Suspended Economic Animation

A deal has been brokered by Biden and McConnell to avert the cliff.  It passed the Senate just before Midnight.

Now its up to the House to pass and send the bill to Obama to sign, or reject.  Even though passing the bill will put the nation on the right side of the cliff's edge, given that republicans canned Boehner's extremist "Plan B," there is no assurance what the House will do with this deal.  There are signs that the natives are restless:

"Some GOP lawmakers, including Reps. Phil Gingrey of Georgia and and Tim Huelskamp of Kansas, told CNN Tuesday they won't support the bill."

"'It's taxing, and still taxing, small businessmen and women, and I don't like that at all,' Gingrey said, referring to some small business owners who would be among those whose tax rates rise."

Looking at the details, the President gave up a lot to get this deal with republican leadership.  Most importantly, the GOP retains the ability to take the hostage show on the road again in just a few weeks over the debt ceiling limit.

Democratic leadership is saying this is not a problem, as they insist that (this time) they won't allow the nation to be held hostage again by the GOP.  However given the precedent that's been set by the President, in reliably caving on issues he previously says are sacrosanct, there is no reason for anyone not to believe that caving is a feature versus a bug with this President.  

There is a lot of teeth gnashing anger on the left over the President caving yet again.  I don't like it either.  Some are demanding that progressive lawmakers put the kibosh on the deal.  Cooler heads are counseling that, in essence, given the rigid extremism of the right, gerrymandered districts and the 2.1 million unemployed held hostage, this was the best that could have been expected, and they may be right.

Technically, we're over the cliff right now, as the deal has yet to become law.   Given the fact that the fiscal cliff is an entirely unnecessary construct, and the fact that the debt ceiling makes even less sense, the cartoonish nature of this entire useless episode is obvious.  We're Wile E. Coyote in suspended animation phase, in mid air over the cliff but are yet to realize its implications.  Sometimes, in his pursuit of the elusive Roadrunner, ol' Wile E is able to make it back to the edge of the cliff, only to have the ledge break off underneath him.  

Exactly where we are vis a vis the edge and disaster, its too early to tell.  But for now, the nation is in suspended animation.