Money Printing Press

There was a debt ceiling deal signed into law today. The text of the bill was released to the press only minutes before the vote went down. I wonder why that was? So, this new debt ceiling increase does a bit more than you might expect.

“This amendment is a significant development for future debt ceiling negotiations as it will forever remove the uncertainties associated with prolonged and disruptive negotiations on this issue,” Millan L. Mulraine of TD Securities said in a note to clients. “By design, the amendment makes future debt limit increases automatic, removing the specter that this issue could again be used by a minority as a bargaining chip in the future.”

Well, actually no, both Republican and Democratic Senate officials said.

This procedural maneuver in question is called the “McConnell rule,” as it is the brainchild of Senator Mitch McConnell of Kentucky, the Republican leader.

Indeed, if Congress put the McConnell rule into effect permanently, it would make it impossible for a small group of lawmakers to push the country into default. But the law puts it into effect only temporarily. Starting now, the Treasury Department is allowed to issue as much debt as needed through Feb. 7. There is no specific number for debt limit.

At that point, however, everything reverts to the previous rule, which requires Congress to raise the debt limit in some way for Treasury to increase the total amount of official borrowing. Mr. Obama would lose the ability to issue debt as needed. Treasury can still employ “extraordinary measures” to keep paying its bills. Eventually, unless Congress acts, another cash squeeze would set in.

The deal explicitly includes an option for Congress to object to the president’s increasing the country’s debt. And Mr. McConnell intends to introduce such a motion, an aide said. But because it would need to pass through Congress and then override a presidential veto, it is just a symbolic gesture. (Democrats, who control the Senate, would never go along with it.)

It's easy to see where this goes. The Treasury Department can just add more debt. The debt could be increased by enough to negate the issue for years to come. While that's not unheard of; congress will not be involved in determining what that amount should be.

Basically the Republicans did much worse than just give away their bargaining ability --they gave debt control entirely to their political opponents. This was done in a not so up front way. I bet that will do the Republicans a lot of good come primary season.

I predict that the debt will be increased by a modest amount right now. Then in when February comes around the Treasury Department will increase the amount of debt drastically to avoid another debate.

This is why I agree with the idea that there is a political class --ruling, not governing. This is why the Republicans attacked Ted Cruz, he is not ruling, he's representing. There must be a movement to vote out the "ruling" Republicans from office in the primary season.

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Mount Tabor Reservoir

Forget politics for the moment. This story is amazing. Some dude decides to take a tinkle in a reservoir and they shut the whole water plant down!

Portland officials say a 21-year-old man admitted urinating in a Mt. Tabor reservoir early Wednesday, forcing the city to take a key water supply off line.

It gets even better though. Not only are they really worried about the urine they plan to dump all of the water!

David Shaff, administrator for the Water Bureau, said about 7.8 million gallons of drinking water will be discarded because of the incident. He originally said that will cost the bureau about $600,000 in lost revenue but later clarified that his math was very wrong, and that the water would have sold for a retail price of almost $28,500, and disposal fees are expected at about $7,600.

Shaff said the Water Bureau regularly finds dead animals in the same drinking supply but doesn't dump the water. "This is different," he said.

"Do you want to drink pee?" he asked bluntly.

When questioned about scientific data and the small amount of urine in such a large reservoir, he interjected: "Answer the question. It has nothing to do with scientifically.

"Most people," he added, "are gonna be pretty damn squeamish about that."

Wow!

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Hairy Reed

Harry Reid said something the other day which perfectly illustrates what's wrong with government.

Here is a transcript of Reid's remarks.

Bash: You all talked about children with cancer unable to go to clinical trials. The House is presumably going to pass a bill that funds the NIH. Will you, at least, pass that? And if not, aren't you playing the same political games that republicans are?

REID: Listen, Senator Durbin explained that very well. And he's, did it here, did it on the floor earlier, as did Senator Schumer, and it's this: What right do they have to pick and choose what part of government's going to be funded? It's obvious what's going home here. You talk about reckless and irresponsible. Wow. What this is all about is Obamacare. They are obsessed. I don't know what other word I can use. I don't what other word I can use. They are obsessed with this Obamacare thing.

As has been pointed out on the floor in the past few days, they did the same thing on Social Security, they did the same thing on Medicare, now they're doing it on this. It's working now and it'll continue to work and people will love it even more than they do now by far. So they have no right to pick and choose.

DANA: But if you can help one child, why won't you do it?

REID: I, listen...

SCHUMER: Why pit one against the other?

REID: Why, why, why would we want to do that? I have, I have 1100 people at Nellis Air Force Base that are sitting home. They have, they have a few problems of their own. This is, to have someone of your intelligence suggest such a thing maybe means you're as irresponsible and reckless.

OK Harry, I'll play your game! Why is Obamacare more important than the 1100 people sitting at home instead of working at Nellis Air Force Base and more important than the kid with cancer?

The majority of the American people don't want Obamacare. As more people realize what Obamacare really is; more don't want it. Why legislate against the will of the American people Harry? Where is your compassion?

Also let it be known that those who are currently furloughed will receive back-pay once the shutdown ends. In reality the government workers who are furloughed because of the shutdown are essentially getting a paid vacation. Look at it this way, they will get back the money that they lost in the sequester!

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One thing we can agree on

I'm sure you've heard it said that the Left is playing Chess and the Right is playing Checkers. Well this is another one of those moments.

Let's go with what we know. The public is largely against Obamacare at this point. But the public also doesn't have much of a clue as to how government funding works. Defunding Obamacare sounds great, but most people don't know that defunding would only work for one budget year. Obamacare would likely be funded in October of 2014 anyway.

Because Republicans have not really tried to stop Obamacare they are now stuck in the middle of another loosing battle. Consider this; the Republicans pass a measure in the House to fund the government except for Obamacare (which they have) the Senate is supposed to stop it right? Well what if they don't (by design) what if the Senate agrees to stop funding for Obamacare? Would Obama really sign it? I think he would.

If a bill to defund Obamacare (for one year, like the current one) came to the desk of Obama he would sign it in a hurry, because it's not really going to defund it, just delay it for a year. Everyone in Congress knows this. Obama wins both ways. He can claim that he has listened to the voice of the American people and is now going to delay implementation until they can work out some of the kinks. This is a double edged sword because it means that Obama can blame all of the current turmoil on Republicans. Also he will benefit from rising healthcare costs; he can claim it's because Obamacare was delayed, it would have reduced prices. Delaying Obamacare doesn't kill it, it just makes it stronger, because Obamacare lives by ambiguity. Obamacare relies on implementation first then figure it out.

I think the Republicans hold no real sway anyway because the American people have lost faith in their leadership. People might not like Obamacare, but also don't think that the Republicans can kill it.

Republicans will have spent all their political capital in 2013 instead of waiting until 2014, and election year, after people have had a taste of how nasty Obamacare really is.

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Obama Throwing Missile at Syria

Obama noted that there is a red line that Syria must not cross, or there will be enormous consequences.

On Syria, obviously this is a very tough issue. I have indicated repeatedly that President al-Assad has lost legitimacy, that he needs to step down. So far, he hasn’t gotten the message, and instead has double downed in violence on his own people. The international community has sent a clear message that rather than drag his country into civil war he should move in the direction of a political transition. But at this point, the likelihood of a soft landing seems pretty distant.

What we’ve said is, number one, we want to make sure we’re providing humanitarian assistance, and we’ve done that to the tune of $82 million, I believe, so far. And we’ll probably end up doing a little more because we want to make sure that the hundreds of thousands of refugees that are fleeing the mayhem, that they don’t end up creating -- or being in a terrible situation, or also destabilizing some of Syria’s neighbors.

The second thing we’ve done is we said that we would provide, in consultation with the international community, some assistance to the opposition in thinking about how would a political transition take place, and what are the principles that should be upheld in terms of looking out for minority rights and human rights. And that consultation is taking place.

I have, at this point, not ordered military engagement in the situation. But the point that you made about chemical and biological weapons is critical. That’s an issue that doesn’t just concern Syria; it concerns our close allies in the region, including Israel. It concerns us. We cannot have a situation where chemical or biological weapons are falling into the hands of the wrong people.

We have been very clear to the Assad regime, but also to other players on the ground, that a red line for us is we start seeing a whole bunch of chemical weapons moving around or being utilized. That would change my calculus. That would change my equation.

Q So you're confident it’s somehow under -- it's safe?

THE PRESIDENT: In a situation this volatile, I wouldn’t say that I am absolutely confident. What I’m saying is we’re monitoring that situation very carefully. We have put together a range of contingency plans. We have communicated in no uncertain terms with every player in the region that that’s a red line for us and that there would be enormous consequences if we start seeing movement on the chemical weapons front or the use of chemical weapons. That would change my calculations significantly.

Obama said, "We cannot have a situation where chemical or biological weapons are falling into the hands of the wrong people." My best guess is that the Russians are correct and the "wrong people" already have control of some of those weapons --not that Bashar al-Assad is much better. If we weaken Assad and the weapons aren't secured there is absolutely no reason to be there. Securing the weapons would require boots on the ground.

It comes down to this; with all that this administration has done to hoodwink the American people, Americans are skeptical of anything Obama claims as fact.

Obama said that Bashar al-Assad has lost credibility, that may be. On the American front Obama has lost credibility. Perhaps for the first time since his presidency the media really can't cover for him.

Either Obama and his administration are ignorant, or his/their agenda is far worse than we thought. Regional destabilization. I believe that this is their goal.

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