Super Wimpy Deficit Reduction Committee Fails to Do Anything; Kerry Says No Problem "Lawmakers Have a Year"; Boehner's, Pelosi's "Moral Obligations" Go Out the Window; McCain's Hypocrisy; Look for US Debt Downgrades
The official "deadline" for the alleged SuperCommitte to come to an agreement is November 23. However, the Congressional Budget Office (CBO), needs to have reached a deal today.
The Super Wimps failed in their mission as anyone with any common sense might have guessed. There simply is no sense of urgency.
This paragraph from the Bloomberg article Supercommittee Is Said to Be Poised to Announce Failure of Talks says all you need to know:
Senator John Kerry of Massachusetts, a Democrat on the panel, said lawmakers have a year before the automatic spending cuts are set to occur. “We have an election between now and then and a lot can take place,” he said in an interview on Bloomberg Television.Yes indeed, the real deadline is not tomorrow but rather 2013. A lot can happen by then, including a decision to not cut anything at all.
Boehner's Moral Obligation Goes Out the Window
Boehner, an Ohio Republican, and House Minority Leader Nancy Pelosi, a California Democrat, have said they support the trigger. “The markets should know that the deficit reduction will occur,” Pelosi said on Nov. 3. Boehner has said he “personally” feels a moral obligation to uphold the cuts.
So much for Boehner's "Moral Obligations" and Pelosi's promise to do something.
McCain Goes One Step Further
McCain, even went one step further.
Senator John McCain, an Arizona Republican, and Representative Maxine Waters, a California Democrat, are already trying to use legislative levers to stop the automatic cuts from taking effect. Cuts? Who Needs Cuts?
Clearly McCain is a hypocrite. Were it not for an even worse setup in Europe, the US dollar would be taking a pounding here.
Expect US Debt Downgrades
Look for further downgrades of US debt by Moody's, Fitch, and S&P.
To even things out, look for downgrades of France as well.
Mike "Mish" Shedlock
Click Here To Scroll Thru My Recent Post ListMike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
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