Latest In The Debt Ceiling Crisis: Reid To Offer $2.5 Trillion In Deficit Reductions And No Tax Increases

Tyler Durden's picture

Just out from CNN's Lisa Desjardins

  • BREAKING - NEW Dem. debt plan: Reid to offer at "least $2.5 Trillion" in deficit redux w/ no revenue increases, Dem. source tells CNN.
  • NEW REID PLAN: "At least $2.5 T in deficit redux" w/ no revenue increases. BUT, unclear what baseline he's using and what he'd cut.
  • REID PLAN: Dem aide tells our they think it meets GOP call for dollar-for-dollar spending cuts with debt increase.

And we are confident that the spending "cuts" will take place over 10 years, back-end loaded, which means no spending cuts any time soon. Said otherwise, no spending cuts, no tax hikes. And yes, $2.5 trillion debt ceiling increase. Just as we predicted two weeks ago.

More as we get it.

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baby_BLYTHE's picture

Just not for Wallstreet.

The clever is only meant for the necks of the middle-class.

Conrad Murray's picture

That's a cleaver description.

AldousHuxley's picture

School House Rocks - Tyrannosaurus Debt (from SchoolHouse Rock makers of How a Bill becomes a law)



Pirates and Emperors (from SchoolHouse Rock makers of How a Bill becomes a law)

FEDbuster's picture

T-bonds will be junk status in less than ten years, so does it really matter?  Stock up on bullion, after you have enough beans and bullets.

ISEEIT's picture

Funny. But give the lady a break.

cosmictrainwreck's picture

there ya are.... did ya have a good B'day (so far)?

baby_BLYTHE's picture

thx, yeah its been pretty great (minus the hangover from last night). Friends threw me a surprise party. 

Going back out again tonight. Hopefully the weather holds out.

cosmictrainwreck's picture

atta girl......"party like it's 1999" lulz

dbTX's picture

This can looks abused 

rajat_bhatia's picture

only D.C. could kick the can on voting to kick the can

fwiw's picture

Same old shit but with different gravy!

Mesquite's picture

....thoughts of: Dinosaurs thrashing around in the tar pits... 

arkady.darella's picture

no worries, there's always a fail safe:, 14th ammendment allows the president to unilaterally raise the debt ceiling... apparently.

SilverIsKing's picture

Haven't we been here before?

This place looks mighty familiar.

HungrySeagull's picture




Manzilla's picture

It's not like that would do a damn thing. They would figure out a way around it. That's just a GOP gimmick like all these ridiculous pledges.

knukles's picture

No Balanced Budget Ammendment.

But Wait, There's more.
A temporary increase in the Debt Cieling, so the drama continues unabated! Lucky us!
But wait!  If you call now....
A guaranteed downgrade from the NRSRO's!
The drama continues!  Next week, same time, same station....
The spending cuts take place later.
... like Fucking Never.  More Drama, Circuses Galore! 
Get that Hegelian Dialect Up To Fucking Light Speed.
Issue that debt! 
No slowdown in Business As Normal!
Ah!  Platitudes and congratulations abound whilst the public dims the evil eye.
But Wait!  There's even better yet to be seen!
Not A Fucking Thing Has Been Solved!

In fact, this appears to be what Harry's agreed to....
What about His Highness?

What about the Republicans?

What about the hard core, cuts equal ceiling increase.... not next week, but now?

Got Loose Ends?


JPM Hater001's picture

Amazing.  Please please please speaker boehner...Ryan and Cantor...make it a real and deep cut or dont bother coming home.

CrashisOptimistic's picture


What they are doing is trying to manufacture illusory cuts that occur no time soon, extend the Bush tax cuts and the SS tax cuts, and hope desperately that having avoided fiscal contraction, 9.2% doesn't become 29.2%

Caviar Emptor's picture

These guys are no longer surprising: both parties want more spending, and bigger government. 

Ident 7777 economy's picture

Caviar Emptor (Total Score:1)  scribes:

These guys are no longer surprising: both parties want more spending, and bigger government.

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

 THEN why hasn't Boehner simply ROLLED OVER by now?

You comment does not compute; it is illogical.



cossack55's picture

Whats up with $2.5 T? Why not go whole hog. $10 T anyway, if you want to get past next elections.  Damn pikers.


Wow. Magical post. Spent at least 55 seconds in the ether.  Skip the follow on.

Atomizer's picture

Just buying enought time to tell J6P about Basel III. Hahahaha

Yes_Questions's picture

J6P being told about Basel III?

"So, you see Joe, the bank cannot accommodate your withdrawal right now, but please try again later.  Have a lollipop."


duncecap rack's picture

Sounds like the rating agencies will love it.

AndrewJackson's picture

These cuts keep getting funnier and funnier. Just 10 years ago we would talk about how in 3,5, or 10 years the budget would be balanced. We are so far off the cliff, that now all we can do is say that spending will not be increased cumulatively quite as much as expected. However, given how much tptb have perfected can kicking, I wouldn't be surprised if we are at the same place 5 years later with just 10 trillion more in debt.

foxmuldar's picture

Promises of cutting spending later while continuing to raise the debt ceiling today sounds like Wimpy asking for a hamburger today with a promise of paying on Tuesday. We know Wimpy never does pay. Same shit keeps happening if they allow this deal to go through. And of course this leave Obama coming out smelling like a rose instead of the pile of shit he really is.

Can't wait to read tomorrow's headlines. Obama saves the country. What a crock.

franzpick's picture

I expect some exogenouse financial event will derail both the euro and american debt bailout charades, but if financial collapse leads to rioting and the stores are looted, I hope owebama gets all the credit, and no, I will not listen to his rhetorical pabulum on how is wasn't his fault.

I hope he is digging his own political grave.

Moe Howard's picture

Harry "Wimpy" Reid. Sounds about right. The voice sounds the same.

cossack55's picture

Whats up with the $2.5 T? Whole hog, baby. $10 T or STFU. Got to get past next elections.

Atomizer's picture

Duplicate post deleted

Cognitive Dissonance's picture

I'll see your $2.5 Trillion in deficit reductions and raise your no tax increases by $1 Trillion. Whacha got Pilgrim?


Fish Gone Bad's picture

My wife has Candy Land in absolutely mint condition.  Speaking of Candy Land, did Japan ever fix those busted nukes?  Nope.

Hulk's picture

I got a baby's arm holding an apple here...

Yes_Questions's picture

My wife's posting photos again.  I needed the money..

Pool Shark's picture

I got a heated, kidney-shaped pool...

knukles's picture

That's nothin'.  My alcoholic mother pools her kidneys twice a week in heated dialysis.

mcguire's picture

crazy!!! time to buy more gold... 

on the other hand, you cant eat gold...


or can you >>