Tag: debt ceiling

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Politics Republican

President Obama To Republicans – “I Will Not Play That Game”

President Obama launched a double-pronged appeal in his latest bid to court business leaders, asking a group of CEOs on Wednesday to back him on allowing a tax hike on wealthier Americans and also pushing back against Republican attempts to use the debt ceiling in budget negotiations.

He told members of the Business Roundtable that the only way to reach the amount of revenue needed for a balanced package to address the country’s deficits and avert the so-called fiscal cliff was to extend Bush-era tax cuts for middle-class Americans while letting them expire for the top 2 percent of income-earners.

“By doing that alone, we raise almost a trillion dollars,” he said. “…The holdup right now is that Speaker Boehner took a position, I think, the day after the campaign that said, ‘We’re willing to bring in revenue but we’re not going to increase rates.'”

Obama said the GOP proposal to close tax loopholes and cap or eliminate deductions only goes so far — adding up to $300 or $400 billion — without hitting deductions that could harm the less fortunate, such as the one for charitable giving.

“We’re not insisting on [higher] rates just out of spite …but rather because we need to raise a certain amount of revenue,” he said.

The president also told the group that he would not allow Republicans in Congress to try and barter a debt-ceiling increase in exchange for more spending cuts, noting that the horse-trading alone over an increase last year sent the economy reeling.

“We can’t afford to go there again,” he said. “…The only thing the debt ceiling is good as a weapon for is destroying your credit rating… I will not play that game.”

h/t Politico

Categories
failure Politics Republican

Classic Chris Christie – Blame Obama For Republican Failure

The Republican governor of New Jersey and endorser of Republican presidential candidate Mitt Romney, is falsely attacking the President. What else is new? “What the hell are we paying you for?,” Christie askedyesterday, implying that the president could have changed the outcome of the failed Super Committee.

“I was angry this weekend, listening to the spin coming out of the administration, about the failure of the supercommittee, and that the president knew it was doomed for failure, so he didn’t get involved. Well then what the hell are we paying you for?” Christie said in Camden, N.J.

“It’s doomed for failure so I’m not getting involved? Well, what have you been doing, exactly?” Christie was contrasting the Tea Party and Occupy Wall Street movements, saying both stemmed from “anger” with government’s inability to respond to the financial crisis.

But while Christie said “both parties deserve blame for what’s going on in Washington, D.C.,” he pointed the finger squarely at Obama for failing to strike a budget deal. “Why the president of the United States refuses to do this is astonishing to me. If he wanted to run for Senate again and just be 1 of a 100, I’m sure he could have gotten reelected over and over again in Illinois,” Christie said. “He’s the one in Washington and he’s got to get something done here. And it’s not good enough just to say, ‘Well, I’ll get it done after the election.’”

Of course, this claim that President Obama could have worked his magic and convince Republicans hellbent on protecting the taxes of millionaires, is false. Republicans would want you to believe that Mr. Obama was missing in action on deficit reduction.

The facts however, are very different.

It was, after all, President Obama who first introduced a proposal to cut the deficit by $4 trillion. And he spent the entire summer trying to work with Republicans to come to some agreement. He even played golf with John Boehner, trying to come to some understanding on what spending cuts to make and at what cost.

But because of Republicans’ secret pledge to make this president fail by tanking the economy, the possibility of a deficit reduction would work against their pledge. They unanimously said “no” to the President’s proposal, and decided to put their faith in the hands of the super committee – a group of 12 people who knew the dire importance of the job at hand, but chose ideological political positions instead.

So, now that the super committee has failed to do their job, it is obviously President Obama’s fault. He should have sat in with the Super Committee everyday, giving his input and recommendations to a group of people who want him to fail.

The failure of the super committee was inevitable. Republicans went into the negotiating process knowing they were going to agree to absolutely nothing thus, causing its failure. And nothing would have been more pleasing to Republicans like Chris Christie, than having President Obama take part in that failure.

If he had played a role in the negotiations, the super-committee’s failure would be his fault. If he didn’t take part, the failure of the super-committee would be his fault.

The Republicans already knew who to blame way before the committee failed. They were just waiting to see which card the President played. It’s classic Republican politics.

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fail Politics

The Super Committee’s A Super Dud!

Ladies and gentlemen, welcome to the American political system where political affiliation is more important than doing what’s right for the viability of the United States economy. The “Super Committee” is set to announce today that they failed to reach a compromise on bringing some stability to the nation’s runaway deficit crisis.

“I wouldn’t be optimistic. I don’t want to create any false hope here,” Republican Senator Jon Kyl said on Fox News. He said the panel would release a statement by the end of the day.

After a year of bruising budget battles, failure by the super committee is another sign that U.S. lawmakers are too entrenched to compromise on the tax increases and benefit cuts that budget experts say are needed to set the country’s finances on a stable path.

The failure will cement notions of a dysfunctional Washington among voters and investors already disenchanted with the brinkmanship that brought the country to the edge of a first-ever debt default in August.

Lawmakers likely will not return to the problem until 2013 at the earliest as they shift their attention to the 2012 presidential and congressional elections.

Budget skirmishes will continue over the coming months.

Republicans unwillingness to raise taxes on the top 1% and Democrats unwillingness to cut spending on programs that benefit the bottom 99% without raising taxes on the top 1% means that come 2013, programs that Republicans adore like the military budget will automatically be cut along with programs Democrats love, like some entitlement programs for the poor.

However, 2013 is still a long time away. If nothing is done now, you can be assured that somehow, these incompetent fools in Congress will manage to stop the automatic triggers set to begin because of this failure. Wait for it…!

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Politics

The 14% Approval Ratings For Congress – A Win For Republicans

America sent these clowns to Washington to work together and get the economy back on the right track. The operative word there, is “work.” And the American people are quickly coming to understand the true nature of its elected officials – one group seems determined to fix a broken system and get the economy working again, even if it means negotiating away the very ideals that jumpstart the economy in the past, and the other group is hellbent on keeping the system broken, you know, hiding the jumper cables.

So America is now disgusted, and that feeling is reflected in a new CBS News/New York Times poll, “82 percent of Americans disapprove of the way Congress is doing its job – the highest disapproval rating since polling began in 1977. Just 14 percent approve of Congress’ performance.”

The uptick in frustration comes after Congress narrowly avoided an economic catastrophe of its own making by failing to hammer out a deal to raise the nation’s $14.3 trillion debt limit until the deadline for action. And neither side was happy with the outcome: Conservatives said the final deal, which is projected to cut around $2.5 trillion over ten years from a projected $24 trillion debt, didn’t go far enough; liberals complained that the initial deficit reduction came entirely in the form of spending cuts, not revenue increases as Democrats initially demanded.

I guess you can call it a win – for the group hiding the jumper cables.

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Politics

Gabrielle Giffords Goes To Washington

Just seven months after being shot in her head in a failed assassination attempt, Arizona Democratic Congresswoman Gabrielle Giffords returned to the floor of the House of Representatives on Monday to thunderous applause from the entire congregation.

With less than five minutes remaining in the vote to approve a bill to raise the debt ceiling, the applause started as Mrs. Giffords made her way into the chamber. Some house members indicated that they initially thought the President himself entered the room.

Mrs. Giffords said that she “closely followed the debate over our debt ceiling,”  and has been deeply disappointed at what’s going on in Washington.

“After weeks of failed debate in Washington, I was pleased to see a solution to this crisis emerge. I strongly believe that crossing the aisle for the good of the American people is more important than party politics. I had to be here for this vote. I could not take the chance that my absence could crash our economy.”

An inspiration to us all!

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Barack Obama Democrat Politics Republican

The Deal – Is The Cup Half Empty or Half Full?

I just don’t get what all the fuss is about. I have criticized this president on many occasions, but listening to the backlash from liberal radio and television personalities about the proposed deal, you’d think the world as we know it was coming to an end.

Based on the framework of the deal worked out between Democrats and Republicans, I lean towards agreeing with the President on this one. Yes, Mr. Obama did say that he preferred “a balanced approach” to reducing the debt, and he called for revenue through closing of the tax loopholes that benefit the rich. And although that didn’t happen up front, as far as I can tell, revenues are part of the deal.

Let’s break it down;

The first thing we must acknowledge is, this deal avoids a catastrophe. Although this so-called crisis was totally manufactured by Republicans, the fact remains the same – if America goes into default and is not able to pay on it’s financial obligations, there would be a worldwide negative effect. The potential was there to cause irreparable damage. Ours and many of the world’s economies would have suffered. So yes, avoiding this default is a good thing.

With that said, many would think that avoiding default does not mean we settle for anything, and that too would be correct. But that way of thinking is more about politics than sound reasoning. Democratic pundits on radio and television are harping on one fact; that this deal cuts too much from spending.

Again, this is true, but look at the bigger picture – according to the structure of the deal, about $1 trillion dollars would be cut this year. The agreement was to then put into place a “super congress” whose job will be to propose another $1.5 trillion in cuts to begin in 2013, and phase in over a 10 year period. But that’s not all – this “super congress” will also find revenue through taxes.

Again, from the framework:

 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.

So entitlement reforms would be on the table, but so would raising revenue through taxes. From the framework:

 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.

Okay. Now I’m hearing some of you say that the President could have raised the debt ceiling through the 14th amendment, thus avoiding spending cuts all together. Yes, that could have happened, but keep in mind that Republicans in Congress would impeach this particular President just for being the president if they could. They are looking for every and any chance to signal impeachment.

Also keep in mind that the Supreme Court, which is where this case would end up, consists of a conservative majority. In the middle of a re-election campaign, do you really want Mr. Obama spending his time defending his decision to invoke the 14th amendment?

The overall picture is this: This country has really gotten off the beaten track. Regardless of your political affiliation, you have to admit that our debt and deficit cannot amount to anything good if we continue on the trajectory we’re presently on. Something must change, and we must figure out a way to both, cut spending and increase taxes on the rich. If we sit back and really look at this framework, we must admit that a balance approach is on the table.

And based on all the dissension still going on now, the 14th amendment may still be a last resort. Both Democrats and Republicans in Congress are suggesting that they will not vote for the deal. The deal must pass both the House of Representatives and the Congress, then signed into law by the president before August 2nd.

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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.
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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.
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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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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.

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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.

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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.

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