The Grand Old Party has never faced a more trying time in its modern history. Perhaps eclipsing the Goldwater days, when the party's liberal wing succumbed to the more conservative elements of the party, the current tension between Tea Party masterminds and the Republican establishment has threatened to tear the organization apart.
Reports are surfacing that Senate Majority Leader Harry Reid (D-NV) and Senate Minority Leader Mitch McConnell (R-KY) have reached a deal that would both lift the debt ceiling until early February and open the government. The two are clearly operating on the assumption that Democrats in the House will outweigh the dissenting GOP members, although some Republicans are expected to vote positively. Speaker John Boehner – who shares the sole power with House Majority Leader Eric Cantor to put forward the Senate's resolution due to a recent and contentious rule change – is also anticipated to offer an amended bill that, if passed, would end the crisis.
Boehner's shift is a dramatic turn in the fortnight-long shutdown that will have serious repercussions for the next election cycle. Establishment Republicans have watched with concern as the more extremist members of the party have demanded big budget cuts, reductions in welfare spending and a defunding of Obamacare. Details of the new deal suggest that they will be accepting deep concessions made to Democrats in order to end the shutdown, perhaps due to the fact that the GOP has little recourse – or public support – in the debate.
Keep your eyes open to see if the GOP is really going to fold. Given the history of this Congress, it's not out of the question that a last-minute reversal could take place. Independently minded Americans, especially those preparing for retirement, should stick with Great Wealth Strategies for news, insights and more.