Boehner Deficit Plan Passes: Here Is What Happens Next

Tyler Durden's picture

As expected, the revised revised Boehner plan has passed the Congress garnering the required 216 votes to be successful (218-210 to be precise). And now that the ball is in the Senate's court, here is was happens over the next 3 days...

Via Nancy Vanden Houten of Stone McCarthy.

Majority Leader Reid today set the wheels in motion for the Senate to begin consideration of the House bill, assuming it passes, or his own debt ceiling/deficit reduction plan.

Our understanding of the procedures in the Senate is pretty basic, but the bottom line seems to be that the soonest we would see any meaningful vote in the Senate would be shortly after midnight on Saturday (i.e. early Sunday morning.) It's not clear to us whether that initial vote would be on some version of the House bill, Reid's original proposal, or Reid's proposal modified based on recommendations from Minority Leader McConnell. Without Republican input on the legislation, the odds of filibuster go up. People with more knowledge of the workings of the Senate than we have are looking for another procedural vote on Monday morning, and a final vote on some piece of legislation on Tuesday (August 2.)

Putting the logistics of the Senate aside, Reid is going to have to make some adjustments to his bill to get enough Republican support so that Republicans don't block legislation through filibusters or other tactics.

Assuming Reid can get the Senate to pass some piece of legislation, some compromise will still have to be worked out with the House. If Speaker Boehner wants to be part of a compromise that prevents default, he's going to have to shift gears in a major way. In the last couple of days, he's been working overtime to get support for his bill from members of his own party. If he wants to push through compromise legislation, he's going to have to court some Democrats, because he'll surely lose Republican votes on any compromise with Democrats.

As we noted in our comment Monday, the original Boehner and Reid plans had enough in common to suggest grounds for compromise.

The biggest stumbling block will continue to be the House bill's provision that calls for the debt limit to be increased in two steps, with the first increase only lasting through the end of this year or early this year. We don't think Senate Democrats and the White House would concede to that. As we noted in our update Monday, both the original House and Senate bills call for a new Congressional committee to make recommendations for long-term deficit reduction. The House bill made the second increase in the debt limit contingent on Congress adopting those recommendations. There are no consequences for failing to adopt the committee's recommendations in the Senate bill.

We think Senate Democrats would agree to adding some mechanism to their bill to force the adoption of the Committee's recommendations. Indeed, President Obama said today he could support some sort of enforcement mechanism if it was "smart and balanced." We don't think Democrats would support the enforcing mechanisms in either version of the House bill -- i.e. making a debt limit increase dependent on Congress adopting the new committee's deficit reduction recommendations in the first bill, or Congress adopting a balanced budget amendment in the latest version. However, Senate Democrats do seem open to requiring a vote on a balanced budget amendment as part of a compromise.

The bottom line: To get legislation to raise the debt limit, some bi-partisan cooperation will be required. Senator Reid will need to work with Republicans to move a bill through the Senate, and House Speaker Boehner will need to start wooing Democrats because he's sure to lose Republican votes for any legislation that makes some concessions to Democrats. Given the procedures in the Senate, this isn't likely to be resolved before Tuesday. If the two sides are making progress, we think there is a good chance we would see a very short-term increase in the debt ceiling lasting for a matter of days.

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Tom Servo's picture

Gridlock, bitchez!!!

NewThor's picture

TV's FRANK IS RUNNING THIS CHARADE!

Uh. Where can I read the bill, bitchez?

andybev01's picture

Congress hasn't read it, why should you?

AldousHuxley's picture

To see what kind of bs debt slavery congress sign us up for....

 

look out for sneaky stuff like limits on private gold holdings.

 

Happened before in US, it can certainly happen again.

Arthor Bearing's picture

Thread hijack, but it's important: Congress is the entire legislative branch, it includes both the Senate and the House of Representatives. The bill passed the House of Reps but probably won't get out of congress

flacon's picture

If the term congressman refers to both chambers, and a Senator is what we call a person from the Senate then what do we call a person from the House? 

edotabin's picture

some refer to them as representathieves

clymer's picture

Not for nothing, but all this wrangling back and forth about "service the debt" this, and "honour your debt" that is bullshit. What the fuck is wrong with "we, the elected representatives of our constituency hereby resume our power of the purse, and declare this debt null and void of any legitimacy, for two reasons: 1.) Unscrupulous and interbred douche bags managed bribed a corrupt few into even passing the federal reserve act in 1913 during a dead Christmas break while most were out of session, and 2.) The constitution stipulates that the congress, being the closest body of government to the people will now follow the law, which specifically designates nothing but gold and silver Coin a Tender in Payment of Debts. You don't need to find where in the constitution it says the federal government is not allowed to print unbacked paper. You must find where it gives the right to them. ALL other rights belong to the people and the states. Look on your FRNs "This note is legal tender for all debts public and private"

That statement and the fact that States uphold it, is where this is BLATANTLY Unconstitutional.

It ain't our debt. We deserve a reset, and Congress should get off of their collectively-clueless duff, and quit helping to push this can down the road, only so their own republic can be completely dismantled and turned over to a supra-national body.

THEY are on the same rug we are, which will be quickly pulled once the shit hits the fan. Looked at from a different angle, they are very thin ice, of which the people they represent shall be underneath, when it crashes.

Spirit Of Truth's picture

The truth is spoken!

http://thespiritoftruth.blogspot.com/2010/11/and-god-will-wipe-away-every-tear-from.html

22 likes thus far. :) ZH rulez! Meanwhile, the silent masses remain subdued by American Idle (intentionally misspelled), cheap fast food and watery beer.

zhandax's picture

Hear, Hear, Clymer.  There is even precedent for this.  Although DC's idea of history sounds more like "In the beginning, FDR created big government....", history does still record one of the previous defaults (and even partial repudiation) of debt the US.

They were the world's richest and shrewdest investors, and they rode a wave of globalizaiton to buy bonds in a promising developing country. When the country defaulted, they were livid.

"There should be lunatic asylums for nations as well as individuals." one investor wrote The Morning Post of London, denouncing the defaulting country as "a nation with whom no contracts can be made."

It all sounds a bit familiar, but the year was 1842 and the developing country was the United States. After defaults by Florida, Louisiana, Maryland, Illinois, Arkansas, Michigan, Pennsylvania, Mississippi, and Indiana, the entire United States was blacklisted and scorned on global markets, with Americans barred from the best London clubs and the Rothschilds warning bitterly that America would be unable to "borrow a dollar, not a dollar."

It seems the dear Rothschilds have cried wolf before.  For those of you struggling to follow along, they make so much when we don't default, they can't afford to mean it when we do.

New World Chaos's picture

They got revenge by financing the South during the Civil War.  I also think they never really got over America's castration of feudalism.  America has interfered with their plans of world domination multiple times, most recently by creating the internet.  This may be why we are being clusterfucked from all directions at once- they mean to destroy us completely. 

zhandax's picture

Doesn't mean they don't deserve one more good kick in the balls.....     Give it while you got it.

GetZeeGold's picture

http://sanders.senate.gov/newsroom/news/?id=9E2A4EA8-6E73-4BE2-A753-62060DCBB3C3

The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to bail out American and foreign banks and businesses during the worst economic crisis since the Great Depression. An amendment by Sen. Bernie Sanders to the Wall Street reform law passed one year ago this week directed the Government Accountability Office to conduct the study. “As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world,” said Sanders. “This is a clear case of socialism for the rich and rugged, you’re-on-your-own individualism for everyone else.”

The audit.....

http://sanders.senate.gov/imo/media/doc/GAO%20Fed%20Investigation.pdf

falak pema's picture

so this mess is the fault of an international conspiracy of which the US government, financial community and people are not party? Which percantile segment of the people do you belong to?

The 1% or the 99%? If its the 1%, I say Amen!

If its the 99%, I say take the wool off your eyes...

Oh regional Indian's picture

Falak, there is a general unravelling of the old guard going on as we speak. India is in the midst of it's wort political crises in a long time. State wise and centrally. 

The first blow-back of the US downturns are starting to show on the outsourcing companies numbers/projections, all solidly down. Restive air, though still solidly consumer-mad.

Hosni Mubarak goes on trial? That is a trend shift, eh? 30 years turned on a month in tahrir square? 

Thailand recently delivered back into the hands of the billionaire set?

Japan rocked and Fuked.

Debt crisis overwhelm. PIIGS, US, Japan, China wobbling, internet protests spreading.....

There is a general imbalance in the air, a rumble. There is a quake, literal of figurative, in our near future. EIther way, we should be ready for impact, so to speak. Often, just imagining the possibility is enough preperation. 

In my sentient life, I've never seen so many massive, off-balance vectors in every sphere of our existence.

Floods, mudslides, sinkholes, lightening storms.....

What more sign could a rational athiest need, what to speak of the fearful faithful?

ORI

http://aadivaahan.wordpress.com/2011/07/30/pre-cursor-01/

falak pema's picture

I agree on the factual and more the potential asymmetry that has become explosive. Looks like TPTB have created their own self serving philosophy, damned if we do, damned if we don't. What a gridlock this is in transient phase as globalisation is in tatters (see my post about the ME oil quandry below), and the US empire is now headless, steering-wheel less, and soon tire less. They will only have nukes that don't solve anything except maybe bring down the world in flames if they get into the 1930s mindset...

Our generation did not know the aftermath of that last deflagration. Maybe the black swans are now relentless to teach us all a terrible lesson. I am by nature an optimist...all I can say is hope never dies...even if we are being led by the noses...to the very edge.

Caggge's picture

The Rothchilds don't finance one side of a war. They finance both sides. I believe one of the Rothchilds original henchmen was named JP Morgan. Also of note, check out  Prescott Bush's role in WW2. It's a family thing.

ibjamming's picture

But TPTB are the ones who PUT them there.  They're ALL wanna be TPTB themselves!  That's why they CAN'T change anything.

espirit's picture

"tick-fest". Bloodsuckers only feed to reproduce.

Phat Stax's picture

Typically, "Congressman," or "Congresswoman."  And therein lies the source of the confusion.

PaperBugsBurn's picture

They're all just c•cksuckers.

DrunkHarryReid's picture

Leave my friend Barney Frank out of this!

 

<hic>

smlbizman's picture

a friend of mine works at aberdeen proving grounds as essential personal. she told us that they have orders to spend all their budget money mon. and tues. in case the debt ceiling does not pass. they are doing this because timmy will be grabbing all monies sitting in these agencys to  use for his check book. sounds like a plan to me

TSA Thug's picture

I got 3 new uniforms and 6 ceramic coffee cups with the TSA decal on front and my name on the back. It was better than Christmas in July. hint hint.

.

--You WILL Obey!
http://www.youtube.com/watch?v=dTOcAt44_QA

StormShadow's picture

Great plan. Order one part of govt to spend money in haste so that another branch won't spend it in haste. Wow, I think that's how we got into this position

Mugatu's picture

As a caterpillar becomes a butterfly, so must you become Derelicte! 

DeadFred's picture

StormShadow it's clear you've never worked for a government agency if that surprises you. That's the way the system has worked at least for decades, and that's why less government is better.

newworldorder's picture

You are correct Sir. Spend them while you got 'em or lose then forever.These are the words that every government agency learns quickly.

Nikao7's picture

Well you have to pass the bill before you find out what is in it ;)  DUH

caerus's picture

the full text of the bill is impossible (for me at least) to find...(go figure)

caerus's picture

thanks for that...and cheers

caerus's picture

Thanks...been a long week..and Im not that smart...excellent work as always

dogbreath's picture

I want the junk button back.  This is Sparta.

Incubus's picture

Not me.  I red arrowed 'em.

 

Find the biggest guy, then red arrow his ass. 

ElvisDog's picture

I gave you a green arrow for the always appreciated MST3K reference.

macholatte's picture

"We Have to Pass the Bill So That You Can Find Out What Is In It"

http://www.youtube.com/watch?v=hV-05TLiiLU

 

contagiousNY's picture

away from the fog? we are into the fog.

SheepDog-One's picture

Oh well nevermind, Boehner bill already crashes and burns. Apparently they want free blank checks and not a dime less spending. Into the abyss, bitchez.

tickhound's picture

What's it called when every choice produces the same result?

Sathington Willougby's picture

 

Flag Fucking FREEDOM!  Shout it from the Goddamn rooftops!  We're free!  Free to have a felonious dick shoved in our ass when we get sent to prison for breaking fraudulent contracts that steal our work.