What The Three Month Can-Kicking "Deal" Looks Like

Tyler Durden's picture

Senate Majority Leader Harry Reid and Senate Minority Leader Mitch McConnell will soon announce an agreement to reopen the government and avert default on U.S. debt, Politico reports, according to several sources familiar with the talks. Here is what that "stunning reversal for the speaker" deal looks like. In short: the can has been kicked for three months, to early February.

Via Politico,

But the fact that House Republicans are now planning to go that route marks a stunning reversal for the speaker who had backed his conservative wing’s drive to gut Obamacare as part of the government shutdown fight, now in its third week.

 

...

 

The bill will barely scathe Obamacare, however, and putting it on the floor will mark a huge concession by the House after sparking a 16-day government shutdown over insistence that the health care law be defunded or delayed as a condition to keep the government open. Dozens of conservatives in the House will be disappointed by the proposal and Boehner will need Minority Leader Nancy Pelosi to deliver a bevy of votes to pass the bill.

 

Reid (D-Nev.) and McConnell (R-Ky.) are very close to finishing an agreement to reopen the government through Jan. 15, lift the debt ceiling through Feb. 7 and develop a bicameral budget committee that would be required to develop a conference report by Dec. 13.

 

The plan includes a proposal offered by McConnell in the 2011 debt ceiling crisis that allows Congress to disapprove of the debt ceiling increase, which means lawmakers will formally vote on whether to reject of the debt ceiling increase until Feb. 7. Obama can veto that legislation if it passes. If Congress fails as expected to gather a two-thirds majority to override the veto, the debt ceiling would be raised.

 

The deal would also deliver back pay to furloughed federal workers, require income verification for people seeking health-insurance subsidies under the Affordable Care Act and also allow the Treasury Department to use extraordinary measures to pay the nation’s bills if Congress doesn’t raise the debt ceiling by Feb. 7.

And The Hill adds:

Senate Republican Leader Mitch McConnell (R-Ky.) presented the deal to his conference Wednesday morning. Republican senators quickly rallied around the proposal, which would fund government through Jan. 15.

 

McConnell and Senate Majority Leader Harry Reid (D-Nev.) put the finishing touches on the proposal after an effort by House Republicans to advance a competing resolution collapsed Tuesday.

 

The bipartisan agreement would also raise the $16.7 trillion debt ceiling until February, setting the stage for budget talks between the Senate and House.

 

Reid and McConnell announced the deal on the Senate floor shortly after noon.

 

...

 

If the legislation passes as expected, it would set up a Senate-House conference to negotiate fiscal reforms, which must be reported to Congress by a certain date.

 

The bill will allow President Obama to retain his power to use so-called extraordinary measures to preserve the ability of the government to pay its bills once it reaches the debt limit. The Treasury Department informed Congress in May that it had begun to use such measures to manage the debt ceiling.

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One And Only's picture

Obama gets everything he wants and Republicans get nothing again. Boehner you fuckin chicken shit pussy. Dissolve Congress and make Obama a dictator, it's essentially what we got now.

camaro68ss's picture

Boehners the fucking guy in battle that takes off running when the shells start falling

James_Cole's picture

Y'all are acting like this was a surprise? They made it more dramatic this time, but same ole' same ole'. 

Stocks have some fun, t bills have some fun, media gets a lot of clicks, everyone goes home happy!

http://www.youtube.com/watch?v=SJUhlRoBL8M

Anusocracy's picture

But you little people don't understand - the Whoreocracy must go on!

Keyser's picture

"Boehners the fucking guy in battle that takes off running when the shells start falling"

I didn't know Boehner was French.

 

 

CrashisOptimistic's picture

Not that I'm a fan, but what horrible evil is Boehner doing in allowing the people's House to vote on something and have democracy decide it?

aardvarkk's picture

Democracy is ten wolves and nine sheep voting on what's for dinner.

DaveyJones's picture

"plan includes a proposal offered by McConnell in the 2011 debt ceiling crisis that allows Congress to disapprove of the debt ceiling increase"

funny, I find that most of my criminal clients "disapprove" of their actions as well

but I thought the rule is different for people who actually vote. When you disapprove of something, I thought you don't approve it 

don't you love lawyers

Tippoo Sultan's picture

This is no "deal."

It is wholesale, unconditional capitulation.

IdiocracyIsAlreadyHere's picture

Not capitulation, not at all.  They were only pretending opposition in order to fool their supporters at home so that they will vote them back for another round of looting.  They were only "capitulating" to what was planned all along.  Wake up and smell the coffee.

MeMadMax's picture

You want shit to get fixed?

Fix congress.

 

 

Supernova Born's picture

This Boehner has lasted more than 4 hours and is going to destroy the potency of the R's for good if he lasts any longer.

SWRichmond's picture

Five years ago everyone KNEW that a $400 Billion annual deficit was unsustainable.  Now? A $trillion annually for five years and no one blinks.  The new normal.

Except for China, that is.  1000 tonnes annual gold imports (known at least...), and currency swap agreements blooming all over the place.  The new normal is going to be a new reserve currency.

SWRichmond's picture

If Congress fails as expected to gather a two-thirds majority to override the veto, the debt ceiling would be raised.

Phew!  Congress almost had to overtly vote for something they know for a fact the people don't want!  Now all they have to do is NOT vote and they get what we want, all while fucking the taxpaying public.  Congress rocks!

Alexandre Stavisky's picture

It's always nice to have the government shoot the other horses in the race when yours is not in front. (Denninger)

 

http://market-ticker.org/akcs-www?post=225124

 

 

venturen's picture

My new Favorite Song

Anthem For A Lost Cause - Manic Street Preachers!

brewing's picture

As my good friend Lloyd Braun once said - "Serenity now, insanity later"...

CH1's picture

You want shit to get fixed?

Stop Obeying Them!

StychoKiller's picture

Fix Congress:  Spay/Neuter your congress critter!

Panafrican Funktron Robot's picture

I'm actually not sure Boehner has the votes to get this thing passed.

kralizec's picture

The good news?

1)  The GOP is dead.  This corpse will never rise again.

2)  Our decline is assured, the progressive dream of unlimited credit and wanton spending on cronys and crumbs for slaves and free shit forever is about to kick into hyperdrive.  The sooner this phase is over the sooner the next civil war can commence.

brewing's picture

Who gives a shit about the GOP or the democrats.  Vote Libertarian...

NidStyles's picture

Libertarians do not vote.

CH1's picture

Old joke:

Q: What's the difference between a libertarian and an anarchist?

A: About five years, if you're paying attention.

Rogue Trooper's picture

Spot on CH1.

We are all Rothbardian's now.... The State IS the enemy.

Pretty simple really so carry on and continue to prepare accordingly.

Democracy... nothing but a perpetual circle jerk.

Esso's picture

But without the happy ending.

RaceToTheBottom's picture

"Vote Libertarian..."

 

You might as well, this bipolar Republican party is not working

Rubbish's picture

Fuk it, I'm ordering my Obama phone, quiting work, getting some EBT, free housing and work the streets for donations while smoking a little grass and drinking beer. Hippie generation can do that !

Proofreder's picture

Please ...

Let us know

how this works out for you.

BoNeSxxx's picture

Same BS they have been pulling since I was a wee pup working on the Hill.

It allows all the fiscal conservatives to tell their constituents that they voted against the debt limit increase when they know damn well they were complicit in its passing.

SSDD my friend. 

Here, I will even tell you what their letters will say in two weeks' time:

Dear Concerned Citizen,

Thank you for taking the time to contact me on the federal budget, government shutdown, and/or debt ceiling issue.  I appreciate the time you took to voice your concerns.

In late October, the House voted to approve the Senate resolution to re-open the government and extend the debt ceiling until February.  You will be pleased to know that I voted to disapprove of this measure feeling, as you do, that the government has become far too wasteful and that the necessary spending cuts have not been fully examined or implemented.

Unfortunately President O'Bama elected to veto this important part of the legislation I helped pass which caused an automatic increase to the statutory debt ceiling.

I also supported a House Resolution stating that Congress should pass individual appropriations bills rather than continuing resolutions - something the House has not done in over a decade.  The legislation passed the House on xx/xx/xxxx and is awaiting action by the Senate.  

Please know that I will continue to urge my colleagues to support the deficit reduction initiatives you and I agree are necessary... blah blah blah...

MeMadMax's picture

Well, it ain't like they have a choice...

Congress is still being controlled by the looney toons...

NidStyles's picture

There is always a choice. It may not be an easy one, but there is always a choice between right and wrong. The real question is if you are strong enough to make it.

KidHorn's picture

You're probably right about the letter. The funny thing is the republican plan was less fiscally conservative than the dem plan. Americans are too lazy to read the details to figure this out.

Ham-bone's picture

Did the Congress just abdicate it's responsibility to increase the debt ceiling to the Executive branch???  Just "temporarily"???  Like Nixon "temporarily" closed the gold window in '71???  Was this the plan all along to have congress strip itself of it's power???

The plan includes a proposal offered by McConnell in the 2011 debt ceiling crisis that allows Congress to disapprove of the debt ceiling increase, which means lawmakers will formally vote on whether to reject of the debt ceiling increase until Feb. 7. Obama can veto that legislation if it passes. If Congress fails as expected to gather a two-thirds majority to override the veto, the debt ceiling would be raised.

Also amazing we no longer seem to need a new limit...only a timeframe...unlimited debt til Feb and once we reach Feb, O'bama can veto and on we go and go and go.  Curious if Treasury will even update the deficit or just continue to maintain it as per last May indefinitely???

bob_stl's picture

Liberty is well armed sheep contesting the vote.

Esso's picture

In The New Normal, liberty is whatever our benevolent wolves tell us it is.

FREEEDUMB!

tarsubil's picture

Democracy does suck but what we have is far worse.

unrulian's picture

That won't be a problem...as long as the sheep have guns

NidStyles's picture

Guns are useles without ammo, and I don't know about your area, but ammo is still hard to find here in Arizona.

cro_maat's picture

You clearly have not been paying attention. There is no democracy... only fascism. Boehner is only 1 of the many ring masters to the current circus devised to distract us from the total debt default / crash of the reserve currency / bond apocapalypse heading our way. Wait until the pension fund / 401(k) / bank bailins and the sale of US natural resources to the banks and corporations (or outright swap for unpayable treasuries with the Fed / China / etc.) and then ask me what horrible evil Boehner is doing.

El Oregonian's picture

Because this is not a democracy, it's a dictatorship run by puppets, pussies, parasites, and perverts.

Dismantle and rebuild.

DaveyJones's picture

puppets, pussies, parasites & perverts

I saw that porn flick

Congress is one big porn flick isn't it? Bad actors, poor lighting, little thought into the script and fake support structures  

Ident 7777 economy's picture

 

 

No work - NO BACKPAY

No work - NO BACKPAY

No work - NO BACKPAY

No work - NO BACKPAY

No work - NO BACKPAY

No work - NO BACKPAY

No work - NO BACKPAY

No work - NO BACKPAY

Period.