Details of the Backroom Boehner-Reid-Obama Debt Deal

Via Prof. Jacobson, here's Boehner's executive summary.

Now for some details...

Grain of salt alert: this is coming from E Klein via twitter, but I think there may be some truth here…

Boehner’s powerpoint misstates the deal to his members. 1) The baseline is not specified in the bill, and does not prevent taxes.

2) Boehner suggests that deficit reduction or [Balanced Budget Amendment] has to pass for Prez to get second debt increase. Not so. McConnell mechanism.

Now, I don’t know if this was just written hastily or Speaker’s office is trying to mislead House GOP. But it’s wrong.

Stay tuned for additional updates as they become available.

Update I (via john.frank):

PIMCO chief: Deal won't prevent downgrading of US AAA credit rating

Update II:

White House "Fact" Sheet on the Backroom Debt Deal

Update III:

Enforcement mechanism established to force all parties – Republican and Democrat – to agree to balanced deficit reduction. If Committee fails, enforcement mechanism will trigger spending reductions beginning in 2013 – split 50/50 between domestic and defense spending. Enforcement protects Social Security, Medicare beneficiaries, and low-income programs from any cuts.

So 40-50% of the budget (Medicare + Medicaid + etc.) would be protected from any cuts, while Defense (20% of the budget) would be subject to half of the $1.5 trillion in cuts?

Update IV (via Ace):

NBC News...

Andrea Mitchell: There has always been anger and animus in among leaders and among the followers - the rank and file, the caucus. But these new members really are willing to tear the place down. And they not only don't care whether or not are re-elected - they don't want pork (laughs). There are no inducements to get them to follow the speaker or the other leaders. So they don't want the traditional methods of buying loyalty here and that was a reform that now has changed the dynamic.

Brian Williams: Alright, Andrea Mitchell from our Washington newsroom. Wish there was better news to report to folks especially about our era in Government.

I could spend hours fisking this conversation - but let's focus on the last two paragraphs. Tea Party Congressmen refuse to take pork - Brian and Andrea are dismayed. I Don't Have To Say Anything Else.

This is one of the reasons I don't watch TV "news."

Update V:

Adding $7 trillion to the debt over the next decade = Drastic teabagger budget cuts

Update VI:

Wall Street Journal: Those stupid filthy hobbits are winning! Except that the deal will practially force Republicans to raise taxes:

This trigger is intended to be an incentive for committee Members of both parties to agree on more cuts, but defense cuts of this magnitude would do far more harm to national security than they would to domestic accounts that have been fattened by stimulus. This is the worst part of the deal, and Mr. Obama's political goal will be to press Republicans to choose between tax increases and destructive defense cuts. The GOP will have to fight back and make the choice between domestic cuts and harm to our troops fighting multiple wars.

This fight is far from over.

Update VII:

PJM: Just because something is touted as a victory doesn’t mean that it is.

Update VIII:

Allen West Blasts "Incredible, Unconscionable" Defense Cuts in Reid Bill

Update IX:

...cuts would be split equally between military and domestic programs. Social Security, Medicaid and programs for the poor would be spared, but Medicare providers -- not beneficiaries -- would take a hit.

Earth to Congress: A cut to providers is a cut to beneficiaries.