Yes, a deal is done. I won't bore you with all the stupid theatrics of the final back-and-forth, but the point is that the 'crisis' has been averted, at least for now. Here's a nutshell of the deal:
The agreement would slice at least $2.2 trillion from federal spending over a decade, a steep price for many Democrats, too little for many Republicans. The Treasury's authority to borrow would be extended beyond the 2012 elections, a key objective for Obama, though the president had to give up his insistence on raising taxes on wealthy Americans to reduce deficits.Here are a few final (I hope) points to convey, and then we'll hit some other stuff.
Liars and the Lies They Lie About
Hit the link to check out the other big lies (significant spending cuts, action on a balanced budget amendment, obtaining victory, and being on the verge of default). Bottom line: these people suck raw eggs, and are lying like a knock-off Persian rug.LIE #1: THE BOEHNER PLAN CONTAINS “NO NEW TAXES”
This was untrue with respect to Boehner 3.0 -– the version which passed the House –- and it’s untrue with respect to Boehner 7.0 –- the new “compromise” which emerged Sunday afternoon.
The potential tax increase resulting from Boehner (or the “compromise” which has emerged as a result of passing Boehner) will certainly be enormous and unfilibusterable, even though it is deliberately concealed from us now.
It will be hatched by a 7-man majority of a 12-man commission which will consist of six Pelosi/Reid Democrats and one frightened Republican. (Reid and Pelosi will not call it a “commission” for the same reason Satan doesn’t like the word “sin.”)
The commission will be prodded into action by a “trigger” –- probably across-the-board cuts which slash Medicare and defense in ways which won’t conceivably be allowed to go into effect.
The big tax increase will be unveiled using all the shibboleths (“millionaires and billionaires,” private jets, etc.). And, under the rules, Jim DeMint and Rand Paul will not be able to filibuster or amend it. The Jeff Flakes will, by that point, realize the folly they allowed to go forward. But their votes won’t be needed. In that hour, the Democrats will provide the needed votes.
And the only real alternative to a tax increase? Repealing the mechanism and raising the debt limit for a second tranche without any deficit reduction.
So, the message to Boehner-supporting House conservatives? Suckers!!!
Here's the dirty little secret: Moody's has already said that none of the plans being kicked around will avert a downgrade of the U.S.'s AAA credit rating. As we've been discussing, this is because the credit rating is based on spending habits rather than debt levels. Since none of these deals really made a significant change in the reckless spending coming out of Washington, a downgrade is still more or less assured.
Two final thoughts, first from Erick Erickson at RedState:
Back in 1994, Rush Limbaugh wrote See I Told You So. From page 88 of the book:
[T]he cure for: a) the budget deficit = more taxes; b) unemployment = more taxes; c) recession = more taxes; d) environmental problems = more taxes; e) illiteracy = more taxes; f) L.A. riots = more taxes. It doesn’t matter what the nature of the problem is.
This week, whether you listened to Rush, Sean, Mark, or even me filling in for Boortz, we’ve been telling you so. This whole farce in Washington is a way to get more tax revenue from you and despite public pronouncements from the Republicans that they were holding the line on tax revenue they were either (A) complicit behind the scenes or (B) going to get played.
We were right.
What we know about the pending deal is that the Democrats and Republicans are agreeing to a Deficit Commission. Despite the media spin — and the spin of some Republican sycophants — the deficit commission, which will be a super committee of the Congress, will have the power to come up with new tax revenue.
And if the Congress rejects the Commission’s demands for new tax revenue, there will be a trigger that cuts both medicare funding and defense funding.
Except, the defense funding cuts will be much more massive than the medicare cuts. And the GOP, in addition to seeing defense cut, would be hacking off seniors right before an election.
In other words, Republican Leaders are asking their members to accept tax increases or massive defense cuts and senior anger right before the election. Oh, and the medicare cuts technically wouldn’t come from beneficiaries, but from providers. Those same providers who’ll just stop taking medicare patients.
It’s not that the GOP got played so much as GOP leaders were collaborating on this. Boehner wanted a grand bargain and now he’s going to get it along with tax increases.
It boggles the mind how these Republicans are either so stupid they can't figure out that they just bent over for the Democrats again, or that they genuinely seem to think that the American people are so stupid that we don't know what they've done. I simply can't believe that they've deliberately flushed so much leverage -- not to mention their so-called principles -- down the toilet. They're going to have some explaining to do to a livid and rebelling base.
The real problem here is what will happen when the Tea Partiers and true conservatives chuck the Republican establishment. If that fracture occurs, and doesn't heal by the time the election comes around, Obama will manage to squeak out a victory and win himself another four years.
But time will tell on that. My final thought is this video from Americans for Prosperity that really says it all:
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