A reworked John Boehner debt ceiling plan will be voted on today in the House of Representatives. The question now is, will enough of the 87 Tea Party Congressmen go along and support House Speaker John Boehner. The tweaked plan calls for $917 Billion in CBO verified spending cuts and a $900 Billion increase to the debt limit. Senate Democrats, led by Majority Leader Harry Reid, are already threatening to squash the bill when it arrives in the Senate. With now only 5 days left to go before the August 2 debt ceiling deadline, will Democrats violate the 14th Amendment and deliberately default on bond obligations?
Boehner gathered the House Republicans yesterday and basically told them to get their “a**es in line” and back the bill. Wall Street responded to the chaos in Washington with the Dow Jones losing nearly 200 points, finishing the day down about 1.5%. The real test, however, is with the bond market. Sales of short-tern notes due right after August 2 were up as the bonds were being dumped as people fear not being paid.
Meanwhile, Barack Obama was unusually quiet yesterday. Perhaps the negative feedback from his ridiculous prime-time address to the nation has him thinking twice? So far, neither he nor Harry Reid have submitted anything in writing that can be voted on. Of course, this is normal as the Democrats have not submitted any budget bills for over 800 days. One wonders why they bother to show up at all?
Only House Republicans, led by Speaker John Boehner have put any debt ceiling plans in writing. The latest one would increase the debt limit by $900 Billion dollars, enough to fund Obama′s wild spending ways only until about February, 2012. The Tea Party caucus appears to be satisfied with Boehner′s $917 Billion in actual spending cuts, scored and verified by the CBO. Yet Senate Democrats led by Harry Reid and encouraged by Barack Obama vow to squash the bill, even though the August 2 debt ceiling deadline is only 5 days away. Democrats still Obama can use the 14th Amendment to arbitrarily raise the debt limit without Congressional approval, which goes way beyond the terms of the Amendment.