Skip to comments.Obama says spending cuts needed to raise debt ceiling: report (compromise w/GoP necessary)
Posted on 04/15/2011 12:06:05 PM PDT by NormsRevenge
WASHINGTON (Reuters) A compromise with Republicans on spending cuts will be necessary in order to raise the U.S. debt ceiling, President Barack Obama said in an interview with the Associated Press on Friday.
Obama, a Democrat, said some questions about such cuts would have to be left for after the 2012 presidential election, when he hopes to win a second term in office.
Obama said the world could plunge into a new recession if the United States were to default on its debts, according to the AP. He voiced confidence that Congress would lift the nation's debt ceiling, AP said.
Congress is under pressure to raise the $14.3 trillion borrowing limit before it is reached as early as mid-May.
But Republicans are unwilling to do so without spending cuts and have threatened to take negotiations to the deadline.
"I think it's absolutely right that it's not going to happen without some spending cuts," Obama told the AP.
The Treasury has forecast that the ceiling will be reached by May 16. It can take emergency measures to avoid hitting the debt ceiling but those actions will only buy the United States a limited amount of time -- until about July 8.
(Excerpt) Read more at news.yahoo.com ...
Yeah Right. Tell me another one.
Watch the Republicans fall for this line of bullshit.
We saw how serious you are about cut last week Obummer. No one is buying your BS. We are also aware that your “spending cuts on the revenue side” actually mean tax increases you dope.
The Rats are already making hay. They called my 83 year old mother and scared her to death about her Medicare and Social Security. Yesterday.
The GOP Strategery is stupid. Seems like a designated loser to me. Going after Medicare prior to repeal of Obamacare makes no sense to me.
Obama cuts or real actual spending cuts?
fake vs real
translation for Boehner: “who’se your daddy...”
There. Fixed it.
Does you 83 year old mother listen to you or some demonRAT on the phone?
If you can't convince her that you won't lie to her about her future, you have bigger problems than pubbie strategery about health insurance.
RATS have been telling the medicare/social security lie for decades.
They have only lies and use them without a shred of conscience, terrifying senior citizens.
CRB Index for the last 6 months.. (Future Freepers Sorry, this is a snapshot URL) this post won't make sense a month after the current date.)
This exactly matches the chart presented by Russ Winter at Minyanville.
The last 40 years have nothing to do with the current situation because folks had the good sense to go Ape Sh%$t when Nixon gave up the Gold Standard. What they are doing now.. the BASELESS STANDARD, the NOT EVEN GREEN ANYMORE.. standard.. heck.. it isn't even paper. Just electrons representing lies that our children have to make real by living in bondage.
If the Debt Ceiling is increased, the Fed will do QE3 to keep Treasury auctions from failing. Something immediate and substantial needs to be done, and Congress just punted.
Some say, "If interest rates on Treasuries skyrocket then everyone, including China and Saudi will jump back into dollars with wild abandon." But, more likely, there will be no takers for $100 Billion per month.. but the interest rates may rise anyway.. rather... it is much more likely that QE3 occurs for the same reasons as QE2 but the situation is more desperate.
The problem with that.. is that the US is deep into short term borrowing which means that the Deficit will balloon insanely the minute interest rates begin to rise..
You get into a trap, there is no interest rate high enough that overcomes the real likelihood of loss of the original principle. Equity works because it based on the analysis of the risk vs reward of appreciation or loss of the capital investment. Bond work on the assurance that the capital invested is safe, over a certain level of risk, they are considered junk because they are inherently not safe.
What foreign companies will do is use the fake dollars we have given them to purchase real US assets leaving us in an inflationary spiral and vassals in our own land. They will at some point soon, months, insist that all of our borrowing be done in their currency rather than ours and this is when our goose is cooked.
This is a story as old as Joseph, the Pharaoh and the 7 years of famine. It ended with all of Egypt in Slavery including the Israelites whom only God could save.
What is sick is that Beck warned of this 6 months ago and we just couldn't see it back then.. but now it is obvious.. and yet we are not doing anything to stop it.
There comes a point in every PONZIE scheme where the new members cannot sustain the deal and it all comes tumbling down. Social Security is the Ponzie scheme and we all know it. It has failed we are selling our very lives and putting our children into the fire of slavery and death and oppression. This has to end worse than Greece and Obama and crowd know it and are cheering with the torches in their hands. This is the Clovin-Pevin crisis they have been working for, but we don't have to go there.
First and foremost, people have been lied to and they are not ready for dealing with the reality of this. Beck and Palin see Trump's big mouth as a distraction but people are sick of lies. I am.
It starts here first. We quit lying to ourselves. I saw the charts that I posted here this weekend and they made me sick. The guy at www.endofamerica93.com has seen this for a while.. and unfortunately decided to make this a sales pitch with a 20 minute clouded presentation at the beginning.
The crisis doesn't come from "Bankruptcy" as Hannity keeps saying.. but the loss of "Reserve Currency Status" and the meetings are going on around the world to get this accomplished. I am sure they would like to do this without destroying the value of the dollars they already have.. but QE3 will destroy this value anyway.. so after June 2011, a crisis is assured soon no matter what if the DEBT CEILING IS INCREASED without substantial immediate and draconian cutting and a mechanism to absolutely end the deficit borrowing in 24 months.
Go outside, look around, do we love this country? If we do, we have only about 2 months to do something.
The socialist republican leadership agrees and is willing to settle for drastic cuts but not more then $12.84 over a 100 year period.
I do not trust the GOP any more than the RATS.
WOULDN’T spending cuts KEEP YOU UNDER THE debt ceiling?
Sure, if the spending cuts amount to $800B between now and October and $1.7T for 2012.
That’s what I think needs to be done, except I wouldn’t do it by cutting individual programs. I would do it the way any household or business does it. Start with your known income and subtract your priority spending items. When you run out of money, there is no point in even talking about any other items. You’re done as soon as you’ve allocated all your income. The first thing any finance manager would tell somebody who was already in debt an amount equal to their entire annual income is, “Cut up your credit cards. No more borrowing !” They are sure not going to suggest robbing your neighbor or selling your kids into slavery.
It’s more of Barry & company’s typical tax, spend and pocket as many taxpayer funds as possible.