Within minutes after the House of Representatives sent the approved John Boehner plan for raising the debt ceiling to the U.S. Senate, Majority Leader Harry Reid tabled it. Instead, he proposes to issue his own plan for a vote in the Senate on Sunday. Meanwhile, the House will vote today at 1pm on a copy of the Reid plan, based on hearsay since there is no actual bill yet, where Majority Leader Eric Cantor predicts it will be defeated. They may as well also vote on the Obama debt plan, since that does not exist either. After the motion to table the Boehner plan, Harry Reid appeared before cameras in a quick press conference, claiming that the Senate Republicans were going to filibuster his plan. Reid whined about how the Senate could not do a simple majority vote as in the House.
In my piece yesterday about ″Countdown to Obama-geddon″, I detailed how the Gross Domestic Product is just absolutely anemic. Not only was the 2nd Quarter number ′unexpectedly lower′ at 1.3% annual GDP growth rate, but the 1st Quarter was downgraded from 1.9% to just 0.4%. Which, of course, begs the question that the current 2Q number will also be downgraded when adjusted. The more rational analysts say that our GDP level has retracted to the lowest level during the initial crash in 2008 when adjusted for inflation.
The truth about the state of our economic dilemma is unknown. Harry Reid claims that his plan fro raising the debt ceiling will cut $2.7 Trillion dollars from the budget. But his numbers use the baseline budget growth rate of 8% annually. In other words, if we simply kept spending levels as they are now for the next 10 years, Reid could claim some $9.5 Trillion dollars in spending cuts. So the reality is that Reid is not offering any actual spending cuts in his plan to raise the debt limit, just the promise of reduced growth, and not all that much. The John Boehner plan, on the other hand, does have actual spending cuts. The Barack Obama debt plan, which does not exist, follows much the same as Reid′s. Meanwhile, the alleged deadline is just 3 days away and the odds are that even if a deal is struck, our Treasury bonds will get downgraded. Obama-geddon is just around the corner.