Tag: Congressional Game of Chicken

Congressional Game of Chicken: “Super Congress”

Cross posted from The Stars Hollow Gazette

The bills that have been proposed by Republican and Democratic leadership to raise the debt ceiling putting an an to this wholly manufactured crisis, differ little and both will be devastating to most Americans. One of the commonalities is the creation of a bipartisan commission of 12 that on first glance seems innocuous but on looking closer, it is quite toxic and may even be unconstitutional. This “super committee” will be equally comprised of Democrats and Republicans members of congress. Who and how they will be selected is unclear but considering the current corporate owned, deficit hawk nature of both sides, I suspect it will be their worst conservative “cut spending/no revenue ghouls”.

At first glance, this sounds like the President’s Deficit Commission that couldn’t produce recommendations even 14 of the 18 members could agree. The co-chairs, former Sen. Alan Simpson (R-WY) and former Clinton Chief of Staff and South Carolina businessman, Erskine Bowles wrote there own recommendations and ran it up the flagpole. Needless to say President Obama saluted and embraced the draconian principles that it enshrined, such as decimating Medicare and Medicaid and drastic cuts to Social Security. The “Catfood Commission”, however, had no “teeth”, everything that was suggested would have to be passed as a bill. This new commission is another game and will have the force of law behind it.

Ryan Grimm at Huffington Post has the best description of how this “new congress” will function and just how powerful it will be:

Legislation approved by the Super Congress — which some on Capitol Hill are calling the “super committee” — would then be fast-tracked through both chambers, where it couldn’t be amended by simple, regular lawmakers, who’d have the ability only to cast an up or down vote. With the weight of both leaderships behind it, a product originated by the Super Congress would have a strong chance of moving through the little Congress and quickly becoming law. A Super Congress would be less accountable than the system that exists today, and would find it easier to strip the public of popular benefits. Negotiators are currently considering cutting the mortgage deduction and tax credits for retirement savings, for instance, extremely popular policies that would be difficult to slice up using the traditional legislative process.

House Speaker John Boehner (R-Ohio) has made a Super Congress a central part of his last-minute proposal, multiple news reports and people familiar with his plan say. A picture of Boehner’s proposal began to come into focus Saturday evening: The debt ceiling would be raised for a short-term period and coupled with an equal dollar figure of cuts, somewhere in the vicinity of a trillion dollars over ten years. A second increase in the debt ceiling would be tied to the creation of a Super Congress that would be required to find a minimum amount of spending cuts. Because the elevated panel would need at least one Democratic vote, its plan would presumably include at least some revenue, though if it’s anything like the deals on the table today, it would likely be heavily slanted toward spending cuts.

The tea party Republicans in the House have informed Speaker John Boehner that the commission is totally unacceptable to them. There main objection is they feel it could lead to tax increases. Other critics from the right like Eric Erickson of Red State are opposed mostly because it just ads another costly layer to the bureaucracy that won’t work. From the left, Rep Barney Frank (D-MA) and MoveOn.org expressed concerns that it would cut the big three social safety nets and the idea that it would supersede congress’s parliamentary power.

The ratings agencies have said that the Boehner bill will result in a ratings downgrade since it only raised the debt ceiling by $1 trillion which will require another cap raise in 5 months, creating uncertainty in the bond market. The White House has embraced the Reid version which would move the need raising the ceiling again past 2012 which is more acceptable to the ratings agencies who think the ceiling should just be removed entirely.

This is going to the wire with both sides deadlocked and hamstrung by a small loud and incredibly stupid minority and ineffective leaderchip on both sides.

Congressional Game of Chicken: “Super Congress”

Cross posted from The Stars Hollow Gazette

The bills that have been proposed by Republican and Democratic leadership to raise the debt ceiling putting an an to this wholly manufactured crisis, differ little and both will be devastating to most Americans. One of the commonalities is the creation of a bipartisan commission of 12 that on first glance seems innocuous but on looking closer, it is quite toxic and may even be unconstitutional. This “super committee” will be equally comprised of Democrats and Republicans members of congress. Who and how they will be selected is unclear but considering the current corporate owned, deficit hawk nature of both sides, I suspect it will be their worst conservative “cut spending/no revenue ghouls”.

At first glance, this sounds like the President’s Deficit Commission that couldn’t produce recommendations even 14 of the 18 members could agree. The co-chairs, former Sen. Alan Simpson (R-WY) and former Clinton Chief of Staff and South Carolina businessman, Erskine Bowles wrote there own recommendations and ran it up the flagpole. Needless to say President Obama saluted and embraced the draconian principles that it enshrined, such as decimating Medicare and Medicaid and drastic cuts to Social Security. The “Catfood Commission”, however, had no “teeth”, everything that was suggested would have to be passed as a bill. This new commission is another game and will have the force of law behind it.

Ryan Grimm at Huffington Post has the best description of how this “new congress” will function and just how powerful it will be:

Legislation approved by the Super Congress — which some on Capitol Hill are calling the “super committee” — would then be fast-tracked through both chambers, where it couldn’t be amended by simple, regular lawmakers, who’d have the ability only to cast an up or down vote. With the weight of both leaderships behind it, a product originated by the Super Congress would have a strong chance of moving through the little Congress and quickly becoming law. A Super Congress would be less accountable than the system that exists today, and would find it easier to strip the public of popular benefits. Negotiators are currently considering cutting the mortgage deduction and tax credits for retirement savings, for instance, extremely popular policies that would be difficult to slice up using the traditional legislative process.

House Speaker John Boehner (R-Ohio) has made a Super Congress a central part of his last-minute proposal, multiple news reports and people familiar with his plan say. A picture of Boehner’s proposal began to come into focus Saturday evening: The debt ceiling would be raised for a short-term period and coupled with an equal dollar figure of cuts, somewhere in the vicinity of a trillion dollars over ten years. A second increase in the debt ceiling would be tied to the creation of a Super Congress that would be required to find a minimum amount of spending cuts. Because the elevated panel would need at least one Democratic vote, its plan would presumably include at least some revenue, though if it’s anything like the deals on the table today, it would likely be heavily slanted toward spending cuts.

The tea party Republicans in the House have informed Speaker John Boehner that the commission is totally unacceptable to them. There main objection is they feel it could lead to tax increases. Other critics from the right like Eric Erickson of Red State are opposed mostly because it just ads another costly layer to the bureaucracy that won’t work. From the left, Rep Barney Frank (D-MA) and MoveOn.org expressed concerns that it would cut the big three social safety nets and the idea that it would supersede congress’s parliamentary power.

The ratings agencies have said that the Boehner bill will result in a ratings downgrade since it only raised the debt ceiling by $1 trillion which will require another cap raise in 5 months, creating uncertainty in the bond market. The White House has embraced the Reid version which would move the need raising the ceiling again past 2012 which is more acceptable to the ratings agencies who think the ceiling should just be removed entirely.

This is going to the wire with both sides deadlocked and hamstrung by a small loud and incredibly stupid minority and ineffective leaderchip on both sides.

Congressional Game of Chicken: Dueling Debt Plans

Cross posted from The Stars Hollow Gazette

As we move closer to the debt ceiling limit and defaulting on the debt, two proposals have been put forward by opposing sides. The Republicans have put a bill together that will come up for a vote on Wednesday that calls for a two-step plan that would allow the debt limit to be raised by $1 trillion and create “a “Super Congress,” composed of members of both chambers and both parties, isn’t mentioned anywhere in the Constitution, but would be granted extraordinary new powers.”

From the Democrats, House Majority Leader Harry Reid has proposed $2.7 trillion in spending cuts and raising the debt ceiling through 2012 with no revenue increases but would not touch any of the big three social safety nets. It does include the proposed “super congress”:

“made up of 12 members, to present options for future deficit reduction. The committee’s recommendations will be guaranteed an up-or-down Senate vote, without amendments, by the end of 2011.”

There are a few problems though. The first problem is the neither bill will pass both houses. The other obstacle two-fold. Reid’s bill will need 60 votes for cloture. It is unlikely that Reid can convince four Republicans to vote for it. He may get able to convince Sen, Olympia Snowe (R-VT) and Sen. Collins (R-ME) but he also must get the blue dogs to fall in-line. The only way I can see Reid getting this bill to the floor for a vote is to use the “Cheney nuclear option” and call bull shit on the filibuster. They don’t have the guts for that.

House Speaker John Boehner has similar problems. He needs 217 votes to pass. With 89 tea party Republicans many who signed a letter refusing to raise the debt ceiling no matter what the deal, Boehner would need to convince at least 23 to 50 Democrats. That won’t happen either. Some of the tea party crew may break tier “oath” since they are taking heat from their constituents at home. The House bill stands a better chance of suvival.

If both bills by some miracle pass, then it goes to reconciliation and both bills have to be voted on again. This isn’t going to happen in less than a week. If only the House bill makes it, the Senate probably reject it. That is the most probable scenario.

That leaves one option and it falls back to the White House to use the 14th Amendment, Article 4. Obama has already rejected this option but as it gets closer to August 2 and default, given the choice of a constitutional crisis versus a global economic melt down, let hope Obama put his “big boy pants on” and starts acting like a responsible adult who has to make a decision not everyone is going to like.

Congressional Game of Chicken: Invoke the 14th Amendment Option

Cross posted from The Stars Hollow Gazette

I have no idea what President Obama is thinking. What I do know is that he is partly responsible for the brinkmanship that is being played out as the debt ceiling looms putting the US credit rating on the line and many Americans at dire financial risk. Susie Madrak at Crooks and Liars says she thinks  former President Bill Clinton may know what Obama is thinking as the deadline to raise the debt ceiling nears. What ever Obama is thinking, Pres. Clinton offers some very audacious advice. In an interview with columnist Joe Conason, he said:

{} he would invoke the so-called constitutional option to raise the nation’s debt ceiling “without hesitation, and force the courts to stop me” in order to prevent a default, should Congress and the President fail to achieve agreement before the August 2 deadline.

Sharply criticizing Congressional Republicans in an exclusive Monday evening interview with The National Memo, Clinton said, “I think the Constitution is clear and I think this idea that the Congress gets to vote twice on whether to pay for [expenditures] it has appropriated is crazy.”

Lifting the debt ceiling “is necessary to pay for appropriations already made,” he added, “so you can’t say, ‘Well, we won the last election and we didn’t vote for some of that stuff, so we’re going to throw the whole country’s credit into arrears.”

Having faced down the Republican House leadership during two government shutdowns when he was president — and having brought the country’s budget from the deep deficits left by Republican presidents to a projected surplus — Clinton is unimpressed by the GOP’s sudden enthusiasm for balanced budgets. But he never considered invoking the Fourteenth Amendment — which says “the validity of the US public debt shall not be questioned” – because the Republicans led by then-Speaker Newt Gingrich didn’t threaten to use the debt ceiling as a weapon in their budget struggles with him.

I am fairly certain that Clinton would do just that. Would that President Obama had that courage.

Congressional Game of Chicken: Debt Limit & Social Security

Cross posted from The Stars Hollow Gazette

While there is a lot of angst on the part of the left and progressives over President Obama putting Social Security on the bargaining table for some meager tax concessions, they are still no closer to an agreement with the Republicans on the looming debt limit. Obama has rejected any temporary deal that would just kick the can down the road, possibly making the debt limit an even bigger issue in 2012 and a door for the Republicans to get the Bush/Obama tax cuts extended, or worse made permanent. The President has also said that he would not renew them again but after the last 3 years, can we realistically believe anything he says. After all, he is now doing what Bush could never have gotten away with, putting the safety nets for our seniors, disabled and poor on the line to protect the wealthiest.

Today. The Speaker of the House, John A. Boehner, clearly stated, “There is no agreement, in private or in public.”  The House recess for July 18th has been canceled signally that no agreement is in sight.

House Minority Leader Nancy Pelosi met pivately with the President today. Prior to her meeting Ms. Pelosi clearly indicated that she would resist efforts to tie the deal to Social Security.

“Do not consider Social Security a piggy bank for giving tax cuts to the wealthiest people in our country,” Ms. Pelosi said to reporters on Capitol Hill after the meeting. “We are not going to balance the budget on the backs of America’s seniors, women and people with disabilities.”

Last night Keith Olbermann looked at this current state of these discussions.

Boehner: “We are not going to raise taxes on the very people that we expect to invest in our economy and help grow jobs.”

Olbermann: “Shut up. If they were reinvesting in the economy, we wouldn’t be in this position, moron. They’re keeping the money.”

Rep Raul Grivala: “Without overwhelming support from our caucus, this would be a difficult bill to pass”

Pres. Bill Clinton. They quadrupled the debt before me and double it after. Suddenly it’s the biggest problem in the world”

Ryan Grimm: “Obana has been dangling safety net cuts for the last several weeks.  He created the cat food commission . . .

The idea that Obama is the defender of Sociual Security isn’t going to get you very far.

“One dime a month is enough to put many elderly in the poor house.”

Considering today’s news about jobs and unemployment at 9.2%, this, to put it bluntly, sucks.

Up Date: As of last night Speaker of the House Boehner rejected the “deal of the century” because of a few billion in tax “cuts”.  

The Constitutional Game of Chicken: The Debt Ceiling & The 14th Amendment

Cross posted from The Stars Hollow Gazette

The 14th Amendment of the United States Constitution:

Section 4:

The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any State shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void.

Republican economist Bruce Bartlett, who believes that the Republicans are playing with “the financial equivalent of nuclear weapons”, argues that Section 4 renders the debt ceiling unconstitutional, and obligates the President to consider the debt ceiling null and void.

. . . .I believe that the president would be justified in taking extreme actions to protect against a debt default. In the event that congressional irresponsibility makes default impossible to avoid, I think he should order the secretary of the Treasury to simply disregard the debt limit and sell whatever securities are necessary to raise cash to pay the nation’s debts. They are protected by the full faith and credit of the United States and preventing default is no less justified than using American military power to protect against an armed invasion without a congressional declaration of war.

Furthermore, it’s worth remembering that the debt limit is statutory law, which is trumped by the Constitution and there is a little known provision that relates to this issue. Section 4 of the 14th Amendment says, “The validity of the public debt of the United States…shall not be questioned.” This could easily justify the sort of extraordinary presidential action to avoid default that I am suggesting.

snip

Constitutional history is replete with examples where presidents justified extraordinary actions by extraordinary circumstances. During the George W. Bush administration many Republicans defended the most expansive possible reading of the president’s powers, especially concerning national security. Since default on the debt would clearly have dire consequences for our relations with China, Japan and other large holders of Treasury securities, it’s hard to see how defenders of Bush’s policies would now say the president must stand by and do nothing when a debt default poses an imminent national security threat.

Mr. Bartlett is not alone, Garret Epps, journalist and professor of law at Baltimore University, agrees and proposes the President should give a speech declaring, ‘The Constitution Forbids Default’.

Democratic members of the Senate, too, have begun exploring the possibility of declaring the debt ceiling unconstitutional:

“This is an issue that’s been raised in some private debate between senators as to whether in fact we can default, or whether that provision of the Constitution can be held up as preventing default,” Sen. Chris Coons (D-Del.), an attorney, told The Huffington Post Tuesday. “I don’t think, as of a couple weeks ago, when this was first raised, it was seen as a pressing option. But I’ll tell you that it’s going to get a pretty strong second look as a way of saying, ‘Is there some way to save us from ourselves?'”

By declaring the debt ceiling unconstitutional, the White House could continue to meet its financial obligations, leaving Tea Party-backed Republicans in the difficult position of arguing against the plain wording of the Constitution. Bipartisan negotiators are debating the size of the cuts, now in the trillions, that will come along with raising the debt ceiling.

Sen. Patty Murray (D-Wash.), head of the Democratic Senatorial Campaign Committee, said that the constitutional solution puts the question in its proper context — that the debate is over paying past debts, not over future spending.

“The way everybody talks about this is that we need to raise the debt ceiling. What we’re really saying is, ‘We have to pay our bills,'” Murray said. The 14th Amendment approach is “fascinating,” she added.

Let the games continue.

Up dates below the fold.

Congressional Game of Chicken: Presidential Recess Appointments

Cross posted from The Stars Hollow Gazette

Back in October, I wrote this article, Separation of Powers Game of Chicken, which discussed the use of pro forma sessions to block the president from making recess appointments. The reason I’m resurrecting this discussion is that Senate Majority Leader Harry Reid has scheduled these pro forma sessions over the holiday weekend to prevent President Obama from appointing Elizabeth Warren as head of the Consumer Financial Protection Board over the objections of Republicans. As with the blocking of Richard Diamond, an eminently qualified Nobel economist, to the Board of Directors of the Federal Reserve, it is Sen. Richard “no” Shelby (R-AL) who has said he will put a hold on Dr. Warren’s appointment if the president nominates her.

Republicans used the threat of a procedural blockade to make sure President Barack Obama wouldn’t be able to make recess appointments while the U.S. Senate is on a break next week, including naming Elizabeth Warren to head the Consumer Financial Protection Bureau.

Instead of allowing all senators and their staffs to leave Washington, Majority Leader Harry Reid scheduled “pro forma” sessions, in which the chamber officially opens for the day, then gavels to a close right away. That can be handled by two lawmakers and aides.

Any time the Senate breaks for four days or more, the president has the power to officially appoint a nominee for a limited period without having to wait for a confirmation vote.

snip

Reid, a Nevada Democrat, kept the Senate in pro forma sessions during the final months of Republican President George W. Bush’s administration to block him from appointing nominees that Democrats had refused to confirm.

If Reid hadn’t decided to quietly schedule pro forma sessions, another procedure could have publicly forced him to do so. The House is required to agree to Senate recesses, and concurs as a matter of routine.

Confused? Is Reid a Democrat? Or has he secretly gone over to the dark side? It is time for the president and the Democrats to put on their “man pants” and call out these faux sessions that are constitutionally not legal sessions. I will repeat the arguments of why these pro forma sessions are not constitutional and do not stop the president from making recess appoints.

Victor Williams, Assistant Professor at the Catholic University of America School of Law and an attorney, writing for the The National Law Journal makes the argument that the pro forma sessions every three days during recess are little more “than a game of separation-of-powers chicken”. There is nothing in the Constitution and Appellate courts have ruled that “there is no minimum recess time required for a valid recess appointment”.

But there is no minimum recess required under any law. The three-day minimum recess is fiction – as fake as are the Senate faux sessions. Better to begin with nonfiction – the Constitution.

In 2004, the U.S. Court of Appeals for the 11th Circuit ruled: “The Constitution, on its face, does not establish a minimum time that an authorized break in the Senate must last to give legal force to the President’s appointment power under the Recess Appointments Clause.” In Evans v. Stephens, the 11th Circuit, following prior 9th and 2d circuit rulings, broadly affirmed the executive’s unilateral recess commissioning authority during short intersession and intrasession breaks.

Even the Senate’s own Congressional Research Service reports: “The Constitu­tion does not specify the length of time that the Senate must be in recess before the President may make a recess appointment.” . . .

The president’s constitutional appointment authority cannot be trumped, or even limited, by Senate scheduling shenanigans. In fact and law, the 111th Senate is now dispersed to the four corners for six campaign weeks. Gaveling open, and then gaveling closed, a half-minute meeting of an empty chamber is not a legitimate break in the recess. A Senate quorum could not be gathered; neither legislative nor executive business could be conducted. Constitutional law demands substance over form.

The faux sessions only further expose the broken institution and its failed, dysfunctional confirmation processes.

At bottom, recess appointments are a matter of presidential will. In 1903, Theodore Roosevelt set the standard when he recess-appointed 160 officials during a recess of less than one day.

Mr. Williams points out that George W Bush’s failure to call this should not be Barack Obama’s.

Perhaps it is George W. Bush’s fault that the media erroneously reported that Obama’s recess appointment authority is lost. When majority leader Harry Reid first used the pro forma tactic against Bush over Thanksgiving, 2007, the 43rd president failed to push back.

Bush did not recess appoint for the remainder of his term despite calls for him to call Harry Reid’s bluff. A commissioning of even one noncontroversial nominee to a low level position would have asserted the executive’s prerogative. His failure to do so may be mistakenly interpreted as setting a precedent. It does not.

As I have noted on this site, Harry Reid appears to have gotten the better of George Bush; bluffing is a basic gambling skill for separation of powers and Texas Hold ’em.

This government is in need of a major shake up. It’s time that the President and the Democrats stood up for the people who put them in office. End the game, call the bluff.

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