Federal transfers to California

The red line are federal transfers to California government, growing fast as Obamacare kicks in. How long can the DC politicians keep this up?   Not for long, Paul Ryan says we need another short term budget resolution.

Fox News: The House will pass a short-term bill to prevent the government from shutting down this weekend, Speaker Paul Ryan said on Tuesday.  

The announcement from the Wisconsin Republican came as talks on a sweeping $1.1 trillion governmentwide spending bill continue slowly.   

The government is currently operating under a short-term spending bill that expires at midnight on Friday. The new stopgap spending bill will buy time for talks on the bigger measure.   

"We need to get it right," Ryan said of the broader measure. "I don't want us to go home until we get this done."   

The full-year spending bill is the main unresolved item on the congressional agenda as lawmakers look to wrap up the session and head home for the holidays. Democrats, backed up by President Obama, have adopted a hard line against numerous GOP policy provisions woven into the 12 spending bills that serve as the template for what promises to be one huge bill known as an omnibus in Washington-speak.   

Republicans are holding out for policy "riders" that would, for instance, block new rules on power-plant emissions, stall a new Labor Department rule requiring financial advisers to avoid conflicts of interest when structuring retirement accounts, and curb new clean water rules.   

Short term means short term financing and one year treasuries are now .75, a five fold increase.