This really ups the ante on a fight that has been simmering ever since the House GOP made the decision to renege on the debt limit deal:
In a major escalation of a slowly building fight over funding the government, the White House has warned House Republicans, in no uncertain terms, that the government will shut down in September if the GOP does not adhere to an agreement they cut with Democrats in August during the standoff over raising the nation’s debt limit.
“Until the House of Representatives indicates that it will abide by last summer’s agreement, the President will not be able to sign any appropriations bills,” writes Jeffrey Zients, acting director of the White House’s Office of Management and Budget, in a letter addressed to congressional appropriators Wednesday.
Not many letters from the Office of Management and Budget are breathtaking, but this one is. First, a little backstory. Last August, Congress passed the Budget Control Act, which set spending caps for discretionary funding going out ten years. For Fiscal Year 2013, this means a discretionary budget of $1.047 trillion, and it even sets a defined split between defense and non-defense programs. But conservatives considered that cap too high, and reasoned that the legislation set a ceiling but not a floor. So in the House budget that was “deemed” passed this week, they dropped $19 billion below the target for discretionary spending in the BCA, with all of it coming out of non-defense programs.
The White House obviously feels that breaks the deal. Zients, in the letter to House Appropriations Committee chair Hal Rogers (R-KY), cites this as a $28 billion cut, along with the rejection of a reserve fund for disaster assistance, which adjusts the cap in the BCA upwards depending on the emergency disaster spending made by the government (it could be that Zients is lumping in the program cuts with the rejection of the disaster relief allowances). “The result is that the Resolution’s framework allows only two options,” Zients wrote. “Every appropriations bill will provide inadequate funding, or some bills will provide adequate funding so that other bills will face even deeper, more problematic cuts.” Zients states clearly that this is unacceptable, and that no business will move forward on the budget until the House walks back their budget resolution.
Keep in mind that $1.047 trillion for FY 2013 is actually too low. It reduces public investment to a very small portion of GDP, and puts discretionary spending at its lowest level since the days of Dwight Eisenhower (and no, Mr. President, this is nothing to brag about). Conservatives want to drop that even more, but we’ve finally found the line in the sand at 1600 Pennsylvania Ave., and this is it.
The FY2012 budget ends September 30 and some funding mechanism must be in place at that time. The White House marker is that such funding must rise to the level of the Budget Control Act targets. There’s no wiggle room in there at all. The White House must feel they would have the upper hand in a government shutdown fight that would play out just weeks before the Presidential election.
Wow.
I think Republicans have real vulnerabilities in this fight, which will play out over several months. John Boehner has no room to maneuver. He clearly cannot pass a budget or even a continuing resolution with his preferred cuts. And if he gives in to the White House and passes something at the $1.047 trillion level, he’ll lose substantial amounts of Republicans to his right. So far in his tenure, Boehner has not secured a deal that would require large amounts of Democrats for passage. But that appears to be his only option short of a shutdown.
This little mini-drama will loom over Congress and the President right up until the election.





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Undoubtedly, Eric “Creep Vibe” Cantor is waiting in the wings, shank in hand, just looking for the right opportunity to twist it into Boehner’s back. Oh, and speaking of orange people, fuck Boehner, too.
AND THE KILLIN’ GOEZ ON AND ON AND…
Citizen David Dayen:
Every single move over the last 4 years from this White House mirrors 1992-96. Remember Rahm’strategy of 1992-94 which was to get Democrats to accept dismantling fundamental safety net programs to alienate the congressional Democrats’ base and then force a tax increase just before the off year election? When Clintonarahma then walked away from incumbant Democrats during the off-year election, he managed to loose the Democratic Majority in the house for the first time in 50 years and provide cover for Clinton and the neo-liberal bankers to open the treasury to the stock market casino. The rest, as they say is “history”.
Now, if the testicles ObamaRahma seems to have grown in threatening a shutdown in an election year really function and produce some testosterone, then we should see some action administratively with executive orders like non-discrimination in federal contracts and Justice Department investigation of the constitutionality of voters supression laws which will shore up the Democratic base and energize movements at the state level like here in Wisconsin.
Even the appearance of standing up for Democratic principles will go a long way toward getting the vote out where it matters most…do you think ObamaRahma will walk the walk?
KEEP THE FAITH AND PASS THE AMMUNITION, ALL THEY GOT IS OUR MONEY!!
And we know how Obama can be when he “digs in his heels”.
ON second thought…….no we don’t. Do his shoes even HAVE heels?
Wow. What if they tripped, fell on the shiv, and killed each other.
..
..
WE can only hope.
It isn’t like there’s a money problem, haha.
In February the government set a modern-day record for DAILY deficits — a shade less than $8 billion. Last month was better, the government only overspent by $6.4 billion per day. The daily deficits for Feb & Mar a year ago were 7.9/6.1 B/dy and the calendar year 2011 average daily deficit was $3.423 billion per day, so the spending deficit is worsening.
Election year kabuki, and a bright shiny object to deflect attention over the summer.
There will be a compromise, probably resurrection of Simpson-Bowles (aka: Catfood Commission) as evidenced by the current push by the retiring (and therefore cannot be blamed) Kent Conrad.
I like the way you think.
I have given up predicting whether Obama will take a stand or not. As a progressive you are always bound to be disappointed. I can’t even count the number of times I have heard “I don’t care if he loses if he would just fight on this one.” But that’s no-drama-obama.
(click to vote in new window)
Read up on Modern Monetary Theory.
The deficit is not the problem. The social policies exhibited in the tax code ARE the problem.
T-Bills are a fungible as dollars. Deficit spending is paid for currently by issuing interest bearing money. There is no reason the deficit could not be funded by issuing dollars and increasing the non-interest bearing money supply,
Interest bearing money both benefits the private sector, and transfers wealth to the wealthy.
Second try:
I have given up predicting whether Obama will take a stand or not. As a progressive you are always bound to be disappointed. I can’t even count the number of times I have heard “I don’t care if he loses if he would just fight on this one.” But that’s no-drama-obama.
Click to vote
Click to review.
I voted for Noh-drama Obama in 2008, but all I got was Kabuki. :-(
Deficits do not matter when, like the United States, you are a nation sovereign in its own fiat currency and your currency, like the dollar, is the preferred international currency used in foreign trade.
All of the attention and pearl clutching over the deficit is utter nonsense.
Why are both sides doing it?
Because they want to fool people into believing that social programs, including Social Security, Medicare and Medicaid, must be eliminated and government spending must be cut to the bone and the government privatized to the maximum extent possible to make it more efficient, balance the budget, and eliminate the deficit.
Absolute hogwash!
The President threatening uber-austerity seems more like #winning than winning. Then again this is showing how misguided President Catfood with him letting the catfood out of the bag that austerity is a WMD despite his best efforts to bombard the populace with Obamasterity.
Ah, the Modern Monetary Theorists are coming out of their hidey-holes again ready to mint a trillion-dollar coin that will solve the nation’s financial problems. Something for nothing! What a concept. Why not take it to the extreme and eliminate all government revenue? Just print money. Who cares about inflation, and who can predict future interest rates on a huge national debt.
And then there are the non-thinkers while saying that deficits don’t matter conclude that a balanced budget necessarily entails cutting social programs, without considering the needless waste of the “national security” boondoggle.
Who gives a shit?
Treasury interest rates are under the control of the fed. Inflation can be controlled with taxes. Taxes can also redistribute income from the plutocrats. We pay too much tax these days.
We do not need a balanced budget. And we do not need to cut any social programs. Might be nice to cut the waste in defense spending though. You should be on Obama’s staff. He believes most of that shit.
That debt deal was the dumbest of the dumb. Obama should seriously hire the erudite Beowulf for some help on this kind of stuff. Obama obviously knows jack shit about any of it.
We’ve got Grendel’s Mother in the White House
Nice letter Jeffrey. “Acting director”….huh?
Now, let’s see what actually happens.
“Until the House of Representatives indicates that it will abide by last summer’s agreement, the President will not be able to sign any appropriations bills,” writes Jeffrey Zients, acting director of the White House’s Office of Management and Budget, in a letter addressed to congressional appropriators Wednesday”
If any Bill shall not be returned by the President within ten Days (Sundays excepted) after it shall have been presented to him, the Same shall be a Law, in like Manner as if he had signed it, unless the Congress by their Adjournment prevent its Return, in which Case it shall not be a Law.
US Const. Art I, Sect 7
See the grand bargain is already in place! :o)
I call bullshit!
Not accounting for inflation and GDP that number is meaningless.
(We were objectively ‘more in debt’ during WWII and the sky didn’t fall then).
Fixed that for you.
-stewartm
Obama showing balls? I wonder what that would even look like?
I’m sure it won’t happen however. Hasn’t yet. Why should he start now?