Republican Endgame Nowhere In Sight
Obama and Boehner talk past each other, reports National Journal: "Obama said that if Congress were to pass a temporary bill to open government, he’d be willing to negotiate ... But Obama asserted that congressional Republicans instead have 'decided to run out the clock until there’s a government shutdown or the possibility of default, thinking that it would give them more leverage.... And that is not how our government is supposed to run.' Soon after, House Speaker John Boehner, R-Ohio, gave reporters his interpretation of what Obama meant: 'What the president said today was, if there’s unconditional surrender by Republicans, he’ll sit down and talk to us ... That’s not the way government works.'"
But AP detects "hints of compromise": "'I suspect we can work out a mechanism to raise the debt ceiling while a negotiation is underway,' said Rep. Tom Cole, an Oklahoma Republican who is close to Boehner."
Some Republicans embrace default denial. NYT: "A surprisingly broad section of the Republican Party is convinced that a threat once taken as economic fact may not exist — or at least may not be so serious. Some question the Treasury’s drop-dead deadline of Oct. 17. Some government services might have to be curtailed, they concede. 'But I think the real date, candidly, the date that’s highly problematic for our nation, is Nov. 1,' said Senator Bob Corker, Republican of Tennessee. Others say there is no deadline at all — that daily tax receipts would be more than enough to pay off Treasury bonds as they come due. [But] most economists have said loudly and repeatedly, the impact could be catastrophic."
"GOP Unity Frays" reports Politico: "...as Republican leadership tries to broaden the debate beyond Obamacare to other areas of mandatory spending, many in the rank and file want to keep focus on the health care law. That’s a major reason they’re pushing party leaders to keep a government funding bill separate from debt ceiling legislation, worried that Obamacare could get lost in such a big fiscal package."
Dem division over acceptable length of debt limit increase. The Hill: "Senate Democrats want to increase the nation’s borrowing authority for more than a year, taking Congress through the mid-term election. Obama seemed to undercut them Tuesday afternoon when he said he could support a short-term legislation to fund government and raise the debt limit ... Meanwhile, Reid plans to move a clean bill to raise the debt limit [through end of 2014] and Democrats think they will have enough votes to overcome a Republican filibuster."
House Budget Chair Paul Ryan shifts demands from Obamacare to Social Security, Medicare and oil, in WSJ oped: "Here are just a few ideas to get the conversation started. We could ask the better off to pay higher premiums for Medicare. We could reform Medigap plans to encourage efficiency and reduce costs. And we could ask federal employees to contribute more to their own retirement ... We should also enact pro-growth reforms that put people back to work—like opening up America's vast energy reserves to development."
President meets with conservative media. HuffPost: "President Barack Obama met Tuesday with a small group of conservative reporters, columnists and commentators at the White House for an off-the-record discussion ... it's unlikely that attendees will discuss exactly what was said."
Funder of Public Pension Attacks Under Fire
Heads of Arnold Foundation give $10M to keep Head Start open. WSJ: "Head Start programs closed due to the shutdown will reopen this week after receiving a donation of $10 million in emergency funding, the organization announced Monday. Laura and John Arnold, the couple that donated the emergency funding, will be repaid if the government provides Head Start programs with sufficient funding for the year ... As of Monday, seven programs had closed, keeping 7,195 children out of the classroom."
"Scandal-plagued plutocrat suddenly loves poor kids!" responds David Sirota: "After a week of revelations about his scheme to help Wall Street and the conservative movement loot public pensions, the former Enron trader made headlines yesterday by handing over a rounding error of his billion-dollar fortune to the federal Head Start program ostensibly to help float it through the government shutdown ... For a mere $10 million of his $2.8 billion fortune, Arnold was treated to a wave of celebratory press coverage [and] it may end up just being a temporary loan paid back in full ..."
Click here to read the Institute for America's Future report by Sirota, "The Plot Against Pensions: The Pew-Arnold campaign to undermine America’s retirement security – and leave taxpayers with the bill."
It's Yellen
Obama to tap Yellen for the Fed chair today. NYT: "She is also expected to win bipartisan support for her new role in the Democratic-controlled Senate, said Senator Charles E. Schumer of New York. But some Republicans could throw up hurdles. Senator Bob Corker of Tennessee voted against her appointment as vice chairman because of what he called 'her dovish views on monetary policy,' and he was already expressing reservations on Tuesday night about her nomination for the top job ... Ms. Yellen has wanted the Fed to take even more aggressive measures to lift growth, believing the risks of inflation are modest. But her views and Mr. Bernanke’s appear close enough that markets have considered her potential ascension a sign of continuity at the Fed."
Yellen noted for her focus on jobs, reports Bloomberg: "...Yellen has a reputation as one of the Fed’s more dovish officials because of her focus on unemployment. She’s a 'fierce advocate' of its dual mandate to promote price stability and full employment ... In spite of her identification as a leading dove, Yellen has shown an ability to forge consensus with the more hawkish, anti-inflation members..."
