It Is Now Official: We Are Going To Hit The Fiscal Cliff And Breached The Debt Ceiling!
No vote in the House tonight, for sure, so technically we are going to hit The Fiscal Cliff.
That doesn’t mean that there isn’t almost a deal done.
Voting tomorrow or the next day might help the GOP at the margins, so it can claim it never voted to raise taxes.
US officially hits debt ceiling, Treasury Secretary Timothy Geithner says
BREAKING REPORT: House Won’t Take Cliff Vote On Monday
The U.S. House of Representatives won’t vote on a tax-and-budget deal Monday night, meaning the country will at least temporarily go over the fiscal cliff. Word of the House’s decision came after both President Barack Obama and Senate Republican Leader Mitch McConnell cited progress in talks, and McConnell said a tax deal is done. McConnell said the two sides are “very, very close” on an overall deal. Stocks surged Monday as leaders expressed optimism about an agreement.
As we forecast back in November, it is now official that the House will not vote on any deal out of the Senate, assuming there is one which there won’t be of course, later today, which means America will officially slide off the Fiscal Cliff. And now cue everyone being very hopeful and optimistic a deal will get done momentarily, if not sooner, in 2013. Of course, we all know just how far optimism takes America’s dysfunctional Congress. The biggest irony in all of this is that the only winners today were the much hated “1%”-ers, whose taxes may or may not go up, who just got to book major year end profits on this last minute ramp. The remainder of America’s population can quietly look forward to 2013 with “hope” and “optimism” that in 2013 Congress will finally stop being dysfunctional. Good luck. Oh, and before we forget, America just breached its debt ceiling: now the pillaging of various government retirement funds begins.
Geithner: U.S. to hit debt ceiling on Monday – Dec. 26, 2012
Government borrowing will hit the debt ceiling on Monday, Treasury Secretary Tim Geithner said in a letter to Congress Wednesday.
As a result, the Treasury Department will soon start using what it calls “extraordinary measures” to prevent government borrowing from exceeding the legal limit.
Such measures include suspending the reinvestment of federal workers’ retirement account contributions in short-term government bonds.
On Monday, debt subject to the limit was just $95 billion below the $16.394 trillion debt ceiling.
All told, the extraordinary measures can create about $200 billion of headroom under the limit — normally about two months worth of borrowing.
OVER THE CLIFF WE GO!
The U.S. is expected to go over the “fiscal cliff” at midnight Monday, but President Barack Obama and Senate GOP leader Mitch McConnell said an agreement to prevent a middle class tax hike was in sight.
Obama said more work needed to be done to avoid other pending issues, but McConnell told the Senate: “Let’s get what was agreed on and get moving,”