The Evening Summary, 7/31

Another month in the can. The year is proceeding so fast.

I've spent the last several hours going over the latest news in the debt limit story. From what I know about it, I am against it. It looks as if the worse possible outcome is going to be presented to the House and that they are going to be pressured into going along.

If this is correct, then what you may expect is that some of the Republicans might get peeled off and vote with Democrats to pass the bill.

It is a bad bill. The entitlement "cuts" only go to providers, not to beneficiaries. There is no structural change, which will be necessary for a real deal. It is phony baloney all the way. The cuts to the military are phony, but promise to get real in the second round. So, basically, the Republicans are giving up real cuts for phony cuts. The only thing they have "achieved" is no tax increase. But this too is at risk. Actually, they are at risk for a total defeat on all fronts.

They may as well concede defeat and pass a "clean" bill. Stop pretending that they are actually doing anything about the deficit because they are not. In case that they really are doing anything, it is only to defense, which is not a good idea, unless it is truly across the board. Defense cuts should be used as a bargaining chip, but they are being given away.

Thanks for coming by and have a great evening.