The Spectacle Blog
News broke late Saturday night that Republican congressional leaders had reached a tentative deal with the White House on a measure to increase the federal debt ceiling. It’s one of those neither-fish-nor-fowl compromises that is sure to leave much unhappiness among both Democrats and Republicans.
Jonathan Karl of ABC News sounds a note of caution this morning: How many Republican votes can House Speaker John Boehner deliver for a compromise that abandons principles that were seen as essential to conservatives, when he could just barely get 218 votes for his own bill Friday? And if Boehner can’t deliver a majority for the compromise deal, can Nancy Pelosi produce any Democrat votes at all, considering that zero Democrats voted for Boehner’s bill? Getting Senate votes for the deal will likely prove less problematic, as the Senate thrives on compromise in a way that the House does not.
Jennifer Rubin of The Washington Post briefly describes the contents of the deal:
The agreement would take the country through the 2012 election, but the Boehner bill two-step cutting process would remain. A trillion in cuts up front would be followed by $1.8 more to be determined by a bipartisan commission… .
The president gets a deal through 2012; the House gets its cuts; and Sen. Mitch McConnell (R-Ky.) gets his commission.
Every party to this bargain could thus claim partial victory. The key triumph for the GOP? No new taxes, not even on those “millionaires and billionaires” whom Obama has been demonizing in his speeches for the past several weeks.
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Mimi| 7.31.11 @ 11:20AM
Looks like they are going after DEFENSE, To get a deal! David Ploffe on Meet the Press sent out to continue the threats...pitiful! Called out by the Tea Party guy, who did a great job. Hilarious how they are blaming "UNCERTAINTY" on the Debt ceiling hold-up by Republicans......Everyone knows the "uncertainty came" soon after the "O" was elected, and will most likely GO as soon as he does!!...This country is too good to go to be held back like this...It will take off to the MOON..all that pent-up energy will explode into a boom like none other. So MANY have great ideas, and just waiting for the clouds to disapate and they WILL!
Chuck| 7.31.11 @ 11:21AM
The GOP true to form. You will get a tax increase when Obama is re-elected and the Bush Tax Cuts expire. Budget Cuts...Hardy Har Har. Balanced Budget...maybe in the next millenium.
Dai Alanye | 7.31.11 @ 11:56AM
Obama will take anything halfway reasonable (from his point 0f view) that gets him past November 2012. And that is the one thing the Repubs shouldn't grant him.
We need another bite at the apple prior to the election, just to remind people what this is all about.
Clint| 7.31.11 @ 11:57AM
Senator Rand Paul.
“It seems odd that the Senate Democrat Leader Harry Reid would decide to filibuster his own legislation. In fact, the Senate Republican Leader offered to move the vote on this legislation up, but Democrats objected. My Senate Republican colleagues and I are here waiting in the Senate for a vote on the debt limit bill but Sen. Reid would rather delay a vote until 1:00 Sunday morning, running down the clock instead of providing real solutions and real leadership on this issue."
Harry Reid Performs The Chickenshit Two Step.
The Tea Party Rebellion Is Here & Now.
Stand & Fight.
Real American| 7.31.11 @ 12:09PM
There are no cuts. There are never cuts b/c of horrible baseline budgeting. All of the perverted spending of the last 2.5 years gets preserved (in all likelihood). There will be more deficit spending every year. We're running 1+ trillion dollar deficits now. WTF is $2.8 over 10 years? a drop in the ocean!
RJ| 7.31.11 @ 12:30PM
Politicians gain power by spending money and our fundamental economic problem is that government has promised more than taxpayers can provide. We are now facing an economic crisis and too many of our political "leaders" refuse to address the problem. There will be a very bad outcome to this. They may have already driven us over the cliff.
Oldefarte| 7.31.11 @ 1:15PM
Yeah, where were these morons now yelling about the need to STAND & FIGHT back in pre-November of 2008, when they and their fellow stupids allowed this president to waltz into 1600? Where wer these idiots when Johnson was ramming through THE GREAT SOCIETY and THE WAR ON POVERTY? Where these stand & fighters? Probably gettin' drunk in bars demanding everyone STAND & FIGHT [while the country was politically going to hell and a hand basket]!!!!!!!!!
Oldefarte| 7.31.11 @ 1:51PM
Yeah, STAND & FIGHT :
'....As gridlocked Washington edges toward default, states staggering out of the last recession are preparing for the worst: The federal piggy-bank that helps them pay for healthcare, jobless benefits, road building and schools could run out of cash.Kansas Gov. Sam Brownback is warning that his state might not be able to fully cover potential shortfalls, and jittery California cushioned its finances last week by borrowing $5.4 billion from private investors. Massachusetts is preparing to replace $850 million in U.S. payments that could be derailed in August, while Oregon plans to free up a cache of money if Washington stops sending checks.
Freighted with uncertainty, states can't look to lessons from the past: There aren't any. The U.S. government, which has a gilded credit rating, has never defaulted. And no one seems to know what funding could be cut, by how much or for how long. That would be determined in Washington if Congress fails to raise the government's borrowing limit by Tuesday."You're chasing a ghost," says Nevada Department of Health and Human Services Director Mike Willden. "What's the deal? What is the cut? What can I expect?"
A congressional compromise remained elusive, with anxiety over a possible default increasing with the passing days.At issue is the debt ceiling, a legal limit on how much debt the government can accumulate. If Congress fails to raise the borrowing limit by Tuesday, the U.S. might not be able to pay all its financial obligations. A default could send financial markets and the economy into a tailspin, spreading angst from Wall Street to Main Street.If the U.S. loses its top-notch credit rating, it could drag down ratings for some states, too, driving up borrowing costs. The most vulnerable are Maryland, Virginia, South Carolina, Tennessee, and New Mexico because of their reliance on federal money, according to one rating agency. A group of California legislators warned Congress that failure to raise the debt limit could threaten a fragile economic recovery — California remains in the grip of double-digit unemployment.In statehouses around the country, preparations were under way as states judged what would happen if federal dollars slowed or stopped. Some were rushing to claim any federal aid that might be in the pipeline before Tuesday's deadline.Many states appeared to have enough cash on hand to fill short-term gaps from Washington. For example, Vermont Finance and Management Commissioner Jim Reardon said the state Medicaid program is expected to receive a payment of more than $53 million from the federal government Monday, a day before the federal government might stop paying some bills.
Rhode Island and New Hampshire have enough money on hand to cover expenses through August, giving Congress extra time to resolve the stalemate before programs might take a hit.
But Florida's courts system would be unable to make payroll if a crisis lasts beyond Aug. 22. In North Carolina, state Budget Director Andy Willis said the state could cover Medicaid reimbursements for a few days but floating the payments for a longer period might be a different matter because of a tight budget.Ohio has an 8.8 percent jobless rate and "if the country stops paying its bills now, those numbers will only get worse," a bipartisan group of Ohio mayors said in a letter to the White House, calling for a settlement.All states rely on federal aid, but the impact will vary state to state. New Jersey, for example, counts on a smaller percent of federal money for state spending than other states, chiefly because it has more wealthy residents. Kansas gets about half its money from Washington. California, the nation's most populous state, gets nearly $80 billion annually, much of it for health care for the poor.If the debt ceiling is not lifted by the deadline, the Treasury Department, which issues tens of millions of payments each month for everything from food stamps to Social Security, would have to decide what bills it could pay, in what order. The amount of cash would be limited, since the government borrows about 40 cents of every dollar it spends.With the fall school term approaching, the University of California is trying to figure out what a U.S. default would mean for more than $3.5 billion in federal research dollars and student aid it's slated to get this year — 720,000 students receive Pell Grants at UC, one of the nation's largest public universities.In Alabama, the state is moving some of its investment funds into cash to guard against fluctuations in the financial markets. Massachusetts is looking at whether it could provide interim financing to keep some or all of the programs funded, should federal checks slow or stop. The state receives about $200 million a week in federal funds, and 1.25 million people rely on federally subsidized Medicaid."If we were to say we can't make those payments any more ... it's hard to imagine what would happen," said Administration and Finance Secretary Jay Gonzalez. "There would be potentially some dire consequences."Some government officials worry about longer-term damage.In Los Angeles, the nation's second-largest city, pension funds rely on income from the stock market, and if it plunges taxpayers are on the hook to make up shortfalls that, in a worst-case scenario, could reach hundreds of millions of dollars.If the region's double-digit unemployment rate goes up, that inevitably digs into the city's share of sales, hotel and other taxes needed to run local government. And if the nation's credit rating goes down, uncertainty could rattle the bond market, making investors less likely to jump in while driving up interest rates that make borrowing more costly for governments around the U.S.
"Should there be a crisis generated by the debt ceiling not being lifted, that would bring us to a very critical state," said City Administrative Officer Miguel Santana."We have little room left to manage it. Now we are at the bone in terms of the core services we provide," Santana said. "We are sort of victims to the outcome of the gridlock."
At the Hollywood Senior Center in Portland, Ore., optimism was holding up among the low-income seniors who rely on Medicaid and other social-assistance programs to survive. But executive director Amber Kern-Johnson said the idea of federal dollars drying up seemed unfathomable to the center's clients."Many of them just don't believe something like that could happen," Kern-Johnson said....'
Clint| 7.31.11 @ 2:23PM
Stand & Fight.
“If the final bill is passed by establishment Republicans and House Democrats and does not include a balanced budget amendment as a requirement, it will be completely unacceptable and will be seen as a violation of the mandate that the tea party and likeminded people gave Republicans in 2010,” said Ryan Hecker, the leader of a crowd-sourced tea party effort called the Contract from America.
“The tea party didn’t help elect Republicans because they liked Republicans. They elected Republicans to give them a second chance. And if they go moderate on this, then they have ruined their second chance, and there will be a real effort to replace them with those who will stand up for economic conservative values,” said Hecker, who helped conservative House Republicans rally support for the amendment."
We Tea Party Patriots Are In A Media War With Democraps, Their Mainstream Media Agendists & The RINO-CINO GOP Ruling Elite Fops & Their Flunkie Apologists.
Stand & Fight.
Clint| 7.31.11 @ 1:59PM
The RINO-CINO Flunkies Can Tell Us All About Their Serial Traitor To Conservatism, John McCain, Of McCain-Feingold, McCain-Kennedy, McCain-Lieberman, Gang Of 14, Opposing Bush Tax Cuts Of 2001 & 2003, TARP.
We Tea Party Patriots Are In A Media War.
The Democraps, Their Mainstream Media Agendists & The RINO-CINO GOP Ruling Elite's Flunkies Are Attempting To Smear Up & Marginalize The Tea Party .
Stand & Fight
simon templar| 7.31.11 @ 3:10PM
Did you see the Rand Paul interview on CNN? Rand is awesome!
Oldefarte| 7.31.11 @ 3:12PM
Note your beloved Ron Paul's reference to '''''CIVILITY''''', etc :
'....In a December 2003 article entitled "Christmas in Secular America", Paul wrote, "......On the contrary, our Founders’ political views were strongly informed by their religious beliefs. Certainly the drafters of the Declaration of Independence and the Constitution, both replete with references to God, would be aghast at the federal government’s hostility to religion......Throughout our nation’s history, churches have done what no government can ever do, namely teach morality and civility. Moral and civil individuals are largely governed by their own sense of right and wrong, and hence have little need for external government......'
Oldefarte| 7.31.11 @ 3:15PM
PS: 'CIVILITY' is defined as COURTESY, A POLITE ACT, FYI!!!!!!!
Clint| 7.31.11 @ 6:38PM
P.S. You're Uncivil.
Go Sit In The Naughty Chair, Pops.
Clint| 7.31.11 @ 6:35PM
Dr.Ron Paul & I Agree.
What's Your Problem ?
Kingofthenet| 7.31.11 @ 2:37PM
The Real problem isn't spending, it's revenue. most Americans like clean inspected foods, good schools,Medicare and nice highways...but we don't want to PAY for it
simon templar| 7.31.11 @ 3:19PM
kingoftheliberalIdiots:
Go away. You are a complete moron. Even the democrats acknowledge, at least on face value, that we need to cut back spending and there has been too much spending and borrowing in the last 10 years. Besides 75 perecent of the public want a balanced budget and less spending.There is plenty of money to pay for your list above just not enough to sustain the waste, fraud, and inefficiency of the massive agencies the fed has created in the last 60 years. Go play with your Xbox and leave the discussion to the aduts.
Progressive| 7.31.11 @ 6:02PM
You are not getting any new revenue. Obama has betrayed you. It is time to give Nader a chance.
simon templar| 7.31.11 @ 3:09PM
Check this out...perhaps there is hope for this country. Rubio/Rand Paul 2012.
http://www.youtube.com/watch?v.....r_embedded
e cowan| 7.31.11 @ 8:32PM
Found on Fox Online 7-31-11:
"The plan would also be designed to lift the debt ceiling through early 2013. Though the vote could be split into two phases, the framework of the plan would make it very difficult to stop those increases. Under the rough outline, Congress would need to corral a two-thirds majority vote to block President Obama from winning the increase -- this is a change from the earlier Republican plan which tied a second debt-ceiling hike early next year to a new round of spending cuts
Finally, concerns were mounting about what might happen during the second phase of deficit reduction prescribed by the plan. Under the framework, the first phase would immediately cut about $900 billion, sources said, (the plan would immediately cut spending by about $900 billion over the next decade,) but a special committee would be tasked with finding at least another $1.5 trillion in savings. The tricky part is finding a way to compel lawmakers on both sides of the aisle to follow through with the committee's recommendations. To do this, lawmakers are considering a provision that would "trigger" $1.2 trillion in across-the-board cuts, with an emphasis on defense cuts, if the recommendations are not approved. "
""Tea Party won't be happy," one Republican lawmaker who supports the plan told Fox News, adding that "they never will be." "
DAMN RIGHT!
The RINOs are doing it again.
The HELL with them. It's a toss-up as to who can destroy this country first.... rinos or demos.
Kingofthenet| 7.31.11 @ 9:11PM
Dear 'Tea Baggers', would you kindly sign off on this bill before I have to use Federal Reserve Notes for Toilet Paper, Thank You!
Progressive| 7.31.11 @ 9:43PM
We must not let Obama get away with this. Not a single revenue was raised. He totally sold out the progressive wing of the party. He can't survive this.
simon templar| 7.31.11 @ 11:26PM
You do not need more revenues, you need to cut the spending across the board including our overseas involvements, a complete overall and review is required. Why can you not see this? Even Dennis Kuscinich gets it! Its about creating private sector jobs to raise more revenue, not tax rate hikes!
PCC| 8.1.11 @ 3:00AM
Simply freezing spending at FY11 levels would save more money than any of the current proposals due to base line budgetting in DC. Proposed deals are merely cuts in the projected rate of increase, not actual cuts. DC pols on both sides are fiddling while Rome burns.