Once again Republicans have managed to box themselves in.
Just as the GOP has reportedly found enough votes among conservative Republicans to pass the latest iteration of the proposed Healthcare bill, with Freedom Caucus Mark Meados saying "republicans will have the votes to pass" Obamacare repeal, Democrats realized that they once again have the leverage to bring this whole process to a grinding halt halt. And they are using it.
As The Hill reports, House Democrats will oppose any short-term spending bill - which is what McConnell was hoping on passing to buy one week of time - if Republican leaders attempt to expedite an ObamaCare repeal bill this week, Rep. Steny Hoyer (D-Md.) warned Thursday. In other words, Democrats are now holding the government hostage indefinitely as long as Republicans - who now have the votes to pass new healthcare legislation - threaten to repeal Obamacare.
Hoyer, the Democratic whip, spoke with House Majority Leader Kevin McCarthy (R-Calif) Thursday morning to warn him of the Democrats' position. "If Republicans announce their intention to bring their harmful TrumpCare bill to the House Floor tomorrow or Saturday, I will oppose a one-week Continuing Resolution and will advise House Democrats to oppose it as well,” Hoyer said in an email.
“Republicans continue to struggle to find the votes to pass a bill that will kick 24 million Americans off their health coverage, allow discrimination against those with pre-existing conditions, and impose an age tax on older Americans. That's why they are trying to jam it through the House before their Members can hear from the American people this weekend about their opposition to this horrible legislation.”
As the Hill adds, the threat is significant because GOP leaders will likely need Democratic votes to pass a short-term spending bill in the face of opposition from conservatives historically opposed to government funding bills.
Ironically, as long as the GOP was split internally, and it appeared they did not have the votes to repeal Obamacare, the government shutdown was a negligible risk; however now that Democrats have realized that a new bill may just pass, they are using the biggest leverage they have: holding one-week continuing resolutions indefinitely, in the process assuming that Republicans may never be able to pass Obamacare repeal, with the government being funded on a week by week basis, as long as the GOP agrees not to pass such a vote.
The market, naturally, has noticed, and as Citi observes "the latest bout of headlines has investors on edge - US Republicans and Senate in deep conflict. Speaking to our desks, interest seen - especially for USDJPY - appears to be largely short-term, reactionary. As we type, the market looks for a base. USDJPY now 111.20. US 10y yield at 2.2950%."
How this particular impasse will be resolved remains unclear.