Associated Press Image via the Wall Street Journal.

Former House Speaker Kevin McCarthy lost his job for working out a deal with Democrats. A gang of 8 led by GOP Rep. Matt Gaetz pulled the plug on McCarthy.

One of the gang of eight demands is no more money for Ukraine. Care to take bets?

Another Congressional Showdown

The Wall Street Journal asks Can Lawmakers Boost Ukraine Aid by $50 Billion—or Even More?

Pro-Ukraine senators from both parties, unnerved by the upheaval in the House, say they want to move quickly to pass a yearlong aid package for the war-torn country that far exceeds the amount of aid requested by President Biden in August and would last through the 2024 election.

Biden requested $24 billion in additional aid in August, drawing opposition from many Republicans who have grown wary of further funding for the war. Now, supporters of Ukraine in the Senate are aiming to offer a much bigger and longer-term package—with a price tag between $50 billion and $100 billion.

Democratic Sen. Richard Blumenthal of Connecticut, also a strong supporter of Ukraine, said if it were up to him, the number would be closer to $100 billion—but said he would be open to compromise if Republicans were OK with $60 billion.

Outer Limits

Senator Lindsay Graham has suggested $60 billion to $70 billion as the amount needed for Ukraine aid through the November 2024 presidential election. He said he sees that estimate as the “outer limits.”

What a hoot.

Where have we heard that kind of talk before? Of wait, I remember.

Iraq Flashback

Even before the Iraq war began in March 2003, there was much discussion of its costs. President Bush’s economic adviser, Lawrence Lindsey, suggested that a war might cost $100 billion to $200 billion. He was fired. Defense Secretary Donald Rumsfeld, asked about outside estimates that the cost could reach $300 billion, responded, “Baloney.”

The above snip courtesy of Cato.

The cost was close to $3 trillion. With that “outer limit” flashback out of the way, let’s return to the Journal.

More Money for This and More Money for That

“I want immigration reform to get done. I want more money for the border,” said Sen. Chris Murphy (D., Conn.). “But I get really nervous when people try to tie two difficult things together.”

I fail to understand that comment.

Five-Point Synopsis

1. Some want this but not that.
2. Others want that but not this.
3. Still others want this and that.
4. Virtually no one wants neither this nor that.
5. Everyone always wants more money for something.

The obvious compromise is more money for this in return for more money for that.

What “this” and “that” represent is irrelevant. In this case it’s the border vs Ukraine. Israel is now thrown in the mix making it a case of this, that, and something else.

Expect more money for all three (and God only knows what else now that there is a crisis in play).

McCarthy Ousted, House Essentially Frozen, There Is No Path Forward, For What?

On October 3, I commented McCarthy Ousted, House Essentially Frozen, There Is No Path Forward, For What?

Irony of the Day

The eight who pulled off the ouster of McCarthy are cheering along with all the Democrats!

OK guys, you have the ball and the bat, and sided with 100 percent of the Democrats in a historic vote. All 208 Democrats in attendance voted against McCarthy.

Now what are you going to do with the Democrats for an encore?

In retrospect, “Now what are you going to do with the Democrats for an encore?” was a damn timely question.

I believe we now have an answer: Even more money for this in return for more money for that.

Neither Party Will Fix Anything

(Click on image to enlarge)

No One Will Fix This

“Compromise is always more spending for this in return for more spending on that.”

“Neither party will fix the deficits. Neither party will do anything about mounting debt. No one will do anything about anything because the political system is totally broken.” Mish

For discussion, please see Debt to GDP Alarm Bells Ring, Neither Party Will Solve This

Biden requested $24 billion for Ukraine. By holding out for nothing, the gang of 8 who dumped McCarthy and demanded nothing for Ukraine dramatically increased the odds Ukraine gets $60 billion to $100 billion now and even more later.

Anyone who thought 8 people could change the way Congress works was crazy.

Now what are the outer limits? Anyone care to make a guess?

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