Forex Go!

Congress returned to the people’s business today and the rhetoric appears a dialed down version of debates prior to the tragedy in Tucson.  The new Republican House has made the repeal of Obamacare their first priority.

There is other business on the table and the clock is ticking on some important legislation.  One of the most immediate measures to be resolved is the increase in the debt limit needed to keep the government running.  On Meet the Press this weekend, Senator Charles Schumer of New York said, “If we didn’t renew the debt ceiling, we might permanently threaten confidence of the credit markets in the dollar, which could create a recession worse than the one we have now or even a depression.” 

Republicans know the debt ceiling must be raised, but as they did with the extension of the Bush Tax Cuts and with the extension of unemployment insurance benefits, their support is conditional.  Republican Senator Tom Coburn stressed the importance of the elevated debt ceiling as long as certain spending cuts were implemented.

Treasury Timothy Geithner has said that the government may hit the current ceiling as early as March 31^st.  This extension was raised last year during the lame duck session, but was tabled allowing the Republican House to set the pace.  Since 2002, every Congress has passed the ceiling increase.

But, this Congress is different.  Actually, there are three constituencies to appease in this debate.  The Democrats, Republicans and the Tea Party Republicans all have different opinions on how to proceed.  Traditional Republicans and Democrats would normally arrive at a compromise, but the Tea Party is the wild card in this equation. 

These newly elected officials will certainly try to flex their newfound muscle.  While the U.S. people want to reduce the national debt, they do not want chaos or the U.S. to default on its obligations.

Obama Orders Review

In an effort to open the employment doors, the President announced a sweeping government-wide review of old, new and future regulations that could curtail public sector jobs.  Obama’s plan specifically addresses these items:

Cost of Regulation

• Maximize public input in the development process
• Be certain that science is at the core of programs
• Always consider the impact on small business

Recently, the President told the Wall Street Journal that government has placed “unreasonable burdens on business, burdens that have stifled innovation and have had a chilling effect on growth and jobs.”  Details of the reach of this review were not explained but Tuesday’s announcement what may well be Obama’s first of many overtures to the private sector in efforts to improve the climate for hiring.

The President is scheduled to meet with the U.S. Chamber of Congress on February 7^th.  The Chamber is the biggest lobbyist for corporate America and is a consistent opponent to expanded regulation.

The State Of The Union

The President will be busy in upcoming weeks.  Tonight the White House will host the President of the People Republic of China Hu Jintao.  On January 25^th, the President will make his annual State of The Union Speech.

The question is what will he say.  Typically, these speeches end up political promotions.  This year, that is not what the people want.  The people want answers.  They want a Congress that is functional and capable of providing employment and housing solutions without Congress pointing fingers at each other.

But, what America really wants to know is the truth about the national debt.  In how much danger has Washington put the country?  Why did commission a bi-partisan National Commission on Fiscal Responsibility and Reform if their recommendations will not be heard?

Mr. President, yes, we can!  Yes, you can!  Be the first politician to tell us the whole truth.  What must be cut?  What will it cost?  And when?  We are waiting and the political threatening rhetoric keeps us up late.  It is the President’s job to lead the people. 

Listen, we may not like what you have to say, but we are not stupid.  We know spending is out of control.  At this point, we do not care who is at fault.  What we want is a fix and to be kept in the information chain.  No sugar coating. 

Mr. President, we know Medicare, Social Services and the Defense Budget need deep reform.  We know tax reform is necessary and we suspect we will have to pay more than we pay now.

Mr. President, we are not Greece, yet.  Map out a real plan, put politics behind you and do the right thing.  If Congress does not follow a very realistic debt reduction plan, we will fire them.  No other President has taken on these three sacred cows.  You say you are for change.  Good.

Tell us our fare and we will have to pay it.  That beats saddling our children and grandchildren with the bill.  President Obama, you know that there is this Governor in New Jersey who said he was not interested in a second term.  With that in mind, he has cut through the red tape and turned his state around.  He did this by not being afraid of not being re-elected.

Mr. President, if you do not do what your people want, you will certainly be seeing more and more of that Republican Governor very soon. He might just take your job.  Forget the polls.  Show us the way.

Similar Posts:

• Debt Ceiling Tensions Rise
• Debt Ceiling Impasse
• The Debt Ceiling And Howard Beale
• Political Posturing Points To Shutdown
• Tax Cuts Yield Short Term Gains