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Subscribe to RSSProvided that the Senate passes a budget, House Republicans said they would vote to lift the debt ceiling limit for three months without offsetting spending cuts. NBC's Brian Williams reports.
Updated 2:26 p.m. - Republicans will act to push the deadline at which the U.S. government would default on the national debt to mid-April, demanding that Democrats pass a budget in exchange for a long-term extension in borrowing authority.
House Republicans said they will take up legislation next week to temporarily extend the debt limit for three months, past the mid-February deadline when the government, according to the Treasury, would reach its legal limit on borrowing to finance the government's obligations.
"Next week, we will authorize a three month temporary debt limit increase to give the Senate and House time to pass a budget," House Majority Leader Eric Cantor, R-Va., said. "Furthermore, if the Senate or House fails to pass a budget in that time, members of Congress will not be paid by the American people for failing to do their job. No budget, no pay."
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"We are encouraged that there are signs that congressional Republicans may back off their insistence on holding our economy hostage to extract drastic cuts in Medicare, education and programs middle class families depend on," White House press secretary Jay Carney said in response. "Congress must pay its bills and pass a clean debt limit increase without further delay."
Such a move would push the deadline for default to mid-April, around the time at which the House and Senate are typically expected to produce and pass budgets. To secure a longer-term extension in the debt ceiling, Republicans said Friday, the Senate must finally pass a budget.
"Before there is any long-term debt limit increase, a budget should be passed that cuts spending," House Speaker John Boehner, R-Ohio, told GOP lawmakers at the conclusion of their retreat, according to remarks released by his office.
Republicans have vocally criticized the Democratic-controlled Senate for failing to produce a budget in recent years, a mark of the upper chamber's unseriousness in the eyes of many conservatives. Democrats have used the two budgets authorized by House Republicans as a political cudgel against the GOP; the Senate's failure to pass a budget has been partially meant to escape similar political culpability.
"We are going to pursue strategies that will obligate the Senate to finally join the House in confronting the government’s spending problem," Boehner said. "The principle is simple: no budget, no pay."
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Republicans' new strategy cuts against a strain of thought within the GOP that suggests that default would not be as catastrophic for the economy as many experts have warned. These Republicans have argued for using the debt ceiling deadline -- and the specter of default -- as leverage to extract spending cuts or entitlement reforms from President Barack Obama.
"It is reassuring to see Republicans beginning to back off their threat to hold our economy hostage," Senate Majority Leader Harry Reid, D-Nev., said in response. "If the House can pass a clean debt ceiling increase to avoid default and allow the United States to meet its existing obligations, we will be happy to consider it."
But Republicans are facing increasing political pressure to act, and prevent default. The party's favorable/unfavorable rating was near its worst ever in Thursday's NBC News/Wall Street Journal poll following a drawn-out battle over the fiscal cliff, a political fiasco many Republicans aren't eager to repeat. And Obama gave a press conference earlier this week explicitly refuse bargaining over the debt limit.
J. Scott Applewhite / AP
Speaker of the House John Boehner, R-Ohio, right, and House Majority Leader Eric Cantor, R-Va., left, walk to a second Republican conference meeting to discuss the fiscal cliff bill passed by the Senate Monday night and now awaits a vote in the GOP-controlled House, at the Capitol in Washington on Tuesday, Jan. 1, 2013.
In recent days, high-profile Republicans had steadily backed away from the prospect of defaulting on the national debt, sending signals that they'll extend the nation's borrowing authority for at least a little while longer.
"We will raise the debt ceiling. We're not going to default on our debt," Texas Sen. John Cornyn, Republicans' No. 2 in the upper chamber, told the editorial board of the Houston Chronicle. "I will tell you unequivocally, we're not going to default."
And Rep. Paul Ryan, R-Wis., the House Budget Committee chairman and former vice presidential nominee, told reporters at House Republicans' retreat on Thursday that lawmakers were "discussing the virtue of a short term debt limit extension."
They join Republican Sens. Susan Collins of Maine and Lisa Murkowski of Alaska, in acknowledging the need for a debt ceiling increase; more and more members of the conservative media have also questioned the political wisdom behind using the debt limit as leverage in the spending debate.
What's more, traditionally GOP-friendly business groups have privately urged lawmakers against wrangling over the debt limit, which has become a factor weighing upon Republicans' strategy.
"There was serious displeasure and concern within the financial services community over the way Republicans handled the debt ceiling issue in 2011," said one business advocate tied into Republican politics. "It was the financial community that helped deliver the resources for a Republican takeover in 2010 and now House Republicans are at risk of jeopardizing their credibility with their free market allies. Cutting spending and helping the economy are not mutually exclusive, but republicans have found a way to make it seem that way in the eyes of voters."
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It's official: The Democrats have been put on "Double-Secret Probation!"
MORE DEMOCRAT CORRUPTION>>>>>>
NEW ORLEANS — Former New Orleans Mayor, DEMOCRAT Ray Nagin was indicted Friday on 21 corruption charges including wire fraud, bribery and money laundering.
The charges come from a City Hall corruption investigation that already has resulted in guilty pleas by two former city officials and two businessmen.
The counts against Nagin include wire fraud, bribery, money laundering, filing false tax returns and conspiracy.
Greg Meffert, a former technology official and deputy mayor under Nagin, pleaded guilty in 2010 to charges he took bribes and kickbacks in exchange for steering city contracts to businessman Mark St. Pierre. Anthony Jones, who served as the city's chief technology officer in Nagin's administration, also pleaded guilty to taking payoffs.
Meffert cooperated with the government in its case against St. Pierre, who was convicted in May 2011 of charges that include conspiracy, bribery and money laundering.
Ray Nagin??? You've got to do better than that.
No surprise. If they are corrupt, I don't care what their party affiliation they need to pay the price for it.
The Democratic party doesn't claim to be so lily white with family values etc so, while this isn't good it would be worse for a Republican only because of their famly values claims etc. Corruption isn't a family value unless your family is the cosa nostra.
Louisiana has a long history of corruption. New Orleans is even worse. This is true whether Republicans or Democrats are running the show. I'm not sure it is even possible to be an honest politician in Louisiana. The beast has been out of the cage for hundreds of years.
The Ryan budget will never become law. This bill is creating another cliff, while I do agree no pay if no budget the only thing I can see coming of this are mass resignations of Congress when their paychecks are cut off, maybe this will be a good thing.
headed to $20T debt. money supply exploding. weak dollar. = inflation & severe recession. only question is how long can one keep that off by assuming more debt. the day will come. Regardless of party. Demand an annual budget that "balances." Or vote your incumbent out. It's the federal law. They should comply. Only deficit spend for unforseen crisis such as natl disasters or conflicts.
Do you balance your personal annual budget each year. Did you pay the full cost of your home in the year you bought it ? Did you pay the full cost of your car in the year you bought it?
Individuals likely do not budget in full a complete year (though intelligent people will to some extent), however businesses both large and small do. When they spend beyond their means, they go out of business.
Some people do pay off the costs of their homes and/or cars in the year they bought them. But more generally speaking, when people purchase homes and cars, they have plans to pay down those debts.
Our government has no plan to pay down any debt. Largely don't have a plan to significantly lower the deficit either. So the only real plan for the US government is merely "how quickly or how slowly do we increase our debt".
Try running a home or a business like that, and see where that gets you.
Dougler, only a very few mega corporations function without an extended line of credit. If I can borrow at 3-4% and earn 15-20% on the proceeds of that loan, I am doing what most companies do every day.
Steeler Fan
Proposing spending cuts in future years is easy. But without a constitutional amendment, future congresses will never uphold. All the elected officials go to Washington to not maintain the status quo, but to make changes. So if you don't cut the budget now when. Congress, mostly Democrats voted to extend the middle tax cuts permanently, there are not enough high earners to tax to make up for the trillion dollar deficits. So how do you propose to reduce the deficits, unless you think it is OK to keep printing money.
In order to reduce our deficit, we need to improve the economy. High unemployment = high deficits since tax revenue goes way down. We are on a path of recovery, but in order to reach the goal of deficit reduction, the economy needs to keep producing more good paying jobs.
That's partly true, but even that wouldn't make up the difference in what we spend, and what we take in. Certainly it would help put a dent in it, but it wouldn't relieve it.
Now that we've established that, how do you presume we improve the economy? Higher taxes? Does the government spend more (stimulus spending) which would add to the deficit and debt, which means we are defeating the purpose?
You have to make an environment for businesses to want to be here. The more it costs them to be here, the less likely they will be here.
Its called kicking the can down the road not an extention. Man up and get it done make the cuts you need to!! As a nation I think we all are ready to sacrifice for our children and the nation, why aren't you?
If the process of putting a 3 month "extension" on the debt ceiling actually includes the no budget - no paychecks for congress then good for Cantor (it felt strange to type that)
"Next week, we will authorize a three month temporary debt limit increase to give the Senate and House time to pass a budget," House Majority Leader Eric Cantor, R-Va., said. "Furthermore, if the Senate or House fails to pass a budget in that time, members of Congress will not be paid by the American people for failing to do their job. No budget, no pay."
Steve, do you believe they'd actually cut their pay? I don't, just like the sequester, they'll put it off until they hope we all forget about it. I mean if they're saying they shouldn't get paid unless they do their job, they should make it retroactive--we could pay off the national debt!!!
I like the idiots on here who want to claim that obama has already made 4.2 trillion in cuts. Maybe he has maybe he hasn't, since any of those cuts are project out over the next 10 years, so that logic only gets us 420 billion a year. Big deal! We need deep cuts that take affect now. The idiot has already added 6 trillion to the National Debit in just 4 years & his own CBO projects it to be over 20+ trillion in total National Debit by the time the idiot leaves office in another 4 years.
So please don't hate me if I don't jump for joy that the idiot claims 4.3 trillion in savings over the next 10 years. We have a spending problem & yes we have a debit problem. CUT ONE, DON'T RASIE THE OTHER!
Dave, I agree. It is all just government smoke and mirrors. Ask them which government agency is spending less this year than it did last year.
regardless of your political leanings, your post (and the postings of many others on First Read) and potentially factual information you are trying to provide is rendered moot with your use of the word idiot to describe the President (and other posters for that matter).
3.8 Trillion of that was GW Bushes unpaid for wars. You can't blame Obama for that!
Dave, your utter foolishness stands out much louder and more caustically than anything you're trying to say. When any entity gets itself into the mess that this country has, there is only one logical way to get through and that is to make spending cuts to a degree while doing whatever it takes to stimulate the economy - i.e. spending in some form. You CANNOT do one without the other, it is impossible and it has never worked. And your shameful and shocking references to the President are merely the product of wholesale ignorance. Why don't you do something else other than make a supreme A$$ of yourself on this forum? Rush and Glenn Beck welcome your ilk with open arms. Why not run home to your daddies??!!
You can not budget a government the way you budget your household finances. In addition, all money bills must originate in the House of Representatives...not the White House, not the Senate.
And the House has passed a bidget every year since 2009. The Senate refuses to do its Constitutional duty & pass their version of a budget, so the two can then go into conference & consolidate the two into 1 budget. The President again will fail to meet his Constitutional duty & law to submit his budget to Congress by 1 Feb.
Dave, you are correct about the House passing what it calls a budget, but unlike most state budgets, the Cantor budget does not reflect 'current law' but includes policy changes that go far beyond the purpose of a budget. For example, if the Senate approved the most recent Cantor budget and the President signed it, one result would be a complete overhaul of Medicare, Medicaid, Head Start and other programs without one minute of legislative debate on any of them.
Even without an annual budget, Congress has had a continuous budget. Surely everyone noticed that government has not shut down? Congress simply passes appropriations bills; shorter term budgets that allow government to operate. It's not uncommon.
No extension of the debt ceiling! Its time to make those government spending cuts that Obama promised for the tax increase he got. Time to pay the piper chumpers.
The debt ceiling represents money that congress has already allocated. Not paying the debt ceiling is like going to Home Depot and purchasing on a credit card thousands of dollars worth of solar energy panels for the home. Then telling the credit card company you over spent and don't feel like paying the bill. America lives up to it's responsibilities and pays it's bills. The place to have spending discussions is on future allocations, not on money already spent. Otherwise we may have to rescind billions of dollars given to oil companies and other corporate welfare.
We have the money to pay down the National Debit. The US government takes in more than enough money to make payments on the debit; we just don't have any additional funds to do anything else.
So Dave, one approach would be to shut the entire Federal government down, except for the IRS, collect taxes as normal and pay down out debt? Might work, but I wouldn't want anyone I cared about to get on a commercial flight without someone in the control tower.
Taking tips from Algeria, Iran, et al, this is Hostage Taking (HT):
HT: Round 2, Revision 1 - The object of the game is to use as much delaying time as possible. This particular goal post has had wheels added to it to make it easier to move down the road, and is decorated with various colorfully painted cans containing noisemakers emitting biological based soundsm as they are kicked down the road.
Not sure yet, but the next revision, 2 with be a tag bag shaped piñata, containing scarab beetles, termites and carpenter ants, genetically engineered to hollow out government, reduce the house to rubble, and to ruin the replacement lumber needed to rebuild the country.
I am so tired of hearing people say the Democrat controlled Senate hasn't done
anything. The reason is the FILIBUSTER Crazy Republicans. They propose something
and if the President or the Dems in the Senate agree then they FILIBUSTER their own Bill.
If you watched, Mitch McConnel proposed something.. Harry Reid tried to bring it to a Vote
and McConnell Filibustered his own Bill. It happens all the time. And then blame the Dems.
Crazy Feeken Republicans. They should outlaw Republicans.
I disagree. We are talking budget here. Senate democraps REFUSE to even consider working on a budget in conference. The Presidents Budget gets voted down every year by just about every Senator.
Republicians CANNOT filibuster a bill, if the Senate doesn't even create a bill!
Actually, the Senate Minority Leader said that his bill dealt with such important matters that it deserved full debate. He didn't actually filibuster it; he only hinted that it would be subject to a super-majority vote. Strip the jetés and pliés away, and Senate GOP/T principal male dancer Mitch let himself be outstepped by the Senate Majority Leader.
mick, which is exactly why a few Senators are introducing a bill that requires anyone who wants to filibuster a bill to take the floor and start speaking if front of the whole nation - just like Jimmy Steart did in the movie, "Mr. Smith Goes to Washington" in the good old days. It would finally require people who wish to throw monkey wrenches in the legislative process to show their faces to all of us.
Do any realizes the President does not make the budget, he only send them an outline on a budget and the congress work on the details of the budget. Everyone always blaming the President and the president only have the power to sign or veto the bill, budget or what else you think he can do. Yes he can use executive order to get things done without congress if it is within the guideline of the constitution.
You may be right in what you say, but the president is still required by LAW to submit his budget proposal to Congress by 1 Feb. He won't met that requirement again!
That's it kick the can down the road in hopes something will change. The Republicans are part of the problem not the solution.
The problem here is that Republicans don't want to cut spending that will balance the budget plus pay down our debt principal....they are using this as an excuse to gut Medicaid, Medicare and Social Security, the latter two or at least the latter one having added ZERO dollars to the defecit. Real spending reductions that will reduce the defecit and our national debt, include major cuts to the MILITARY. Furthermore, we still need to raise more revenue if we also want to pay our debt. It's simple math.
Hat to break it to you but S/S is adding to the deficit.
http://www.factcheck.org/2011/02/democrats-deny-social-securitys-red-ink/
OBAMA SAID NO DISCUSSION! I hope he doesn't cave on this. Republicans, just pass the debt ceiling legislation and get on to other things! If you don't understand how the debt ceiling works by now, you never will. Might as well pack up and go home Republicans!
I guess Senator Obama didn't understand how it worked when he voted against raising the debt ceiling and called it a "sign of failed leadership."
"Republicans' new strategy cuts against a strain of thought within the GOP that suggests that default would not be as catastrophic for the economy as many experts have warned."
Keep it up guys. Its always fun to watch an organization self destruct.
How can the right always be so wrong about everything I mean calling themselves the" right "is an oxymoron
is it on purpose ..they can't help themselves is it genetics ..what's up with that ..who the hell is feeding them the garbage they spew....
Amen to that! I can't believe this is the republican party I grew up with and belonged to for so many years!
So lilarose..... you are all for continuing on down the road of a higher & higher national debit. You must be a free spending liberal
Lilarose: you are sooo right. Why do we have to concern ourselves with something as silly as paying back our debts? Keep up the great work PARTY of SPEND!!!!! What's wrong with these Republicans who want to get our financial house in order? Only evil right wing nut jobs want to be fiscally responsible. Can't wait till we hit 20 trillion.
Yeah, in times of dire cash shortages, Boner increased the funding for the defense of DOMA in the SCOTUS while the rest of the country is moving forward with equality. To the tune of $2 million wasted. Party of spend???! Nah! The dems are the party of progress and the republicans just increased defense spending 8%!
Your short on truth rhetoric is just that!
hsart:
Huffington post 10/23/2012:
"Our military spending has gone up every single year that I've been in office," Obama said. "We spend more on our military than the next 10 countries combined."
He was right -- and when he said it, it almost sounded like a brag. Aside from a brief proposed dip in 2013, Obama's budget calls for military spending to continue to increase.
Didn't realize Obama switched parties. LOL.
I didn't realize Boehner was the only one for DOMA and the rest of the 300 million citizens in the country are moving foward for equality.
hsart
And how about Bush's Secretary of the Interior renovating his office bathroom to the tune of almost a quarter of a million dollars?! I mean besides the fact that a refrigerator in the bathroom is disgusting, what a waste of taxpayer money!
GOP you lost the election so stop trying to manipulate the President and control the White House! You lost! You can't turn around and dictate your policy after a loss. YOU have to make concessions and pass the debt ceiling without stipulations or get the F out of town!
The only business you Tea Bagger butt kissing conservatives do in the House is create problems for the entire country. Going on 5 years now, problems where ever we turn. That's why you lost the election, people are sick of your games.
Cantor, Ryan, McConnel, Boner you don't get it do you? Losers don't set the agenda! You pass the debt ceiling and then you get what ever you get. Period. Suck it up like big boys, then sit down and shut up!
How much is your credit card bill?
does it matter; he doesn't plan on paying it anyway.
hsart: you are correct. The party that wins the election becomes the dictatorship. The other party has absolutely no say in the matter. What ever made them think it's any other way?
The GOP is quickly becoming the party of being forgotten by history. They're on the wrong side of history at every turn. Even their own business partners advised them against this but they're doing it anyway! What's that tell you? They're arrogant, bull headed and short sighted. And they talk about not paying the Senate, what a JOKE! The GOP was at home when the Dems were in Washington trying to avoid the sequester in December. The GOP are Gyno Observant Pukes! F— _k faces!
It's all come down to the wire now, America cannot pay its bill so it must default, the sooner the better.
Where do you get this from? The only ones putting us in danger of defaulting are the republicans in the House.
Please, no more gimmicks, no more smoke & mirrors from our GOP Representatives. Do the Peoples
business and stop the inter-party fighting.
Both Parties have good ideas to fix our Nation’s problems. Start with the problem, find common ground and
pass legislation. Just Do It…
I hope President Obama rejects this proposal outright. Three months? Why should we be put through the Republican Party dysfunctional family follies every three months? The American people deserve better governance.
The House must be returned to Democratic control in 2014. America has had enough of this craziness.