UPDATE @10:00AM Sunday: Harry Reid sidetracked by Obama and McConnell. Heh. That may be the only good thing to come out this “deal” being negotiated in secret. Remember those promises of “transparency”?
UPDATE @9:30PM MDT: A “DEAL’ is in the works between Mitch McConnell and Obama. These deals that sell-out Republicans make with Democrats always mean the same thing: The American people get screwed again. They will raise the debt ceiling by all that Obama wants and there will be “promises” of spending cuts that will never actually occur. I’d say we might hope the 43 Republicans senators that signed the letter to Harry Reid will tell Mitch McConnell to go pound sand. But Mitch McConnell is one of the 43. Will the other 42 cave along with him? It will only take two more to give him his “deal.” No deal is always better than a bad deal. Why can’t Republicans learn that simple lesson?
Harry Reid has made a big show out of telling John Boehner that his debt ceiling bill is dead on arrival in the Senate. So 43 Republican Senators have signed a letter telling Harry Reid his alternative bill is dead — meaning it can’t even arrive anywhere. Since it takes 60 votes in the Senate to bring a bill to a vote, Reid’s threat to Boehner is effectively countered. The usual suspects in the Republican caucus refused to sign the letter, namely RINOs Susan Collins, Olympia Snowe, Scott Brown, and Lisa Murkowski.
The House voted on the Reid Bill this morning even though it has not even been brought to a vote yet in the Senate, and won’t be until Sunday afternoon. The House defeated it 173-246. Under the procedure used in the House the Reid bill needed a 2/3 majority. I didn’t even get a majority. Every Republican voted no.
The Boehner Plan contains spending reductions over ten years of only $900 Billion. The Reid bill will probably contain tax increases and no spending reductions. Keep that in mind and consider the following:
Standard & Poor’s says it may downgrade the U.S. Credit rating within 3 months if the debt to GDP ratio is not reduced. It is near 75% now and will approach 84% by 2013. [Obama cannot be expected to care about that because it will be after the 2012 election]. But S&P cares about it.
S&P does not believe the U.S. will default on its bond obligations if the debt ceiling is not raised, contrary to the Obama/Reid Scare tactics. To avoid a downgrade, S&P says the U.S. must do the following:
1) reduce the debt by about $4 trillion; 2) agree to a credible plan within three months; and 3) guarantee that this newfound fiscal discipline will actually stick.
Numbers 1 and 3 are not going to happen while Barack Obama is President and/or the Democrats control the Senate. Hell, even the Republicans won’t do either of those things. Looks like a downgrade is in America’s future. Isn’t that going to make it harder for Obama to keep borrowing no matter what the politicians do with the debt ceiling? Well, I guess it will just make the interest rate go up all new bonds, which includes old t-bills that are rolled over. So the debt will go up as Obama continues to borrow to pay it, and the debt ratio to GDP will go up.
There is only one conclusion to be reached here. This country can no longer afford liberalism. Here’s what John Hinderaker says:
Liberalism is a sort of parasite that feeds on the wealth that free enterprise creates. Liberalism exists for two reasons: 1) to stuff the pocketbooks of those who have learned to live at the taxpayers’ expense, and 2) to feed the moral vanity of those who can’t resist meddling in other peoples’ lives. When times are good, the economy can drag a fair amount of liberalism along behind it. But when times are hard, liberalism is a luxury we can’t afford.
Yeah for those 43 Republicans Senators, and the Tea Party House Republicans that made Boehner rework his plan. Shame on the four RINOS who refused to sign the letter to Harry Reid. They should come clean and become Democrats.