Frank Schaeffer Explains Why Dominionists Are Driving Debt Ceiling Brinksmanship | Crooks and Liars
Interesting. So the "Moral Majority" is now the Tea Party.
Doesn't matter.
The Obama refuses to compromise on the issue of taxes.
"Closing loopholes but lowering tax rates?" Dumb ****.
just as easily true, boner et al refuse to compromise on the issue of taxes.
Meanwhile, Senate Majority Leader Harry Reid said he is working on a plan to raise the debt limit by $2.7 trillion, coupled with an equal reduction in projected future spending. In a concession to Republicans, he said that plan would not include tax increases, but that the new debt level would last through the 2012 elections....
Senate Majority Leader Harry Reid is devising a sham that will never pass muster in the House. A Capitol Hill source with knowledge of the plan tells me: “It includes $1.2 trillion in OCO [Overseas Contingency Operations] savings . . . which was assumed anyway, $1.2 trillion (over $1.1 trillion less than [Majority Leader Eric] Cantor identified in the Biden talks) and $300 billion in interest savings.” A Senate aide says dryly that Reid “has about a trillion in ‘savings’ from ending the war in Iraq that’s already going to end.”...
We shouldn’t be too harsh on Reid. HE DID reach a bipartisan deal with the House. But the president squashed it. (Note to Congress: Next time don’t ask, just pass it and leave town.)...
It is extremely telling, however, that Reid’s plan contains NO tax hike. As I suspected, Obama doesn’t have enough support even in his own party (and particularly from Senate Democrats facing reelection) to pass the massive tax increases that he and his liberal base demand. And yet Obama at the last minute in negotiations with the speaker of the House last week threw in $400 billion in more taxes. There could only have been one purpose for that, since the Senate is as tax-hike-averse as the House: to create a crisis. We have finally found the president’s strong suit.
Disagee all you want but IMO it was simply just another false goal.
The markets aren't stupid in the idea that there is any chance of the U.S. defaulting. They aren't making moves on the possibility of that happening or not as they know it's not going to happen.
...House Speaker John A. Boehner, Ohio Republican, pitched his colleagues on a plan to raise the borrowing limit by about $1 trillion and match that with similar sized spending cuts — enough to last through the rest of the year, and leaving for later the heavy lifting on taxes and bigger spending items.
As noted previously, I believe the negotiating approach undertaken in the debt ceiling-deficit reduction talks has been a bad one. It was an approach that invited posturing and an embrace of almost theological positions. At one point, the talks on the "grand bargain" had each side within $10 billion of one another. At that point, a genuine act of leadership would have had one side making the proposition that the difference be split (conceding $5 billion out of a potential $3.7 trillion plan is inconsequential). Speaker Boehner made no such offer to bridge the differences. President Obama threw dynamite into the emerging agreement with the suggestion to add $400 billion in revenue. Hence, even as the parties advocated their positions in good faith, the opportunity for a credible deficit reduction agreement might have been squandered.
From the sidelines, individuals arguing that the debt ceiling should not be increased at all and, to some extent, that a failure to raise it would not inflict serious harm made an already difficult negotiation even more challenging. Such individuals are irresponsible, as they simply do not comprehend the vast degree of linkage between the U.S. and global economies, much less the macroeconomic impact and contagion risk associated with a failure to raise the debt ceiling. Certain others advocated that entitlement programs be kept off the table, insisting that the compact to older Americans is almost sacred in nature. They, too, are irresponsible. Those programs are the leading source of the nation's long-term fiscal imbalances. In the absence of reform, those programs will consume a growing share of the nation's finances, squeezing out other important programs, including but not limited to Defense.
The stage is now set for the "great punt." A deal to raise the debt ceiling will likely be reached in time to avert a default. Deficit reduction associated with that deal will very likely be smaller than it would have been under the "grand bargain." At the same time, the extent of the nation's political dysfunction has been exposed and no responsible ratings agency should overlook it. Moreover, that dysfunction will almost certainly be reinforced when a significant number of representatives vote against hiking the debt ceiling.
Fixed it for you.Twitter, specifically Frank Conniff, had this to say.
Two stumbling blocks stopping Tea Party from accepting any debt deal: 1. Obama is still president. 2. He's still whack.
there is only one party in Congress that has consistently put forth plans, done their job, and acted the grown-up. the other has generally played the Mediscare game and thrown poo.
Speaker John Boehner’s two-step plan to raise the debt ceiling by upwards of $2.5 trillion would require the White House to accept much deeper spending cuts than he was negotiating only last week with President Barack Obama.
Unveiled Monday, the proposal appears to take back Boehner’s prior offers to allow an $800 billion increase in tax revenues but his new spending demands are significant in themselves and could amount to $600 billion more over 10 years when compared with the White House talks.
This breakdown follows the basic framework discussed with the White House but leans forward in each case toward demanding more savings.
The Boehner plan gives less credit than the White House for the savings that would come from the proposed cuts in appropriations. And this makes it harder for lawmakers to meet the next goal of coming up with another $1.8 trillion in savings for the second debt increase installment.
That assignment will fall to a proposed joint committee to report back to Congress later this year. The White House talks identified significant savings from entitlement programs with the administration estimating the total at almost $800 billion while Republicans hoped for close to $950 billion.
But even taking the higher GOP number and adding 20 percent for future interest savings, the net deficit reduction would be less than $1.2 trillion—or $600 billion less than the goal set by the Boehner plan. The committee would then have to make new entitlement cuts or revisit the question of discretionary spending, since Republicans have refused to consider any tax increases.
Good point, but as I understand it, Boehner threw the first stick by asking for the repeal of Obamacare.
A Republican aide e-mails me: “The Speaker, Sen. Reid and Sen. McConnell all agreed on the general framework of a two-part plan. A short-term increase (with cuts greater than the increase), combined with a committee to find long-term savings before the rest of the increase would be considered. Sen. Reid took the bipartisan plan to the White House and the President said no.”
If this is accurate the president is playing with fire. By halting a bipartisan deal he imperils the country’s finances and can rightly be accused of putting partisanship above all else. The ONLY reason to reject a short-term, two-step deal embraced by both the House and Senate is to avoid another approval-killing face-off for President Obama before the election. Next to pulling troops out of Afghanistan to fit the election calendar, this is the most irresponsible and shameful move of his presidency.
I am glad nObama is out of the negotiations. He was screwing thing up,....... again.
The "moral majority" are neither.
There's a party in Congress which acts like adults? Really?
It's not a matter of disagreement. No political leader forecast a major market hit today. They only expressed concerns.
Also the goal of reaching an agreement by last night was not a "false" one, but an unmet one (and probably unrealistic). With respect to August 2, there may be an additional few days if, for example, revenue collection was somewhat better than anticipated or expenditures were somewhat lower than expected. However, that there would be a substantial adverse market reaction if the nation fails to raise the debt ceiling in a timely fashion (in time to meet its obligations) and a growing adverse macroeconomic impact should the impasse be extended is in little dispute.
As noted previously, market expectations are in favor of a deal to avert default. The larger risk is a continuing absence of a credible fiscal consolidation program. Hence, the medium- and longer-term outlooks are worse. That's where increases in long-term yields and a possible credit downgrade would come into play.
The size of the revenue target is still a sticking point, as is the mechanism to ensure that the needed legislative changes — for tax and entitlement reform—get done before this Congress ends.
Boehner and Obama are discussing some sort of trigger mechanism that would threaten each party with the loss of almost its first born child — policy wise.
Democrats have suggested that if Congress fails to act, taxes will go up on those earning over $250,000. Republicans have countered that if the added taxes take effect, the law would also rip out portions of Obama’s prized healthcare reforms, such as eliminating the individual mandate.
Here is my prediction. Cuts with no new taxes that takes us past 2012.
I mean, it wasn't made an issue in the 2004 Presidential election and the debt limit was raised on November 19 of that year. So, why should Pres. Obama have to deal with it for 2012?
He shouldn't have been part of negotiations in the first place. This was Congress' responsibility to resolve, not the President. But Boehner all but insisted that he get involved. Wanna blame anybody for the screw-up in negotiations, blame the party leadership who walked out on negotiations - TWICE!
Process, ladies and gentlemen. Understand it...