The Drama Is Back: Boehner To Hold Press Conference At Market Close

Tyler Durden's picture

For a day that was supposed to be full of drama, fury, margin calls and overall bloodshed, newsflow is so boring, for a second we wanted to demand our money back from management, or the kleptocracy, whoever it is that prints these things nowadays. However, some excitement may yet be salvaged now that Boehner has just called for a news conference precisely on the closing bell at 4pm. We assume this will be to present details of his two-tiered plan, which we touched upon earlier, and which Fox News now provides some additional details on. Suffice to say, if Obama were to accept the terms contained herein it would be complete embarrassment for the head executive, as Boehner is literally demanding everything, up to and including a balanced budget amendment, that Obama swore he would not cede.

Per Fox' Chad Pergram:

The approach was received from a senior GOP leadership aide and reads as follows:

Two-Step Approach to Hold President Obama Accountable

Republicans insisted if the President wants his debt ceiling increase, the American people will require serious spending cuts and reforms. This two-step approach meets House Republicans' criteria by (1) making spending cuts that are larger than any debt ceiling increase; (2) implementing spending caps to restrain future spending; and (3) advancing the cause of the Balanced Budget Amendment - without tax hikes on families and job creators. While this is not the House-passed "Cut, Cap, & Balance," it is a package that reflects the principles of Cut, Cap, & Balance. Here is more information on the plan:

--Cuts That Exceed The Debt Hike. The framework would cut and cap discretionary spending immediately, saving $1.2 trillion over 10 years (subject to CBO confirmation), and raise the debt ceiling by less - up to $1 trillion.

--Caps To Control Future Spending. The framework imposes spending caps that would establish clear limits on future spending and serve as a barrier against government expansion while the economy grows. Failure to remain below these caps will trigger automatic across-the-board cuts (otherwise known as sequestration).

--Balanced Budget Amendment. The framework advances the cause of the Balanced Budget Amendment by requiring the House and Senate to vote on the measure after October 1, 2011 but before the end of the year, allowing the American people time to build sufficient support for this popular reform.

--Entitlement Reforms & Savings. The framework creates a Joint Committee of Congress that is required to report legislation that would produce a proposal to reduce the deficit by at least $1.8 trillion over 10 years. Each Chamber would consider the proposal of the Joint Committee on an up-or-down basis without any amendments. If the proposal is enacted, then the President would be authorized to request a debt limit increase of $1.6 trillion.

--No Tax Hikes. The framework included no tax hikes, a key principle that Republicans have been fighting for since day one.

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bugs_'s picture

stay firm boehner

redpill's picture

Send the Boehner some Cialis for Daily Use (tm)!

DoChenRollingBearing's picture

+ the same amount.

I really hope Boehner does not cave and make a horrible deal.

Read my take at my blog!  Don't have the link?  Send me a gmail at my name and promise you will behave.  Two new articles, one a fun new xtranormal silver video (w/ robots, thx Cyndi!) and what happens if we DEFAULT (unlikely IMO, but possible).  I am curious to get more views on what might happen if we DEFAULT.

GeneMarchbanks's picture

Is that advice or a sort of note-to-self?

TruthInSunshine's picture

Raising the debt ceiling means that an already indebted government can borrow more to finance even more deficit spending, even though it already has such a massive debt load that it literally can not pay back the debt it currently owes, so this is sort of like maxing out your credit cards and other unsecuritized lines of credit when you know in advance that you're going to file for bankruptcy or otherwise not be able to pay back your debt in any event.


Hookers & Blow; Life is Short, Have Fun.

An Economic Treastise in Rational -vs- Rationing.

by John Maynard Keynes (Krugman Publishing House 2011)

DoChenRollingBearing's picture

Will Krugman Publishing pay me $40.00 for that book?  And $40.00 more to read it...


IQ 145's picture

Oh, I'd be soo unhappy if our chief executive was embarrassed. That would be just awful.

toady's picture

Thats what she said.

redpill's picture

There's no way in hell Obama will accept any of that.

baby_BLYTHE's picture

of course not.

Remember this IS his re-election and nothing else.

He could really careless about the consequences otherwise

redpill's picture

The good news is, doing nothing is even better.  Debt ceiling stays in place, they are forced to make immediate cuts, and it's like a balanced budget amendment is already passed as we couldn't run deficits and issue more debt until we paid some of it off.

Come to think of it, we really don't need any legislation at all.  Let's let the debt ceiling do its job.

Sudden Debt's picture

It sounds like the script of a Woody Allen Movie :)

but the sad part is that Disney wrote this scrip, so this means : EVERYTHING HAS A HAPPY ENDING!! Without the Azian chick in the end that is...


JLee2027's picture

There's no way in hell Obama will accept any of that.

He's trapped like a rat. Accept or Default. The Boehner squeeze!

redpill's picture

Caught between a Boehner and a hard place.


Obama will get desperate.  Howled accusations that Boehner is a racist and claims that senior citizens will be starving without their social security checks are sure to come by week's end, they'll empty the playbook on this one.

TruthInSunshine's picture

Boner has repeatedly stated that dealing with Obama was like negotiating with jello.

Caught between a boner & jello.

DoChenRollingBearing's picture

EXCELLENT commentary above guys!

But, we DO have a Deal worth mentioning: the Circus is on!  The NFL PLayers have apparently agreed to their Deal with the owners.  Party on, sheeple!

IQ 145's picture

 "--that Boehner is a racist--" will that be a type of O.J. Simpson defense? I don't care if they do run Sarah Palin next year; I'm not only going to vote for her I'l be a volunteer campaign worker.

lolmao500's picture

Caught between a Boehner and a hard place... I hope Obama is prepared to give a deep throat.

malikai's picture

I think the Boehner likes being squeezed.

redpill's picture

Dr. Evil: Our early attempts went through several preparations. Preparations A through G were a complete failure. But now, ladies and gentlemen, we finally have a working tractor beam, which we shall call... Preparation H.

Number 2: Dr. Evil, I love your plan.

Dr. Evil: You do?

Frau Farbissina: Yah. It's a really good plan.

Dr. Evil: Yes Frau, on the whole Preparation H feels good.

carbonmutant's picture

It's not up to Obama.

Reid and Pelosi will make the decision...

redpill's picture

Reid and Pelosi don't make decisions, they take orders.

carbonmutant's picture

Obama cant' cut a deal without them...

redpill's picture

Well I'm hoping there's no deal at all, personally :)

And contrary to the talking heads, it doesn't mean default.  It means prioritizing interest payments and cutting as needed.  Long overdue.


Sudden Debt's picture

Maybe if they print it, put it in a brown enveloppe, thicking it up with a bit of more "green" paper and give it to him under the table?


drink or die's picture

Am I missing something here?  How can anyone take any of this seriously when they are talking about cutting 1.5-2T over 10 years, and the annual defecit is 1.5T/year?  Doesn't that fact alone make this entire thing completely pointless?

SWRichmond's picture

Doesn't that fact alone make this entire thing completely pointless?

Yes, and not to mention the fact that the actual deficit, due in large part to accrued SS and other obligations, is really about $5 Trillion annually.

JLee2027's picture

And they can't even agree on a couple hundred billion this year.


redpill's picture

Not to mention that any time any one of these a-holes mentions a 10 year timeframe, it's a guarantee they are lying to your face.

Since when does any current Congress give a shit about what promises were made 10 years earlier?  It's hollow nonsense.

I have an idea, why don't we cut spending by $2T TODAY, and then we won't even need to raise the debt ceiling.


SheepDog-One's picture

They may as well just talk about 100 year timelines.

DoChenRollingBearing's picture

JLee, redpill, SheepDog,

Agree with all your comments.  You guys are clearly smart.    :-~

We COULD always get our spending undr control (BIG CUTS).  Yes, I know all the bleeding hearts will talk about suffering, and there is no doubt that some would suffer if we JUST CUT THE SPENDING.  But, those (in greater part) are receiving money from .gov (that's likely me and you, guys).  Cutting spending has the great advantage of being transparent too.

I have seen comments above on what may happen if we do nothing (ie, just let the Debt ceiling do the cutting for us).  I ask all here (and read it at my blog): What happens if we default?  So many variables involved...

poor fella's picture

Like 500 year fixed rate mortgages? Who WOULDN'T qualify? It's like 20 bucks/month! I serious no-brainer!

treemagnet's picture

Well, see - first you just gotta believe in all kinds of change.  Then it'll all make sense.

drink or die's picture

Maybe that's my problem.  I really feel like I'm losing my mind when I watch the news.  How do people talk about this with a straight face while completely ignoring the underlying issues?  If I mention this to friends, they won't even acknowledge it. 

andybev01's picture

The reason the newsies can keep a straight face is that they have no clue what the words scrolling across their teleprompter mean.

They are paid to look good and appear vaguely concerned.

Vic Vinegar's picture

Yup.  Most of them are just vapid, pretty heads who have no idea what’s going down.  However, you have to think some of them do.

What happens when a few more of them do figure it out?  Will anyone have a Howard Beale moment?  If so, I hope and pray it’s my boy Dom Chu…

poor fella's picture

Good call - I say these days it's gotta be BIG. Dom, Pimm, crew-cut Matt, and Maryam talking SHITE about how the system has collapsed. Butting in on each other and AGREEING what a pile of turds the politicians are and the system 'officially' went over the edge about 1.5 years ago!!

Mad Cow's picture

Most people are in a catatonic zombie-like state. Not just from prescription psychotropic drugs, but from the unconscious realization that their programmed-from-birth reality actually isn't real.
There is an alternative which I see you're already aware! Cheers!:

ReallySparky's picture

Agreed, It's a joke that 10 year time frame for cuts.  I know everyone here thinks they will extend prior to the deadline.  But something tells me that Boner is setting him up to take the fall.

redpill's picture

If Boner can pull that off, he's a better politician than I realized.

Urban Redneck's picture

Boner's a poltician, show me the TEXT of a bill he wants to bring to the floor, then I can at least separate the #'s and the BS.  All we have now is politicians in an agonizing slow-motion televised Pong marathon.

Nedly66's picture

Umm are you new to America? Have our politicians EVER done anything that wasn't short sighted and meant to kick the can down the road? Why should this time be any different?


Trust them to be who they are and do what they do best.   Don't ever trust them to put your interests first.

mynhair's picture

A firm Boner; that's the spirit!

baby_BLYTHE's picture

he's probably already burned through a full pack of his Marlboros today.