ANOTHER BAD DEAL. “..lawmakers could concentrate on tackling other issues like immigration and infrastructure rather than careening from one budget crisis to the next. By Todd Horwitz, Bubba Trading

 

ANOTHER BAD DEAL

Budget Deal Reached

Senate leaders struck a far-reaching bipartisan agreement on Wednesday that would add hundreds of billions of dollars to military and domestic programs over the next two years while raising the federal debt limit, moving to end the cycle of fiscal showdowns that have roiled the Capitol.

The accord between Senators Mitch McConnell of Kentucky, the majority leader, and Chuck Schumer of New York, his Democratic counterpart, would raise strict caps on military and domestic spending that were imposed in 2011 as part of a deal with President Barack Obama that was once seen as a key triumph for Republicans in Congress. The deal would raise the spending caps by about $300 billion over two years. The limit on military spending would be increased by $80 billion in the current fiscal year and $85 billion in the next year, which begins Oct. 1. The limit on non-defense spending would increase by $63 billion this year and $68 billion next year.

“This bill is the product of extensive negotiations among congressional leaders and the White House,” Senate Majority Leader Mitch McConnell (R., Ky.) said on the Senate floor Wednesday in announcing the pact. “No one would suggest it is perfect, but we worked hard to find common ground.” “After months of legislative logjams, this budget deal is a genuine breakthrough,” Senate Minority Leader Chuck Schumer (D., N.Y.) said on the Senate floor.

The deal would clear the deck for Congress. If the spending numbers are agreed to, lawmakers could concentrate on tackling other issues like immigration and infrastructure rather than careening from one budget crisis to the next. The bill would also provide long overdue disaster funding for Texas, Florida and Puerto Rico months after hurricanes devastated homes, infrastructure, and coastlines there. Raising the budget caps has been on the table for months but has always been entangled with the contentious immigration debate. Pelosi’s statement reveals the deep schisms within the Democratic Party between those willing to show some flexibility now after a three-day shutdown and those who are dug in on immigration.

Keep those stops tight
Todd “Bubba” Horwitz

Todd’s Daily Video Commentary can be found here: https://tinyurl.com

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Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.