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Today Senate Minority Leader Mitch McConnell introduced a back-up plan to avoid defaulting on the debt if the debt ceiling negotiations fail. Fred Barnes at The Weekly Standard has provided a good summary of the measure, which is complicated: 

To counter Obama, Senate Republican leader Mitch McConnell unveiled legislation requiring the president to submit a series of three requests - now, in the fall, and next summer - to increase the debt ceiling.

Each request would have to include spending cuts in excess of the amount of the increase in the limit on borrowing. If Congress rejected the cuts as insufficient by passing a "resolution of disapproval," the president could send a new package of cuts or veto the resolution. Should his veto be sustained - at least 34 senators would be needed - the debt limit would rise with no cuts attached.

The first request would be for $700 billion, and then the second two would be $900 billion, with the last coming just months before the 2012 elections. The idea is that the blame for raising the debt ceiling would fall on Obama, and no tax cuts would be included. Furthermore, Obama would have to put his plan for reducing spending in writing -- something that would be politically costly for him. 

Barnes likes the idea; Philip Klein thinks it is "a cynical attempt to manipulate procedure in a way that tries to escape any sort of responsibility." Rich Lowry believes the ultimate effect of the bill would be to allow a "cleanish increase" of the debt ceiling by $2 trillion -- exactly what Obama wants. Jim argues that the only difference between total Republican capitulation and the McConnell plan is "gimmickry."

Perhaps McConnell truly believes that there might be no other way to avoid default than this bill. As bargaining strategy, though, it is flawed for two reasons.

The first is that it breaks up the Republicans' united front on negotiating demands -- that the vote to increase the debt limit include significant spending cuts and no tax hikes. McConnell's introduction of this bill signals that Republicans aren't willing to maintain that posture for long. The fact that it's just a back-up plan makes no difference; if it's advantageous Obama will simply aim for the back-up scenario. This strengthens Obama's hand and makes it more likely that the final package will look more like his ideal. 

The second is that it's possible that McConnell may have underestimated Obama's willingness to cut spending. By appearing totally intransigent in their demands, Republicans gave Obama cover to pursue deficit reduction measures that would otherwise outrage his liberal base (even more than the prospect of those measures does now). Although they have consistently placed politics before fiscal security at every point, Obama's economic team is aware of the need to reduce deficits, and has increasingly signalled its willingness to take some of the first steps in that direction. But, politically, Obama can only afford meaningful spending reforms if he's able to tell his supporters that the GOP left him with no choice. McConnell has given him another choice, undermining that possiblity. 

View all comments (14) | Leave a comment

Siegfried X| 7.12.11 @ 6:33PM

As I commented on this in the other thread, this is a total surrender by the Republican Senate. Just as they were the first to go crawling to Bill Clinton and the Democrats 15 years ago, in the government shutdown of 1995.

Pecos Pete| 7.12.11 @ 6:43PM

What a crock full of BS. It seems clear now that the Republicans are going to fold their hand. The debt ceiling will be increased and their will be no reduction of federal spending.

Michael L. Hauschild| 7.12.11 @ 7:04PM

They folded, they will continue to fold, they shirk their duties. They are not fooling anyone, we just look at them, see their lips are moving, and know for a fact that they are lying.

c. j. acworth| 7.12.11 @ 7:19PM

I wonder, did McConnell talk to anyone before he floated this balloon, or is it totally his idea and he decided on his own to let it fly? If he did discuss this with the rest of the Republican leadership, then it looks like they are ready to cave. If he's just running his own mouth, then will somebody please shut him up?

Chuck| 7.12.11 @ 7:27PM

The Republican senate going back to 1980 has produced some real loulou leaders, Baker, Dole, Lott, Frist, McConnell...all losers and sellouts and now the moment of truth, the Republicans blinked for the umpty-umpth time and with a Romney nomination on the horizon, no more chances.

Bob K.| 7.12.11 @ 7:36PM

There is another Legislative Branch. And they run for reelection every 2 years. Did he run this by them?

PCC| 7.12.11 @ 7:47PM

Obama has already outmaneuvered the GOP leaders. After never producing a spending cut plan of his own, now he'll take credit for signing the GOP cut plan while demonizing the mean old Republicans.

LarryK| 7.12.11 @ 8:20PM

I repeat.

Once again Republicans are poised to snatch defeat out of the jaws of victory.

Glein| 7.12.11 @ 10:42PM

The Republicans will cave as they always do. By doing so they will assure Obama another term. They don't get it anymore than Obama and the Democrats. They are the 21st Century Whigs. In the 19th century the Whigs refused to deal with the issue of slavery and state's rights. The answer was a third party, the Republicans. The Republicans than gave us Lincoln. If Boehner and McConnell were around then we would all be singing Dixie!

Floyd Looney| 7.12.11 @ 10:55PM

Just when victory looked assured for the GOP, like they were in a win-win situation the RINO's come out for abject surrender.

Maybe Mitch McConnell will call for saving money by canceling the 2012 election and making Obama Dictator for Life.

Clint| 7.12.11 @ 11:28PM

We Tea Party Patriots Are Watching, As The RINO-CINO GOP Ruling Elite Fops & Their Apologist Flunkies Attempt To Raise The Debt Ceiling & ForceFeed Mittens Romney Down Our Throats.
Time To Purge The GOP Democrat Light RINO-CINO Agendists Or Walk Away From This Faux Conservative Excuse For A Political Party.

The Tea Party Rebellion Escalates.

Rise Up In Rebellion.

Spicy Joker| 7.13.11 @ 12:09AM

Yet another sell-out by RINO Mitch McConartist.

Clint| 7.13.11 @ 7:37AM

" (Ron)Paul was the only GOP House member TPM found Tuesday afternoon willing to take a firm stand against Senate Minority Leader Mitch McConnell's (R-KY) plan to hand the White House full authority to raise the debt ceiling with Congress only able to disapprove with a two-thirds vote. Conservative groups, Tea Party members outside Congress and activists are incensed over McConell's fall back plan.

"I wouldn't like that," Paul told TPM. "Congress should assume responsibility for itself" and figure out a way to cut spending.

Paul also dismissed talk that McConnell's lead trial balloon has undercut Republicans position in the debt talks.

"I don't think it has much effect," Paul said. "If it were [Speaker John] Boehner, it would have been a different story because we have the majority" in the House.

Michele Bachmann, a competitor for the GOP primary, declined to comment on the plan.

yisong| 10.29.11 @ 2:45AM

Three Row Roller Bearings are constructed with three independent rolls of rollers to handle a combination of axial, radial and overturning moment loads. http://www.1stbearing.com

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More Blog Posts by Joseph Lawler

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