Another credit downgrade is in the works in the likely event that the super committee punts on reining in spending and reducing debt. via Moodys ready to downgrade US if committee fails – YouTube.
There is some speculation that the White House wants the Super Committee to fail so that the President can continue his Campaign stump speech that the Congress is a “Do Nothing” entity and “we can’t wait” for them to act. The Presidents entire effort to get re-elected is that he says he will act without Congress from the executive branch. Senate Minority Leader Mitch McConnell, R-KY., today suggested that the […]
In an analyst note, Bofa/ML Ethan S. Harris drops a bit of a bombshell prediction: We expect a moderate slowdown in the beginning of next year, as two small policy shocks—another debt downgrade and fiscal tightening—hit the economy. The “not-so-super” Deficit Commission is very unlikely to come up with a credible deficit-reduction plan. The committee is more divided than the overall Congress. Since the fall-back plan is sharp cuts in […]
Congressional leaders met this week with two of the most important people in Washington: the co-chairmen of the Joint Committee for Deficit Reduction. There was only one problem: House Minority Leader Nancy Pelosi didn’t even know the meeting was taking place. With work on the all-important super committee finally kicking into high gear, panel co-chairmen Sen. Patty Murray (D-Wash.) and Rep. Jeb Hensarling (R-Texas) met with Senate Majority Leader Harry […]
It’s an Old Democrat trick.. Show us you are sincere and raise taxes first and then we will Cut spending. Ronald Reagan fell for this as a Democratic Congress asked him to sign tax hikes under the promise that the Democrats would send spending cuts to his desk at a later date. Reagan never saw those Tax cuts. I submit that the GOP will never see real cuts from the […]
It’s the top headline on Drudge right now and a few folks are buzzing about it on Twitter, too. Yesterday, I wrote about the likely cuts to defense funding that will come if (when?) the Super Committee deadlocks. Now, it looks like progressives on the Committee might actually have equal impetus to ensure the Gang of 12 arrives at $1.2 trillion in deficit reduction, after all. The signature accomplishment of […]