WASHINGTON, D.C. -- The stakes for the U.S. economy, now tottering on the brink of implosion, have never been higher.

New second quarter growth figures released by the Federal government late yesterday shocked analysts. The economy grew at an anemic 1.3 percent, down from the 1.8 percent that was widely predicted. This comes on the heels of first quarter Gross Domestic Product growth of less than one percent. Consumer confidence tanked in the quarter, as spending was flat.

The bad economic news coupled with the budget impasse soured the market, causing the DOW to plummet in late afternoon trading, a precursor to last night, where the dollar got crushed in overnight Asia markets. Economists voiced gloom as $600 million was reportedly withdrawn from the bond markets yesterday as jittery investors reacted to a potential U.S government bond rating downgrade post August 2. 

Republican House Speaker John Boehner (R-Ohio), meanwhile was scrambling to get 216 votes to pass his compromise bill, and get it to the Senate, where Majority Leader Harry Reid (D-NV) was expected to boot it, anyway. Boehner's floor Whip, Kevin McCarthy (R-CA) was confident he had the votes for passage at about 5:00 p.m. yesterday, when the leadership switched two Georgia Republicans to their side, Rep. Phil Gingrey (R-GA) and freshman Rep. Austin Scott (R-GA). Also joining the leadership are Rep. Tom Price (R-GA), Rob Woodall (R-GA), Lynn Westmorland (R-GA), and Jack Kingston (R-GA). 

But the GOP leadership Caucus' vote momentum then stalled, and after 10:00 p.m. they were still two to three votes short to their magic number. Boehner then promptly cancelled the vote, sent his Caucus home, and convened a full Caucus meeting this morning at 10:00 a.m. in the Capitol basement. 

Standing Boehner down are Tom Graves (R-GA) and Paul Broun (R-GA). Their opposition to the Speaker's compromise bill essentially stopped it in its tracks. Both Graves and Broun vowed not to cave into pressure from the GOP Caucus leadership, as both legislators called it a bad bill that did not solve the core problem of burgeoning U.S. debt. 

Some Republican opponents said they would not be intimated by market analysts predicting gloom. "That's how they duped us into supporting TARP," one opponent, a southern conservative, said. 

At 9:30 a.m. Reid gathered the press and proclaimed he had given up on the House, saying they were unable to "conduct their business," and promised his bring his own Democrat bill to the floor of the Senate this afternoon. 

The Tea Party has come under intense fire from the mainstream media, including the Wall Street Journal, for holding some U.S. House Reps. feet to the fire, and pressuring them to hold firm against Boehner's compromise.

Some GOP freshman legislators are speculating that Boehner's days as Speaker may be numbered. 

jfredericks@beaconcast.com