Shutdown...
Senate filibuster plan rejected by McConnell. National Journal: "McConnell’s statement helped settle a nagging question for some Republicans: Do they vote against ending debate on the House continuing resolution—thereby voting against legislation they support—or vote in favor of cloture, setting up an opportunity for Reid to strip the defunding language?"
Republican shutdown plan rejected by America. National Journal: "...63 percent said Congress should 'provide the funding to keep the government operating and deal with the health care issue separately.' Only 27 percent said 'only fund the continuing operations of the federal government if Obama agrees to delay or withdraw his health care plan.' Even Republicans are skeptical of the House GOP's approach. A majority, 51 percent, said Congress should keep the two issues separate..."
Senate filibuster would shrink clock. The Hill: "...that could push back a final Senate vote until Sept. 28. The House would then have less than 48 hours to decide whether to accept a 'clean' continuing resolution or amend it and return it to the Senate — a move that would almost certainly result in a shutdown."
...or Sequester?
Reid expected to accept sequester level of funding. The Hill: "By accepting the funding number set by House Republicans, Reid has given the GOP some political cover — if they drop their ObamaCare defunding demands ... Some of the left will cry foul because the funding measure passed by the GOP-led House continues the controversial sequester ... 'Congress shouldn’t pass a resolution that even for a short time bakes in more sequestration that harms the economy,' said Roger Hickey, co-director of Campaign For America’s Future ... Hickey warned that spending levels even in temporary funding measures 'have a way of becoming more permanent.'"
Sequester should be replaced, says Progressive Caucus. Roll Call: "...Democratic Reps. Raúl M. Grijalva of Arizona and Keith Ellison of Minnesota sent a letter to Senate Majority Leader Harry Reid, D-Nev., and Minority Leader Mitch McConnell, R-Ky ... 'A vote for a CR at $986 billion is a vote to continue the policy that will cost Americans millions of jobs when they are desperately needed.'"
Reid may shorten CR to two months. Politico: "Some senators believe a shorter stop-gap measure would give appropriators a better chance of passing a larger, omnibus spending bill through both chambers, aides said Monday. They are also considering stripping language in the House bill that would allow the U.S. to continue making interest payments in case the U.S. defaults on its debt, sources say. Reid will make a final decision on how to proceed after meeting with fellow Democratic senators this week."
GOP may bring back Chained CPI to debt limit fight. Bloomberg: "...see the possibility of replacing automatic cuts to federal programs with reductions to entitlement spending. Among these: Obama’s proposal to trim Social Security cost-of-living increases that would save about $130 billion over 10 years. 'Since the president himself has proposed some of these things, it would seem logical that he would not turn that down,' John Cornyn, the Senate’s No. 2 Republican, said ... there’s cause for skepticism because when Republicans made the same offer to White House officials in talks earlier this year, entitlement cuts weren’t 'interesting at all for them without a tax increase,' [Sen. Bob Corker] said."
Austerity Already Ravaging Economy
Mother Jones' Kevin Drum on how austerity is killing the economy: "Austerity is working out fine for the 1 percent: Their jobs are safe, their investments are growing, and their taxes are low. But the rest of us are paying a high price in the form of slow growth, high unemployment, and stagnant wages for years to come. All things considered, we've been remarkably tolerant of our fate. The folks who run the world might do well to ponder how long that's going to last."
More cities look to slash public pensions. NYT: "... government officials and municipal bankruptcy experts across the country are watching San Jose closely because of a plan to reduce benefits — drafted by Mayor Chuck Reed, a Democrat, and passed by 70 percent of voters in areferendum last year. The plan is being opposed in court by unions that represent city workers and say it is illegal under state law. It would introduce a second tier for new city employees involving much lower pension and health benefits. It would also alter pension benefits for existing workers, allowing them to choose either a similar, second-tier benefits plan or to pay significantly more out of their own pockets for the benefits they had come to expect ... Reed joins a small but growing group of Democratic officials, including Mayor Rahm Emanuel of Chicago and the Rhode Island treasurer, Gina Raimondo, who are talking about altering municipal pension plans in ways that unions do not like..."
Austerity wins in Germany. NYT: "Instead of a respite from years of grinding budget cuts and tax increases in return for bailout funds, Ms. Merkel’s conservative Christian Democrats campaigned on holding the line against expensive commitments to reviving Germany’s neighbors. Her financial aides claimed that signs that Europe’s long recession had recently become less severe had proved that its austerity policies were working."
Breakfast Sides
Pelosi may introduce her own immigration bill. Politico: "The California Democrat’s strategy includes introducing legislation combining the comprehensive bill that passed the Senate Judiciary Committee in May with a bipartisan border-security bill from the House Homeland Security Committee ... The plan would be to publicly release the bill timed to the Oct. 5 National Day of Action that is meant to mobilize grass-roots support and pressure the House Republican leadership to take up immigration reform that includes a pathway to citizenship."
High-speed rail thriving in China. NYT: "Just five years after China’s high-speed rail system opened, it is carrying nearly twice as many passengers each month as the country’s domestic airline industry. With traffic growing 28 percent a year for the last several years, China’s high-speed rail network will handle more passengers by early next year than the 54 million people a month who board domestic flights in the United States ... Economists and transportation experts cite it as one reason for China’s continued economic growth when other emerging economies are faltering."
