Sunday, December 16, 2012

Obama vs. Boehner - Fiscal Update

The New York Times: Reports on the bad relationship between President Obama and Republican Speaker Boehner is down to a failed attempt at a grand bargain last year, the article notes the following, " a relationship soured by the mutual recriminations after their failure 18 months ago, people on both sides say. ". 

Lets Get Real:

In modern US politics the bases of the Parties control how much freedom D.C Politicians have, the extreme liberals own the Democratic Party, while Conservatives/Tea Party supporters are at the core of the Republican Party.   A political deal might look good in Government terms, as Bush 41 thought with his deal to raise taxes and with cuts  and thus break his pledge not to raise taxes, but those that actually vote and help the Republican candidates get elected thought the deal was BAD, that Bush 41 had broken his word, gone back on the Reagan Agenda.   In his 2nd term Bill Clinton stated in a State of the Union that the Era of Big Government was over, that went down well liberals, thus a factor in Hillary Clinton's loss to President Obama in 2008.    In the 1980s Reagan could do deals with the liberal Speaker of the House Tip O' Neill to save social security and to do tax reform, and these two were loved by their base, thus a good governmental deal and a good political deal requires strong leaders, who know when to hold the line, but can take the heat from the base.   Thus far we have seen all give from Boehner and nothing from POTUS, thus the Speaker has caved and Obama has won, but power on the Hill is fleeting,  the race for 2014 and 2016 starts next year folks.  

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