Details Of Boehner's Plan Emerge

Tyler Durden's picture

Slowly details of the shape of Boehner's two-step plan are emerging:


It is unclear if this approach is a non-starter considering that every democrat has made it clear in the past 24 hours that a partial debt increase of $1 trillion would not even be discussed as it would reach just through February or March at the current cash burn rate.

More as we get it

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Xibalba's picture

ES doesn't seem to be paying attn

Ident 7777 economy's picture




Headline on Drudge:





AP story:






redpill's picture

"...urgently pieced together competing plans Monday to prevent a first-ever government default next week."

AP has been saying this "first-ever" shit for days now, it's complete BS.  The US Government has defaulted numerous times.  Continental dollars anyone?

Dr. Richard Head's picture

Even the modern day Federal Reserve Note has defaulted three times since it came into existence -


The U.S. government defaulted at least three times on its obligations during the 20th century.

-- In 1934, the government banned ownership of gold and eliminated the right to exchange gold certificates for gold coins. It then immediately revalued gold from $20.67 per troy ounce to $35, thus devaluing the dollar holdings of all Americans by 40 percent.

-- From 1934 to 1968, the federal government continued to issue and redeem silver certificates, notes that circulated as legal tender that could be redeemed for silver coins or silver bars. In 1968, Congress unilaterally reneged on this obligation, too.

-- From 1934 to 1971, foreign governments were permitted by the U.S. government to exchange their dollars for gold through the gold window. In 1971, President Richard Nixon severed this final link between the dollar and gold by closing the gold window, thus in effect defaulting once again on a debt obligation of the U.S. government. " - Dr. Congressman Ron Paul

Assetman's picture

Of course, there's a template for reducing the deficit already out there in the form of a 700 page report from the President's Bilateral Commission.  But neither party really wants to refer back to what might really work.  Why?  It's too painful.

Now we are to believe we need a Committee to make these tough decisions?  Plan Reid and Plan Boehner both pretty much suck.  A compromise between the two plans will likely result into something close to "double suck".

Sounds to me like BOTH parties want to pull the band-aid off slowly... but defer the "really tough" things long enough to make it through their 2012 re-election campaigns.

Now... why are we going to re-elect these losers again?


whaletail's picture

I don't think the pain in the bilateral commission report is the reason neither side wants to adopt its recommendations. That might be the Dem's position, but the Republicans want only a short term solution [sic] so the issue comes up again before November, 2012.  That's right: they want to have this debate all over again next year.  If they succeed, they'll have 6+ months to raise more support for their cuts in spending forcing the issue as the #1 issue in the elections. 

Now, if the short term solution is not passed by whatever the deadline is and the U.S. defaults, it will be because either the Dem-controlled senate didn't pass it OR the President vetoed the plan.  If it is the latter, that means the Dems in the senate ignored the President's bottom line that there would be no debt deal unless it went through the 2012 election.  If the President vetoes any short term solution, then the Republicans can argue the President defaulted the country because of his political ambition and desire for a 2nd term.

The President is in a Catch-22. He's been trumped. 

Skeebo's picture

Obama did it to himself too.  All the MAD talk doesn't do you any good if you leave a pretty obivious path for your opposition to paint you into a corner.

Quaderratic Probing's picture

Agreed..the Pres should never said he would veto, He should have played up the Reps refusal to extend and when it fails and no checks go out.. Please call the Teaparty for your check. I find it odd that the rich complain about govt payouts when the money never stays in the pockets of the poor, it always migrates to the rich. The poor have no stocks in medical companies or the food chain or the apartment rentals. So the treat to block Govt payouts in the end harms the rich Note to Obama " Know the value of what you are negotiating to the OTHER GUY FIRST so your bullshit detector will go off when he says " You are the only loser "" Think Air craft controllers strike and the European union stand on " We refuse to land " and Ronnis responce " Miss one flight and I wll ban your Airline from US skies " Compromise does not win in Poker kids.............

Freddie's picture

LOL!  Obama voter you have been outed. What a tard.

Cognitive Dissonance's picture


Cuts by committee. 

Wasn't this how the jackass was made, when a committee tried to make a horse? 

TruthInSunshine's picture

"All animals are equal, but some animals are more equal than others."


Animal Farm by George Orwell (1945)

Oh regional Indian's picture

Too funny TIS, I just made the same comment on the Italy bond auction thread.

Everythign Orwellian is apropos at thsi time, eh?


TruthInSunshine's picture

I used to think Orwell was sooo 1984, and he is/was, but he's even more 2011.

A Man without Qualities's picture

Even if you've read it before, I recommend Huxley's "Brave New World".  "1984" really reminds me of the Soviet Union, just before the collapse, but "Brave New World" is eerily resonant with today in the West....

Cognitive Dissonance's picture

And it is free. As in no cost free. Free as a bird. Free at last, I'm free at last.

TruthInSunshine's picture

I'm going to free fall into some of that Brave New World resonance.

Thanks for the tip & link.

I feel more like a free man with each passing day.

"He is the freeman whom the truth makes free,

And all are slaves beside."

--William Cowper   

Vic Vinegar's picture

Nice quote.

I never could figure out Huxley and Orwell.  Trying to warn the peeps?  Working for the man?  A bit of both?

All I know is "Brave New World" is so damn depressing.

trav7777's picture

depressing?  Why?  They engineered a society where everyone was happy except that obsolete savage with his outmoded morals and silly idealism.

EVERYONE ELSE was happy.  How is that depressing, because you are a misanthrope?

V in PA's picture

Thanks for the link CD. I saved a copy here at work to read on lunch break.

trav7777's picture

there's a copy on the web at

drink or die's picture

The solution is always to form a committee to solve a problem.  Then when the committee's findings are rejected, they use that as the talking points for their re-election campaign.

redpill's picture

The more the planners fail, the more the planners plan.

CrashisOptimistic's picture

The committee approach is not bad here.

The math compels them to take money from entitlements.

Politics will compel them to take some painful tens of billions for DoD.

That might just pass.

Azannoth's picture

This tells you all you need to know about the Presidents/Democrats willingness to cut spending, they see 1Tn as 'partial' who said it was 'partial' just cut the spending and make it 'full'

dbach's picture

here's a money saving tip Boehner, use the last deficit reduction committee's results (which were great) rather than pay a new committee to write yet another report that won't be read...

Ident 7777 economy's picture




rather than pay a new committee to write yet another ..

-  - -  - -  - -  - -  - -  - -  - -  - -  - -  - -  - -  - -  - -




Said committee already collecting salary; committee to be composed of sitting congressmen (and women) ...




TruthInSunshine's picture

I think that they will/may/won't take this deal and that the U.S. will/definitely will/absolutely will be just as bankrupt.

CharlieSDT's picture

These politicians are such jackasses.

mynhair's picture

Reid has caved.

mt paul's picture

blah blah blah...


words with no meaning 

JJSF's picture

Green close regardless of news. No need to even discuss anything these days.

Bob's picture

Bullshit fatigue is taking its toll.

cosmictrainwreck's picture

yup - looks like the formerly long-anticipated flash-crash will be just one more blip on the charts.... brilliant

SheepDog-One's picture

No way out of this mess at all is 'highly bullish'.

Ecoman11's picture

It's all about the elections.

SheepDog-One's picture

There will be no elections, as a top CIA agent just said this is it, Obama is the last 'president'. Wake up out of the 'its all about politics' crap, we're 3rd worlded.

Azannoth's picture

Even if so we won't find out till in 5 years

SheepDog-One's picture

No, he wasnt refering to the end of Obamas 8 years LOL he was saying there wont be one next year.

Rodent Freikorps's picture

I disagree.

President-for-life is still a president. Depends on what your definition of president is.

StychoKiller's picture

"What do you need, Neo?"

"Guns.  Lots of guns." -- Neo, "The Matrix"

SheepDog-One's picture

Seems I didnt save a link, I saw it as a youtube interview video.

fuu's picture

You are unable to view your browsing history or recently closed items to get back to it?

Oh regional Indian's picture

Bingo SD1, but that possibility is too hard for most folks, even most folks here, to even consider.

This boat will tip over in October, too many signs pointing there.



JohnG's picture

Please stop pimping your blog in almost every comment, it is becoming quite annoying and you are becoming more and more troll like.  So just stop.

I know what you are doing and I am surprized that th Tyler's are allowing it.

Just stop, this is not your forum for SEO.

InconvenientCounterParty's picture

Is it really?

It looks to me that if the candidate I voted for does not get elected, I don't have to participate anymore.

Furthermore, if I didn't personally vote for the person or the issue, I can piss on the USA its institutions, constitution, leaders etc. I can be as shitty as I want to be to anyone and everyone.

I love my America, whereas your America is worthless. Welcome to the revolution.