans? NO.

centerline's picture

LOL.  Like a shark that needs to keep swimming to live.  Such a joke.  Actually, it reminds me more of that movie, Crank.  If they cut back anything serious it would be game over even sooner.  The script has already been written.

 

 

Rainman's picture

 ...yes and do it now. The Great Agitator is setting everybody up. His handlers tell him the jackasses in the GOP have no winning hand on the debt ceiling issue. Then by the time the '12 budget talky-talky comes around the equities markets tank, Ben restarts the crank, and Obami gets mo fiat to stimulate us again. Winner !!  

OS2010's picture

I suspected they picked Thursday for a reason:  They couldn't keep the charade up any longer than that.  May not have been long enough....

Dr. Porkchop's picture

I have a brainstorm for retooling PETA.

Prevention of Econonomic Terrorism in America

Slogan:

Central Banking is Murder.

slaughterer's picture

An event for a perfect OPEX week "happy ending."  This is what Hatzius got back for killing oil this week.

chistletoe's picture

do you mind if I rephrase that?

 

"Central Banking is a a capital offense!"

silvertrain's picture

Belgium hasnt had a government in a long ass time...

themiestro's picture

Oh my!  That could be ugly couldn't it?

GOSPLAN HERO's picture

The Union Is Dissolved! ... has a nice ring to it.

 

SilverBaron's picture

These bums need to start voting like Ron Paul or they are going to find themselves joining the ranks of the unemployed.

oogs66's picture

Their jobs are protected for anywhere from 2-6 years!  They get fed by lobbyists.  They have great pensions.  They believe we work for them.  UGH!

Misean's picture

I'm not going to get into a teeth lashing lather about this stupid drama, because, as readers here know, a mere 0.25% rise in interest rates wipes any of these real or imagined cuts.

This is all just a tempest in a tea pot to keep the rubes pointing at each other and shouting obscenities.

DonnieD's picture

Who forgot to cut unused Revolutionary War cannon balls from the 2011 budget? The Gov't could have saved some real money and proven to the sheeple how fiscally sound they are.

RobotTrader's picture

First time we have had 4 down days in a row since November 2010.

Shell Game's picture

Red candles are the sugar to help the medicine go down...

economessed's picture

Oh, I DO LOVE those red, melty candles -- burn baby, burn.

Misean's picture

And the dollar is still below 75...

Arkadaba's picture

Its interesting isn't it - the game might be changing (but while I'm smart enough to see the change - not smart enough to see what the new game is)

GOSPLAN HERO's picture
"Stripped of all its covering, the naked question is, whether ours is a federal or consolidated government; a constitutional or absolute one; a government resting solidly on the basis of the sovereignty of the States, or on the unrestrained will of a majority; a form of government, as in all other unlimited ones, in which injustice, violence, and force must ultimately prevail." JCC
Catullus's picture

So.... How did they keep the government from shutting down on Friday? Are they paying people with SCHIP money?

Bagbalm's picture

Shut it down and fail to ever get it back up - it couldn't be worse than what we have now. If there are non-essential parts of government why do we HAVE them?

pazmaker's picture

meanwhile....$20 million to Pakistan to air Sesame street...

Seasmoke's picture

They should keep funding planned parenthood so they can Shut this abortion down for good

bob_dabolina's picture

Yes I also wish the government would abort itself. I would even cover the co-pay personaly.

GOSPLAN HERO's picture
"A power has risen up in the government greater than the people themselves, consisting of many and various powerful interests, combined in one mass, and held together by the cohesive power of the vast surplus in banks."  JCC
UnRealized Reality's picture

They will pass it as soon as they bribe, suck, fuck and beg all the whores to vote yes