A Way Out? Update

This afternoon the update came, through the WAPO

“It is our view that we cannot have a situation where the debt ceiling is extended as part of a budget negotiation process for only six weeks, which would put us right back in the same position that we’re in now,” Carney said.

This is consistent with what we learned earlier in the day, reflecting what Sargent was told by a senate Aid on background.

We have both softening and hardening of positions. So this will continue to be a cliff hanger. Suffice it to say, the longer this goes on the worst effects on the economy. If we go over the debt ceiling, the effects on global markets are what nightmares are made off.

October 11, 2013 (San Diego) So we are starting to see reports that the GOP is desperately looking for a way out of this crisis. The AP is now reporting that the Republicans are offering to

 House Republicans are offering to pass legislation to avert a default and end the 11-day partial government shutdown as part of a framework that would include cuts in benefit programs, officials said Friday.

The talks also include entitlement talks apparently, but this is truly on background as well.

In addition to ending the shutdown and increasing the debt limit, under the proposal Congress and the White House would explore ways to ease across-the-board federal budget cuts that began taking effect a year ago, and replace at least part of them with benefit-program curbs that have been included in recent presidential budgets. Officials who described the approach did so on condition of anonymity, saying they were not authorized to discuss private conversations.

We must translate this. What they are talking about around the edges is the ever illusive Grand Bargain that the President has not given up on, and neither has Speaker John Boehner.  Yet, it also appears that The President still insists that nothing short of a clean Continuing Resolution will work. On the Democratic side, Gregg Sargent reports at the Washington Post that Democrats are pretty much done with the constant extortion from the GOP.  This is truly what conflicting signals are made off.

This is the critical nugget in his talks with a Senate Aid, unnamed off course, and most likely on background.

“No major concessions in exchange for anything that sets us up for another round of crisis negotiations,” the aide added. “If we’re talking about a global deal here that puts us in an entirely different place, then we’re more open.”

I guess DC is starting to wake up as to how destabilizing this government by crisis is. Of course we still had Senator Ted Cruz continue to encourage the House to be as obstinate as ever, during the Values Voters conference this morning. This is the bully screaming at the kids doing the actual fighting, keep it up. Congressman King in the morning, during the Andrea Mitchell Reports on MSNBC was clear, main stream Republicans most reject the Ted Cruz’s of the world. The civil war in the GOP is deepening.

So where are we now? They are talking to each other. I have to wonder if they are talking to each other or across each other? That is the question.

We are looking at a six week debt ceiling, maybe, and funding the government until December 15. So shall we be back at this morass again? I suppose we will. Hey, groundhog days are fun, I guess.  In this case the groundhog will tell us if the crisis will be deeper or not.

And in other news, we have a wave election in the making. But, here is the important caveat, a year is an eternity in politics. The second caveat is that wave elections, as often as we are having them, do not make for stability in DC either. They are also further radicalizing the House. This time around it will be a Democratic wave, which will pull the House back to the center right, but the anger, if this continues, will lead to an even more radical Republican House, is past is indeed prologue.

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