The President Hates This

 The President just told the activist left”‘get off my back; I’m doing the best I can and oh, by the way this is very good politics for “me and even at that I don’t like it”’.  To Congress he said; “thanks but no thanks you’ve helped me enough for now; this is the President’s deal, stop whining and get on the train”.  The President, unfortunately, seemed a bit whiney himself as he delivered the stop whining message.  Next time you have to make a deal (get used to it) you might want to try that Happy Warrior approach.    

 Either the President knows it’s more than a “framework” or he’s hemming in criticism.   He hates this deal, doing his political best to go over the heads of the “professional” political class to Middle America.  The President hates it because he did not get his way; hates it because his base is going ballistic; tens of thousands of words from the Soros left are forthcoming, many of them unkind.  Mr. President it’s OK, the rest of us didn’t expect you to get your way.  We just had an election about exactly that.  We’re hoping that the 24 hours you spent on Air Force One for a three hour visit gave you a lot of time to consider the circumstances.  By the way, glad you went!

 Had the left maintained unrestrained power in Washington we’d be having a different conversation; doing our best to restrain the Train.    

 Personally, I’ll take the deal, for now!  Not to hit a man when he’s down but if the President thinks the deal stinks, I’m willing to give it a try; such is my view of his economic judgment.  This deal has been projected by pundits and run up the flagpole, no real surprises here.    

 The realities are that it takes time for many segments of big economies to react to policy change; this is a status quo deal, taxes and unemployment.  Business will still bet on what the case is going to be in two years.  Other countries’ economic problems could affect us.  Currency valuations and relative strength will play into the equation.  Conflict is always right around the corner; another attack?  Hey, we don’t even have a budget!  Think that might factor in?  Widespread reports and instances of numbers being “creatively organized” could factor as well.    

 “Paying for” tax cuts and extended unemployment is a case of variance to someone’s projections. The reality is that we need growth beyond projections to “pay” for the deal and to move the economy from flat to anemic growth to “recovery” growth.  If real growth begins to show signs in the second quarter and aggressive spending cuts are being put in place there’s still a light at tunnel’s end.  You can’t avoid the irony that the first step to deficit reduction for Republicans is a spending deal.  Perhaps a necessary deal but it’s spending nonetheless and it happens immediately.

 Not a word about “paying” for anything with unspent stimulus funds which puts a bit of a cloud over the whole process; can’t help but wonder why if “paying for it” is so very important?  “Paying for it”; now it’s important, just now, over this deal? 

 We haven’t paid for about 1.4 trillion a year not counting 80 trillion and rising in entitlement commitments.  Now; only now we’re apoplectic about paying for it?  Really?