An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Friday, March 11, 2011
Death by a thousand cuts!
House Republicans are proposing another stopgap spending bill that would include an additional $6 billion in cuts. This would keep the government operating for three more weeks. If the measure passes that would mean $10 billion in spending reductions have so far gone into effect.
The GOP's goal--and it's pretty obvious at this point--is to achieve the total $61 billion spending reduction target one way or another, even if it means passing these ridiculous stopgap measures every few weeks.
Obama is totally absent from the budget debate as usual (today he's busy holding a White House Conference on bullying) leaving the Dems to flounder and once again pretty much capitulate on this.
The pathetic scene of the U.S. government on the verge of shutting down every two or three weeks is bound to have an effect on confidence. No wonder that since the budget debate began in February, stocks have fallen about 4-percent and are probably getting ready to head lower.
I know...I saw Obama was doing a conference on "bullying" and I was like WTF is wrong with this dude...what planet is this guy on. Honestly politics is so rotten these days it's just astounding.
ReplyDeleteMike,
ReplyDeleteAny chance that with Biden out of the country this week the Dems wouldnt engage this week?
As per the Wash. Post he has been put in the lead wrt negotiating the budget with the GOP...
Resp,
My feeling is Obama has already made up his mind on this and will accede to the cuts. Why he put Biden in charge is hard to say. Perhaps he wanted someone who could "test the waters" and set a very low starting offer. Biden spent a lot of years in Congress and knows many of the players personally.
ReplyDelete