Thursday, July 28, 2011

Congress is out of bandwidth

House leaders have one less tool available to persuade members to vote for a Republican plan to raise the debt ceiling. They can no longer offer money for pet projects, known as "earmarks."

One Republican is delighted. Republican Rep. Jeff Flake of Arizona used to regularly criticize the tactic that both parties had used for years.Las Vegas Sun

House earmarks are the highest multiplier spending we have, but we give them up. Why? Because the Senate consumes most of the transactions coming out of Congress. Is anybody getting the concept here?

I talked about the Senate goody factory before, a factory which generates government transactions at rates that satisfy the disparate requirements of state Senators.  We cannot have a 13 year entitlement updates in NY New Dealers.  intervals unless we schedule 10 year space/defense contracts for Texas and California.  That generates 5 year road and rail projects, and so on.  The Senate needs all this spectral space to operate.  We are defaulting because we cannot make these rates and the Senate has become non-functional.

That is the cause of our current default.

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