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Subscribe to RSSThe AP: “Grasping for a deal on the nation's debt, President Barack Obama and congressional leaders remained divided Sunday over the size and the components of a plan to reduce long term deficits. Saying "we need to" work out an agreement over the next 10 days, the president and lawmakers agreed to meet again Monday. Obama also sought to use the power of his office to sway public opinion, scheduling a news conference for Monday morning, his second one in less than two weeks devoted primarily to the debt talks.”
Politico adds, “The president argued several times that negotiators should work toward a $4 trillion package for reducing the deficit rather than the smaller one favored by Republicans, calling on them to stand up to their base to get it done. He said both parties would suffer politically, but they need to do something substantial, said a third Democratic official familiar with the meeting. ‘If not now, when?’ the president said to the group, according to the official.”
The Washington Post: “Both sides appeared Sunday to dig further into their positions, leaving the talks deadlocked, a historic default looming and a fragile economy increasingly vulnerable to the consequences of Washington’s entrenched partisanship and ideological divide over taxes and entitlements.”
“Obama's push for a $4 trillion package was shot down by House Speak John Boehner's warning that only a smaller package - which carries no tax hikes - stands a chance of passing,” the New York Daily News writes.
The top story in the Boston Globe: “Benefits at risk, Geithner warns.” Geithner said on Face the Nation: “On August 2d, we’re left running on fumes. We have no capacity to borrow… We have to act; Congress has to act ahead of that point. If they don’t act, then we face catastrophic damage to the American economy.’’
Bill Daley, the president’s chief of staff on ABC, per Roll Call: “Everyone agrees that a number around $4 trillion is the number that will send — make a serious dent on our deficit. It will send a statement to the world that the U.S. has gotten hold of their problems… That’s the president’s commitment. That’s what he wants to see.”
“President Obama’s apparent willingness to discuss Social Security cuts in the debt-ceiling negotiations with Congress has angered labor unions and could cause them to withhold support for Democrats in the next election,” The Hill writes. “‘I think this is a huge political mistake for Democrats,’ Chuck Loveless, legislative director for the American Federation of State, County and Municipal Employees (AFSCME)” said. It wasn’t just AFSCME, representatives of the SEIU and AFL-CIO expressed similar concerns.
“Many of the 22,000 public employees out of work in Minnesota’s budget impasse say they will get through the extended layoff by tapping into personal savings, making household spending cuts, and relying on a spouse’s income or unemployment checks,” AP writes. “But others are looking for new jobs, creating the potential for a brain drain that would be one more negative from the nation’s longest state government shutdown in a decade.”
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Mr Speaker- would you please consult with Mr Cantor and try to get some progress going on this issue?
He seems to be in charge, here......
President Obama, read the lips of the country. Raising taxes by $1 Trillion will not create jobs. Jobs create revenue. Your stimulus bill cost tax payers $278,000 per job created! Nice try but you can do better!
Mr.President, read the lips of Americans, Cutting Taxes over the last 10 years has produced No Jobs!
It is imperative that you listen for America to succeed!
Companies have all the $$ & have'nt produced JOBS for Americans!
Get Our $$ back from these Vultures!
Mr. President read the lips of the American people, they want the taxes raised on the richest top 2%.
Read the polls 81% want taxes raised on the top 2%.
Raise taxes. Raise taxes. Raise taxes. And let the Republicans, who are speaking out of both ends of their body, wallow in their stupidity. They aren't for lowering our debt or keeping our promise to pay our debts. They simply want more money in their corporate master's pockets. That is all. They stand for nothing but wealth.
Corporations and banks have close to $14 trillion in cash reserves (ironically close to the defict #) that they are very nervous about using until they can figure out what Obama wants to do and what the markets will do! Banks are still very tight on lending, ergo no housing market recovery. The corporations aren't expanding, creating jobs, etc until they know how much obamacare will cost them or will it be repealed...they're worried about taxes... all of this needs to fixed then and only then will jobs be created.
Increasing taxes will not create jobs... never has, never will! New jobs create revenue, lower unemployment rolls decrease the size of government, and will get families off welfare and foodstamps.... Raising taxes in a recession is not a good thing! We are in a recession folks not a slump as the media would have you believe!
Obama needs to grow a set .. and take care of his base ..for once and not compromise !
I really do hope that Obama will not compromise and will take care of his base. This will make sure he is a one termer.
This can’t be! Woooooh
After months of effort, President Barack Obama and congressional T-Republicans are right back where they started as they try to avert a looming debt default: arguing over taxes.
http://blackwaterdog.files.wordpress.com/2011/07/x610-5.jpg?w=472&h=610
T-Republicans are not job creators. They're debt shufflers and CEO's of multinational corporations that outsource our labor force. Why are they sitting on nearly 2 trillion jobs? Why are T-Republicans and firebrand liberals saying Obama is the Worst President?
http://firedoglake.com/2011/07/08/worst-president-ever-revisited/
It's because both of these groups are so desperate for attention and divorced from reality; especially the firebrand liberals who told low information voters to stay home in 2012. BTW: those far lefties get paid to bash the President. I doubt seriously if the firebrand liberals are as duped as the low information voter. I know they love 15 minutes of fame. I guess them love those ludicrous 5-4 Supreme Court Decisions too and a weak economy too.
Since treasury bills translate into money, why then would the T-republican want the dollar not be the reserve currency of the world anymore or America to be like Greece?
We pay for the people without jobs when outsourcing happens.
Here n MN the state bond rating has gone from AAA to AA last week. We are now moving into the second week of shutdown. Geitner on" Meet the Press" talked about the consequences of not raising the debt ceiling. He is right.
Geithner speaks the truth in this situation! It is no longer a debatable issue, however repugnant it is to Americans.... the debt limit must be increased. American's credit rating is already suffering, you must not let it get worse! You only need to look to Argentina of the 1970's to see how far they fell after being in a similar situation, it could be worse if that happened in America!
Tax, Baby Tax.
Today's problem is jobs and slow growth, not the deficit. Slashing govt spending or increasing taxes today will further slow the economy.
'If not now, when?' When the economy is stronger and when unemployment is not a major problem.
We've already lost 500,000 govt jobs due to budget cuts, at a time when govt would have added 500,000 jobs. Losing one million jobs means less educated children (many were teachers), fewer police and firefighters, etc. Each of those would have bought from private businesses, spurring production and private jobs. Each would be one less person needing govt assistance, further straining budgets.
Contracting govt in the current economic climate will not expand the economy, just increase the pain.
Agreed foosion, but elections have consequences and the consequence of the 2010 election was to place a far right ideological majority in congress that thus-far has refused to compromise on legitimate remedies to fix the sputtering economy caused by the very same far right policies that they espouse.
Outside of a miracle, (and it seems that Obama has already pulled off a couple of miracles) a permanent fix will have to wait until the results of the 2012 elections.
The Federal government should be contracted even more! Let the States take over job creation.... the Fed should stick with keeping our military strong, provinding disaster relief, and protecting the border.
The States can do a much better job than the Feds of creating jobs in the private sector, that aren't a drain on the budget!
The fed or the states can not create private sector jobs, this is left to businesses which needs the government and the states to get out of the way and create an environement that businesses can use to plan with out the worry of government and what will the government do next. Obamacare was the biggest job killer in American history because no one knew what was in the bill until they passed it and now businesses are seeing that they will not be able to afford to expand and add new jobs so they intead are holding on to the money and getting rid of people and learning to do the same with fewer people. Yeah Obama. Kill those jobs. The more jobs you can kill, the more people will be on the government dole and maybe you can grow your base.
Citizens, Obey your Federal Masters.
Cantor and the Republicans walked out on the Biden talks, not happy with the proposals and calling for the president to get involved. Now that the president is involved they prefer the proposals of the Biden talks that they walked out of, and so, which were never concluded. But anyone who's paying attention knows that as soon as the Dems say yes to that, the Republicans will immediately come up with an excuse to say NO. Their whole agenda is to make the country's economy to fail so they can blame it on Obama. Too bad the media won't call this exactly what it is--the stop-Obama-plan. Pure and simple!
Andy, I know! I thought the same thing. Over the past year the Republican mantra has been "it's the deficit! It's the deficit!" Now, they are unwilling to accept all those spending cuts and increased revenue which would substanially reduce the deficit...because...oil companies aren't making enough profit? Oil company profits are more important than lowering the deficit? Makes you wonder if their sole objective is attacking the Obama administration. Who elected these creeps?
Your right Andy, the media needs to call out the GOP/TP agenda as wanting to make the Country fail for their own political ideology, which is to cut taxes further for the rich.
Don't expect any help from the media. They gave up their integrity years ago for the same dollars and tax breaks that sway the Republicans. Do you have any idea how much a pundit makes (over and under the table)? How much Rush and Sean make? They are not the honest citizen journalist that the founding fathers envisioned. They are themselves a part of the uber rich corporate elite and will pitch whatever line their corporate masters tell them to. Take for example Fox News' parent company, News Corp. They are currently being indicted for tapping phones. God only knows how far and deep the corruption of the media is.
Plus the debt ceiling has been raised previously with no controversy at all. I follow politics quite a bit and up until now, I have to confess I never heard of debt ceiling debates before. I don't know why the president just didn't say to congress; I will not entertain debates about the debt ceiling in combination with anything else, not even the deficit. Raise it so we can pay our obligations, then and only then come and talk to me about any other concerns you may have. Isn't that the principle of not negotiating with hostage takers?!
@Andy I so agree. The debt ceiling should not be tied to anything at all. Then they can proceed with their talks. And their talks should be about real job creation.
@Miked: "...corporations aren't expanding, creating jobs, etc until they know how much obamacare will cost them or will it be repealed...they're worried about taxes... all of this needs to fixed then and only then will jobs be created. Increasing taxes will not create jobs... never has, never will! New jobs create revenue, lower unemployment rolls decrease the size of government, and will get families off welfare and foodstamps.... Raising taxes in a recession is not a good thing! We are in a recession folks not a slump as the media would have you believe!"
Corporations have not been expanding or creating jobs in America for over 30 years. Tax cuts were given in the Bush Adm. Where were the jobs? They are now at the lowest they have been in a half century. Where are the jobs? No one is asking for raising taxes, they are trying to put the country back onto normal footing rather than taking away SS and Medicare and giving it to millionaires and billionaires. Small business create jobs. The oil companies are not "small businesses". The health care industry is not a "small business". The brokers on Wall Street are not a "small business". There is just no getting to logical in your argument or any Republican or T-Partier argument. It makes not sense. No one has suggested raising taxes on the middle class, except the T-Publicans.
Andy, we can still pay what we owe without raising the dept. It's just that the feds may not be able to keep onall of these fed employee's. Under Obama, the fed government has increased 25% and more comming with Obamacare. Plus, Obama may not be able to pay your welfare checks and leave that up to the states who may very well set stricker rules for getting on it.
sonmanvb, Without rising the debt ceiling , our government will be unable to pay your grandmother's social security checks each month. Your grandfather will not be able to pay for his medical cost with Medicare reimbursment. The country will be plunged into a new deeper recession and your interest rates will go sky rocketing.
Sadly, this isn't rocket science - just politics. First of all you get the head CBO accountant in the room,two PHD economists with no political leaning, just to do the math and two retired senators from each party with backgrounds in economics, make those hearing public on C-Span and come up with recommendations and present to both party heads in a presentation - again (live). Forget the secret gang of six crap, make it all public with honest brokers doing real math. You want to spur growth, cut the tax rates on corporations that actually create US jobs and increase taxes and close loopholes on the ones that outsource - then see what happens... Term limits for all politicians (8 years max) the founding fathers warned us of "career politicians"...
The actions of the TEA party has colored them. They do not want to work with either the president or the GOP. GOP didn't want to walk away from this deal, they had no choice. The TEA party luna-TEA are wagging the dog. Palin, Bachmann, Pawlenty, Perry; all do not want the president to get any kind of a deal that would let him gain any traction. These Yahoo's would rather let the US go belly up rather than provide any traction. Any failure that occurs will fall directly on the necks of the TEA/GOP party!
Never according to Orrin, if the middle class and poor can't afford to buy bread then they should buy cake. Protectionism for the Rich is sacred.
@ksilvers Yes, isn't he a douche? We need to settle the country's problems by having the poor and middle class pay more and do without more so the rich can sock away more, and buy more, and a lot of them couldn't spend what they have in the next 20 centuries if they were normal folk. Doncha love it? While the rest of us are figuring out how to get and keep jobs if we've been layed off and how to pay our bills and put food on the table, afford schools, and take care of our sick and elderly and physically and mentally disabled. However, the rich need more yachts, doncha know? More summer vacations around the globe, more high fashion. Lots of people can't even afford hair cuts, or doctor's visits. You have to really be insane to believe in the Republican dream. I will gladly pay more taxes to have ALL of us live the American dream, rather than only the few that believe they are living the dream, but it will all come crashing down even on the super rich if they don't wise up. Pretty soon we will not be hating each other, but hating the policies that are making life so incredibly hard. No wonder parents can't have enough time to raise their kids, no wonder we're raising a bunch of ignorant students who will turn into ignorant voters who will continue their vast ponzi scheme upon the middle class.
The more money the fed takes from you, the less you have to "live the American dream". And, if you liberals think that by raising the taxes on the "rich" only effects the rich, them you have no idea how a free market economy works.
Yeah "sonmanvb" you see where the free market economy got us in the last 30 years. The bottom line is that the tax code stinks and isn't balanced. We aren't really taking about tax cuts here, marginal increases wouldn't impact the rich any way, we're basically talking about existing loopholes and subsidies to corps that are already making money hand over fist. You mean to tell me you support oil company subsidies? Really??? Save your Grover Norquist BS for someone stupid enough to buy into it. Term limits for all politicians (8 years should be the max for any politician) the founding fathers tried to warn us about "career politicians!!!"
Gotta love it when a plan comes together. . .
"The fact that we are here today to debate raising America's debt
limit is a sign of leadership failure. It is a sign that the U.S.
Government can’t pay its own bills. It is a sign that we now depend on
ongoing financial assistance from foreign countries to finance our
Government's reckless fiscal policies. Increasing America's debt
weakens us domestically and internationally. Leadership means that ‘the
buck stops here. Instead, Washington is shifting the burden of bad
choices today onto the backs of our children and grandchildren. America
has a debt problem and a failure of leadership. Americans deserve
better…"
— SENATOR Barack Obama, March 20, 2006
This debate is getting ridiculous. Here's my advice to Mr. Obama - veto the legislation for the mid-sized spending plan reduction, tell the House you will sign the $4trillion plan that includes tax hikes and no other deal. The House Leadership will tell you to pound sand, the US will default. The NYSE will lose 25% of it's value in 30 days causing major corporations to lose a vast amount of equity and change their positions. The deal will be done in September. A huge drop in the market will hurt Republicans MUCH more than it will Democrats. Pathetic politics.
C.E.Daly, Your scenario will make a great outline for a bestselling novel. But i could see it becoming a nonfiction book on Aug 3.
Since we cannot turn back time; how we got in to this mess is irrelevant. Blaming Bush or Obama, the Republicans or Democrats serves no purpose at this point and is clearly counterproductive. The facts are that our federal government provides services for our citizens such as entitlements, disasters recovery such as Katrina, and our military for our safety home and abroad which are paid for by taxes. As those commitments grow so do the cost and so must the taxes. Period. The silliness of this political debate is that a non delusional person is expected to believe that somehow these services are not needed or can be provided for free. It's shameful that the American people and the global economy are being held hostage by a bunch of politicians who will be unaffected one way or the other and who do not have the courage to make unpleasant decisions like the rest of us.