Posted Mar 22, 2013 by Martin Armstrong
House Speaker John A. Boehner (R-Ohio) sent President Obama a bill Thursday that averts a government shutdown. The Republicans in the House were trying to force Obama to accept deep cuts and managed to come close to shutting down the government before and appeared ready to do so again.
However, Boehner, the Country Club Republican, has bullshitted the Republican majority telling them that the real strategy should be long-range objectives. When people are their for 2 year terms, that was a real whooper. Boehner managed to get them to blink ahead of schedule without the midnight-hour brinkmanship that has come standard in Congress where people vote without reading bills. Boehner has no intention of actually helping the economy. These people ASSUME that government is the exception to economics and can borrow forever without any consequence. Boehner is about as concerned about the long-term as Barbara Boxer of California.
Boehner let politicians slip past a crucial fiscal deadline without a dramatic confrontation. The bill, which needs to become law by Wednesday, keeps the government open through the end of the fiscal year on Sept. 30. The parties agreed to continue the deep “sequester” cuts, but lawmakers found common cause and created bipartisan coalitions to lessen the effects on their favored programs.
Therefore, the April/May period that we see a rising volatility may this time be caused by international events rather than drama in Washington.