Month: July 2011

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Politics

The Official Framework of The Deal To Avoid Default

The White House released the following information on the framework for a deal that would prevent America from defaulting on paying its bills. The deadline to get this voted on by both the House and Senate and sent to the President for his signature is August 2nd.
Bipartisan Debt Deal: A Win for the Economy and Budget Discipline
  • Removes the cloud of uncertainty over our economy at this critical time, by ensuring that no one will be able to use the threat of the nation’s first default now, or in only a few months, for political gain;
  • Locks in a down payment on significant deficit reduction, with savings from both domestic and Pentagon spending, and is designed to protect crucial investments like aid for college students;
  • Establishes a bipartisan process to seek a balanced approach to larger deficit reduction through entitlement and tax reform;
  • Deploys an enforcement mechanism that gives all sides an incentive to reach bipartisan compromise on historic deficit reduction, while protecting Social Security, Medicare beneficiaries and low-income programs;
  • Stays true to the President’s commitment to shared sacrifice by preventing the middle class, seniors and those who are most vulnerable from shouldering the burden of deficit reduction. The President did not agree to any entitlement reforms outside of the context of a bipartisan committee process where tax reform will be on the table and the President will insist on shared sacrifice from the most well-off and those with the most indefensible tax breaks.
Mechanics of the Debt Deal
  • Immediately enacted 10-year discretionary spending caps generating nearly $1 trillion in deficit reduction; balanced between defense and non-defense spending.
  • President authorized to increase the debt limit by at least $2.1 trillion, eliminating the need for further increases until 2013.
  • Bipartisan committee process tasked with identifying an additional $1.5 trillion in deficit reduction, including from entitlement and tax reform. Committee is required to report legislation by November 23, 2011, which receives fast-track protections. Congress is required to vote on Committee recommendations by December 23, 2011.
  • Enforcement mechanism established to force all parties – Republican and Democrat – to agree to balanced deficit reduction. If Committee fails, enforcement mechanism will trigger spending reductions beginning in 2013 – split 50/50 between domestic and defense spending. Enforcement protects Social Security, Medicare beneficiaries, and low-income programs from any cuts.
1. REMOVING UNCERTAINTY TO SUPPORT THE AMERICAN ECONOMY
  • Deal Removes Cloud of Uncertainty Until 2013, Eliminating Key Headwind on the Economy: Independent analysts, economists, and ratings agencies have all made clear that a short-term debt limit increase would create unacceptable economic uncertainty by risking default again within only a matter of months and as S&P stated, increase the chance of a downgrade. By ensuring a debt limit increase of at least $2.1 trillion, this deal removes the specter of default, providing important certainty to our economy at a fragile moment.
  • Mechanism to Ensure Further Deficit Reduction is Designed to Phase-In Beginning in 2013 to Avoid Harming the Recovery: The deal includes a mechanism to ensure additional deficit reduction, consistent with the economic recovery. The enforcement mechanism would not be made effective until 2013, avoiding any immediate contraction that could harm the recovery. And savings from the down payment will be enacted over 10 years, consistent with supporting the economic recovery.
2. A DOWNPAYMENT ON DEFICIT REDUCTION BY LOCKING IN HISTORIC SPENDING DISCIPLINE – BALANCED BETWEEN DOMESTIC AND PENTAGON SPENDING
  • More than $900 Billion in Savings over 10 Years By Capping Discretionary Spending: The deal includes caps on discretionary spending that will produce more than $900 billion in savings over the next 10 years compared to the CBO March baseline, even as it protects core investments from deep and economically damaging cuts.
  • Includes Savings of $350 Billion from the Base Defense Budget – the First Defense Cut Since the 1990s: The deal puts us on track to cut $350 billion from the defense budget over 10 years. These reductions will be implemented based on the outcome of a review of our missions, roles, and capabilities that will reflect the President’s commitment to protecting our national security.
  • Reduces Domestic Discretionary Spending to the Lowest Level Since Eisenhower: These discretionary caps will put us on track to reduce non-defense discretionary spending to its lowest level since Dwight Eisenhower was President.
  • Includes Funding to Protect the President’s Historic Investment in Pell Grants: Since taking office, the President has increased the maximum Pell award by $819 to a maximum award $5,550, helping over 9 million students pay for college tuition bills. The deal provides specific protection in the discretionary budget to ensure that the there will be sufficient funding for the President’s historic investment in Pell Grants without undermining other critical investments.
3. ESTABLISHING A BIPARTISAN PROCESS TO ACHIEVE $1.5 TRILLION IN ADDITIONAL BALANCED DEFICIT REDUCTION BY THE END OF 2011
  • The Deal Locks in a Process to Enact $1.5 Trillion in Additional Deficit Reduction Through a Bipartisan, Bicameral Congressional Committee: The deal creates a bipartisan, bicameral Congressional Committee that is charged with enacting $1.5 trillion in additional deficit reduction by the end of the year. This Committee will work without the looming specter of default, ensuring time to carefully consider essential reforms without the disruption and brinksmanship of the past few months.
  • This Committee is Empowered Beyond Previous Bipartisan Attempts at Deficit Reduction: Any recommendation of the Committee would be given fast-track privilege in the House and Senate, assuring it of an up or down vote and preventing some from using procedural gimmicks to block action.
  • To Meet This Target, the Committee Will Consider Responsible Entitlement and Tax Reform. This means putting all the priorities of both parties on the table – including both entitlement reform and revenue-raising tax reform.
4. A STRONG ENFORCEMENT MECHANISM TO MAKE ALL SIDES COME TOGETHER
  • The Deal Includes An Automatic Sequester to Ensure That At Least $1.2 Trillion in Deficit Reduction Is Achieved By 2013 Beyond the Discretionary Caps: The deal includes an automatic sequester on certain spending programs to ensure that—between the Committee and the trigger—we at least put in place an additional $1.2 trillion in deficit reduction by 2013.
  • Consistent With Past Practice, Sequester Would Be Divided Equally Between Defense and Non-Defense Programs and Exempt Social Security, Medicaid, and Low-Income Programs: Consistent with the bipartisan precedents established in the 1980s and 1990s, the sequester would be divided equally between defense and non-defense program, and it would exempt Social Security, Medicaid, unemployment insurance, programs for low-income families, and civilian and military retirement. Likewise, any cuts to Medicare would be capped and limited to the provider side.
  • Sequester Would Provide a Strong Incentive for Both Sides to Come to the Table:  If the fiscal committee took no action, the deal would automatically add nearly $500 billion in defense cuts on top of cuts already made, and, at the same time, it would cut critical programs like infrastructure or education.  That outcome would be unacceptable to many Republicans and Democrats alike – creating pressure for a bipartisan agreement without requiring the threat of a default with unthinkable consequences for our economy.
5. A BALANCED DEAL CONSISTENT WITH THE PRESIDENT’S COMMITMENT TO SHARED SACRIFICE
  • The Deal Sets the Stage for Balanced Deficit Reduction, Consistent with the President’s Values: The deal is designed to achieve balanced deficit reduction, consistent with the values the President articulated in his April Fiscal Framework. The discretionary savings are spread between both domestic and defense spending. And the President will demand that the Committee pursue a balanced deficit reduction package, where any entitlement reforms are coupled with revenue-raising tax reform that asks for the most fortunate Americans to sacrifice.
  • The Enforcement Mechanism Complements the Forcing Event Already In Law – the Expiration of the Bush Tax Cuts – To Create Pressure for a Balanced Deal: The Bush tax cuts expire as of 1/1/2013, the same date that the spending sequester would go into effect. These two events together will force balanced deficit reduction. Absent a balanced deal, it would enable the President to use his veto pen to ensure nearly $1 trillion in additional deficit reduction by not extending the high-income tax cuts.
  • In Securing this Bipartisan Deal, the President Rejected Proposals that Would Have Placed the Sole Burden of Deficit Reduction on Low-Income or Middle-Class Families: The President stood firmly against proposals that would have placed the sole burden of deficit reduction on lower-income and middle-class families. This includes not only proposals in the House Republican Budget that would have undermined the core commitments of Medicare to our seniors and forced tens of millions of low-income Americans to go without health insurance, but also enforcement mechanisms that would have forced automatic cuts to low-income programs. The enforcement mechanism in the deal exempts Social Security, Medicaid, Medicare benefits, unemployment insurance, programs for low-income families, and civilian and military retirement.
Categories
Nancy Pelosi Politics

The Deal – What We Know So Far

President Obama and the leaders of both parties in the House of Representatives and Senate, have finally agreed to a framework for a deal to prevent America from defaulting on paying its bills for the first time in our history. The specifics of the deal are not yet known, but for the first time in months, a possible consensus has been reached.

President Obama spoke earlier tonight and urged all members of Congress to pass the deal, saying there are still some very important votes to be taken by members, but that a general consensus has been  reached on a plan that will avoid default. What do we know so far? The deal would;

  • Cut $1 trillion dollars in 10 years
  • Appoint a special congressional delegation also called a Super congress, will report by November on ways to further reduce the deficit and to find ways to increase revenue through taxes and decide on more spending.
  • Will extend through 2013.
Meanwhile, the Republican Speaker of the House Of Representatives, John Boehner, R-Ohio, set up a conference call with House Republicans for Sunday night, and House minority leader Nancy Pelosi, D-Calif., said she would meet with Democrats on Monday. Mrs Pelosi also made the news, assuring the nation that seniors would get their Social Security checks, the U.S. military would be compensated and other obligations would be met.
More information on the deal will be made public soon.
Categories
China democrats Politics washington

China State Media Calls Washington “Irresponsible”

China is speaking out, and it’s apparently not happy. As the world sits on pins and needles, watching the unnecessary man-made crisis going on in Washington in reference to raising the debt ceiling, China, the biggest “investor” in the United States economy, is voicing their displeasure, calling Washington’s antics “political brinkmanship” and “dangerously irresponsible.”

The piece was written by the government controlled, Chinese State Media, and is attributed to Xinhua, and written by Deng Yushan.

As the Aug. 2 deadline approaches for Washington to raise its borrowing limit and avoid a catastrophic debt default, deeply divided U.S. politicians remain stubbornly engaged in what is widely seen as a game of chicken.

Given the United States’ status as the world’s largest economy and the issuer of the dominant international reserve currency, such political brinkmanship in Washington is dangerously irresponsible, for it risks, among other consequences, strangling the still fragile economic recovery of not only the United States but also the world as a whole.

Analysts worldwide have already painted a grim picture. Although an exact outcome of a Washington unable to pay its bills is yet to be known, they warn that a U.S. default would trigger massive repercussions throughout global financial markets.

The piece also laments the reality of divided government in America, and refers to the “donkey and the elephant,” saying,

It is arguably true that the ongoing tug of war in Washington is Uncle Sam’s own business, as the United States has not yet defaulted on its debt. However, the ugliest part of the saga is that the well-being of many other countries is also in the impact zone when the donkey and the elephant fight. The potential collateral damage is way too heavy.

With leadership comes responsibility. It is unfortunate and disappointing that when political leaders in Washington spar over who is doing good for their country, they take little account of the world’s economic soundness.

With less than 3 days before the August 2nd deadline, negotiations are ongoing. The plan that is drawing the most attention now is the Reid Plan, that calls for Zero revenue and $2.4 trillion in spending cuts. The point of contention between Democrats and Republicans now is the timing and a Constitutional amendment. Democrats want the debt ceiling to be raised past the next election in November 2012, while Republicans want it raised for a few months. Republicans are also trying to get a “balance budget amendment” added to the constitution – a measure being pushed by the Teaparty.

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Democratic Mitch McConnell Politics Republican

McConnell Signals President Will Give Up More For A Deal

We’ll hope not, but hearing McConnell’s statement today, and seeing his jubilant mannerism is telling. The message I gather from his and Boehner’s press conference is that the President and Democratic Congressional members are beginning to give up even more to the Republican minority.

The press conference happened about 3:45PM today, and it featured Boehner and McConnell making a brief statement about their commitment on ‘no compromise’. But when McConnell took the podium, he broke the news that he’d been talking to President Obama “within the past hour.”

Of course, that could be a  good thing, but when McConnell, in the midst of telling reporters how strongly he feels about holding his ground and criticizing the plan the Democrats have brought forward, then says he has spoken to the President and is “optimistic” that a deal is going to happen real soon, it is hard not to think the President is again, going to yield to the minority demands.

Meanwhile, news broke that the President summoned Democratic Senate Leader Harry Reid and Democratic House Minority Leader Nancy Pelosi to the White House for a private meeting.

With 3 days left before a deal is reached, we will find out exactly what McConnell knows about this “deal” that’s making him so happy.

Categories
Politics troops

Mike Mullen Cannot Guarantee Soldiers Pay If Republican Block Party Wins

Admiral Mike Mullen, chairman of the US military’s Joint Chiefs of Staff told our troops in Afghanistan that if the stalemate in Washington is not resolved before the August 2nd deadline, then he cannot guarantee they will continue getting their paychecks.

“I’d like to give you a better answer than that right now, I just honestly don’t know,” he said, when confronted with questions about Washington’s inability to do what they have done many times in the past – raising the debt ceiling. And knowing that these troops depends on their paycheck to help families back home, Mike Mullen spoke about the consequence of a default, saying, ” if paychecks were to stop, it would have a devastating impact.”

The United States will have $172 billion of revenue between August 3 and August 31. If Congress is not able to raise the debt ceiling from $14.3 trillion, the revenue on hand will not be able to pay our past bills and meet our present obligations to Social Security, Medicare and Medicaid, defense, interest on the debt, vendor payments, Labor, Commerce and unemployment insurance among others.

It is a sad state of affairs to have soldiers, fighting and risking their lives to maintain the security of this nation, worry about whether they will get a paycheck for their families at home.

Categories
Barack Obama Politics washington weekly address

President Obama To Congress – Get Your House In Order

With the August 2nd deadline quickly approaching, President Obama used his weekly address to urge Washington to “get your house in order.” In conveying this message, the President quoted a letter from Kelly Smith, a concerned individual who wrote to congress, saying;

I keep my home clean. I work hard at a full time job, give my parents any money as I can so that they could afford their medications, I pay my bills and by all appearances, I’m a responsible person. All I’m asking is that you be responsible. I have my house in order, and all I’m asking is that you get yours the same way.

The President ended his message by calling for both parties to compromise and get the debt ceiling raised, saying;

All of us, including Republicans in the House of Representatives, need to demonstrate the same kind of responsibility that the American people show everyday. The time for putting party first is over. The time for compromise on behalf of the American people is now.

Categories
New York Politics

Circus Clown Rick Perry Does His Juggling Act On Gay Marriage

It is so confusing working in a circus. For Texas governor, and possibly another Republican savior for the 2012 Presidential election, Rick Perry keeps dropping the balls as he juggles his statements. Today, he says one thing, tomorrow, it’s a different story.

Forgetting his previous statement that he agreed with New York’s decision to allow gay marriages, Mr. Perry suddenly remembered that he may run for president, and would need the votes of the Christian Conservatives. In his interview with Family Research Council’s president, Perry did try to juggle, but he just couldn’t keep all his balls up in the air:

After initially telling reporters that it’s “fine with me” if states like New York legalize same-sex unions through their own legislature, Perry is pulling a 180 and calling for a Federal Marriage Amendment…

“I probably needed to add a few words after that ‘it’s fine with me’ and that it’s fine with me that a state is using their sovereign rights to decide an issue,” he said. “Obviously gay marriage is not fine with me. My stance hasn’t changed.”

Perry said he supported changing the Constitution in order to ban gay marriage, a position that he characterized as supportive of states’ rights even as it would overrule New York’s own decision on the matter.

These people will say and do anything to get a potential vote, but once in office, their Corporate masters dictate the policies.

Categories
Politics Republican

Tell Eric Cantor To Work For Ordinary Americans – Ad

A progressive group has began targeting certain members of the Republican Party who stand in the way of raising the nation’s debt ceiling.

Below is the ad being run in Eric Cantor’s district. Good stuff!

If Congress doesn’t act by Tuesday, America won’t be able to pay all of its bills,” says the narrator in the ads. “Social Security checks, veterans benefits, military pay –all could be at risk –because Congressman Eric Cantor and congressional Republicans want to protect tax breaks for millionaires, oil companies and corporate jets. So if the check you, or your family, depends on doesn’t arrive –thank Congressman Cantor. Tell Congressman Cantor to stop holding the interests of ordinary Americans hostage.

Categories
Barack Obama child support Politics

Teaparty Congressman Joe Walsh Owes 9 Years Of Child Support

Who said this:

 “President Obama, quit lying. Have you no shame, sir? In three short years, you’ve bankrupted this country.”

If you answered Joe Walsh, you’d be correct! Based on that statement, it would seem that Joe Walsh, a Teaparty Congressman serving his first term in the House of Representatives, is all for fiscal responsibility, you know, paying his bills on time and living within his means, as is preached by the Teaparty.

But according to reports from The Chicago Sun-Times, Joe is a little too conservative with his money, one might even call him cheap. How cheap is this congressman who accused President Obama of  “having no shame”? Walsh owes more than $117,437.00 in child support dating back some 9 years. Have you no shame, sir?

Before getting elected, he had told Laura Walsh that because he was out of work or between jobs, he could not make child support payments. So she was surprised to read in his congressional campaign disclosures that he was earning enough money to loan his campaign $35,000.

“Joe personally loaned his campaign $35,000, which, given that he failed to make any child support payments to Laura because he ‘had no money’ is surprising,” Laura Walsh’s attorneys wrote in a motion filed in December seeking $117,437 in back child support and interest. “Joe has paid himself back at least $14,200 for the loans he gave himself.”

Let’s here what else the morally sophisticated Walsh had to say about the President. In a video message to Mr. Obama, Walsh said this;

“I won’t place one more dollar of debt upon the backs of my kids and grandkids unless we structurally reform the way this town spends money!”

Well, at least he is looking out for his kids. Walsh is already placing $117,437 dollars of debt on them. One more dollar from the president will just be wickedness.

Categories
Politics

Democrats To Obama – Use The 14th Amendment

With the Republican induced stalemate going down in Washington about whether or not to raise the nation’s debt ceiling, Democrat are slowly beginning to familiarize themselves with the Constitution, specifically the 14th Amendment. And although President Obama and his White House lawyers seem to think that option is off the table, even former president Bill Clinton has weighed in, advising Mr. Obama to invoke the 14th Amendment and worry about the consequences later.

And now, other congressional Democrats are making their voices heard. John Larson, Chairman of the House Democratic Caucus, told reporters, “We’re getting down to decision time. We have to have a fail-safe mechanism. We believe that fail-safe mechanism is the 14th Amendment and the president of the United States.”

Larson and others explained that they only think Obama should invoke the 14th Amendment if he’s presented with an unacceptable debt-ceiling plan–one that includes a short-term hike in the debt ceiling and that will extend the economic uncertainty now hanging over the country.

“The Republicans have taken us into the twilight zone,” said Rep. Xavier Becerra, D-Calif, the caucus vice chairman. “We’ve never been here before.

“What we’re saying to the president is… ‘The Republicans, through their failure, have given you license to do whatever it takes to not let the American family go down into that abyss,” he added.

The House Democrats’ decision to highlight the constitutional option comes as the gridlock in Congress seemed to intensify over the last 24 hours.

The 14th amendment states that “validity of the public debt of the United States, authorized by law, including debts incurred for payments of pensions and bounties in suppressing insurrection or rebellion, shall not be questioned.”

With the present gridlock in Washington between Democrats and Republicans, with Democrats trying to raise the debt ceiling to pay the nation’s debts and Republicans apparently pretending that there is no debt, the choice seems clear – if we claim to follow the Constitution, then we must realize that it states that Congress is required to authorize the public debt. Why then, do we question its validity?

Pay the bills, and move on something more important, like job creation for the millions of unemployed!

Categories
Donald Trump Donald Trump Politics Republican

Trump To Republicans – Let The Nation Go Into Default

Donald Trump just wont go away quietly. In order to make himself seem relevant still, The Donald had a little advice for the Republicans in Congress trying to negotiate a plan with the President to raise the debt ceiling. What was Mr. Hairpiece’s advice? Don’t compromise, do not make any deals. Let the nation go into default!

Donald Trump is willing to watch America lose its triple A ratings, to allow our economy and possibly the world’s economy to spiral out of control. Why? Because that way, President Obama would not be re-elected. The Donald had this to say on Fox and Friends;

“Frankly the Republicans would be crazy unless they get 100 percent of the deal that they want right now to make any deal. If this happens, for instance if this stuff is going on prior to an election, he can’t get reelected. He possibly can’t get elected anyway … The fact is, unless the Republicans get 100% of what they want, and that may include getting rid of Obamacare, which is a total disaster, then they should not make a deal other than a minor extension which would take you before the election which would ensure Obama doesn’t get elected, which would be a great thing.”

When the show’s host told him of a poll that shows Americans would blame Republicans if the nation defaults, Trump added this little nugget;

“I don’t care about polls! When it comes time to default, they’re not going to remember any of the Republicans’ names. They are going to remember in history books one name, and that’s Obama.”

They just don’t know when to stop the politics and do what’s best for the country.

Categories
Barack Obama Politics Republican Steve King

Republicans Suggest Impeaching Obama If Nation Defaults

President Obama has tried just about every conceivable angle, to convince these Republicans that a “balanced approach” is what’s needed to address the nation’s debt. That balanced approach being, spending cuts plus raising revenue. But Republicans have been defiant. They have maintained their original “no compromise” position on allowing some of the loopholes for the wealthy to end, and in effect, kept the stalemate going on how the debt ceiling should be raised.

And now this… Republican Steve King of Iowa, has turned the tables on the President. King is now suggesting that President Obama should be impeached if the nation defaults. Let that marinate!

So Republicans have refused to work with the President and Democrats on any plausible solution towards avoiding a default, but at the same time, they’re now calling for the President’s impeachment if we do?

Picture this:

The ship called The Economy just sank, and Republicans are safely in the only life boat. President Obama is in the water trying to save as many as he can. Both his hands are already full, but there’s still more to be saved. He turns to the Republicans and asks for their help…and they throw him an anvil.

Then from within the safe confines of the life boat, Steve King shouts out, ” and make sure you save everybody… and don’t let that anvil sink!”

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