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Boehner Kicks the Deficit Can Until May 18. Obama Accepts.

Written by Gary North on January 23, 2013

The House Republicans have decided to kick the can. Obama has won. It was an easy victory.

There will be another can-kicking on May 19.

The Republican party is devoid of either brains or backbone.

The prophet Isaiah called Egypt’s Pharaoh a broken reed. “See, you trust in the staff of this broken reed, on Egypt; where on if a man lean, it will go into his hand, and pierce it: so is Pharaoh king of Egypt to all that trust in him” (Isa. 36:6). That description applies well to John Boehner. Warning: do not lean on a broken reed.

There will be no fight. The Republicans in the House are not ready to threaten the shutdown of the U.S. government. That is the only threat that carries weight.

The on-budget deficit will grow. Politically, this is irresistible. There will be no showdown at the OK Corral.

You may ask: “How long can this go on?” It can go on for a long as there are buyers of U.S. debt at low rates. Therefore, it will go on that long.

When rates rise, the Federal Reserve will step up to the bat. It will buy the debt with newly created digits. At some price, meaning at some rate of price inflation, the Boehner-Obama team can continue to kick the can.

Boehner claims that the Republicans’ plan — there is a plan? — will balance the budget in ten years. Yes, my friends, in just ten short years Dr. Boehner’s sure fire, secret formula elixir will perform miracles. Tired blood? It works! Receding credit rating? It works! In short, trust him.

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10 thoughts on “Boehner Kicks the Deficit Can Until May 18. Obama Accepts.

  1. The national debt can is really getting beat up, having been kicked down the road so often. Moody's and S&P will weigh in before long. newsandopinions dot net

  2. Boehner has absolutely NO BALLS. Why is he till the Speaker?

  3. John Bonehead will get 3 months before he has to cave. What a waste of human life.

  4. the republican party is not caving, they are progressives following their progressive agenda. drop them now before it's too late. change your voter registration to libertarian or independent and start a new conservative party.

  5. old bank retread says:

    Before that, the major foreign investors ("lenders") will smell the coffee, and demand higher return on their purchases of US paper. Just one percentincrease will be enough to raise interest on US debt at least 35-40 %. Then watch the tax and spend amen chorus wail. Then, the cuts start in earnest.

  6. Quote of the Decade:

    "The fact that we are here today to debate raising America 's debt limit is a sign of leadership failure. It is a sign that the US Government cannot pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government's reckless fiscal policies. Increasing America 's debt weakens us domestically and internationally. Leadership means that, "the buck stops here.' Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better."

    ~ Senator Barack H. Obama, March 2006

  7. The government has already started defaulting on its obligations. That's behind the increase in Social Security payroll taxes and the (inevitable) raising of the retirement age, so seniors will drop before collecting anything. And Obamacare is just a synonym for "We'll keep you so tied up in insurance paperwork, crowded waiting rooms and denial of claims that you'll die before you get any benefits from those government-mandated premiums you've been paying". The government always shafts the group it's least afraid of retaliation from.

    The profit taking from the 1989 S-n-L debacle and 2008 bailout went to the (mostly) foreign creditors that Uncle Sam dare not stiff.

  8. boner boehner is such a joke no balls his wife probably wears the pants in the family

  9. I got a request from the Republican party to renew my membership for $40, I am sending it back with a message that "I will renew it when they grow a spine and start acting more like the NRA than the old ladies social club at the local church".

  10. He is just JOHN BONEHEAD