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Revived effort to reach debt-limit deal
Market Watch ^ | 23 July 2011 | Kate Gibson, Steve Goldstein and Greg Robb

Posted on 07/23/2011 3:01:59 PM PDT by FourPeas

House Speaker John Boehner wants to unveil a plan to increase the U.S. debt limit and curb federal spending by Sunday afternoon to avoid any potential havoc in Asian financial markets, media reports said.

The Ohio Republican told GOP colleagues in a conference call Saturday afternoon that he still wants to cut as much as $4 trillion from the budget during the next decade, according to participants in the call, the reports said.

[snip]

Later in the day, Senate Republican Leader Mitch McConnell (R., Ky.) said congressional leaders were dedicated to the task of keeping a default from happening.

“The president wanted to know that there was a plan for preventing national default,” McConnell said in a statement. “The bipartisan leadership in Congress is committed to working on new legislation that will prevent default while substantially reducing Washington spending,” McConnell added.

Boehner also said during his conference call he wanted to avoid using a proposal from McConnell that would give Obama the authority to hike the debt ceiling, subject to congressional disapproval, GOP sources told Politico.

The Republican leader conceded in the call that he might not be able to get details of a plan to all members by the time he wants to make an announcement on Sunday, but cautioned colleagues their leverage in negotiations could be in jeopardy if something isn’t done by Aug. 2, the Politico report said.

Like McConnell, Boehner also issued a statement Saturday afternoon, saying, “Over this weekend Congress will forge a responsible path forward. House and Senate leaders will be working to find a bipartisan solution to significantly reduce Washington spending and preserve the full faith and credit of the United States.”

(Excerpt) Read more at marketwatch.com ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: boehner; boehnercaves; debtceiling; debtlimit; economy; planners; police; teachers
It seems Boehner is stuck on the August 2nd deadline actually meaning something other than the Democrats having a date to scare senior citizens about.

This does not look good.

1 posted on 07/23/2011 3:02:02 PM PDT by FourPeas
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To: FourPeas
Boehner is stuck on [stupid]...

McConnell as well.

2 posted on 07/23/2011 3:05:24 PM PDT by C210N (0bama, Making the US safe for Global Marxism)
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To: FourPeas

Any cutting that is spread out over 10 years is a canard and WILL NOT HAPPEN. We’ve been down this road before.

Let’s see some serious, detailed, makes ya wanna cry it hurts so much, spending cuts for this year and next. Then we’ll know the Repubbies are serious. Anything else is just a bunch of bullsh1t and not worth our time.


3 posted on 07/23/2011 3:10:13 PM PDT by upchuck (A default is not an economic event. It is a political event.)
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To: FourPeas

Willikers! We certainly don’t want to put a scare into our good friends the Chinese do we? I mean, like OMG!


4 posted on 07/23/2011 3:12:29 PM PDT by Enterprise ("Those who can make you believe absurdities can make you commit atrocities." Voltaire)
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To: FourPeas

What boner really said was “obama, if you and Reid will just hold out until August 2, and since Timmy has said we’re okay until August 10, you can have whatever you want”.

Then he turned to Michael Steele and said “Did I say that out loud?”


5 posted on 07/23/2011 3:13:08 PM PDT by Terry Mross (I'll only vote for a SECOND party.)
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To: Terry Mross

Actually what he said to Steele was “The reporters and tea party freshmen didn’t hear that, did they? I mean, you don’t think the democrats would tell the press I’ve caved, would they?”


6 posted on 07/23/2011 3:15:26 PM PDT by Terry Mross (I'll only vote for a SECOND party.)
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To: upchuck

Yep, I think that was the reason for the whole “if the cuts don’t materialize, then the Obamacare individual mandate goes away” stipulation. It was an interesting play.


7 posted on 07/23/2011 3:16:05 PM PDT by FourPeas ("Maladjusted and wigging out is no way to go through life, son." -hg)
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To: FourPeas
I fear that Boehner and the Republicans are going to allow the August 2nd bogyman to control their actions and justify hiking taxes with little but promises from Obama about debt reduction taking place at some distant time (meaning, never). I'm disappointed that Boehner is allowing the fear of being blamed (by the MSM and the Democrats) of 'causing' a default. No matter what happens, the MSM will find a way to blame the Republicans and present Obama as a hero. Catering to them gains nothing. Sadly, the Republican party and it's 'leaders' never learn. I think this is where I came in.
8 posted on 07/23/2011 3:16:29 PM PDT by Jim Scott ( "Game On!" - Sarah Palin)
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To: FourPeas
...to avoid any potential havoc in Asian financial markets

"American financial markets? Truthfully? We don't give a crap." Boner added.

9 posted on 07/23/2011 3:18:11 PM PDT by hattend (Its a matter of public record that I did not go to Harvard Law School, but I can add. - Sarah Palin)
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To: Terry Mross
If the Tea Party didn't hear it, they're hearing it now! And I just heard a huge angry collective

WTF?????

10 posted on 07/23/2011 3:18:27 PM PDT by Enterprise ("Those who can make you believe absurdities can make you commit atrocities." Voltaire)
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To: hattend

All markets are inter-linked. In the commodities markets, it is possible to trade 24/7.

Our financial institutions will be trading US Government securities the second the Asian markets open.

Remember, on 9/11, the inter-linked trading desks in Tokyo and London took over for NYC.


11 posted on 07/23/2011 3:24:34 PM PDT by Andy from Chapel Hill
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To: hattend

All markets are inter-linked. In the commodities markets, it is possible to trade 24/7.

Our financial institutions will be trading US Government securities the second the Asian markets open.

Remember, on 9/11, the inter-linked trading desks in Tokyo and London took over for NYC.


12 posted on 07/23/2011 3:24:45 PM PDT by Andy from Chapel Hill
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To: upchuck

Heck these guys didn’t even bother to pass a budget for the current fiscal year, if they can’t do that...


13 posted on 07/23/2011 3:29:51 PM PDT by Tallguy (You can safely ignore anything that precedes the word "But"...)
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To: FourPeas

Have we EVER had a real Conservative Republican Speaker of the House in the last hundred years?


14 posted on 07/23/2011 3:30:23 PM PDT by Evil Slayer (Onward, Christian soldiers, marching as to war)
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To: hattend

Havoc in Asian financial markets would most likely spill over into American markets.


15 posted on 07/23/2011 3:31:28 PM PDT by FourPeas ("Maladjusted and wigging out is no way to go through life, son." -hg)
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To: Jim Scott

I don’t think Boehner is concerned about the MSM and Democrats blaming him; I think he’s genuinely concerned about the whole August 2 deadline. It appears he thinks he has more leverage before than after August 2nd. I find it hard to believe that he’s buying the Democrat hype, but what else it could be, I don’t know.


16 posted on 07/23/2011 3:34:41 PM PDT by FourPeas ("Maladjusted and wigging out is no way to go through life, son." -hg)
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To: FourPeas

However, Treasury officials have said it’s not clear they have the legal authority to selectively pay what Congress has already legislated the agency disburse.

This is forshadowing of what they plan to do. It looks like they are planning (or at least threatening) to not send out the checks and blame the republicans. They seem to be saying that they do not have the authority to decide who gets pad. That is what should pass congerss. Aplan on who gets paid. Then they can work on the debt ceiling


17 posted on 07/23/2011 3:38:53 PM PDT by marstegreg
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To: FourPeas

Then I guess he should have mentioned that. He’s trying to make points with the voters. If he’s going to fearmonger, he needs to do it correctly.


18 posted on 07/23/2011 3:45:34 PM PDT by hattend (Its a matter of public record that I did not go to Harvard Law School, but I can add. - Sarah Palin)
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To: FourPeas
"...he still wants to cut as much as $4 trillion from the budget during the next decade..."

His government-dependent constituents want you to believe that it constitutes a cut in the debt. It doesn't. The deficit is over $1.5 trillion per year, so it will mount up anyway. And with the debt ceiling raised several times in his plan, the yearly will probably go up, too.

There will be a default. Favored constituents of both political parties are milking the debt regime for all that they can take before the eventual default.


19 posted on 07/23/2011 3:49:02 PM PDT by familyop ("Plan? There ain't no plan!" --Pigkiller, "Beyond Thunderdome")
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To: All; FourPeas
http://www.speaker.gov/Contact/

Office of the Speaker
H-232 The Capitol
Washington, DC 20515
Phone: (202) 225-0600
Fax: (202) 225-5117

U.S. Capitol Switchboard, (202) 224-3121

20 posted on 07/23/2011 3:57:30 PM PDT by newzjunkey
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To: Enterprise

Boehner told his entire caucus today that this new package would not be a sell-out and would retain the 1:1 ratio at minimum.

Boehner’s speakership is on the line. Moreover, since Boehner has become defacto POTUS overnight, he must produce a very aggressive plan. Otherwise, if a credit downgrade occurs, the GOP could easily get the blame.

We are all in, folks. Now we’ll see who is the Senate cares about their 2012 fortunes and whether Reid will allow them.


21 posted on 07/23/2011 4:06:33 PM PDT by mwl8787
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To: newzjunkey

Call YOUR reps and senators to SUPPORT Boehner, he doesn’t need to hear from us.

Calling your reps and senators - especially the RATS - would be a lot more productive.

24 hours ago every conservative was cheering Boehner because he publicly gave BO the finger, dealt him out of the game, and demonstrated to the entire world that BO is a petulant, juvenile empty suit.

Less than 24 hours later, Boehner is untrustworthy again. Sheesh.


22 posted on 07/23/2011 4:12:45 PM PDT by mwl8787
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To: mwl8787

“Call YOUR reps and senators to SUPPORT Boehner, he doesn’t need to hear from us.

Calling your reps and senators - especially the RATS - would be a lot more productive.

24 hours ago every conservative was cheering Boehner because he publicly gave BO the finger, dealt him out of the game, and demonstrated to the entire world that BO is a petulant, juvenile empty suit.

Less than 24 hours later, Boehner is untrustworthy again. Sheesh.”

Because he has not done ONE thing except cry!! Who in the hell put that pile of Crap with the Trillion in new taxes and 10 years to cut a couple trillion out of the debt,together??? They need primaried!!


23 posted on 07/23/2011 4:29:22 PM PDT by Cheetahcat ( November 4 2008 ,A date that will live in Infamy.)
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To: mwl8787
If nothing else, Boehner has demonstrated graphically and painfully to Obama the limits of his power. Life was good when Pelosi and Reid were in charge. All Obama had to do was play golf and tell Pelosi and Reid to handle things. Oh for the good old days. Negotiating is hard. Gives a President a headache.

Please please please let 2012 be a political disaster of cataclysmic proportions for the Democrats. Let it be a disaster of such greatness that they never recover from it.

24 posted on 07/23/2011 4:57:18 PM PDT by Enterprise ("Those who can make you believe absurdities can make you commit atrocities." Voltaire)
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To: FourPeas

Agreed that spending cuts in out years (the ensuing 9 years of a 10 year plan) will not happen. Any session of Congress is not bound by any thing passed in a prior session (other than a subsequently enacted Amendment of the Constitution), so it will go away quick and the spending problem will not be solved.

On the other hand if you could snap your fingers and go to an immediately balanced budget by cutting spending (which, with today’s economy is 43% greater than revenues) you would exaggerate the present problem with unemployment (if you cut programs and entitlements rapidly enough to balance - you’d end up shrinking the economy abruptly.)

So, the solution has to be a balanced budget amendment which phases in over 5-7 years, allowing for the economy to recover as spending is cut.

In my day, studying economics in college and graduate school, there were estimates for the the multiplier effect of each additional $ of government spending on total GNP. Whatever the multiplier coefficient estimate was before Obama arrived, it has been proven to be a rather different value since he started driving the bus. Or the error term has become huge. Just think of all the claims Christina Romer made when this Administration was in transition. What an epic failure of policy design!


25 posted on 07/23/2011 5:06:08 PM PDT by Wally_Kalbacken
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To: marstegreg

Not sending out the check is so much easier said than done. It’s not like they can just not run the Social Security payment program or just not mail the checks. There’s a lot more to it than that.


26 posted on 07/23/2011 5:12:42 PM PDT by FourPeas ("Maladjusted and wigging out is no way to go through life, son." -hg)
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To: hattend

It goes without saying. Really.


27 posted on 07/23/2011 5:13:28 PM PDT by FourPeas ("Maladjusted and wigging out is no way to go through life, son." -hg)
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To: Enterprise
the limits of his power

So very true. Working in the White House over these next few days or weeks should be particularly charmed.

28 posted on 07/23/2011 5:16:35 PM PDT by FourPeas ("Maladjusted and wigging out is no way to go through life, son." -hg)
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To: Wally_Kalbacken
multiplier effect of each additional $ of government spending on total GNP

Was it a number less than zero? OK, probably not.

Anyway, agreed phasing in of cuts is necessary even though that invites fudging in subsequent years. I think Boehner may have been on to something with a trigger if cuts are not made.

29 posted on 07/23/2011 5:35:30 PM PDT by FourPeas ("Maladjusted and wigging out is no way to go through life, son." -hg)
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To: FourPeas; All

Why not just pass several bills in the House with varying degrees of poison pills? A 1,000,000,000,000 dollar option, a 2,000,000,000,000 dollar option, etc. Hussein and Reid can bitch all day, but in the end they still must choose.


30 posted on 07/23/2011 5:54:13 PM PDT by Recovering_Democrat
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