The Official Statements Resume: Harry Reid Issues Lament On Republican Insistence For Short Term Hikes

Tyler Durden's picture

Here is the first official statement of the night, this time from Nevada democrat Harry Reid (and with $41 million in career campaign contributions, well-paid we should add) who basically recaps the McConnell/Pelosi stance, and says that the Boehner position, which supposedly requires short-term debt ceiling hikes, is a "non-starter in the Senate and with the President.

"Tonight, talks broke down over Republicans' continued insistence on a short-term raise of the debt ceiling, which is something that President Obama, Leader Pelosi and I have been clear we would not support. A short-term extension would not provide the certainty the markets are looking for, and risks many of the same dire economic consequences that would be triggered by default itself. Speaker Boehner's plan, no matter how he tries to dress it up, is simply a short-term plan, and is therefore a non-starter in the Senate and with the President.


"In an effort to reach a bipartisan compromise, we are putting together a $2.7 trillion deficit reduction package that meets Republicans' two major criteria: it will include enough spending cuts to meet or exceed the amount of a debt ceiling raise through the end of 2012, and it will not include revenues. We hope Speaker Boehner will abandon his 'my way or the highway' approach, and join us in forging a bipartisan compromise along these lines."

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Ident 7777 economy's picture




Did Harry Reid actually issue this -


Or was it his Nurse maid?





monkeyshine's picture

Everyone should know the score here. Over the past decade all Congress ever did was pass short term solutions.  This time the Democrats, trying to leverage the power they still have (losing a lot in 2010 when they lost the house) want to push the issue past the 2012 election so it can't be used by the GOP as a campaign issue.  The GOP wants a big cut to spending now that they can use as a trophy or, a solution that will last just long enough that it becomes an issue again before the 2012 election.

Pick a side.

Bobbyrib's picture

"Pick a side."


I would rather not, thank you.

darkstar7646's picture

Bobby, one will be picked for you, and you probably won't like it, if you don't pick a side yourself.

HungrySeagull's picture

Nurse maid wet nurse issued it. Reid does not know what he wants.... He is currently playing "House"

Infinite QE's picture


'Super Congress': Debt Ceiling Negotiators Aim To Create New Legislative Body


Ident 7777 economy's picture

'Super Congress': Debt Ceiling Negotiators Aim To Create New Legislative Body


- - - - -

continuing: "Thereby Relieving Themselves of ALL Future Financial Decisions (quote THE HARD STUFF unquote)"


Cheesy Bastard's picture

Super Congress, my ass.  We don't need any more bad super heroes.

Infinite QE's picture

Continued: 'as they will be outsourced to Goldman Sachs'

RacerX's picture

wow. might be time to look into Panama. At least the weather is nicer there.. hotter women too.

tom a taxpayer's picture


Breaking News: Mt Rushmore2 honoring Boehner, Pelosi, Reid, and McConnell lays foundation for the Grand Budget Deficit Deal. Leaders of the House and Senate set the stage for the historic budget deficit negotiation by recognizing common ground: a $500 million mountain-carving sculpture of Boehner, Pelosi, Reid, and McConnell to rival the sculpture of the four Presidents on Mt Rushmore.

Recognizing the road to a Grand Budget Deficit Deal will be rocky, but will be achieved, the leaders of the "Super Congress" decided to instill public confidence by honoring the achievement early, in the same spirit as President Obama's Nobel Peace Prize in his first year in office. 


chump666's picture

ha, smells like a partial default looming.  that and china will start to get frisky on UST's on the short end, mixed with the manical Fed that will begin to print prime.  USD is toast till Europe implodes again

darkstar7646's picture

Prioritization (Probably more what you mean by a "partial default") means a complete default later.

Tax revenues will not be able to meet

Debt Service +
Military +
Homeland Peace

once the Treasury stops the SS checks, welfare, food stamps, etc. and so forth.

Cognitive Dissonance's picture

He who smelt it dealt it. Congressional turds that is.

Spastica Rex's picture

He who denied it, supplied it.

I'm thinking that you and I are about the same age.

RacerX's picture

Short Term as defined as not long enough to kick the can past the 2012 election.

Funny how both sides are overly concerned about "The Markets'" reaction, but not a peep on what is the fiscally "right" thing to do for the country.

Infinite QE's picture

The `market' they are referring to is the market for their, ahem, skills.

Iam_Silverman's picture

"Short Term as defined as not long enough to kick the can past the 2012 election."

That is exactly what I was thinking too.  Our current President and seated senators don't want to be humiliated every three months right on up until election time, I reckon.

indygo55's picture

You know what? Make 'em ask for more every week or month until the election. The we can accentuate the humiliation of this chirade every time they ask, and let them feel what average Americans feel when they pull up to the gas pumps or pay at the grocery store.

Selah's picture

Screw America!

Save the markets. That's what they have been doing and will continue to do.

until they can't...

chump666's picture

stocks will sell anyway, even if they stave off a full default (which is likely).  but rating agnecies will pull the Greek/PIIGS credit watch/ they do.

monopoly's picture

And many of the cuts are going to come from the drawdown in Iraq and Afghanistan. Those are not spending cuts. So stop the fresh flowers every day Harry, And why the hell do you stay at the Ritz Carlton in Washington where rooms start at $600 per night. You really have the right stuff to help this country and Nevada. What a twit you are. Retire resign, get lost. What about Congress getting the ball rolling with a 25% pay cut and 50% cut in expenses. Most of them are worth millions and do not even need the income.

What a pathetic country.

Bobbyrib's picture

Moody's and S&P will never downgrade. The minute they do, the DoJ starts to investigate their role in the financial fiasco of 2008. The US government has them by the balls.

darkstar7646's picture

If they have the money to do so. Want to take that bet? Think they will??

(Protip: The downgrade happens anyway.)

GiantWang's picture

Just came home from sushi dinner, and I wish to share this fortune with all my fellow ZeroHedgers:

nonclaim's picture

There's no future, apparently...

Kali's picture

Fortune cookies are chinese, not japanese.  We already know japan has no future.

Infinite QE's picture

"Buy futures, sell futures, when there is no future" 

John Milton

Devil's Advocate

kito's picture

and this 2.7 trillion in cuts comes...ummm....when? 

What_Me_Worry's picture

The markets are quite confident that there will be a deal that cuts the deficit by (insert number 1 to 10) trillion dollars and not raise taxes one cent and still provide all the government handouts from before.

Stayed tuned for the next exciting episode of "So you think you can kabuki dance".

bugs_'s picture

Mr. Senator exactly what is distressing you?  Short term hikes in the debt ceiling or short term cuts that are real?

goldsaver's picture

So let me get this straight because I am confused. Harry says that the new proposal gives the Republican their two major points 2.7T in deficit reduction that exceed the proposed debt ceiling increase and does not increases taxes. But he warns that Boehner should abandon his my way or the highway stance.

Ok, if he gives Boehner everything he is demanding, did he not get it his way?

ISEEIT's picture

Have you ever noticed that 'hairy reed' is a very creepy guy that doesn't get much face time? The dude is seriously fucked up. You can only play his game for so long without becoming destabalized.

Watch the players. The Left is about as phony and clueless as I have ever seen them. Bet they wished Bill was in charge about now.

That guy had no shame. He didn't give a rat's ass about fucking his fellow citizens (Glass-seagal-NAFTA). I understand that you useful idiots don't much care for the cognative dissonence that such reminders might subject you too.

Obamma is a narrsictic toy-boy of the elite, but he seemingly is not fully up to the task. The dude is hairy reeding on us.\

What a fucking clown.

Conrad Murray's picture

The Left is about as phony and clueless as I have ever seen them. Bet they wished Bill was in charge about now.

This is why the red team is able to hold out and push up against a default. Everyone thinks they will take the blame again, but Barry Hussein Soetoro is no Slick Willy. Odumbo is nowhere near as popular, outside of the radical Marxist circles anyhow.

buzzsaw99's picture

waiting for the "hitler finds out boehner won't raise the debt ceiling" video. until then:

jesse livermoore's picture

this is all noise...  the real headline is china and iran make a deal to trade oil for commodities cutting out the dollar.... this is how wars start i think.

RacerX's picture

So that story caught your attention too eh?

Big moves afoot..

CrashisOptimistic's picture

That story is not as big as people think.

Iran is post Peak.  Far, far, far worse, their domestic oil consumption is exploding.  They will have less and less to export, regardless of how it is paid for.

jesse livermoore's picture

no offense pal,  but how do you know what iran has or does not have.  what i mean is where are you getting your information.  all countries lie about oil reserves, it is not like iran government can be trusted to tell the truth.

SDRII's picture


Advisor to Bush as per article talks about regime succession and introduction of western technology in Iran and venezuela to harness the potential of the underutilized fields.

Iam_Silverman's picture

"this is how wars start i think."

Economic war or shooting war?

jesse livermoore's picture

one leads to the other.... just ask   kadaffi

r101958's picture

Yes, and all ole Parry Harry wants is carte blanche. What a pud.

kalum's picture

Fuc- Harry Reid and Obama,criminal looters of our country

Killer the Buzzard's picture

Where was their concern for certainty in the markets last year when they failed to pass a budget?  What a buffoon.

Yen Cross's picture

  Is there any (other)way to increase the response font size, other than Ctrl ++  Thanks for any insight Yen.