Brian Beutler at TPM reports that there may be a settlement of the debt ceiling crisis. The settlement would involve a special committee that would recommend further budget reduction measures. That committee would report back in November. Congress would then have until December 23 to enact something to reduce the deficit by December 23. If nothing happened, automatic cuts would go into effect, including Defense and Medicare. There is nothing in the report suggesting that Social Security benefits would be cut. The Medicare cuts would be directed at providers rather than beneficiaries. We will have to wait on further details but Social Security's administrative budget might be cut which would give us the prospect of furloughs just in time for Christmas. There is also a strong probability that if Congress is able to do something about the deficit by December 23 that Social Security will be affected with the chained CPI being the starting point but not necessarily the ending point.
This debt ceiling nonsense by the Tea Party right-wingers cost investors 700 billion dollars last week in lost stock value. (See:http://money.cnn.com/2011/07/29/markets/market_cap_loss/index.htm?source=cnn_bin&hpt=hp_bn3)
ReplyDeleteWhat a bunch of idiots. As as soon as I post this, one of them will come up with something utterly inane to justify this total waste.
I don't think this is over as far as the Tea Partiers are concerned. I expect a significant number in Congress will vote against the deal. Just not enough to derail it. Boehner has decided this is the best he can get so he will pass it with a combination of Republican and Democratic votes in the house, and he will eat the consequences with the Tea Party.
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ReplyDeleteI think this bill will not be passed by the house.
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