More deficit spending say Obama and Republicans

Yahoo: Shaun Donovan, Director of the Office of Management and Budget under President Obama tells Yahoo Finance’s Rick Newman that the President has drawn “two clear, red lines.”

“He’s not going to accept a budget that locks in sequestration,” says Donovan. “Second, he’s not going to accept fixing the defense spending cuts without fixing the non-defense side of the budget as well.”

Find me a Republican who won't deficit spend, its in their blod they know no other method of legislating.  Obama agrees, raise spending across the board as a .2% growth rate cuts tax income.  The ten year yield is now 2%, interest costs will rise and crowd out this government spending plan across the board. And, I am sure, the debt rollovers generated since 2008 are roosting. We will likely see greater stress in the state pension sector, watch Chicago.  This is the pro-cyclical government spending process

Jerry Brown raises taxes:

Under Mr. Brown’s order, emissions would have to be reduced by 40 percent over 1990 levels by 2030. Under existing state law, emissions are supposed to be cut back by 80 percent over 1990 levels by 2050, and Mr. Brown said this tough new interim target was essential to helping the state make investment and regulatory decisions that will assure that goal is reached.

This is not about reducing emissions.  This is about raising the revenue from CapnTrade to cover short term shortfalls.  It won't work because the short falls in revenue will be dominated by the slow down, and the slowdown will automatically reduce emissions.  Most likely CapnTrade revenue will decrease, not increase.