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I wrote yesterday about a memo that the Conservative Action Project sent to House Republicans meeting in Williamsburg to plot strategy against Obama’s continued demands for higher taxes. They ignored the memo, and surrendered.

House Republicans revised their strategy for the coming months’ fiscal debate with Democrats, saying they’ll agree to a three-month debt-limit increase without demanding cuts as part of the deal.

This fits perfectly with Mish Shedlock’s prediction that they would surrender. He was just surprised at how quickly they folded. So am I. Wrote Mish:

Let’s review my precise call.
of the Debate

  1. will chastise Congress with talk of financial Armageddon if Congress  does not raise the debt ceiling.
  2. Congress will pretend to hold the president hostage
  3. The secretary of the Treasury will get into the act with its own version of  the default debate
  4. Perhaps a few payments on non-critical budget items will be temporarily  skipped
  5. Wall Street will feign panic
  6. Constituents will pressure Congress to approve a new
  7. Congress will raise the ceiling with another useless warning about next  time

The GOP followed Mish’s call to the letter, completing steps 1 through 3.

But then, Republicans bypassed steps 4-6 and skipped straight to step 7 without a  fight.

From the Bloomberg article, Boehner used lipstick,

We are going to pursue strategies that will obligate the to finally join the House in confronting the government’s problem,” Speaker John Boehner of Ohio said in a statement yesterday at the end of House Republicans’ policy retreat at a resort near Williamsburg, Virginia.

They’re going to “confront” the Senate? That’s positively laughable. With what?

They’ve surrendered. They’ve given up all hope and any chance of influencing the future direction of spending. Bloomberg puts it more nicely than that:

The strategy represents an acknowledgment by Republican leaders that they need to reassess their goals following President Barack Obama’s re-election and an increased Democratic majority in the Senate.

They’re going to “reassess their goals.” Yup. Taxes are going up. will get his way. Spending will continue. Have a nice day.

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