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May 23, 2013 -- Updated January 20, 2013 18:12 HKT

No Budget, No Pay Bill Headed to Congress


paul@livetradingnews.com
Posted on: Jan 20th, 2013

No Budget, No Pay Bill Headed to Congress

US House Republicans will vote next week to raise the nation’s $16.4-T debt ceiling for 3 months and stop pay for members of Congress in until the Senate passes a budget something it has not done in about 4 yrs.

Hose Speaker John Boehner said that the “principle is simple: no budget, no pay,” during his closing remarks at the House Republican members retreat Friday in Williamsburg, VA.

Details of how the no-pay proposal would work in practice are not clear, in light of existing budget law and constitutional restrictions on changing congressional salaries in the middle of a term.

“We are going to pursue strategies that will obligate the Senate to finally join the House in confronting the government’s spending problem,” Mr. Boehner continued.

House Majority Leader Eric Cantor said that next week Congress will authorize the temporary debt limit to give the Senate and the House time to pass a budget.

“The first step to fixing this problem is to pass a budget that reduces spending,” the Virginia Republican said. “The House has done so, and will again. The Democratic Senate has not passed a budget in almost four years, which is unfair to hardworking taxpayers who expect more from their representatives. That ends this year.”

House Majority Whip Kevin McCarthy of California added: “Tackling our nation’s debt requires an actual deficit reduction plan from Republicans and Democrats so the American people can evaluate the tough, necessary choices before them.”

The move sacles back the GOP’s strategy in the upcoming debt-ceiling talks with President Obama by by-passing the opportunity to extract pledges for deep spending cuts out of Obama for now.

A representative for Senate Majority Leader Harry Reid called the GOP move “reassuring.”

“It is reassuring to see Republicans beginning to back off their threat to hold our economy hostage,” Senator Reid’s spokesman, Adam Jentleson, said. If the House can pass a clean debt-ceiling increase to avoid default and allow the United States to meet its existing obligations, we will be happy to consider it.

“As President Obama has said, this issue is too important to middle-class families’ economic security to use as a ploy for collecting a ransom,” Mr. Jentleson said. “We have an obligation to pay the bills we have already incurred, bills for which many House Republicans voted.”

Mr. Obama himself dismissed the idea of a short-term debt ceiling increase at a press conference Monday.
“We should not be doing this on a 1-to-3-month time frame,” he said.

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 Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.

 

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Posted by on Jan 20th, 2013and filed underEconomic News, Latest News.You can follow any responses to this entry through theRSS 2.0You can skip to the end and leave a response. Pinging is currently not allowed.
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