MORNING MESSAGE: Deficit Debate’s Sick Secret Is Killing Us
OurFuture.org's Richard Eskow: "The problem, of course, is our health care system – although 'system' seems like a flattering word for this greed-driven, anarchic three-ring circus ... Where does all the money go? Much of it goes to profit margins for private insurance companies, of course. (They’re experts at understanding their margins, which are much higher than most observers believe.) There are also profit margins for a number of health providers, including for-profit hospitals, medical imaging companies, and physician practice management groups. Underlying much of our explosive cost growth is the phenomenon we described in 'Sick Money': Investors like Bain Capital buy up health care companies, load them up with debt, and demand highly aggressive profit margins."
Senate Close To Sweeping Filibuster Reform
Sens. Merkley, Harkin and Udall present "talking filibuster" rule. The Hill: "The sponsors ... called on Senate Majority Leader Harry Reid (D-Nev.) to put the reform in effect ... with a simple majority vote ... The most ambitious element is a call to establish the talking filibuster rule ... Their resolution also calls for the elimination of the filibuster on motions to proceed ... It would eliminate the filibuster on motions to move Senate-passed bills to conference negotiations with the House ... It would expedite executive and judicial branch nominations by reducing post-cloture debate from 30 hours to 2 hours. This change would not affect Supreme Court nominees."
Backers close to majority support. HuffPost: "The Senate postponed debate on reforming the filibuster Thursday, as advocates cited the support of 48 senators for eliminating the silent filibuster using the so-called constitutional option, a measure that requires 50 votes plus that of the vice president ... The remaining seven within the Democratic caucus who have yet to sign on are Sen. Carl Levin (D-Mich.), Sen. Mark Pryor (D-Ark.), Sen. Patrick Leahy (D-Vt.). Sen. Max Baucus (D-Mont.), Sen. Jack Reed (D-R.I.), Sen. Barbara Boxer (D-Calif.) and Sen. Dianne Feinstein (D-Calif.), a source familiar with the whip count told The Huffington Post ... Their plan is currently in competition with a bipartisan plan more recently introduced by Sens. Carl Levin (D-Mich.) and John McCain (R-Ariz.), and backed by six other senators ... the filibuster reform debate will begin on Jan. 22."
Merkley slams McCain-Levin proposal. TPM: "Merkley said the McCain-Levin scaled-back bipartisan proposal 'does nothing to take on the secret, silent filibuster that is haunting this body' and 'gives substantial power to the minority with guaranteed amendments.'"
Debt Limit Breach Not Expected By Markets
Markets not worried about breaching debt limit. Bloomberg: "U.S. Treasury bond investors -- who most directly bear the risk of a government default -- aren’t alarmed ... investors remain confident the two sides will compromise rather than inflict what Obama called 'catastrophic' consequences. Yields on long-term U.S. debt are near record lows. 'It’s ugly in Washington, and getting uglier,' said Matthew Duch, a fund manager in Bethesda, Maryland, for Calvert Investments, which oversees more than $12 billion in assets. 'But that is just resulting in even lower rates as the market is much more concerned about growth than if the U.S. will be able to pay their bills.'"
NYT's Paul Krugman worries President will blink before limit is reached: "Why do I say that [the deal] was a tactical victory? Mainly because of what didn’t happen: There were no benefit cuts ... But the G.O.P. retains the power to destroy, in particular by refusing to raise the debt limit ... the president has said that he won’t negotiate on that basis ... But will Mr. Obama stick to his anti-blackmail position as the moment of truth approaches? He blinked during the 2011 debt limit confrontation. And the last few days of the fiscal cliff negotiations were also marked by a clear unwillingness on his part to let the deadline expire."
Daily Beast's Michael Tomasky says, trust him: "...he vows that he’ll be tougher this time, and I take him at his word. He’s gotten a lot done, he got himself reelected when lots of people thought he couldn’t, and I say he’s earned a little bit of my trust. We’ll see. I also think that 'Obama is going to sell us out' columns somehow help make that eventuality come true. At the very least, they establish a tone and mindset that rank-and-file liberals imbibe and accept."
Breakfast Sides
Second-term Cabinet decisions expected next week. CNN: "... former Republican Sen. Chuck Hagel, a favorite for the Defense Department post whose prospects had appeared to be dimming amid criticism from pro-Israel groups and gay organizations over past comments, is still in the running for secretary of defense ... White House Chief of Staff Jack Lew is considered to be a frontrunner for the [Treasury] job."
Dems will quickly renew push for Violence Against Women Act. CNN: "'It is an early priority for us,' House Minority Leader Nancy Pelosi, D-California, told CNN as the 113th Congress convened Thursday. 'Since it passed the Senate last time, with two more Democrats in the Senate, we hope that it will have an easy path there and a doable path there -- and a successful one in the House.'"
