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Boehner Just Took Debt Ceiling Negotiations Back Five Steps, Calls Obama's Request "Blank Check", Invokes Visions Of Hank Paulson

Tyler Durden's picture


In a posting on his blog, Boehner just managed to snag any progress in the debt ceiling negotiation, saying that the president "is trying to set up a no-win situation for taxpayers: either he gets his $2.4 trillion blank check, or America defaults", generatinged much despised PTSD visions of Hank Paulson' staccato threats in Congress, and in doing so making any compromise he may have been pursuing with the Tea Party virtually impossibly and certainly nearly unpracticable with just 3 days before the absolute legal deadline this Thursday. Perhaps that is just the reason why bonds suddenly ripped. Remember: bonds will be bought if sendng is curtailed and no incremental debt will be layered... to a point. Should the US default, buying will turn to selling, first very slowly, then very fast.

Treasury response to blog post:

From Boehner's full blog post:

Common-Sense GOP Effort Will Prevent Job-Crushing Default & Deny President Obama a $2.4 Trillion Blank Check

Today, House Republican leaders will discuss with lawmakers a new framework designed to prevent a national default while ensuring any debt limit increase granted to President Obama includes spending reforms and cuts that exceed the debt limit hike.  This common-sense plan is aimed at stopping President Obama’s indefensible quest for a debt limit increase that would run past the next election without a process in place to ensure spending is being cut as the debt ceiling is being raised.  As Speaker Boehner said yesterday on FOX News Sunday, “I know the president's worried about his next election.  But my God, shouldn't we be worried about the country?”

President Obama desperately wants a large debt limit increase that will take him past the next presidential election.

  • The president is demanding a $2.4 trillion debt limit increase all at once – without spending cuts that exceed the hike – and refusing to accept a two-stage process that would ensure government spending continues to be cut as the debt ceiling is raised.  Treasury Secretary Tim Geithner went on the Sunday shows yesterday to “insist” that any agreement “remove the possibility of a default from the politically heated presidential campaign season.”
  • As Majority Leader Cantor said yesterday, the president's stance is purely political, and indefensible.  “He cannot sustain or defend putting politics above the country’s interests in this situation,” Leader Cantor added.

Granting the president's request would amount to giving the president a $2.4 trillion blank check he can use to continue the spending binge that has driven our nation to the brink of a job-destroying downgrade and default.

  • The president has made it pretty clear he sees this debate as inconvenient compared to his desire to create more ‘stimulus’ programs.  “I’d rather be talking about stuff that everybody welcomes – like new programs,” he said at a recent press conference.
  • He is trying to set up a no-win situation for taxpayers: either he gets his $2.4 trillion blank check, or America defaults.

Speaker Boehner and Congressional Republicans have been clear that to pass the House, any debt limit increase must be accompanied by spending cuts that exceed the amount of the debt limit hike.

  • The American people overwhelmingly support this principle of “cut more than you hike.”  According to a recent CNN survey, 66 percent of Americans would only support an increase in the debt limit if “substantial spending cuts and caps on future spending were approved.” This is in addition to a Resurgent Republic survey that found Americans only support raising the debt limit “in exchange for substantial spending cuts and a commitment to reduce the deficit.”
  • More than 150 economists have backed “cut more than you hike,” stating on June 1 that “an increase in the national debt limit that is not accompanied by significant spending cuts and budget reforms to address our government’s spending addiction will harm private-sector job creation in America.  It is critical that any debt limit legislation enacted by Congress include spending cuts and reforms that are greater than the accompanying increase in debt authority being granted to the president.”
  • Columnist Charles Krauthammer has called the “cut more than you hike” approach a “thing of beauty,” “eminently logical and easy to understand,” and “difficult for the president to refuse.”

Republicans have also been steadfast in calling for strict spending caps to control future spending, and a balanced budget amendment to the Constitution requiring Washington to stop spending money we don’t have.

  • In stark contrast to President Obama’s politically-motivated request for a blank check, Republicans are committed to keeping spending in check this year, next year, the year after that, and so forth.  That means implementing real spending cuts and reforms, like a Balanced Budget Amendment.  “I continue to believe that a Balanced Budget Amendment is the greatest enforcement mechanism to bring Washington spending under control,” Speaker Boehner said yesterday.

Congress can deny President Obama a blank check and protect the American people by passing legislation to prevent a default that is consistent with the principles of the Cut, Cap, & Balance plan that passed the House with bipartisan support.

  • Congressional leaders worked through the weekend in an effort to forge such a solution, and plan to move it through Congress this week to cut spending and prevent a national default that would destroy more American jobs.

The American people are still asking the question: ‘where are the jobs?’  And they know Washington’s spending binge is part of the problem.

  • For its part, the Obama Administration maintains the economy is “absolutely” improving when it clearly is not.  What’s more, a new report has surfaced that the White House’s latest effort to win over employers “has gone cold.”  These are just more indications why we need to deny President Obama a $2.4 trillion blank check.
  • For the sake of our economy and our future, we need to stop spending money we don’t have and start creating a better environment for long-term job growth.  Cutting spending and preventing a national default will prevent more American jobs from being destroyed.

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Mon, 07/25/2011 - 10:46 | 1490427 rajat_bhatia
rajat_bhatia's picture

I like fish!

Mon, 07/25/2011 - 11:22 | 1490573 BlackSea
BlackSea's picture

I like for you to STFU troll.

Mon, 07/25/2011 - 11:48 | 1490677 redpill
redpill's picture

We need the junk button back.

Mon, 07/25/2011 - 22:04 | 1492983 rajat_bhatia
rajat_bhatia's picture

I understand dude, u should've taken the Blue Pill

Mon, 07/25/2011 - 13:52 | 1491166 fuu
fuu's picture


Mon, 07/25/2011 - 13:59 | 1491191 andybev01
andybev01's picture


Mon, 07/25/2011 - 10:46 | 1490429 mynhair
mynhair's picture

Oweblahma is a simple idiotologue, and you can't fix stupid.

Mon, 07/25/2011 - 11:55 | 1490699 redpill
redpill's picture

The president has made it pretty clear he sees this debate as inconvenient compared to his desire to create more ‘stimulus’ programs.  “I’d rather be talking about stuff that everybody welcomes – like new programs,” he said at a recent press conference.


Everybody welcomes?  Fuck you, sir!

Mon, 07/25/2011 - 20:24 | 1492568 StychoKiller
StychoKiller's picture

Demz Republicons iz doin' dis cuz Obama is black and dey is racis!

How Obama goin' pay my mo'gage wif no muny??


Mon, 07/25/2011 - 10:48 | 1490434 TruthInSunshine
TruthInSunshine's picture

Defcon 2, bitchez!

Boner pulls out the Hank the Squid Paulson "give us we want, for me, Goldman Sachs & House of Morgue, or we'll tank your 401(k)s/IRAs/Retirement Accounts into oblivion, bitches" card, and uses it to double down against Obama, bitchez!

Mon, 07/25/2011 - 11:23 | 1490576 cosmictrainwreck
cosmictrainwreck's picture

excellent portrait........ dear ol' Hank, just as I remember him <tosses breakfast>

Mon, 07/25/2011 - 11:27 | 1490590 SheepDog-One
SheepDog-One's picture

Theyre just setting up to seize all 401K's pensions and retirements anyway thats the whole goal of all of this. $5 trillion bucks....theyre not just going to leave that sitting out there all fattened up in the ETF's theyve been pumping all along. Shearing time is very near, america.

Mon, 07/25/2011 - 11:35 | 1490628 LeBalance
LeBalance's picture

the teary-eyed Tammy Faye Boehner sez: "It was a complete surprise to me.  We never saw it coming, even though I've been doing lines and strippers here in DC since 1990.  Please, everyone remain calm, we can get out of this if everyone pitches in.  And by pitching in, I mean its law now and you did.  Thanks!"

Mon, 07/25/2011 - 12:29 | 1490842 Bananamerican
Bananamerican's picture

"and in doing so making any compromise he may have been pursuing with the Tea Party virtually impossibly and certainly nearly unpracticable" (sic)

can the next upgrade include a grammar checker?

Mon, 07/25/2011 - 10:47 | 1490437 monkeyboy
monkeyboy's picture

I would like a $2.4 trillion blank check.



Mon, 07/25/2011 - 11:36 | 1490631 LeBalance
LeBalance's picture

If your name is Mervyn, you got it.

Mon, 07/25/2011 - 10:47 | 1490438 Version 7
Version 7's picture

To default or not to default, to default or not to default, to default or not to default..

Mon, 07/25/2011 - 10:51 | 1490448 mynhair
mynhair's picture

Fault the Ds.

Mon, 07/25/2011 - 10:59 | 1490487 johny2
johny2's picture

default and jail the corrupt politicians and their paymasters. 

Mon, 07/25/2011 - 10:50 | 1490445 Tortfeasor
Tortfeasor's picture

For the love of pete, spellcheck please

Mon, 07/25/2011 - 10:58 | 1490478 rufusbird
rufusbird's picture


Mon, 07/25/2011 - 10:57 | 1490479 rufusbird
rufusbird's picture

For the love of Pete, capitalize Pete!

Mon, 07/25/2011 - 11:01 | 1490496 Lord Welligton
Lord Welligton's picture


Where the hell did it go?

Mon, 07/25/2011 - 11:31 | 1490604 Long-John-Silver
Long-John-Silver's picture

Left click and check "Check_Spelling"

Mon, 07/25/2011 - 12:56 | 1490990 Lord Welligton
Lord Welligton's picture


Mon, 07/25/2011 - 10:52 | 1490459 lizzy36
lizzy36's picture

Neither the GOP nor the democrats have a jobs plan.

The fact that both parties keep using the euphemism of "jobs" as a legitimacy for there economic policies should make everyone realize that the US as we all know it, was RIP'd this weekend. May take a couple of years for all to realize but essentially it is too broke to fix. Time for a reboot.

In the mean time #BTFD. Because as well all know there is no bad news just a buying opportunity.

Mon, 07/25/2011 - 12:59 | 1490927 hedgeless_horseman
hedgeless_horseman's picture

“I’d rather be talking about stuff that everybody welcomes – like new programs,” he said at a recent press conference.

Everybody?  Really?  I, for one, do not welcome new programs, nor do I care much for most of the old programs.


Mon, 07/25/2011 - 10:53 | 1490460 earnulf
earnulf's picture

My God, the political BS!   Polls say this, Polls say that, I thought that our "elected" representatives were capable of rational, reasoned thought on their own?     The (R) side of the asile is digging in, blasting the lack of cuts in spending while saying not a thing about thier own stance on taxes.    Not to say the (D) side is blameless, but this is a (R) story, let's stick with that for the moment.     The fact is that our debt is such that every man, woman and child currently owes over 46K apiece.  For a family of four, that's a debt of 184K when the average household income is...wait for it....$46K per year.   So each family of four would have to devote their entire household income for FOUR years to pay off the debt, while living on nothing in the meantime.

The debate is over.   Default.   Live within your means like the rest of the populace.    Congress gets put on SS, not their golden retirement program.    We cannot afford the life our politicans lead.

Mon, 07/25/2011 - 11:23 | 1490580 CrashisOptimistic
CrashisOptimistic's picture has a daily telephone poll that tracks Presidential Approval.

They have pretty good methodology.  Their measure is Strongly Approve minus Strongly Disapprove.  

It stands at -21%.  Overwhelming disapproval.

Mon, 07/25/2011 - 12:07 | 1490745 weinerdog43
weinerdog43's picture

"They have pretty good methodology"

No. They. Do. Not.  In fact, Rasmussen is hacktackular.  They are the most consistently wrong pollster operating. 

Look, nobody likes Barry, but he still polls better than anyone in the idiot party. 

Mon, 07/25/2011 - 12:12 | 1490757 pazmaker
pazmaker's picture

yes them wascally wepublicans!!  it's all their fault!!!   Get your head out of your ass and realize the red team and blue team are on the same side.....and it it's not your side!

Mon, 07/25/2011 - 12:10 | 1490758 pazmaker
pazmaker's picture


Mon, 07/25/2011 - 10:53 | 1490463 SheepDog-One
SheepDog-One's picture

One thing is CERTAIN, there will definitely not be free pallets of money air dropped over Wall St from Stratolifters this time around. 

No free ongoing prime rib and lobster all you can eat buffet, baloney sandwiches from here on out for markets. The big party is over.

Mon, 07/25/2011 - 10:53 | 1490465 JuicedGamma
JuicedGamma's picture

Bonds flying. TBT getting crushed.  Hope everyone has jumped off before the train plows into the end of the line.

Mon, 07/25/2011 - 10:53 | 1490466 Jim in MN
Jim in MN's picture

What, Geithner on his knees doesn't cut no ice with Boehner?

It worked for Paulson with Pelosi....and hey, isn't that little ol' Financial Armageddon thing a major trigger for all this here borrowing?  Wasn't that a Republican Super Emergency?

Really.  Plenty of shame yet no humility.

Mon, 07/25/2011 - 11:53 | 1490679 nonclaim
nonclaim's picture

Can you imagine Geithner giving the Paulson speech and being just as effective, bazooka and all?

No way! Geithner does not have the physical stature to demand anything...

On the other hand, had it been Geithner then and failed to get the money we would probably be in much better shape now.

Mon, 07/25/2011 - 10:54 | 1490467 the not so migh...
the not so mighty maximiza's picture

this boner means business.

Mon, 07/25/2011 - 10:54 | 1490468 Lord Welligton
Lord Welligton's picture

The president is demanding a $2.4 trillion debt limit increase all at once

Isn't Boehner correct here? There's no need to have it all at once. The "situation" could be saved by allowing a $500bn raise. Obama wants to get to the end of his term without having to come back and ask for more. Anybody got money on Obama dropping out of the 2012 race?

Mon, 07/25/2011 - 11:23 | 1490578 SRV - ES339
SRV - ES339's picture

Funny how Boner was fine raising the limit every year for Bush without the Kabuki Theater... but of course all the good little TP sheeple will fall in line in support of holding the country hostage to gut social programs in order to pay bills that have already been approved by congress.

Mon, 07/25/2011 - 11:31 | 1490608 r101958
r101958's picture

Slightly different situation right at the present.....wouldn't ya say?

Mon, 07/25/2011 - 11:34 | 1490622 SRV - ES339
SRV - ES339's picture

Only because Boehner is being played by the TP... you can see it in his face, he has lost any influence (if he had any).

Mon, 07/25/2011 - 11:38 | 1490640 V in PA
V in PA's picture

Not if you're blinded by a hatred for Bush and all things GOP. Isn't that right SRV?

Mon, 07/25/2011 - 11:45 | 1490669 SRV - ES339
SRV - ES339's picture

Absolutely not... without the TP, the GOP has some fine ideas.

As for Bush... he was a disaster but that's yesterdays news.

Mon, 07/25/2011 - 12:18 | 1490799 weinerdog43
weinerdog43's picture

How about answering the question? 

Mon, 07/25/2011 - 11:37 | 1490636 CrashisOptimistic
CrashisOptimistic's picture

Bills that have already been approved by Congress are like a service contract on your fridge.

It can be cancelled at any time.

In contrast to this is borrowed money.  That's a loan.  If you do not service a loan, that's a default.

A cancelled service contract is not a default.  Pay the cancellation fee and move on.  A failed debt payment is a default, and only a failed debt payment is a default.


Mon, 07/25/2011 - 11:44 | 1490667 V in PA
V in PA's picture

I got this one SRV.

But what about the kids and teachers?? The police and firefighters!?! Grandma!!!!! Are you willing to let grandma die, while your daughter goes without an education because we can't hire teachers. Just $2.4 trillion more and everything will be alright.

I blame the TEA party or TP sheeple.

Mon, 07/25/2011 - 11:54 | 1490694 SRV - ES339
SRV - ES339's picture

Have your fun, thump your TP chest while you can... keep going after teachers, fire fighters, granny, and social programs then go to the people in 2012... I'm thinkin' about some good old (Wisconsin like) buyers remorse!

Mon, 07/25/2011 - 12:16 | 1490787 Glasater55
Glasater55's picture

No remorse in WI.

Mon, 07/25/2011 - 12:19 | 1490804 weinerdog43
weinerdog43's picture

Then how do explain all the "Recall Walker" stickers I see everywhere?

Mon, 07/25/2011 - 16:24 | 1491924 Glasater55
Glasater55's picture

Perhaps you're only seeing what you want to see.

Mon, 07/25/2011 - 20:32 | 1492585 StychoKiller
StychoKiller's picture

Response:  What makes you believe that Teachers, Firefighters and Police should be Govt Employees?

Our work or your (Big Brother) guns:  Choose one, you cannot have both!

Mon, 07/25/2011 - 10:54 | 1490469 oldmanofthesee
oldmanofthesee's picture

I think we know all that we need to. That disgrace in the White House, will not accept any deal that needs to be re-visited before his re-election bid. If that were the case, he wouldn't be able to invoke all the socialist crap between now and then!

Mon, 07/25/2011 - 11:31 | 1490601 SRV - ES339
SRV - ES339's picture

Seriously... why would any sane person want to put the country through this absolute waste of time again in 6 mths or a year? The TP wants short term to fire up the (brain dead) base in the run up to 2012 elections... pure politics (on both sides at this stage, but the president's openning position was for a clean increase without all the games).

Mon, 07/25/2011 - 11:50 | 1490683 -Michelle-
-Michelle-'s picture

Yes, why don't we just abolish the debt ceiling?  For the good of the country, of course...

Mon, 07/25/2011 - 12:19 | 1490802 SRV - ES339
SRV - ES339's picture

Because it would make too much sense... Reagan more than trippled it while in office (socialist that he was)!

In case you care to review the facts...


Tue, 07/26/2011 - 10:38 | 1494290 -Michelle-
-Michelle-'s picture

And that makes it okay to do it now?

Mon, 07/25/2011 - 13:46 | 1491148 El Viejo
El Viejo's picture

Scroll down to the Graph Titled: Debt 1950-2003, Inflation Adjusted(1950 Dollars)



Mon, 07/25/2011 - 10:54 | 1490473 El Viejo
El Viejo's picture

Sounds like the Repugs are going with (the Poor and Unemployed don't vote strategy)


Mon, 07/25/2011 - 11:03 | 1490503 Lord Welligton
Lord Welligton's picture

If it is true that Obama wants a $2tn+ ceiling raise now why do you think that is the case?

Mon, 07/25/2011 - 11:09 | 1490529 El Viejo
El Viejo's picture

Speaking purely to the Repug's most recent position.
The Dems are going with the (I don't want to do this agin strategy)

Mon, 07/25/2011 - 12:51 | 1490967 ElvisDog
ElvisDog's picture

Man, the Democratic party trolls are swarming around ZH this morning like mosquitos on a July evening in Minnesota.

Mon, 07/25/2011 - 13:27 | 1491088 El Viejo
El Viejo's picture

The last time I voted it was for Ross Perot and that was a protest vote. Made my own bumper sticker: "Just say No Vote Perot"  I was part of the original "Throw the bums out campaign" I do sortof side with the Dems on this one. Time for the super hyper rich to Ante Up. Obama caved on the rich tax extension last time. I wanna see some compromise from the Repugs.

Mon, 07/25/2011 - 20:36 | 1492593 StychoKiller
StychoKiller's picture

It's my understanding that the US Treasury still takes voluntary tax contributions.  Please feel free to volunteer your funds, just STOP VOLUNTEERING OTHERS!

Mon, 07/25/2011 - 13:13 | 1491051 Hacksaw
Hacksaw's picture

Well, it isn't working for them. All they are doing is running off their base. The tea baggers have taken over the party and might be 20% of the vote. The Republican leadership is killing the party. There are going to be a lot of surprised people in the next election. Many long time republicans, including myself, see all this as Boner and his tea bagger gang just wanting to crash the plane after all their big money chums bailed out. It will be a long time before the Republicans can convince a large segment of the middle class that they are for the middle class again.

Mon, 07/25/2011 - 16:29 | 1491950 Glasater55
Glasater55's picture

You're wrong. And you're not an 'R'.

Mon, 07/25/2011 - 10:59 | 1490477 CrashisOptimistic
CrashisOptimistic's picture

One thing is becoming clear.  Boehner is fighting this battle about 1000X more effecitively than Gingrich fought the government shutdown battle.

Gingrich fought on the wrong battlefield.  He didn't hit the microphones daily, Clinton's people did, and presto, the polls went strongly against Gingrich.

Not so with Boehner.  He and the House leadership are using new media and holding press conferences almost daily and they are ahead in the polls.  This is very bad for Obama.

On the other hand, Obama is right about one thing.  Fiscal contraction will ramp 9.2% U3 upward and re-election will become less and less likely.  Allowing the SS 2% cut and the Bush tax cuts to rise, and cutting spending, is fairly sharp fiscal contraction.

It would not surprise me if Obama does not run.

Mon, 07/25/2011 - 11:01 | 1490492 El Viejo
El Viejo's picture

According to Henry Kissinger O has an 80% approval rating in Europe. What are the odds he packs his bags and becomes the first king of Europe?

Mon, 07/25/2011 - 11:13 | 1490546 Overflow-admin
Overflow-admin's picture

HAHAHAHAHA! O has 80% approval rating in european politicians and financial lobbyists! But what about the people's rating? Think what you american people think of Sarkozy and then extrapolate.

Mon, 07/25/2011 - 11:32 | 1490612 SheepDog-One
SheepDog-One's picture


Mon, 07/25/2011 - 11:33 | 1490617 r101958
r101958's picture

That is because he is screwing Americans.

Mon, 07/25/2011 - 11:34 | 1490620 DosZap
DosZap's picture

EL Viejo,

With who?,the Destroy America Firsters?.

The Governments of China, and Russia, are not real happy with the debasement of the USD.

Mon, 07/25/2011 - 12:22 | 1490816 El Viejo
El Viejo's picture

Sorry, Did I omit "... with minorities" ?

Just checking.

Mon, 07/25/2011 - 12:00 | 1490723 tip e. canoe
tip e. canoe's picture

funny my european friends were the only ones i knew that saw through the whole charade back in 2008.

Mon, 07/25/2011 - 11:02 | 1490500 Mike2756
Mike2756's picture

That's good, we need leadership other than the typical vote buying politician.

Mon, 07/25/2011 - 11:09 | 1490531 Lord Welligton
Lord Welligton's picture

It would not surprise me if Obama does not run.

That's what I'm begining to think. Why does he need the ceiling raised to such an extent that it will see out his term?

He just passes the buck to the next incumbent and then heads off on the speaking circut @ $5m a year with plenty of time for golf.


Mon, 07/25/2011 - 11:38 | 1490638 Long-John-Silver
Long-John-Silver's picture

By the time this term is done Obama will be hammering nails in houses beside Jimmy Carter.

Oh; he'll get a book or two published which will end up in $ stores just like Carters books.

He'll get about as many speaking engagements as Jimmy Carter did. 

Mon, 07/25/2011 - 11:33 | 1490561 Dr. Engali
Dr. Engali's picture

It would not surprise me if Obama does not run.

I'm sorry but this guy will run again. He is not about to give up the reigns of power. He likes it too much. Events are unfolding complete;y in his favor. If the economy collapses he has his blame it on. Then he can do what he said he would do from the beginning, which is to reshape the economy into his twisted vision. A bloodless revolution ushered in by the ignorance of the U.S. voters.

Mon, 07/25/2011 - 11:23 | 1490572 DosZap
DosZap's picture


If these bstds keep this up (DEMS) we will have no OFFICE to fill,or a country.

They keep this up, and the SWHTF,the people will go nuts.

Secretly, Obama wants exactly that.IMHO

Either that or he's is worse than a spoiled ass brat.

Forget talking Flat Taxes, and Losing Deductions,

WE will NEVER rid ourselves of the IRS.They are not there for collections, they are their for INTIMIDATION.

If these assholes were really serious, the agencies in DC would be done away with first, that are totally uneccessary.

Sorry for the colorful lingo, but I have had it.

We need a CLEAN SLATE.

Mon, 07/25/2011 - 11:34 | 1490621 SheepDog-One
SheepDog-One's picture

I think they are setting up for a point where people go nuts, and then they can swoop in with emergency declarations. No doubt. 

Mon, 07/25/2011 - 11:45 | 1490668 DosZap
DosZap's picture


Declarations have consequences......................

Mon, 07/25/2011 - 11:40 | 1490647 SRV - ES339
SRV - ES339's picture

One thing is becoming clear.  Boehner is fighting this battle about 1000X more effecitively than Gingrich fought the government shutdown battle.


Boehner is a lightweight fool...

Mon, 07/25/2011 - 12:17 | 1490791 Bonesetter Brown
Bonesetter Brown's picture

Even a blind squirrel finds an acorn now and again.

Boehner definitely running a better playbook than Gingrich.

OTOH, Obama being advised to run the Clinton playbook. Not adapting.


Mon, 07/25/2011 - 10:59 | 1490484 FlyPaper
FlyPaper's picture

Obama has been holding the "negotiations" hostage by insisting that any deal include tax increases.  He's drawn his line in the sand just as much as Congress.

One way or another the government's spending has to be reigned in.  Either now via negotiation, or in the future via catastrophe or inflation.  Take your pick.


Mon, 07/25/2011 - 11:01 | 1490493 fuu
fuu's picture

It's like Red vs Blue for stupid ugly people.

Mon, 07/25/2011 - 11:02 | 1490497 mynhair
mynhair's picture

We have to default to see what's in it.

Mon, 07/25/2011 - 11:55 | 1490702 mt paul
mt paul's picture



Mon, 07/25/2011 - 11:06 | 1490505 bob_dabolina
bob_dabolina's picture

We all know how the democrats compromise. 

Remember that log flume called Obamacare that was RAMMED up our asses using the reconcilliation process? The American people answered that with the mid-term elections (which were a blow out) 

I hope the conservatives hold strong and don't allow themselves to be bullied into this. If we default we know who's shoulders this rests on. The king of America.

Like Boehner said, it's Congress who rights the laws in this country.

Obama, it's time to eat your fuckin' peas.

Mon, 07/25/2011 - 11:09 | 1490527 SheepDog-One
SheepDog-One's picture

Yea well Boehner was saying yesterday what we need is a new 'Super Congress' to write the laws in secret. Whatever.

I think everyones slowly coming to the realization that out of this there wont be any huge deliveries of free cash to Wall St, the party is over.

Even their 'compromise of $500 billion short term steps immediately gets cut in HALF to replace the govt pension money that Treasury has been dipping into since QE2 end! No way out of this folks...its goin down.

Mon, 07/25/2011 - 11:19 | 1490562 Mike2756
Mike2756's picture

So? Look at all of the programs Roosevelt crammed down everyone's throat.

Mon, 07/25/2011 - 11:24 | 1490581 SheepDog-One
SheepDog-One's picture

Uh, you mean like social security? Not sure what point youre trying to make. In Roosevelts days, the entire federal budget was a few billion dollars, and the tax rate was about 1%.

Mon, 07/25/2011 - 11:24 | 1490583 bob_dabolina
bob_dabolina's picture

No kidding. Him and LBJ really did some damage on that front.

Mon, 07/25/2011 - 11:05 | 1490508 sschu
sschu's picture

This is certainly unexpected, the Boehner telling it like it is.  Since the Bamster rejected the proposal from Harry Reid (so reported) about a "compromise", this has a chance to stalemate.

The political theater goes on, but by now it would seem a deal was close.  No such deal seems imminent.


Mon, 07/25/2011 - 11:05 | 1490514 Lord Maximus
Lord Maximus's picture

Obama WANTS the "Aug. 2 deadline" to pass...that's why he "rejected" Reid this AM.

He has his lawyer's opinion on the 14th Amendment.

He wants to use his "14th Amendment Right" and in the process start a Constitutional crisis...nothing like a crisis

So predictable


Mon, 07/25/2011 - 11:10 | 1490536 SheepDog-One
SheepDog-One's picture

Good I hope he does have to use such means, show everyone what a thug govt it is and BTW dont expect and market euphoria.

Mon, 07/25/2011 - 11:13 | 1490545 the not so migh...
the not so mighty maximiza's picture

Who benifits from a Constitutional crisis?

Mon, 07/25/2011 - 11:19 | 1490563 CrashisOptimistic
CrashisOptimistic's picture

You do not understand the budget process.

Even if Obama were to try to raise the ceiling via Executive Order, it would cut his own throat because FY 2011 fiscal authority ends 1 October.  Both Houses of Congress would never tolerate the executive usurping Congressional power of the purse and his authority to spend would be terminated until he rescinds his order, or the cuts would be imposed in the FY2012 continuing resolution.

Point being, any maneuver like you're suggesting would end 1 October, less than 60 days later, and he'd be punished by Congress for doing it.

Mon, 07/25/2011 - 11:30 | 1490603 SheepDog-One
SheepDog-One's picture

'Budget process'...nevermind the US has not had a passed budget in 2 years now.

Mon, 07/25/2011 - 11:41 | 1490652 DosZap
DosZap's picture


His Lawyers have already looked the the 14th, and concluded it will not FLY.

Mon, 07/25/2011 - 12:23 | 1490818 Glasater55
Glasater55's picture

If Obama invokes the 14th--Clinton's impeachment hearing will look like a cakewalk.

Mon, 07/25/2011 - 16:33 | 1491968 Glasater55
Glasater55's picture

So he'll do this on his birthday?

Mon, 07/25/2011 - 11:06 | 1490519 Spastica Rex
Spastica Rex's picture

A war in Heaven; how entertaining it is for us mortals to watch from below.

Mon, 07/25/2011 - 11:07 | 1490523 DUNTHAT
DUNTHAT's picture


Mon, 07/25/2011 - 11:10 | 1490534 Tipo anónimo
Tipo anónimo's picture

Did you know that caps are for SCREAMING?  I don't see anything there that requires screaming.  Thx

Mon, 07/25/2011 - 12:21 | 1490808 V in PA
V in PA's picture

A paralyzed government would be sweet!!! Complete stalemate. Nothing gets passed!

Be still my beating heart.

Mon, 07/25/2011 - 11:09 | 1490526 LMAO
LMAO's picture

According to CNN survey, 66 % of Americans.......

Seems rather clear cut to me. As far as matters this grave are concerned, let the people decide the faith of the spending and debt ceiling by referendum. It's the people who are going to pay for it in the long run, so it's up to them to decide.

Mon, 07/25/2011 - 11:20 | 1490565 SheepDog-One
SheepDog-One's picture

And how many americans live due to govt handout checks? About 66%.

Mon, 07/25/2011 - 11:33 | 1490619 LMAO
LMAO's picture

According to a recent CNN survey, 66 percent of Americans would only support an increase in the debt limit if “substantial spending cuts and caps on future spending were approved.”

And how many americans live due to govt handout checks? About 66%.

Well I'm afraid your number might even be on the low side and it wouldn't surprise me if the number is closer to 80%. The US gov. = the US economy

There are no good solutions but when 66% of the population is willing to take much pain now, instead of more pain later, which basically is guaranteed when the president throws a tantrum and plays the MAD card to get his 2,5T blank cheque, so be it.

Mon, 07/25/2011 - 11:39 | 1490646 SheepDog-One
SheepDog-One's picture

Ive heard this line all weekend about how most all americans are TOTALY fine with taking a huge cornholing now, as long as gubment spending is reduced. Well I dont believe that line for 1 second, re-do the 'survey' and tell people their checks will now be cut by 60%. OR lets see how people react when their paychecks and food stamps and unemployment checks are cut in half, then we'll see how fine they really are with it.

Mon, 07/25/2011 - 12:08 | 1490740 LMAO
LMAO's picture

I know what you mean sheep.

In addition, as far as "surveys" go, you can get pretty much the results you desire by way of how you formulate the questions. As far as the balanced budget act goes:

Should government cut spending? YES!

Should your taxes be increased? NO!

Should SS and medicare be more expensive? NO!

Should we stop providing you with food stamps? NO!

.....and back again to question number one.

On the other hand, some people may have realised by now that a Debt ceiling hike is just another covert way to transfer even more money to the banking cartel.

Mon, 07/25/2011 - 11:09 | 1490528 CrashisOptimistic
CrashisOptimistic's picture


In the past, such impasses were addressed by spending money in support of a Democrat project and spending money in support of a GOP project.

The FY2011 CR we're under right now was a result of Bush tax cuts remaining in effect and adding to them the 2% Soc Sec tax cut, in addition to invalid 100B in spending reduction.

But that can't fly anymore.  The party is over.  There is no money for that.  Further, the tea party folks were elected very specifically to demand what they are demanding, and they actually don't care if they are not re-elected.  They can't be bought off because they dont' want spending.

I would guess the Senate is going to sign onto a House measure, Obama will veto it, and be overridden.

Mon, 07/25/2011 - 11:12 | 1490541 SheepDog-One
SheepDog-One's picture

$100 billion 'spending reduction' only half covers 1 month of Treasury raiding govt pension funds, well over $200 billion since QE2 end. So funny!

Mon, 07/25/2011 - 11:11 | 1490539 viator
viator's picture

“The Speaker, Sen. Reid and Sen. McConnell all agreed on the general framework of a two-part plan. A short-term increase (with cuts greater than the increase), combined with a committee to find long-term savings before the rest of the increase would be considered. Sen. Reid took the bipartisan plan to the White House and the President said no.”


Mon, 07/25/2011 - 11:14 | 1490549 SheepDog-One
SheepDog-One's picture

Whatever they come up with, $200 billion gets shaved right off the top so Treasury can replace what theyve looted out of govt pensions just in the last month since QE end. So hillarious.

Mon, 07/25/2011 - 11:13 | 1490544 partimer1
partimer1's picture

recession watch: the most accurate economic forecaster and he was on CNBC once before 2007 peak.

Mon, 07/25/2011 - 11:14 | 1490550 viator
viator's picture

Boehner may see a path to pulling his latest proposal through Congress. A Republican aide told Fox News that the reason the two sides could not come together over the weekend was because the White House -- not the Senate -- objected. The aide claimed Boehner and Senate Republican Leader Mitch McConnell were originally in agreement with Senate Democratic Leader Harry Reid on the "general framework" for the two-stage plan that started to come together Monday. 

But the aide said, "the president said 'no'" when Reid presented the plan to him. By Sunday night, both the White House and Reid were on the same page

Mon, 07/25/2011 - 11:17 | 1490557 SheepDog-One
SheepDog-One's picture

One thing is clear, there will be no massive gift of free money to Wall St this time, this debt ceiling action will please no one and whatever they come up with will be immediately devoured and the banks will demand MORE MORE MORE!!

Mon, 07/25/2011 - 11:41 | 1490648 cosmictrainwreck
cosmictrainwreck's picture

I'm confused..... no more gift to the Street, but banks demand MOMO - does that mean they DEMAND, but don't get?

Mon, 07/25/2011 - 12:18 | 1490797 SheepDog-One
SheepDog-One's picture

Hell at this point I just see any of these solutions as putting 1 roasted chicken on the table with 50 barbarians sitting around it, how long is that really going to last?

Mon, 07/25/2011 - 11:17 | 1490556 Azannoth
Azannoth's picture

The only thing left for an impotent President, Martial Law

Mon, 07/25/2011 - 11:18 | 1490559 SheepDog-One
SheepDog-One's picture

GOOD bring that shit on! It might actually snap americans out of their stupid sheeple slumber!

Mon, 07/25/2011 - 11:20 | 1490568 Uncle Remus
Uncle Remus's picture

Jesus. Talk about sensationalist bullshit. WTF - did ZH hire a bunch of NoTW hacks?

Boner is only half-right though - the taxpayers are already in a no-win situation.

I say let them all join Timmah on their knees. Butt-plugs - the whole lot of them.

Mon, 07/25/2011 - 13:24 | 1491084 V in PA
V in PA's picture

Dis sho am good

Mon, 07/25/2011 - 11:22 | 1490575 GeneMarchbanks
GeneMarchbanks's picture

Boehner 1 Obama 0 American People -14.3T..... for now.

Mon, 07/25/2011 - 11:25 | 1490584 JuicedGamma
JuicedGamma's picture

You must admit, other than Anthony Weiner, Boehner has one of the most appropriate and ironic names ever.

Mon, 07/25/2011 - 11:25 | 1490586 Lmo Mutton
Lmo Mutton's picture

Kill them all.  Let God sort them out.

Mon, 07/25/2011 - 11:29 | 1490594 SheepDog-One
SheepDog-One's picture

Im now convinced the only form of govt that can work centers around 2 years maximum terms, and all salaries only paid from budget surpluses, verified by outside entities which also change every 2 years.

Mon, 07/25/2011 - 16:36 | 1491980 Glasater55
Glasater55's picture

So you like entrenched bureaucracies? 

Mon, 07/25/2011 - 11:32 | 1490613 rubearish10
rubearish10's picture

AAPL is saying deal imminent. No need to look anywhere else. This means more smart phones, flat screens and iPads for the people on food stamps.

Mon, 07/25/2011 - 11:36 | 1490633 blunderdog
blunderdog's picture

Just to be sure I understand this: the Republican sticking point is that we need to cut $250 billion a year for 10 years from the Federal budget in order to save the country, right?

Seriously, that bullshit isn't even amusing.

Mon, 07/25/2011 - 11:47 | 1490676 CrashisOptimistic
CrashisOptimistic's picture

You do not understand the budget process.

FY2012 is the baseline level of spending.  Then a curve is drawn on the graph upwards reflecting population growth, GDP growth, and inflation.  

It Is From That Curve That The "cuts" Are Measured.  The 2021 spending number will be larger than 2012's number, even with the "cuts".

The fight will eventually evolve to be around the numbers used for pop growth, gdp growth and inflation.  A Democrat wanting huge spending will use enormous growth rates for those numbers, and then announce 2.5 Trillion in cuts . . . from that absurd growth line.

This is why the only proper cut that is meaningful must be from FY2012 spending, before any growth projections can be toyed with.

But of course FY2012 spending reduction is fiscal contraction and Obama can't risk that in his teetering economy and 9.2% U3.

Mon, 07/25/2011 - 12:06 | 1490744 Bear
Bear's picture

Spot on analysis. Add one thing ... the Democrats can justify their enormous growth estimates by including immigration assumptions of 10% of Mexican population ... QED

Mon, 07/25/2011 - 12:08 | 1490754 blunderdog
blunderdog's picture

You don't understand the post you replied to.  But thanks for trying to help.

Mon, 07/25/2011 - 12:07 | 1490748 Uncle Remus
Uncle Remus's picture

Seriously, that bullshit isn't even amusing.


You're right - it's nowhere near a big enough cut in deficit spending.

Mon, 07/25/2011 - 11:38 | 1490637 marcusfenix
marcusfenix's picture

the MSM zombies are out in full force today aren't they? just marching along left, right, leftrightleft.  f@ck boehner, f@ck reid, f#ck the republicans and  the democrats they are one and the same and this whole farce in DC just shows one thing, politics in America has lost all semblance of dignity and sanity. these walking teleprompters can't make a decision without somebody writing them a check and giving them a script telling them what to say and how to vote. this whole "debate" has been absurd from the start and yet they just keep dragging it on...

Mon, 07/25/2011 - 11:41 | 1490649 carbonmutant
carbonmutant's picture

Obama's an "empty suit". Reid seems to be the one driving the spending agenda.

Mon, 07/25/2011 - 12:02 | 1490698 jmc8888
jmc8888's picture

Obama needs to be impeached, and of course Glass-Steagall has to be passed, however Boehner might just be handing Nero a huge chip for the 2012 elections.  Namely, the Republicans caused the default.  That's one helluva thing to beat. (the whole thing is a farce of course, but if America still can't figure out Glass-Steagall, I'm damn sure they won't figure out it was both parties fault, since both of their ways were idiotic) 

Dumbing the debate down doesn't always produce the best responses. 

(remember folks we don't have a spending problem, nor a taxation/revenue problem, we have a FRAUDULENT debt problem)

You don't SPEND FRAUD.  IT'S FRAUD.  (I swear people still jump to the left right bankster controlled's's taxation.  IT's NEITHER...IT'S FRAUD.  Fraud isn't legitimate, thus how can you spend fraud? Only in idiot America.)

Wipe it out.  Glass-Steagall

(of course at this rate, 2012 elections might not even all things..)

Mon, 07/25/2011 - 13:04 | 1491022 ElvisDog
ElvisDog's picture

Any default would be contrived and eventually exposed as such. There is more than enough tax revenue coming in to pay the interest on our debt and continue SS/medicare/medicaid payments. If Obama tries to withhold SS checks because he claims default it will blow up in his face bigtime.

Mon, 07/25/2011 - 11:56 | 1490703 CuiJinFu
CuiJinFu's picture

There's plenty of blame to go around, but this rhetoric from Boehner is just pathetic.  It's like he's never even read the Constitution.  Obama doesn't have any checks, much less a blank one.  Congress passes a budget and the President executes it.  Spending is controlled by Congress, not the president, so this accusation is just pathetic maneuvering by Boehner to try and redirect blame.  Almost all of this crisis is a dysfunction wthin Congress, both on the right and left.  Until a bill gets to Obama's desk, these attempts to blame him for the impasse are very weak.

Mon, 07/25/2011 - 11:59 | 1490716 mt paul
mt paul's picture

no more new debt....

cut every government check issued 

by 50 %...starting tomorrow..


we have to start somewhere....

Mon, 07/25/2011 - 12:05 | 1490736 jmc8888
jmc8888's picture

Why there?

Do that to pay off fraud?

Why not 'start and end', with cutting the fraud?

A huge portion of our 'debt' (the reason idiots and fascists anti-humans want to cut is because of fear over said debt) is fraudulent [and what that might entail].

Given how we don't need banks to lend to us (in reality...but we choose this other reality), even that fear is unfounded.  But again, we're only here because idiots don't recognize FRAUD.

So we should kill ourselves over joke? That's what it amounts to.

It's FRAUD, it ain't real, except we honor fraud, which makes it real....until we don't.



Mon, 07/25/2011 - 12:29 | 1490841 El Viejo
El Viejo's picture

Actually, I just talked to a Federal employee I know, who should know, and he said that they have frozen Federal salaries starting last year for three years and they have attempted freezing Step increases and bonuses. So that should bring them back in line with the private sector.

Mon, 07/25/2011 - 12:09 | 1490756 Bear
Bear's picture

Tyler ... Just saw Obama ad for 2012 ... good going, someone in the campaign will probably start reading ZH and we might just have a little more rationality in DC

Mon, 07/25/2011 - 12:25 | 1490825 jakethesnake76
jakethesnake76's picture

How dare Boehner try and cut spending how dare he, oh other than the fact HE is doing what the people with common sense want , to cut spending... Nuff Said..Obummer will lose this if he fails to sign a bill.....

Mon, 07/25/2011 - 12:25 | 1490826 jakethesnake76
jakethesnake76's picture

How dare Boehner try and cut spending how dare he, oh other than the fact HE is doing what the people with common sense want , to cut spending... Nuff Said..Obummer will lose this if he fails to sign a bill.....

Mon, 07/25/2011 - 16:44 | 1492019 bk1037
bk1037's picture

Nobody said not to cut spending. Spending can and should be cut seriously. The issue is who will be shouldering all of this, the rich or everyone else. The ostensible reason for Obama including raising of taxes, was for the rich to absorb their share of the burden which obviously the GOP does not agree with in the public negotiations. Naturally, Obama feels that the tax hikes were needed to have the rich participate in this burden sharing, so this tells me the rich are not sharing in what is left that is supposedly being negotiated now. Compromise should be rewarded by the people with support, not pigheadedness. If pigheadedness appears to be a winning strategy coming out of this, we may as well fire Congress going forward as there will be no independent thinkers left, it will be all Dem or GOP, no inbetween. Perhaps this is the danger of political parties that the Founding Fathers warned about, for precisely this type of situation. Can one imagine how this political dispute would look to them 200 years ago? Congress becomes more irrelevant as time goes on, the more it proves its dysfunctionality, not just to the American people but to everyone in the world who is watching and will be impacted by what these clowns decide or not decide to do.

Mon, 07/25/2011 - 13:16 | 1491061 TruthInSunshine
TruthInSunshine's picture

Congress is akin to a sluttly, diseased whore.

She looks doable only if you're extremely intoxicated, but if you go down that path, you awaken with a crushing headache, an incurable STD that will make life intolerable for years, and you discover that your wallet is missing.

Mon, 07/25/2011 - 16:36 | 1491982 nah
nah's picture

slutty diseased whores are funny


seems either obama gets his job plan passed and we go to war with siam or whoever... or the sons of US military adventure come home and give us some inflation...


acting like there gunna cut 800 billion of anything in the interim is like totally stupid and perverted and i dont get it OBAMA 2012 BITCHEZ

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