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Democrats and Republicans Agree to Extend Government Funding Through Mid-February

It’s easy to think the  headline implies raising the debt ceiling, but that is a distinct issue. 

 For now, the House Politicians Reach Deal to Try to Prevent Government Shutdown.

Democrats and Republicans reached an agreement to extend government funding through Feb. 18, taking the first step toward avoiding a government shutdown this weekend.

With current funding set to lapse at 12:01 a.m. on Saturday, Dec. 4, lawmakers will now move to rapidly bring the legislation through the House and Senate. The House is expected to pass the bill on Thursday.

Quickly passing the legislation in the Senate may be more complicated, though. Some Senate Republicans have pushed to attach a measure to the bill barring the Biden administration from enacting rules requiring many employers to ensure their workers are vaccinated or tested weekly for Covid-19.

Republicans and Democrats had haggled over the duration of the spending patch, as Democrats sought a shorter extension and Republicans pushed for a longer one. Some Republicans see extending current funding, which was set under the Trump administration, as a way to prevent Democrats from setting new spending levels for federal programs.

Lawmakers will aim to agree to and pass new, full-year spending bills by the February deadline.

Debt Ceiling Reconciliation

One might logically think that setting aside funding raises the debt ceiling, but that is not the case. 

Democrats have yet to approach the issue of the debt ceiling other than to insist it be bipartisan.

Republicans, however, insist Democrats raise the debt ceiling alone, via reconciliation.

Flashback October 6

On October 6, I noted Debt Ceiling Crisis Postponed as Democrats Agree to a Temporary Deal

While Democrats declared it a victory, it leaves them in a politically difficult bind. In about two months they will be facing the same fight, and have yet to articulate a strategy to avoid it. And unless Republicans capitulate, Democrats will be forced to set a dollar amount on how much they want to raise the debt ceiling, a number that is sure to be used in GOP ads during the 2022 campaign for congressional elections.

Showdown Postponed, Not Cancelled

McConnell wants to force Democrats to use the reconciliation process to raise the debt ceiling so the Democrats alone are responsible.

That showdown was postponed, not cancelled.

Graham Accuses McConnell of Folding Like a Cheap Suit

On October 9 I commented Graham Accuses McConnell of Folding Like a Cheap Suit, What Really Happened?

McConnell’s offer threw threw the ball back into the Democrat’s ballpark. Not only that, but Democrats will have no excuses in December. 

On October 8, McConnell Notified Biden of the setup.

“Dear President Biden:

“Last night, Republicans filled the leadership vacuum that has troubled the Senate since January. I write to inform you that I will not provide such assistance again if your all-Democrat government drifts into another avoidable crisis.

“Remarkably, even as Republicans saved Americans from his crisis, Senator Schumer kept compounding his failures. Last night, in a bizarre spectacle, Senator Schumer exploded in a rant that was so partisan, angry, and corrosive that even Democratic Senators were visibly embarrassed by him and for him. This tantrum encapsulated and escalated a pattern of angry incompetence from Senator Schumer. It was reminiscent of last year when he joined a protest on the steps of the Supreme Court and shouted threats at individual Justices by name.

“I am writing to make it clear that in light of Senator Schumer’s hysterics and my grave concerns about the ways that another vast, reckless, partisan spending bill would hurt Americans and help China, I will not be a party to any future effort to mitigate the consequences of Democratic mismanagement. Your lieutenants on Capitol Hill now have the time they claimed they lacked to address the debt ceiling through standalone reconciliation, and all the tools to do it. They cannot invent another crisis and ask for my help.”

Democrats Were Warned

I commented then “This debt ceiling postponement to December, especially in light of everything that followed, was a huge win for the Republicans.”

Senator Graham’s comments were way off base.

Democrats have been warned that they and they alone need to raise the debt ceiling.

But here we are. 

A quick check of my calendar shows that it’s already December. 

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21 Comments
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Oldest Most Voted
Irondoor
Irondoor
4 years ago
Seriously, no one expected this not to get done. After all, there are Salaries for politcians involved, you know. 
Will the debt ceiling be raised? The question is; by how much.
Captain Ahab
Captain Ahab
4 years ago
Knowingly bankrupting the country should carry a severe penalty so that politicians adhere to the highest ethical standards. I recommend death by guillotine.
Jojo
Jojo
4 years ago
Yellen said today that inflation is not transitory anymore due to, of course, OMICRON.  Doesn’t seem to have hurt the markets.
StukiMoi
StukiMoi
4 years ago
Reply to  Jojo
Children, of all ages, say childish and stupid things.
Any “market” is hurt by mispricing. To the point where they no longer serve as markets anymore. And instead become rackets. We passed that point at least half a century ago. The rest is just sales pitches by true retards wearing Adam Smith ties. Who are, to a person, too plain old unintelligent to figure even something so simple out.
Jojo
Jojo
4 years ago
What’s with all these big chested woman come-on ads lately?  When I click the ads, there are none to be found!
TheWindowCleaner
TheWindowCleaner
4 years ago
Government spending IS NOT THE PROBLEM. Private indebtedness, chronic individual monetary scarcity and hence a chronic scarcity of systemic demand ARE THE REAL PROBLEM.
The orthodox left and right need to sit down, shut up and discover the real problem which is the monopolistic monetary and financial paradigm of DEBT ONLY as the sole form and vehicle for the creation and distribution of money. Change that paradigm and if you’re a democrat you’ll be happy because there will be much more economic democracy. If you’re a republican you’ll be happy because changing the current paradigm will enable us to reduce personal and corporate taxes and eliminate re-distributive payroll taxes. If you’re an Austrian economist your wet dream of integrating deflation beneficially into profit making economic systems will become the reality. 
Direct and Reciprocal Monetary Gifting: Too simple for the intellectual vanities of the erudite. Too temporal universe reality inverting not to be a paradigm change.
Zardoz
Zardoz
4 years ago
Orthodox left?  Are those the ones that strap little boxes to their heads for part of the year?
TheWindowCleaner
TheWindowCleaner
4 years ago
Reply to  Zardoz
Cute. But try engaging in a serious way about a serious problem.
StukiMoi
StukiMoi
4 years ago
And that means that some magical guy named “we the people”, and the coquetry of braindead leeches he calls his friends, has to deem and find and harass and rob and decide and judge and punish and…….. right? Because of, like, blah-blah-blah?
Captain Ahab
Captain Ahab
4 years ago
The PROBLEM is spending in excess of income. How hard can it be to balance them? I do it every day. If I have more income than spending, I save it for when a) I need to spend more, or b) my income declines.
Hint: stick with window cleaning.
GaryL
GaryL
4 years ago
Does anyone really think that spending will be reduced in the next decade? With Magic Money Theory (which few avow but almost all practice), they will print it until the bond market pukes or debt reaches Infinity, whichever comes first.
Zardoz
Zardoz
4 years ago
Reply to  GaryL
There are theoretically infinite future generations to borrow from… unless we don’t colonize space.
StukiMoi
StukiMoi
4 years ago
Reply to  Zardoz
There are no future generations to borrow from. Noone who does not even exist, is in any position to lend anything.
Pretending that there is, has nothing to do with borrowing at all. And is; like all else in our little dystopia by and for childbrained retards and nothing but; nothing more than yet another trivially nonsensical excuse for stealing from others that which the retards are way too stupid and incompetent to create and produce themselves.
The only people who fall for something so trivially idiotic as borrowing from non existing people being anything other than pure nonsense, are complete and utter, 100.{infinite-zeroes}, no exceptions, plain idiots. Nothing else, whatsoever. Don’t be one of them. It’s unbecoming. And insulting to those of us a bit higher up the evolutionary ladder.
Captain Ahab
Captain Ahab
4 years ago
Reply to  Zardoz
The lack of critical thinking is mind-boggling.  Join a Ponzi scheme and you will eventually see how your theory works.
KidHorn
KidHorn
4 years ago
“We conclude that the mRNA vacs dramatically increase inflammation on the endothelium and T cell infiltration of cardiac muscle and may account for the observations of increased thrombosis, cardiomyopathy, and other vascular events following vaccination”
If this pans out, the democrats are done in the midterms.
Captain Ahab
Captain Ahab
4 years ago
Reply to  KidHorn
The real question is ‘when did Fauci know?’
Tony Bennett
Tony Bennett
4 years ago
Naturally, the timing was fortuitous.
Yellen had said fedgov could make it to around December 15 or so … and some thought till early next year.  Surely, the market route the past 2 days played no role …
Will the rally stick?  If so, how long?  I vividly recall back in 2008 some sort of “save” would be announced and markets would rally, but the half lives of these measures got progressively shorter.  Where are we now?  Months? Weeks? Days?  When they become Hours you have arrived at Event Horizon.
Tony Bennett
Tony Bennett
4 years ago
One key point not mentioned here is these short term funding patches are via Continuing Resolution.
Why is that important?  It extends funding for everything at prior fiscal year’s level (autopilot) … and deprives members the opportunity (power) to decrease / increase funding to existing programs … or allow new ones to start.
Eddie_T
Eddie_T
4 years ago
Thanks for reporting on this. I couldn’t help but notice how much further down the page this kind of news seems to be when people are scared to death about Omicron and their stocks tanking.
Zardoz
Zardoz
4 years ago
Reply to  Eddie_T
The globalist lizard pedophile pizza chefs clearly engineered omicron to distract the sheeple from this and the Gislane Maxwell trial.
KidHorn
KidHorn
4 years ago
Glad they extended until February. One thing people don’t realize is the government has contracts that guarantee payment to contractors, so regardless if the debt ceiling is raised or funding is passed, the contractors get paid. The money is set aside from prior years.

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