Carney Says Boehner Deal DOA
There were two quite telling things in Speaker Boehner’s comments on this program mere moments ago. One, in his mind it’s going to be very difficult for real budget cuts because of all the retiring Baby Boomers. He considers it a moral imperative that we not default or have a downgrade in our credit rating, which we already have. There have been two downgrades of our credit rating and both of those downgrades — I shared one with you yesterday, it’s from an outfit that I had previously not heard of — nothing to do with the fact that we don’t have a deal on the debt ceiling. It’s simply our spending trajectory. It’s unsustainable.
The second quite telling point, Snerdley, I don’t know if you heard this because you were probably in there screening calls. I asked Speaker Boehner, “So Obama gets to spend this $1 trillion line of credit right away, and we get our $1.2 trillion in cuts over ten years.” And the Speaker paused, said, “That’s right. Rush, it’s not the best deal,” but it’s a typical Washington deal, in that sense. You spend whatever’s agreed to in the next five minutes. You cut whatever is agreed to over ten years and, you know, the trick about the ten-year cuts is that nine of the ten years will be rendered inapplicable after next year’s budget is done, because next’s budget, they don’t have to accommodate this agreement in it if they don’t want to.