Posted Oct 17, 2013 by Martin Armstrong
Of course as always after weeks of political brinkmanship over a possible US debt default, the deal was reached after House Republicans dropped efforts to use the legislation to force changes in Obamacare. President Obama quickly signed the spending measure. After 16 days off, the White House budget office told hundreds of thousands of federal workers to be ready to return to work on Thursday. The deal may be the death-blow to the Republican Party and we will see if this is the event that historians will refer to as THE EVENT that destroyed the Republican Party.
The deal does not resolve the fundamental issues of spending and deficits that divide Republicans and Democrats. It funds the government until January 15 and raises the debt ceiling until February 7, so Americans face the prospects of another bitter budget fight and another government shutdown early next year. This is like the deficits – they will continue to spend more than they collect and they will always borrow more each year. Like this problem is just going away – Good one!