House Speaker Mike Johnson has signaled more money for Ukraine, more money for Israel, and more money for defense spending. He may salvage something for the border.
Optimism for a Deal Surges
I never understand the government shutdown fears. There is always a deal or Republican capitulation.
The Wall Street Journal comments Shutdown Fears Fade After White House Meeting
House Speaker Mike Johnson said he was “very optimistic” that Congress would reach an agreement to avert a government shutdown while continuing to pursue talks on Ukraine and pressure the administration on border policy, following a White House meeting Tuesday with other congressional leaders and President Biden.
With funding running out for some agencies on Saturday, the spotlight is once again on Johnson, who is facing some of the biggest decisions of his political career. The Louisiana Republican needs to map out a path on spending while managing a rowdy House GOP conference that has taken a hard line on deficits and is increasingly skeptical of foreign aid, even as the Democratic-controlled Senate has been ready for months to move forward.
The polarized Congress has until Saturday at 12:01 a.m. to fund the departments of Veterans Affairs, Transportation, Agriculture, Energy and several other agencies that have been operating on temporary extensions since Sept. 30. The funding for the rest of the federal government expires after March 8.
Johnson ripped Schumer for “petty politics” on Sunday. The House, he said, “has worked nonstop, and is continuing to work in good faith, to reach agreement with the Senate on compromise government funding bills in advance of the deadlines.” Asked Tuesday if he thought there would be a shutdown, Johnson responded: “No. We will work to prevent that.”
People familiar with the negotiations between Johnson and Democrats said that a key sticking point is how much money to appropriate for the Special Supplemental Nutrition Program for Women, Infants and Children, or WIC. Democrats are asking for $7.03 billion, more than the $6.3 billion previously sought by the Senate and requested in Biden’s budget. But the GOP-led House passed a measure including $6 billion for the program, which provides food and health assistance.
The speaker told lawmakers not to expect a home run or grand slams in the spending bills, but instead singles or doubles, according to people on the call. Johnson said that was the reality of divided government, and that some Republicans’ willingness to block routine procedural votes—essentially paralyzing the floor—had hurt Republicans’ leverage in talks with Democrats.
Singles, Doubles, or Running in Reverse?
I would be happy with singles or doubles. And we easily could have had a single if Republicans did not dump foolishly dump Kevin McCarthy.
I understand dislike of McCarthy, but the Mike Johnson in his fake superman outfit has been worse.
And every delay further adds to Democrat demands. Today we learn an increased demand for Special Supplemental Nutrition Program for Women, Infants and Children.
The only stunning thing is how little extra Democrats want. Then again, we have not see the ink dry yet.
Mike Johnson Is the New (But Not Improved) Kevin McCarthy
Flashback January 18, 2024: Mike Johnson Is the New (But Not Improved) Kevin McCarthy
The House just passed Mike Johnson’s bipartisan continuing resolution punt. Dear Republicans, please wave the white flag and surrender before doing more damage, because more damage is on the table just today.
The sad reality is that attempting to force spending issues Republicans could not possibly control caused delays. And with every delay, additional issues arose and more spending came into the picture.
HGOP Deal on Child Tax Credits
Amazingly, the GOP House Ways and Means Committee agreed to a ridiculous tradeoff with the Democrats that will cost $1.5 trillion over 10 years.
For discussion, please see How Much Will That GOP Deal on Child Tax Credits Really Cost?
MishTalk September 29, 2023: McCarthy’s House Bill Goes Down in Embarrassing 198-232 Vote
21 GOP lawmakers joined all the Democrats in voting against McCarthy’s bill to avoid a government shutdown.
The McCarthy proposal would have extended government funding through Oct. 31, but at a $1.471 trillion annual rate, down from $1.6 trillion in fiscal 2023. The bill also included strict new border-security measures and the creation of a fiscal commission charged with coming up with ways to balance the budget and improve the country’s fiscal outlook.
Stuck In Reverse
The McCarthy proposal would have extended government funding through Oct. 31, but at a $1.471 trillion annual rate, down from $1.6 trillion in fiscal 2023. And it included funds for the border.
We are now up to $1.6++ trillion or so under Speaker Mike Johnson.
Since then, Republicans agreed to expand child tax credits. And now it appears they will expand Special Supplemental Nutrition Program for Women, Infants and Children.
In addition, there will be an as of yet undisclosed sum for Ukraine and Israel. And what else is tucked in this compromise white-flag surrender bill that we do not yet know about?
Dear Republicans, please face the facts: Mike Johnson is stuck in reverse. He has been a total fiscal disaster.
That was my prediction in September of 2023, for which I took a lot of flack. I would rather have been wrong.
We won’t make the nut unless we have unlimited credit. If a flight to safety goes into bonds it could lift small caps and tech, depending on the dollar. Not seeing much value that’s for sure
Send the public employees to the unemployment line untul the budget can get sorted out. They are mostly public nuicences, anyway.
This compromised and ineffective congress especially the pitiful GOP should shut down and go home, McCarthy is a RINO and Johnson is about the same, the GOP are TRAITORS to this country as they give in to the dems everytime. They have done NOTHING on the border invasion and many GOP support O’Biden and Obama’s war in Ukraine giving hundreds of billions to a corrupt criminal regime almost as corrupt as DC itself, the PEOPLE need to remove this congress and the traitors in the WH.
And 60 billion still goes to Zelenskyy to pay for more exotic homes, sports cars, yachts and his cocaine habit.
When was the last time the United States had a full budget? 1998? I don’t recall. Seems like they’ve been running these stop-gaps for the whole 21st century so far, with the consequence that the total expenditure is never known until months into the next year.
Why doesn’t Johnson get a full budget up to bat?
Tie Congressional pay raises to a balanced budget. Excessive spending should be a red flag not to reelect your congress skunk. If policies harm a state or city they are also hurting you. Educate yourself because no one is going to do it for you. Ignorant people are the easiest to enslave. Don’t believe everything you hear, verify.
“I never understand the government shutdown fears.”
Sometimes the pols/media start pushing the next shutdown episode before the current one concludes! Fear/panic leads people to not think logically and just act and react emotionally as they wait for some outside voice to soothingly tell them that everything will be alright.. It also gets attention (i.e. revenue) for media outlets by generating views/clicks as the public breathlessly awaits each developement. You correctly observe that it ends the same way every time – more spending on everything.
It is not dissimilar from presidential elections, where seemingly each one is an existential crisis and the ‘most important one of our lives’. Vote a certain way or all is surely lost!
Johnson is there for a reason; we are just too simple to understand it. Thankfully, our betters are in charge. /s
Back in the 90’s, Ontario had a socialist premier (Bob Rae) who believed he could spend his way out of government debt and promptly got to work. We were lucky – somewhere along the way he learned that it didn’t work and very quietly abandoned the idea. Of course, he’s still living on the taxpayers’ dime.
Invitation Homes, the giant landlord (85K homes) which raised rent year after year ==> INVH chart is a waterfall chart, hugging Feb 2020 several times.
94 billionsl to zionist wars in gaza and Ukraine. no thanks. don’t buy any Israeli goods. pom wonderful and wonderful pistachios n Fiji water are zionist owned.
Right on
Jaza war: tell Germany and Norway not to buy Arrow 3, David Sling, Fuji water and zionist diamonds. Sinwar spent decades in prison. After his fantasia he is back in prison, his own prison, under Khan Yunis, guarded by 100 hostages.
High on the hasbaRAT kool aid again, israeLIE? You laughable desperate comment makes no sense.
Today Mike Johnson says the President and the Senate can close the border or pound sand. The border is an election issue. Ukraine is not an election issue. Republicans have every incentive to hang tough until November. Mike Johnson from Louisiana is showing signs of integrity. Mish is from Chicago. He’s heard of it.
Term limits? What a stupid thought. This is 2024 not 1992. As a country, we have transcended term limits. The two party system, always knows best.
Now get back to your sports, atvs, and beer. Let the two parties run the country.
Bankruptcy all the way around.
I give up.
We can’t just cut our way out of the problem which is what the Republicans and their 1% masters want.
We have to spend our way out??? I guess we don’t really want the dollar to be the worlds reserve currency anymore. Go ahead. The bond market won’t mind.
Mish is correct, the GOP house will (like the Washington Generals versus Harlem Globetrotters) compromise to lose again honorably. We need to send more Washington Generals to DC to make a difference. /sarc
Ya think some people will remove their head from where the sun doesn’t shine and vote corruption out of office? Probably not! Just a thought!
So, I don’t typically bet against stocks in the current “good news is good news” and “bad news is good news because of rate cuts” environment, but I think that Carvana (NYSE: CVNA) is a screaming short after the past few days short squeeze moonshot. Not a literal short, but maybe a couple thousand dollars funny money in some long-dated Put options. What do y’all think?
The market can stay irrational a lot longer you can stay solvent.
One of the best one-liners ever!!
link to forbes.com
link to nytimes.com
The outrage if SS, Medicare, etc,401Ks, being cut would be massive for both parties. Therefore, put in a 10 year plan with no more than a 1-2% increase in government spending. Revoke for 10 years the Trump and GWB tax cuts as like it or not we have a $34 Trillion debt and see where we’re at in 10 years. It’ll make nobody happy either side but should work.
Everyone with an interest in the financial markets (Which is EVERYONE), would do well to subscribe to Lyn Alden’s newsletter. MEGA smart lady!!
link to lynalden.com
Piss off, spammer.
The broader the delivery of largess to the public, the greater they are cemented into support of the government. The excess spending is an insurance policy of sorts. Tar and feathers can be avoided thereby. Well, for a while.
Just gimme my free shit.
Pathetic. I wish Mish were wrong on this for damn change.
Congressional Compromise:
You get what you want <fake grudging sigh>
I get what I want <yea!>
Taxpayers worked over for the 34 Trillionth Time!
The issue is that Democrats are united in their desire to spend us into oblivion whereas Republicans get divided as Democrats control the messaging in all non-Twitter, non-Fox media outlets.
Not to mention that a fair number of Republicans are RINOS
Never a doubt in my mind that this boondoggle of a bill would eventually pass. All huffing & puffing before the House of Representatives would fold like a cheap suit.
There won’t be any change until people demand it.
Enough funding foreign countries and foreign wars – including Israel – especially Israel.
The citizenry will get hosed again. Washington DC beltway parasites will get everything they wanted.
Euphemism of the day award goes to the military again. Today, the US Army is no longer undermanned; it is “significantly over-structured.”
link to forbes.com
Long live the Uniparty!
Johnson should shutdown the government this time unless there is no more money for wars i.e., defense contractors and swampies. Blame will go to Biden for government shutdown.
Republicans have always gotten the blame in my lifetime whether they have the CONgrsss or the presidency.
More than 70 Senegalese live in a Furniture store basement in Queens. Demand is high. They sleep in two shifts. More stores will store sardines down below. They might join the Navy, due to recruitment shortages. NATO has x4 times more ships and planes than Russia. Putin will not dare to fight the Senegalese army.
May be you need those 70 Senegalese for something for yourself 😉 take them to you basement and see what happens, you may start believing in miracles.
NYC mayor questioned over luxury apartments for immigrants. There’s a housing shortage, hard working people cannot afford a home and the idea is to give the luxury apartments to migrants. Around me they are building units that cost more than my home. I asked a contractor friend why he was pouring concrete in the middle of winter. He said that’s what they wanted. He finished and it was vandalized before it cured with vulgar drawings
New York City is DOOMED and there is no saving it.
Same for San Francisco, Philadelphia, and most other DemoRat run hellholes.
More pork barrel spending …
Hakeem the regime change prince and his dem gang ousted McC, using Matt Gaetz as a trigger. Mike Johnson will stick to Biden and his prince.