OVERNIGHT MONEY: Moving parts

As for Tuesday’s Biden meeting, the vice president said the gathering was cordial, but hinted that a final compromise may come from wider talks and not the current negotiators.

Moving over to the Senate, Democrats have moved closer to crafting their own plan to counteract Republicans, who are presenting the House 2012 budget as their starting position in deficit negotiations. 

On Tuesday, Sen. Kent Conrad (D-N.D.), the Budget Committee chairman, gave his colleagues a look at his 2012 budget resolution, which includes more tax increases than President Obama’s fiscal commission as a carrot to liberals in the caucus. 

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Conrad had hoped to move his budget to a markup on Wednesday, but that is being pushed off by the Obama meeting.

Either way, the Senate budget resolution is already quite a bit late: Under the 1974 Budget Act, both Houses are to agree on a resolution limiting appropriations spending by April 15. Sen. Jeff Sessions (R-Ala.), the ranking Budget member, has called for the budget plan to be released before a markup.

Still, the lack of agreement has not stopped the House and Senate Appropriations Committees from proceeding with dozens of hearings. The House is aiming to produce draft appropriations bills by the end of this month.

And finally, as for the House speaker, some analysts believe the hostage in this case will eventually be released unharmed.

“Investors who spend a lot of time worrying over the debt ceiling and a potential default by the federal government are, in our view, worrying needlessly,” Brian Gardner of Keefe, Bruyette & Woods told investors Tuesday in an update email. 

WHAT ELSE TO WATCH FOR:

Congress talks debt and whistleblowers…: A safe bet, should you find someone to take it: Rep. Ron Paul (R-Texas), a longtime Federal Reserve basher, will likely not have a rosy opinion on Wednesday of the central bank’s influence on the nation’s debt problems. 

Paul’s Financial Services monetary policy subcommittee is set to examine the Fed’s part in the government’s march toward hitting its $14.3 trillion debt ceiling. A separate Financial Services subcommittee, on capital markets, is set to look at new whistleblower provisions for the Securities and Exchange Commission on Wednesday, amid worries from mostly Republicans that they might induce employees to bypass standard reporting procedures. 

And trade…: Senate Finance is set to discuss the trade deal with Colombia, with Sen. Max Baucus (D-Mont.), the panel chairman, likely to push for movement on the pending pacts with South Korea and Panama as well.

The Obama administration gave the go-ahead last week to the Colombian agreement, as the nation works on bolstering its workers rights protections and prosecution of those who commit acts of violence against labor activists. Baucus also will likely push for reupping programs like Trade Adjustment Assistance (TAA), the Andean Trade Preference Act (ATPA) and the Generalized System of Preferences (GSP). 

And unemployment…: The House Ways and Means Committee will mark up a bill that would provide states with more flexibility on how they spend their allocation of federal unemployment funds.

Democrats have blasted the measure as “a hatchet job” on the unemployment insurance program and a “surprise assault on the jobless.”

And Dodd-Frank..: A trio of House Democrats – including Rep. Barney Frank (D-Mass.), the namesake himself – are scheduled to push back Wednesday on a spirited effort from Republicans to chip away and delay implementation of the Wall Street reform law. 

And foreign aid…: Rajiv Shah, the USAID administrator, is slated to sit in the House Oversight hot seat Wednesday. Shah, you may recall, said several weeks ago that House Republican foreign aid cuts would lead to deaths abroad.

Economic indicators:

— The Mortgage Bankers Association is slated to release its weekly data on home loan applications

— The Commerce Department is set to drops its monthly trade deficit report.

BREAKING TUESDAY:

About Social Security: It’s fair to say Sen. Orrin Hatch (R-Utah) didn’t exactly slam the door on means-testing the entitlement program on Tuesday. 

Speaking at a Senate Finance hearing, the ranking member of the panel said he thought it was “immoral” for the government to be paying a relatively high amount of benefits to the more well off. 

“And we keep raising them up to what I consider to be excessive rates,” Hatch added, saying he was concerned about those who “barely get by” on Social Security.

Policymakers agree that some changes will need to be made to Social Security to ensure its long-term health, but aren’t necessarily on the same page over whether that debate should be linked to the current deficit discussions. On Tuesday, Sens. Harry Reid (D-Nev.), the majority leader, and Baucus,the Finance chairman, called for fixes to the entitlement program to be off the table in those talks.

WHAT YOU MIGHT HAVE MISSED:

On the Money’s Tuesday:

— The U.S. and China are making progress, Timothy Geithner says. 

— Sen. Pat Toomey, Heritage Foundation release 2012 budgets.

— Speaking of which: Heritage disappointed in Toomey’s (lack of) changes to Medicare.

— The latest round in Rep. Eric Cantor (R-Va.) vs. Sen. Charles Schumer (D-N.Y.), debt ceiling edition.

— The latest round in White House vs. Boehner, debt ceiling edition. 

— Tim Johnson: FCIC report proves need to stay strong on Dodd-Frank.

— Club for Growth says it will score Peter Diamond vote. 

— Darrell Issa threatens to subpoena Jack Lew.

— Lew (and Gene Sperling) take a field trip to Senate Democratic lunch.

— CFTC looking for Goldman Sachs charges. 

— Senate Dems to make jobs push for veterans.

— And the GAO says the government still has hurdles as it exits auto industry.