Republicans "Call Obama's Bluff" Schedule Vote Next Week For Deficit Cap, Debt Ceiling Raise, Balanced Budget

Tyler Durden's picture

Contrary to some expectations that the end of the week would see some resolution in the ongoing Washington soap opera, or at least provide some hope for a weekend meeting, things keep deteriorating after the adversarial language in DC keeps escalating, in what appears set to be an epic Nash Equilibrium showdown. To wit: even Jim DeMint just tweeted that Boehner has just called "Obama's Bluff" confirming that the prevalent of the charade is nothing more than a game of cards. From Bloomberg: "The U.S. House plans a vote next week on a measure that would raise the government’s debt limit by $2.4 trillion, cut spending, cap government expenditures and propose a balanced-budget constitutional amendment, Republican Representatives Sean Duffy and Billy Long said." Per Reuters, "House of Representatives Speaker John Boehner said on Friday that deficit reduction legislation due for a House vote next week is "a solid plan" for moving forward toward an increase in the U.S. debt limit. The legislation, favored by Tea Party-backed lawmakers, would cut and cap federal spending while calling for adoption of a balanced budget amendment. "We're far from the time for a last-ditch effort," Boehner told a news conference at which he criticized Democrats including President Barack Obama for producing no "real plan" with serious spending cuts." If nothing else, this indicates that the Cantor wing in DC continues to usurp power from Boehner, and while this is certainly nothing more than power politics at their best (or worst) the one direct impact of all of this is that the outcome of a US technical default, so dreaded by all, could be the reset switch that was so needed to be pushed after Lehman, yet was merely kicked perpetually into the future: a path that is guaranteed to have a catastrophic ending. Yes, the pain would be acute, but like Iceland, America will survive, and yes: the current status quo will be wiped out. But the country will have a literal and figurative "fresh start." 

Then again, none of this will happen as DC will betray the interests of future generations of America and promptly remember that on a NPV basis, it is the very same status quo that pays the bills...

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
tip e. canoe's picture

goddess bless iceland

Doyle Hargraves's picture

Amen, they bitch slapped those bankers and threw off their shackles! Makes you realize where the real land of the free is at!

eureka's picture

Yeah, just like US Republican A-hole Teapartiers (RAT) bitch slapped Obama.... NOT!

RAT Eric Cantor holds ProShares UltraShort 20+ Year Treasury.

Like oligarch RATs believe in US Treassuries....

HAhahahahahaha - auw my stomach - hahahahahaha - hahahaha, that's FF, Bitchez!

Doyle Hargraves's picture

Yeah they don't have the balls to bitch slap anyone, that being said I say let it burn, default on everything and let Schumpeter's law of Creative Destruction take over. Obama, Republicans, Tea Party all those fucks are the in the same party. They have cheap kabuki theatre productions then go behind close doors and drink together laughing at how they fooled all the sheep american people out there with their performances. However, as many have noted in these spaces before and many will after me PMs are the ultimate lie detector. Soon, it will expose all the BS for the world to see. Hope you have some if not, suck it!

TaxSlave's picture


It's not my debt.  And I'm not paying it.

Will you?

Jonas Parker's picture
"by eureka
on Fri, 07/15/2011 - 11:48

RAT Eric Cantor holds ProShares UltraShort 20+ Year Treasury."


Other than a "Kaiser Report" video posted over on "Ticker Forum" you can confirm this, can't you???   Didn't think so...

Crashpanic's picture

It is true. Here are his financial disclosures on opensecrets.

However, it is a measly 15k out of a total portfolio of over $5 million that would be hit hard with a real default, so the argument using his short position falls flat.

Marco's picture

Iceland is not exactly limiting government budget to 18% of GDP now is it though?

i-dog's picture

Obomber's last two budgets were 42% of GDP!!

Marco's picture

What do you think Iceland's is?

OldTrooper's picture

Uhmm...has there ever been a 'budget'?  I doubt your 42% figure is correct in any event.  Sources please.  Hysterical over-exageration does not help - the truth is ugly enough.

i-dog's picture

           GDP           Fed Spending
          -----------    ---------------

2009 14,119.0  5,896.2  = 42%

2010 14,508.2  6,063.3  = 42%

What is even worse is that Bush's deficits averaged 2% of GDP, while Obomber's have so far been 10% & 10.7% of GDP!!

Do your own research and provide figures to refute mine ... or STFU!

OldTrooper's picture

I'm not very good at shutting up.  So, what I found - from an organization that would almost certainly paint the figures in the worst possible light so as to give you the benefit of the doubt - is:

2009  3.576 trillion

2010  3.618 trillion

Now, this is a pretty significant difference.  It seems like your numbers may be for ALL government spending at ALL levels - which I could certainly believe.

Havana White's picture

U.S. GDP is $15.2 trillion.  Latest budget is about $3.8 trillion.

Our budget, then, is 25% of GDP.

karzai_luver's picture

the banksters and the Chamber of COnmerce will never allow the pugs

to throw the reset as they know they would be torched and there are still plenty of suckers to loot.

Forget all the WestWing drama series bull.....that boobtube thing was more real

than this kabuki.


lolmao500's picture

Some republicans said that the August 2 deadline is BS and that the government is funded till the end of september.... it's gonna be epic if they let the deadline pass without doing anything.

Issa added that President Obama is being "intransigent," and he called the Aug. 2 date "arbitrary" and fabricated.

Lord Blankcheck's picture

I always though SS checks go out on the 1st day of the month? especially electron tranfers

granolageek's picture

It's the third of the month. It has been at least since the 70's

lieutenantjohnchard's picture

hat tip michelle malkin: where's the talk that if the debt limit isn't increased the irs will have to shut down?

excellent zinger.

freethinker4now's picture

Life is a rollercoaster, Washington DC is the BIG show

Iriestx's picture

What a sad dog and pony show.  It's all just theater.  They're going to up the limit, without any tax increases or spending cuts.  This is just them pretending to pander to their bases and look tough.


It's just political theater.  This is all scripted.

JLee2027's picture

To an extent, yes. But with the President not committing to spending cuts and demanding tax increases, heels are digging in.

Iriestx's picture

I contend that this is all as scripted as any "reality" TV show.  The decision on this was made months and months ago.  These are just actors playing their parts as the bank has told them to play it.

eureka's picture

Will RATs Pay For Betray ? Will Teapartiers rally & roar, demand to cut Fed But? For Real?

grey7beard's picture

with the President not committing to spending cuts and demanding tax increases


I'm concerned about you, JLee.  Your input here doesn't seem based in reality.  Spending cuts are on the table, and have been on the table.  What is off the table, and has been off the table, are tax increases.  What propaganda mill are you getting your information from?

Uncle Remus's picture

What propaganda mill are you getting your information from?


Back at ya.

tarsubil's picture

No, people are losing faith in the Republican party. This show is exclusively for them and to keep them on the plantation.

Uncle Remus's picture

No, people are losing faith.


Fixed it for you.

weinerdog43's picture

Well, yes, if you ignore both the argument and reality.

tarsubil's picture

Well, yes, but more Republicans are so they need a win in their column. Depending on how the turd slides, Democrats may be up for a win next.

Mr Kurtz's picture

Absolutely right. Wall Street has spoken and their will be a clean one-sentence bill authorizing an increase in the debt limit. No cuts, no closing of loop holes, no nada. Just a lot of bloviating and theatre to keep the sheeple on both sides pacified until the grand sheering down the road.

monkeyshine's picture

Some of it is theater, yes, but no it is not scripted. All politics is local, as famous speaker of the house Tip O'Neil said, which is why this is taking so long and being dragged out.  Do you think that Ron Paul's constituents want him to raise the debt limit? Do you think Eric Cantor's constituents want him to raise taxes on those earning over $250,000?  These guys want to be returned to congress next year, so they have to hold fast and dance with those who brung them.  It is in fact Cantor's job as minority leader to count the votes of both dems and gops and it was reported that the flare up between him and potus was that Cantor kept saying there weren't the votes for Obama's compromise. Potus didn't want to hear it. So there it is. We'll see.  I say, forget negotiations, the house should put together the best bill they can pass and send it to the Senate. This needs to get out in the open no more back door rooms it allows them to do the opposite of what potus said today - that they dig in their heels. NO by working in secret rooms they get to negotiate away their so-called principles and we need to know who stands where. What I hate most about politics is when people agree to let things come up for a vote, knowing they will pass, negotiating for themselves the ability to vote no.

weinerdog43's picture

"It is in fact Cantor's job as minority leader to count the votes of both dems and gops and it was reported that the flare up between him and potus was that Cantor kept saying there weren't the votes for Obama's compromise. Potus didn't want to hear it. So there it is."

1st, Cantor isn't minority leader.  That is Nancy Pelosi.  2nd, it's Bohner's job to count.  He is the Speaker.  Your real argument is that Bohner does not have the votes to pass it with the Republics alone.  That is correct.  The reality is that there are serious fractures w/in both caucuses.  All cuts and zero revenue increases guarantee zero Dem votes.  Same holds true the other way around.  The likely outcome is that it will be mutally suckworthy and only kick the can farther down the road. I'm doubtful that making the process more open will make it better.  It was Bismarck that said you shouldn't watch 2 things being made:  sausage and legislation. 

SilverDoctors's picture

Ron Paul survey.
Would you vote for Ron Paul in 2012? If so, when were you converted?
Trying to get a grasp on what percentage of those who plan on voting for Paul in 2012 did not in 2008.
We plan on sharing the info with the Paul campaign, so would appreciate reader input!

JW n FL's picture

and which party will support Ron Paul? the Koch Bro's Party?

A President can DO NOTHING without control of the house and senate and the dummyocrats already showed you that even if a party has control they will do NOTHING! Gridlock! lots of talking about talking and doing nothing but let "We the People" suffer! they dont give a fuck about us!


So even if 1 guy does care! he can NOT move the system by himself. FACT!

eureka's picture

"We The People" should secede from The Federation.

IF - they want to have a say over their local and national lives.

tarsubil's picture

One thing Ron would be able to do as CIC would be to bring the troops home. That's better than starting another war. He also would be able to put some road blocks up with vetos. Maybe he could get at the Fed somehow too. He wouldn't be able to fix everything but he would be a monkey wrench in the machine. Assuming he isn't a stooge of course.

JW n FL's picture

If Ron Paul does get Elected (which I am not against).. and if Ron Paul after being elected does NOT! go along with the Status Quo.. this is what it looks like.

I would assume Obama.. maybe even Bush all had the same conversation with the same people.. do what we want or else! Kennedy was a Billionaire before it was kool! he could not be bought! so they killed him. Ever President since Kennedy has been in-line with the Status Quo.. no matter which Party they belong too! D's and R's both will fall in line with the powers that be, no matter how many dog and pony shows are put on to entertain the ignorant masses.


There is NO difference between the Parties. NONE!!

No President will stand against the Powers That Be! and live to see any real changes occur!

"We the People" are fucked until "We the People" take back what is ours to begin with. FACT!

Jonas Parker's picture

Vote for Ron Paul to be the next president of the Republic of Texas! Time for us to get out while the gettin's good!

weinerdog43's picture

Don't let the door hit your ass on the way out.

tarsubil's picture

It is stuff like this that makes me like you. Sadly, you are probably right about Paul if he succeeds and isn't a stooge. But his death might just end up being the deto that is able to ignite the apathetic unhappiness of the American people.

JW n FL's picture

Kennedy was LOVED and NO! ONE!! did a damn thing for him! Ronnie boy is NO! Kennedy. So as far as him being able to ignite "We the Lazy Ignorant Consumer Masses" I would pray that anything would but I dont see Ronnie making it happen, dead or alive. So we would be down another public personality that cuts across the grain.. it would be a twofer for the AAA Rated Corporate Clans! AGAIN!

tarsubil's picture

It would be a lot harder to trick Paulites than JFK's lovers.

OldTrooper's picture

I'd take nothing over what these clowns have been doing.  Every time they 'do something' things end up more fucked up than before.  Also, I suspect Ron would pick up the veto pen from time to time - and that would be an improvement in my book. 

JW n FL's picture

You are talking about more of the same.. you just want to live out your retirement in comfort and let someone Else's kids deal with the problem.. as long as it does not impede your tee time.


Let's talk some more and develop a plan that can be implemented later on.. like when I am gone!


You Sir are the bedrock of this Nation! Thusly the Nation is as fucked up as it is!

OldTrooper's picture

What's your problem?  Is it that you can't read or that you can't think?

How would a show-down between Ron Paul, armed with a veto pen, and congress be 'more of the same'?  Which recent president vetoed the patriot act or its extensions?  which recent president vetoed spending bills?  Which recent president has refused to involve us in foreign wars?  Just how would Ron Paul be 'more of the same'?  Which vetoes would be overridden, how much support would Ron get in congress, how successful would he be in slapping down the bureaucracy and would he live long enough to really accomplish much are uncertain.  But you really want to assert that it would be 'more of the same'?

Or there is your idea - let's just complain some more and never develop any plan at all.  That'll solve all our problems in no time at all.

I do not see what my retirement (which hasn't started yet, and likely never will), children (my kids, ages 2 and 13, or anyone else's) and my tee time (not necessary at the local muni course I occasionally play) have to do with the issue at hand other than to indicate you know very little about me and might be better off sticking to the subject.

One man can make a difference.  Ron Paul would not be more of the same.

Are you going to show how I am wrong or just jump to more unfounded, asinine conclusions?

JW n FL's picture


there you go Trooper! your Brethren! being who they swore to be!

Veto Pen! how cute!

maybe Ronnie could Veto the Secret Service standing down? LULZ!!

Modern Day Pinkerton's all want a cushy private security job! FACT!! a GREAT! song to help you thru the pain!