Republicans signal moves on debt limit hike

WASHINGTON (Reuters) – Republicans in the Congress on Tuesday signaled a willingness to raise the country's credit limit "sooner rather than later" and avoid a series of short-term measures that could damage the economy.

In the face of intense pressure from business groups for a prompt and tidy handling of a statutory increase in how much the government can borrow, House of Representatives Speaker John Boehner told reporters, "Why wait" until the last minute for Congress to pass legislation. He added that he would rather address the matter "sooner rather than later.

The United States is on the verge of hitting its credit limit, .. now capped at $14.3 trillion.

But Republicans did not step back from their demand that any increase in U.S. borrowing authority be accompanied by serious spending reductions.

House Majority Leader Eric Cantor said his fellow Republicans would not support a debt limit increase without firm steps to reduce a budget deficit that is projected to hit $1.4 trillion for just this year.

The fight over the size of the federal government, and the size of the U.S. debt, has been raging since last year's congressional campaigns and the outcome of White House-Congress deficit-reduction negotiations is certain to loom large in President Barack Obama's 2012 reelection effort.

House Republicans also said they oppose a series of short-term debt limit increases, aiming instead for a one-time hike if they win deficit-reduction controls.

This latest approach by Republicans stands in contrast to early this year when they forced a series of temporary spending fixes to avert government shutdowns until a longer-term deal could be reached with Obama.

A long-term debt limit increase could allow government borrowing through the November 2012 elections, under one plan being weighed in Congress.

I caution my fellow Freepers to withhold judgment until it is clear what Boehner and Cantor have said and why. It is quite possible that Boehner has said that a all-encompassing agreement is possible, providing their are real and enforceable cuts and spending. We must consider that the source is Reuters appearing on Yahoo.

It is also possible that Boehner is in fact going wobbly at the knees in which case he will cause a rupture in the Republican Party. This may be what this article is trying to achieve.

However, the omens are not good and the indications certainly are that the Republicans do not have their act together, they are not speaking with a coherent voice, they are not preparing the ground for this showdown, they, in effect, will end up in the same position they were at the time of the budget showdown in which they had not adequately made their case.

Time is running out even though Gaithner has extended the deadline August 2 because of increased tax revenues. I think Republicans should, as my namesake would say, "put the scare on" the old folks about the destruction of their Medicare and Social Security systems as and when the system implodes because no one will buy our bonds. Put Obama on the defensive instead of the other way around and make him the destroyer of the social net.

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