PDA

View Full Version : Congress votes to end shutdown, avoid US default



Teh One Who Knocks
10-17-2013, 10:41 AM
By DAVID ESPO - The Associated Press


http://i.imgur.com/0Ve2bQh.jpg

WASHINGTON (AP) — Up against a deadline, Congress passed and sent a waiting President Barack Obama legislation late Wednesday night to avoid a threatened national default and end the 16-day partial government shutdown, the culmination of an epic political drama that placed the U.S. economy at risk.

The Senate voted first, a bipartisan 81-18 at midevening. That cleared the way for a final 285-144 vote in the Republican-controlled House about two hours later on the bill, which hewed strictly to the terms Obama laid down when the twin crises erupted more than three weeks ago.

The legislation would permit the Treasury to borrow normally through Feb. 7 or perhaps a month longer, and fund the government through Jan. 15. More than 2 million federal workers would be paid — those who had remained on the job and those who had been furloughed.

After the Senate approved the measure, Obama hailed the vote and quickly signed the bill early Thursday. "We'll begin reopening our government immediately, and we can begin to lift this cloud of uncertainty from our businesses and the American people," the president said.

In the House, Rep. Harold Rogers, R-Ky., said, "After two long weeks, it is time to end this government shutdown. It's time to take the threat of default off the table. It's time to restore some sanity to this place."

The stock market surged higher at the prospect of an end to the crisis that also had threatened to shake confidence in the U.S. economy overseas.

Republicans conceded defeat after a long struggle. "We fought the good fight. We just didn't win," conceded House Speaker John Boehner as lawmakers lined up to vote on a bill that includes nothing for GOP lawmakers who had demand to eradicate or scale back Obama's signature health care overhaul.

"The compromise we reached will provide our economy with the stability it desperately needs," said Senate Majority Leader Harry Reid, declaring that the nation "came to the brink of disaster" before sealing an agreement.

Senate Republican leader Mitch McConnell, who negotiated the deal with Reid, emphasized that it preserved a round of spending cuts negotiated two years ago with Obama and Democrats. As a result, he said, "government spending has declined for two years in a row" for the first time since the Korean War. "And we're not going back on this agreement," he added.

Only a temporary truce, the measure set a time frame of early this winter for the next likely clash between Obama and the Republicans over spending and borrowing.

But for now, government was lurching back to life. After Obama signed the bill, Sylvia Mathews Burwell, director of the Office of Management and Budget, issued a memorandum ordering department heads to "open offices in a prompt and orderly manner."

"All employees who were on furlough due to the absence of appropriations may now return to work," Burwell said.

After weeks of gridlock, the measure had support from the White House, most if not all Democrats in Congress and many Republicans fearful of the economic impact of a default.

Boehner and the rest of the top GOP leadership told their rank and file in advance they would vote for the measure. In the end, Republicans split 144 against and 87 in favor. All 198 voting Democrats were supporters.

Final passage came in plenty of time to assure Obama's signature before the administration's 11:59 p.m. Thursday deadline.

That was when Treasury Secretary Jacob Lew said the government would reach the current $16.7 trillion debt limit and could no longer borrow to meet its obligations.

Tea party-aligned lawmakers who triggered the shutdown that began on Oct. 1 said they would vote against the legislation. Significantly, though, Texas Sen. Ted Cruz and others agreed not to use the Senate's cumbersome 18th-century rules to slow the bill's progress.

In remarks on the Senate floor, Cruz said the measure was "a terrible deal" and criticized fellow Republicans for lining up behind it.

McConnell made no mention of the polls showing that the shutdown and flirtation with default have sent Republicans' public approval plummeting and have left the party badly split nationally as well as in his home state of Kentucky. He received a prompt reminder, though.

"When the stakes are highest Mitch McConnell can always be counted on to sell out conservatives," said Matt Bevin, who is challenging the party leader from the right in a 2014 election primary.

More broadly, national tea party groups and their allies underscored the internal divide. The Club for Growth urged lawmakers to vote against the congressional measure, and said it would factor in the organization's decision when it decides which candidates to support in midterm elections next year.

"There are no significant changes to Obamacare, nothing on the other major entitlements that are racked with trillions in unfunded liabilities, and no meaningful spending cuts either. If this bill passes, Congress will kick the can down the road, yet again," the group said.

Even so, support for Boehner appeared solid inside his fractious rank and file. "There are no plots, plans or rumblings that I know of. And I was part of one in January, so I'd probably be on the whip list for that," said Rep. Thomas Massie of Kentucky.

The U.S. Chamber of Commerce came out in favor of the bill.

Simplicity at the end, there was next to nothing in the agreement beyond authorization for the Treasury to resume borrowing and funding for the government to reopen.

House and Senate negotiators are to meet this fall to see if progress is possible on a broad deficit-reduction compromise of the type that has proved elusive in the current era of divided government.

Additionally, Health and Human Services Secretary Kathleen Sebelius is to be required to produce a report stating that her agency is capable of verifying the incomes of individuals who apply for federal subsidies under the health care law known as Obamacare.

Obama had insisted repeatedly he would not pay "ransom" by yielding to Republican demands for significant changes to the health care overhaul in exchange for funding the government and permitting Treasury the borrowing latitude to pay the nation's bills.

Other issues fell by the wayside in a final deal, including a Republican proposal for the suspension of a medical device tax in Obamacare and a Democratic call to delay a fee on companies for everyone who receives health coverage under an employer-sponsored plan.

The gradual withering of Republicans' Obamacare-related demands defined the arc of the struggle that has occupied virtually all of Congress' time for the past three weeks.

The shutdown began on Oct. 1 after Cruz and his tea party allies in the House demanded the defunding of the health care law as a trade for providing essential government funding.

Obama and Reid refused, then refused again and again as Boehner gradually scaled back Republican demands.

The shutdown initially idled about 800,000 workers, but that soon fell to about 350,000 after Congress agreed to let furloughed Pentagon employees return to work. While there was widespread inconvenience, the mail was delivered, Medicare continued to pay doctors who treated seniors and there was no interruption in Social Security benefits.

Still, national parks were closed to the detriment of tourists and local businesses, government research scientists were sent home and Food and Drug Administration inspectors worked only sporadically.

FBD
10-17-2013, 11:19 AM
you fuggin sellouts

RBP
10-17-2013, 11:36 AM
After all that, they got nothing? zero? zilch? For fucks sake.

I don't believe the line that government spending has declined. If government has spending declined we wouldn't need to raise the debt ceiling. Right?

Acid Trip
10-17-2013, 01:13 PM
After all that, they got nothing? zero? zilch? For fucks sake.

I don't believe the line that government spending has declined. If government has spending declined we wouldn't need to raise the debt ceiling. Right?

Don't confuse our annual budget deficit with the national debt. Say we spent 4 trillion last year and 3 trillion this year. That shows our government spending has declined. Our national debt still went up (only about 2 trillion was covered by taxes) but it went up less than the year before.

PorkChopSandwiches
10-17-2013, 01:21 PM
Caving to nothing after all this is worse than just accepting it in the beginning, what a bunch of faggots

Teh One Who Knocks
10-17-2013, 01:25 PM
Caving to nothing after all this is worse than just accepting it in the beginning, what a bunch of faggots

Yes and no...with all the (unfair) bad press the republicans were getting, it was time to cut their losses and get something done. Had the government gone into default (perceived default, not default in reality because the government takes more than enough money to make debt payments), it would have been 10 times worse for the republicans because the media (and the administration/democrats) are painting them as the evil ones holding the American people and government hostage.

PorkChopSandwiches
10-17-2013, 01:33 PM
IDK, I see your point. But, I dont see how this "stunt" did them any favors either.


2016 Porky for Hope and Change




:facepalm:

Jezter
10-17-2013, 01:44 PM
So...a few months of extra time to breathe, bitch, whine, blame games, crying and in minute amounts creative debate. Then the same "Doomsday clock" will be started again. Getting deeper into debt to pay fractions of the ginormous debt you already have. Seems to be working well, this... Every year the same old, same old.

Jezter
10-17-2013, 01:47 PM
(perceived default, not default in reality because the government takes more than enough money to make debt payments)

The cash reserve would have lasted only for so long though... I don't remember the exact estimates, but it was at tops and most positive 30 or so days.

Acid Trip
10-17-2013, 01:54 PM
The cash reserve would have lasted only for so long though... I don't remember the exact estimates, but it was at tops and most positive 80 or so days.

That is totally incorrect. The interest payments on the national debt are $25 billion per month and the government takes in over $200 billion a month in taxes. That means we would not default (as in not paying international creditors) but some parts of government would go unfunded.

Parts of government being unfunded and defaulting aren't even close to the same.

Jezter
10-17-2013, 01:59 PM
That is totally incorrect. The interest payments on the national debt are $25 billion per month and the government takes in over $200 billion a month in taxes. That means we would not default (as in not paying international creditors) but some parts of government would go unfunded.

Parts of government being unfunded and defaulting aren't even close to the same.

22 billion in cash you have, about. The daily intake of taxes varies a lot. Trying to pay everything to keep your country running, paying creditors... the money would've run out quite fast without more loans. 23rd you have to pay 9 billion (social aid) and so if no more loan, I think there would have been a lot of craziness going on who is going to get paid first and who wont at all...so while not instant default, it would have been pretty much game over any way.

Acid Trip
10-17-2013, 02:11 PM
I think there would have been a lot of craziness going on who is going to get paid first and who wont at all...so while not instant default, it would have been pretty much game over any way.

You're right, it would have been crazy as hell; however, we would NOT have defaulted in regards to paying our international creditors. Anyone peddling that idea is fear mongering.

Take it from the evil banker "We would not have defaulted." Period, hands down, no questions on that. There are millions of other consequences but default was not one of them.

Jezter
10-17-2013, 02:14 PM
You're right, it would have been crazy as hell; however, we would NOT have defaulted in regards to paying our international creditors. Anyone peddling that idea is fear mongering.

Take it from the evil banker "We would not have defaulted." Period, hands down, no questions on that. There are millions of other consequences but default was not one of them.

Yeah, maybe not. Not right away any way..but still, it would have taken a lot of trust (which you luckily have!) from international creditors and no one even dares to imagine the domestic shit storm...

Congressional Budget Office says the government would run out of cash and must slash spending by 32 percent over the next month. President Barack Obama would get to choose which bills to pay first and which programs and services to cut and by what extent.

By the end of this month, the government must make a $6 billion interest payment. If it lacks the money, the U.S. would be forced to default for the third time in history. Some analysts say a default is unlikely because creditors are likely to get paid first, but acknowledge that steep and sudden spending cuts will be a shock for many Americans.

Teh One Who Knocks
10-17-2013, 02:24 PM
Even if the deal had not gone thru, the only way the United States would have defaulted on its debt obligations would have been if the current administration made a conscious decision NOT to pay the debt payments, otherwise, as AT pointed out, the US federal government takes far more money in taxes every month than what the current debt payments are.

Teh One Who Knocks
10-17-2013, 02:52 PM
IDK, I see your point. But, I dont see how this "stunt" did them any favors either.

With Obamacare as unpopular as it is, I don't think they (the republicans) expected the backlash to be mostly negative against them. I assume they were thinking that the anger would be directed at the WH and the democrats that forced Obamacare down our throats. But, with the media firmly in his corner, nearly all the news painted the republicans as the bad guys. There was no way they were going to win this round, not with the debt ceiling issue and perceived default being so close.

PorkChopSandwiches
10-17-2013, 04:17 PM
:obama:

FBD
10-17-2013, 04:25 PM
With Obamacare as unpopular as it is, I don't think they (the republicans) expected the backlash to be mostly negative against them. I assume they were thinking that the anger would be directed at the WH and the democrats that forced Obamacare down our throats. But, with the media firmly in his corner, nearly all the news painted the republicans as the bad guys. There was no way they were going to win this round, not with the debt ceiling issue and perceived default being so close.

Lucy does what every single time she convinces Charlie Brown to kick a field goal?