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.  

One Trillion in TAX HIKES - Fiscal Update

Telegraph: Reports that President Obama has moved form his demand for 1.6 trillion in tax hikes to " reportedly moving closer to Mr Boehner's own offer of $1tr in recent days. ". 

Lets Get Real: 

Thus we get tax hikes, and what does the US get, slow economic growth, a growing welfare states, a Democratic Party that for the next two years will be demanding more tax hikes, YES FOLKS, it never ends.    The Democrats will be demanding with this tax hikes that the Government spend, of course that will never be enough, thus more tax hikes.   The Tea Party/ Conservative Republicans have to challenge Boehner when he seeks re-election for Speaker, the Speaker has sold out the Reagan Agenda, for a pat on the back from POTUS.   Those running for the 2016 Republican Nomination have to be critical of this deal, they have to support  any challenger to Boehner, one can postulate that if Reagan was still about he would not be pleased with Boehner, what is the point of a having a Republican Speaker if he can not be a firewall against a liberal President, shame on Speaker Boehner. 

Kerry for State - Official

Guardian: Reports from the US that " ..with both ABC and CNN reporting that Obama had opted for Kerry. ", neither of these networks would gone with the story if it was not from the Oval. 

Lets Get Real:


If UN Ambassador Rice goes from the UN to be Obama's new National Security Advisor the job of Secretary of State could be all title no horses to use a Texan phrase, as the article notes on the relationship between Hillary Clinton and POTUS, Conventional thinking in Washington has it that Clinton has never been close to Obama and has tended to be excluded from decision-making on major issues.. ".   Thus the future Secretary Kerry might find as previous US Secretary of States have found that the real foreign policy is done out of the White House, as reported Ambassador Rice is a strong character, so one can expect some tension between the Oval and State, will Rice be the new Kissinger, while Kerry gets the press attention the real news story will be the White House.  ALL 2nd term Presidents sooner or later, and it is sooner in most cases find they are a political dodo on the Hill, at least on foreign policy POTUS has more freedom, thus the article in the NYT that Iran has agreed to one to one talks with the US, one can see Obama thinking he is the new Nixon, that he can open up Iran  for talks, as Nixon did with China and the USSR.  Good luck with that Mr President, Israel might think it has nothing to lose and attack Iran if it thinks that Obama is going to do a JFK and sell them out as Kennedy did with Turkey over the Cuban Missile Crisis.   Thus over the next few years foreign policy will become more central to the Oval, it always does folks. 

Boehner CAVES - SELLS OUT


Lets Get Real: 

Thus folks Speaker Boehner has caved, the main difference between Democrats and Republicans has been removed, NOW the Dems can push the Republican House about, the new elected Republicans have broken faith the their voters, the are now just light Democrats.   The Oval will not cut welfare, the Democratic leaders in the House and Senate will not allow that as they face re-election in 2014, they have to keep their base happy, the Republican Nominee in 2016 will have to distance himself from the Republican House, they have sold OUT the Party for a VERY limited cuts, the Republicans in the House who vote for this are doing a Bush 41.   Lets hope the Tea Party supporters and Conservative Republicans run candidates against those in the House who vote for this deal,  they have sold out folks.