Debt Negotiations Proceed Without an Adult in the Room; Update: A Reid Plan w/no Tax Increases?
**Written by Doug Powers
(Scroll down for updates)
The media’s favorite tax metaphor has been to refer to President Obama as the “adult in the room.” If that’s the case, the Beltway daycare has been left unattended:
First came the Biden talks. When those blew up, the Obama-Boehner talks took center stage. And when that failed, the McConnell-Reid talks looked promising. And after they faltered, the Obama-Boehner talks tried to find a new life.
Now it’s all come down to the Boehner-Reid-Pelosi-McConnell talks to solve the debt crisis. Notably absent? The president.
That’s not to say Saturday’s congressional takeover went well.
In a frantic bid to avoid causing a worldwide economic disruption, debt negotiations have shifted wholly to Capitol Hill, as a frustrated President Barack Obama has taken a step back and allowed House and Senate leaders to try to find a way out of the debt-ceiling debacle. After congressional leaders told Obama at the White House Saturday morning they would attempt to stave off the crisis before Asian markets open Sunday evening, leadership aides raced to put together a framework that both parties could support.
So, did Boehner successfully deal Obama out of the game, or is Obama successfully getting as few fingerprints as possible on what’s sure to be a controversial topic heading into 2012, all while hoping to give the appearance that he made a yeoman’s effort to strike a deal? Maybe a little of both. Republicans up for re-election don’t want to vote for something Obama helped construct and Obama’s probably happy to oblige by leading from behind — way behind. If an agreement is reached in Congress, Obama will probably express displeasure at its contents but say that he has no choice but to sign it in order to save the republic from economic Armageddon. If it proves popular he’ll take credit, and if not, deflect blame. But at least his birthday party would go on as scheduled.
I don’t know the specifics of the negotiations, but it sounds like Republicans must be taking another crack at de-funding those cowboy poets again:
Reid was “very angry” in the meeting with Boehner and McConnell, according to a Democratic official. Following the meeting, Pelosi escorted Reid back to her office because she didn’t want the furious majority leader to say anything to the press. Reid is “adamant” about no short-term extension of the debt ceiling, the official said.
Meanwhile, Boehner hopes to have another proposal ready by this afternoon:
House Speaker John Boehner (R-Ohio) told his GOP rank-and-file that congressional leaders are working round the clock on a deal set for release before the Asian markets open on Sunday at 4 p.m., a source tells The Hill.
Boehner gave few details as to the yet-to-be-seen proposal, according to an official who participated in the conference call held following a tense meeting at the White House on Saturday afternoon.
The world continues to wait for the Democrats to offer up any sort of formal plan.
Update: Speaking of Democrat debt plans, or lack thereof, by way of HAP, here’s Turbo Tim with Chris Wallace this morning being asked about the Democrats lack of a plan, to which Geithner seems to argue that the Democrats plan is the culmination of all those lack of plans:
Where’s Wallace’s “are you a flake” question when it’s really needed?
Geithner also said he opposes any short term deal that would make debt a main topic of discussion again before the 2012 election. What a, uh, surprise…
Update II: And these guys wonder why people don’t trust their math?
On Sunday, Senate Majority Whip Dick Durbin (D-Ill.) said he had six words of warning for House Speaker John Boehner (R-Ohio): “If you break it, you own it.”
Transcript here. File that next to Joe Biden’s three letter word: Jobs.
Durbin should have a chat with Debbie Wasserman Schultz about who owns the economy.
Update III (6:20 p.m. est): Two Tweets from CNN’s Lisa Desjardins about an hour ago:
NEW Dem. debt plan: Reid to offer at “least $2.5 Trillion” in deficit redux w/ no revenue increases, Dem. source tells CNN.
***
NEW REID PLAN: “At least $2.5 T in deficit redux” w/ no revenue increases. BUT, unclear what baseline he’s using and what he’d cut.
At Zero Hedge it’s being speculated that the “cuts” would be back-ended in a ten year plan, so no cuts would take place for a long time (if ever) but there would be no tax increase. In other words, the debt ceiling would be raised a minimum of $2.5 trillion — period — and it would probably have to be raised again several times before reaching the point where “cuts” begin.
Assuming that’s remotely true, and it might be way off, but you have to wonder how some Democrats would greet this “no revenue increases” talk knowing that Obama just walked away from a deal containing $800 billion in revenue increases. But this is merely wild speculation right now.
Update IV (11:10 p.m.): Philip Klein at the Washington Examiner has more on the kinds of things that could be considered a “spending cut” in Reid’s proposal. Again, it’s speculation — as Klein wrote, “seeing is believing.”
**Written by Doug Powers
Twitter @ThePowersThatBe
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Categories: Barack Obama,Democrats,GOP
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You sure? It looks like posting must be very easy for you.
Just kidding…….
I got mobile phone posting traumatic stress syndrome.
You’re welcome…sorry it’s not better news.
Yes, somethings weird since letget said bippy!
testicles one, two
Just checking
Not being of the USA would this be Timothy Geithner, if so just seen him on Sky news going on about needing a decision because of social security cheques, I didn’t catch it all.
That same Timmy who’s dad was Obama’s mama’s boss at the Ford Foundation, that Timmy?
My fellow posters are going to rip me to shreds for this but….
I give Boehner an A- for his efforts.
He has proposed three plans and actually passed on piece of legislation. At the right time he nuked Obama for doing nothing but sit on the sidelines and bloviate, wrote him an I am done with you letter and started working with the Senate.
Boehner was even willing to put forward a tax reform plan as a compromise. Obama’s rejection of $800 billion revealed his agenda. Everyone knows who is the inflexible, intransient, radical now.
Independents and moderate Democrats just learned a boatload about how incompetent and radical Obama is.
Boehner has been trying to get something done. I for one had little confidence the economic numbers were there to not raise the debt limit. Too little revenue and too much spending at this point.
Pretty much the way I see it too.
He held his ground today with Chris Wallace.
Path forward to be reveled Monday.
Hold strong!
3. Do whatever is necessary to eliminate fraud in Social Security, Medicare and Medicaid.
How about a definition of “what is necessary”?
1. American citizen.
2. Proof of citizenship.
3. If one is on SS for disability, one must “check in” every 6 mos to PROVE disability; as it stands now, once you are on, you are on–no follow through.
4. Tighten income parameters for Medicaid, food stamps, subsidized EVERYTHING. But, if we do that, there goes the Democrat voting bloc.
There, how’s that for a start!
Re: this site. For a couple of days it takes forever to load…and it is not my computer. Something is wrong with it.
Re: Chris Wallace interview with Timmy G. (he of short-rodent teeth)…Chris was actually tough with him. I was amazed as he was acting like a real journalist instead of an Obama toadie.
On July 24th, 2011 at 9:40 pm, herm2416 said:
3. Do whatever is necessary to eliminate fraud in Social Security, Medicare and Medicaid.
In the fall of 2010, the CEO of IBM offered the Obama Administration a free software program eliminating $900 billion in fraud for Medicaid immediately. The Obama administration never replied.
http://www.examiner.com/political-transcripts-in-national/health-care-fraud-ibm-made-900b-offer-to-obama-white-house-define-free
Wow, thanks for the link! I guess I was excited about him too soon! Ugh…worked for Gore? Ewwwwww!!
Phil…I’m not sure why you took my question as insulting. I was joking around and asked you your opinion. But, never mind. You must be off your meds today so I won’t bother you.
Bill would force Barry to pay Social Security, military if US defaults
http://thehill.com/homenews/senate/173155-conservatives-look-to-force-obama-to-pay-social-security-military-in-case-of-default-
“We have a bill that directs by law the president to pay the interest on the debt, pay social security checks and pay soldiers’ salaries. We’ve been talking with the House freshmen to see if they will force a vote on that next week,” said Sen. Rand Paul (R-Ky.), a member of the Senate Tea Party Caucus.
I owe it to the Jones County Fair. Demoliotion derby, giant tenderloin, HUGE fresh squeezed lemonade and homemade strawberry ice cream made with fresh fruit.
THAT……..IS AMERICA!
Since FICA, Medicare and Medicaid are collected separately then the President needs to account IN WRITING what he has siphoned away from those collections to pay for. They had best be d@mned essential.
This is what has been so ludicrous for decades. These collections are done separately then thrown into the General Fund to be pillaged by the Congress.
Wasn’t Geithner one of those low profile tax evaders that this great US Senate confirmed for the treasury slot. I wonder if this guy can balance a check book.
Of course, you don’t see the insult in that comment either right? You’re not very bright are you?
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Testing–Testing. I submitted my last comment–it was #64–and the system never completed the action. Other sites like Hot Air worked properly. A few hours later the comment showed up as #92. The loading in progress “arrow circle” is active much more than normal–like very slow loading.
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Like Elmer Fudd said, “Something very verry scwwwery is goin’ on around here!”
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Is San Fran Nancy Pelosi helping out with the web site by any chance? Have Beavis and Butthead returned from Limbo?
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John Bibb
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Oh lord….suck it up cupcake. Did the lady hurt our feelings? Poor baby…..
Wow! I totally missed this when it happened and as a check of the internet goes, so did the LameStreamMedia. I only saw Fox and the Washington Examiner as mentioning it. This is IBM, not Salvatore’s Software and Bicycle Repair Shop. Jeez! I noticed no other major news source reported it, or at least not in the first 10 pages of a Google search.
Why would this occur? Well, some reasons could be:
1. Obama is paying off those who helped him. Has anyone really checked the offshore accounts of Rezko and Jarrett lately?
2. If we fix the system, no need for Obamacare.
3. Many of those benefitting from the fraud are those who vote for Obams.
I am sure this list could go on and on…
No debt ceiling increase at all!! Let it all correct. This Country will survive. Let people strive to get along for awhile without the government dole. Let families help their own. This liberal nanny state could use a big dose of self-reliance.
Also, one wonders, with all the collective disrespecting of the US around the world, why everybody is so worried about a global economic Armageddon if the US defaults. I thought we don’t matter anymore?
Hmmm,
Went to KCRG website to check your weather out, lead story is, today is the one year anniversary of the Lake Delhi dam breech.
At least you got nice weather, we’re cooking down here.
I have been seeing far too many young people not trying hard or really putting effort into their professions due to the excessive “safety net” that government suppplies. They are not concerned about losing their jobs or their performance on the job because Uncle Sugar will always be there to provide most of what they need.
Whether it be welfare, continual extensions of unemployment, staying on the parents’ healthcare until way past time – many just won’t take the challenge to be responsible for themselves.
I believe the labor force as a whole is suffering. Sure there are, and always will be, the stars and the exceptions. But I have noticed less and less interest in doing the job and doing it well.
As I recall, the Soviets were very proud of their five-year plans for goals and production. But as the sun was setting on the USSR, they were modifying these estimates every couple of months and always downwards. Face it, taking the carrot away will not inspire many. Anyone else seen this?
Ok I’m trying this ONE more time then I’m outta here. Sorry if I didn’t reply to earlier comments directed to me…
Stay vigilant (or vigilante, your choice)
Peas OUT!
Apparently, some people didn’t catch on to the fact Boehner was about to ‘fess up ANOTHER 800 BILLION dollars of taxpayer money and only walked out when the Spender-in-chief upped the ante by 400 Billion. The clowns pandering to the public spoutimg that the national economy is extremely more complicated than a normal household budget are just blowing smoke up their collective (that socialist word again) butts.
For the basic issues are by no means complex. We recall that the word “economy” comes from the Greek oekonomia, namely, household affairs, domestic management, as Aristotle lays it out in the Politics. High finance and market speculation, for all their daunting ramifications, are only an esoteric derivative of straightforward economics. Of course, managing a nation involves many more factors and “parameters” than attending to the family budget. But the underlying structure is the same. As every responsible householder is aware, there are, in effect, four basic principles that must be taken into account to ensure economic viability.
You must earn and produce.
You must try to spend less than you earn.
The remainder should be saved or carefully invested in case of emergency and for the future.
And if you borrow beyond your present means, for reasons that are deemed necessary (e.g., mortgages, auto purchases, domestic appliances, education, etc.), there must be an empirical presumption of feasible repayment that does not lead to destitution.
Boys and girls, do we all understand what ‘$1 trillion in additional borrowing authority’ actually means?
If you will bear with me, my tiny little mind tells me in the not so distant future that our national debt will be 15.5 almost instantaneously. Think of feeding a junkie’s habit until he is no longer anything more than an overdosed lump of meat in some alley, drowning in his own puke. Not a pretty sight, huh? Neither is the incessant spending the liberals are perpetrating
What a stunning coincidence, keeping it all in the family.
Mama would be proud of little Barry.
Hey Bob,
My Rep. Pete Olson lives about two miles from me. I am about ready to go into campaign mode if he doesn’t turn up the heat on this usurping bastard.
Glad to hear you say that Ray, and I predict you will need to go ahead into campaign mode because the odds of Olson or any of the others doing the right thing about the fraud in the White House appear to be near zero.
It’s the war of the classes…the producers vs. the moochers. Liberals are throwing everything in but the kitchen sink. They’re using every know liberal political tactic. Republicans have nothing to lose but the next election. The last election should have made it clear to them what the producers (majority) want from Congress. If Republicans buckle, it’s over for them (and America).
Boy I wish this was an election year.
I think they meant that Urkel was ‘a dolt’ in the room.
I think the LSM meant Urkel was ‘a dolt’ in the room.
Sounds like a great time.
On the intransigent one…. What he wants, as nearly all dems want, are tax increases, no spending cuts and a debt ceiling limit increase.
That’s what EVERY
planspeech offered by the left has been to date. And I include the “Gang of Six” plan as a Dem plan.The cuts they put up are years out and as such, WILL NEVER HAPPEN.
I certainly hope Boehner knows this. His actions seem like he does.
But I agree with your assessment Flyover. Seems like Boehner has stopped playing checkers and is finally playing chess.
ALWAYS it’s spend now, hope to cut later. This is why we are at the point of bankruptcy. The dem plan is that we will not spend anymore money in Afghanistan and Iraq (and now Libya) which I agree with, bring these people home and let them rebuild/protect/spend their money here. But that gets us nowhere when you don’t end the 50 year failed war on poverty, otherwise known as welfare or the hammock for the lazy. We must figure out if the ponzi schemes of SS and Medicare can be saved. My guess is not. For sure we can’t have 1/2 the people paying taxes to carry the other 1/2 in a lifestyle which breeds future generations of lazy whiners asking for someone else to pay for their livelihood.
Most countries have stopped lending the U.S. money, which means it will have to be printed by the FED. Any increase in the debt ceiling will not only INCREASE our debt, it will also DECREASE the value of our currency. The spending must stop!!!!!
Most countries have stopped lending the U.S. money, which means it will have to be printed by the FED. Any increase in the debt ceiling will not only INCREASE our debt, it will also DECREASE the value of our currency. The spending must stop!!!!!
Most countries have stopped lending the U.S. money, which means it will have to be printed by the FED. Any increase in the debt ceiling will not only INCREASE our debt, it will also DECREASE the value of our currency. The spending must stop!!!!!!!!!!
Most countries have stopped lending the U.S. money, which means it will have to be printed by the FED. Any increase in the debt ceiling will not only INCREASE our debt, it will also DECREASE the value of our currency. The spending must stop!!!!!!!!!!
Most countries have stopped lending the U.S. money, which means it will have to be printed by the FED. Any increase in the debt ceiling will not only INCREASE our debt, it will also DECREASE the value of our currency. The spending must stop!!!!!!!!!!
Most countries have stopped lending the U.S. money, which means it will have to be printed by the FED. Any increase in the debt ceiling will not only INCREASE our debt, it will also DECREASE the value of our currency. The spending must stop!!!!!!!!!!
So if the debt ceiling isn’t raised will we automatically lose the AAA rating? If we lose the rating who would fare the worst? The elites or the public? Our gov constructed this mess and we might have to bare the brunt of it, but how bad would that be? The same people who created the mess and refuse to use commonsense to rectify it are touting the disaster is coming. Better to take a bitter pill now than a poison one later. We can’t run the gov on other people’s money and the gov can’t preserve all the gov employees. I guess the unemployment rate is for the private sector and the gov should never have to make the difficult decisions to downsize when the money is tight. Since the elites are all going wobbly on real solutions, how can the down grade be used to our advantage? Will the down grade expose more gov corruption that extending it will hide? This game of crying wolf is getting old. Either we are in a terrible crisis and the gov has no clue or we are getting played again to allow a tighter grip on our throats. Where is the truth in this entire mess?
Holy Cow, I emptied a six-shooter, sorry.
Yep – the folks in England feel the same way I do about you people:
“Vince Cable attacks ‘rightwing nutters’ over US debt ceiling talks”
http://www.guardian.co.uk/politics/2011/jul/24/vince-cable-us-debt-rightwing-nutters
Yeah… yeah…. I know…. He and the rest of the world are wrong and you trickle down infants are right….
Ahhhhh…. we fought a war to rid ourselves of British values.
Why should I care what the rest of the world thinks of me or my country? And why should I listen to any Brit since their socialist model has tanked their economy and ruined their society?
ILMC is your goal in life to be voted Miss Congeniality? If so, remember that award always goes to the most gracious LOSER.
NO, NO, NO to Perry. I am a conservative and on paper he’s may look conservative but he’s not. He’s a charmer and schmoozer but mean spirited. He kept the former comptroller out of the loop because she wouldn’t do as he said.
Hey Flyoverman:
“Yeah… yeah…. I know…. He and the rest of the world are wrong and you trickle down infants are right…”
Just remember, you are always right, and everybody else is always wrong.
Thanks ILMC, I appreciate the compliment. We are pretty good at seeing the right course of action.
P.S. Remember as you sit in Tehran ILMC worshiping the world, virtually all Americans came from somewhere else in the world, because most of the rest of the world sucks.
You can always tell when it’s low tide because the seagull activity picks up.
A simple solution to the default/debt has finally been negotiated. For a little fun, check out this news release from the Pundit Pete Press Service. Default Crisis Averted as Philanthropist Steps Forward.
If you like these stories, pass the link on to your friends.
squeaker do you stutter just when you get excited?
Whoa!
“virtually all Americans came from somewhere else in the world, because most of the rest of the world sucks.”
Me and Flyoverman are in agreement here – although, I do love many countries in this world, they don’t suck at all – but America is easily the greatest country on the planet – just having a president as awesome as Barak Obama shows that we are a people who identify with brilliance and beauty.
That’s really why George Bush and his ilk had to go – Americans are so much better than that.
A Marxist debt plan that includes NO TAX INCREASES???
Am I the only one who totally suspects this is false?
At least get him to wipe first, ilmpb!
odd, does anyone else sense a little love ilmc has for Flyoverman? Fly is the only one ilmc responds to…
it’s ok, Fly; there may be some flattery in there somewhere.
I’m pretty sure that Flyoverman, who is always consistently conservative and well-reasoned does not want ILOVEMYPOUTYLIPSONOBAMASBUTT to have a crush on him. The FlyMan will not be pleased if ILMPLOOB makes an on-line pass.
Not to worry, Flyman. We have your back (and I mean that biblically when speaking about the Ilovemeguy!)
So you’re different from Flyoverman because he thinks that he’s right whereas you think you’re wrong?