StanCollender'sCapitalGainsandGames Washington, Wall Street and Everything in Between



Gramm-Rudman-Hollings

Posted by Stan Collender

You would think that Phil Gramm -- the former Republican Texas senator who was one of the authors of the Gramm-Rudman-Hollings budget process from the late 1980s -- would know how the law bearing his name works.

At the very least you would expect that he'd do some homework to make sure he was right if he bylined an op-ed in the Wall Street Journal that said his old law from 27 years ago gave Congress mystical and previously unknown powers that no one else knew existed to come up with an alternative to the sequester that was triggered when the anything-but-super committee failed.

But Gramm either doesn't remember how his law works or didn't take the time to check out the facts.

Posted by Stan Collender

OK...I'll admit that saying the agreement will be gone by this Christmas is likely (but not necessarily) an overstatement.

But saying that the "Budget Control Act" -- the debt ceiling increase/deficit reduction deal signed into law on August 2 -- isn't likely to be in place on January 1, 2013, or to have it's projected impact over the full 10 years it supposed to be in effect is anything but an exaggeration. 

The reason? Federal budget agreements have seldom, if ever, gone the distance. Instead, they have always been changed, waived, ignored or abandoned long before they were scheduled to expire.



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