GOP Blinks

[TampaYankee]

McConnell Offers Debt Ceiling Out...

Sam Stein stein@huffingtonpost.com

WASHINGTON -- There were no real signs of progress in Tuesday's White House debt talks. But the meeting did shed light on two evolving dynamics taking place in the ongoing negotiations: President Barack Obama's increasing appetite to cut spending in a substantial way, and Republicans sinking under the weight of their own hard-line approach to a deal.

For all its talk of the importance of averting a debt default, the White House is signaling that major deficit reduction has become more than just a bargaining chip to bring Republicans aboard a debt deal.

Treasury Secretary Timothy Geithner opened Tuesday's meeting not by focusing on the perils of debt default, but instead with a "vivid" presentation on "what happens if you don't cut the deficit," according to a Democratic source familiar with the talks.

Geithner warned the group that ratings agencies are actively watching both the debt ceiling debate and the ability of Congress to turn around the nation's growing deficit and debt. He pointed to the economic unrest in Europe as evidence of what could happen in the United States if the White House and Congress don't tackle the deficit in a serious way.

Lawmakers obviously discussed the pressing consequences of debt default, said the Democratic official. And on that front there still "continues to be a big difference on revenue."

But as negotiations on a debt package resumed, Obama made it clear that he isn't playing small ball. He warned Republicans that the major concessions he has offered on entitlement reforms are off the table if they don't agree to a sizable debt deal. There could still be some tinkering with Medicare and Medicaid, he told the group, but it would come from the supplier side, not the benefit side.

Throughout the meeting, the president urged Republicans to reconsider the benefits of passing a bigger package, which now seems likely to fall somewhere between the $4 trillion that Obama wanted and the $2.4 trillion that Vice President Joseph Biden targeted in his now-defunct bipartisan deficit group. Whether entitlement reforms remain part of that equation is undetermined. But Democratic negotiators reiterated that even the low end of that deal would have to include a revenue component.

The partisanship simmering beneath the talks also appeared to wane somewhat on Tuesday. Another Democratic official with knowledge of the meeting described it as "more constructive than the other ones," adding that there was a "general consensus about the need to stop talking past each other."

Congressional leaders are headed back to the White House on Wednesday at 4 p.m. to "begin trying to go officially through the stuff in the Biden discussion."

An alternative debt plan floated earlier Tuesday by Senate Minority Leader Mitch McConnell (R-Ky.) "was brought up" during the meeting, the official added. "But it was sort of pushed to the side" as attendees focused on areas of agreement on spending cuts and revenue reforms discussed in Biden's group.

McConnell's proposal crashed and burned within his own party almost as soon as it was unveiled. Under his proposal, Congress would give up its power to raise the debt ceiling and effectively transfer that authority to the White House for the remainder of Obama's current term. Conservatives immediately trashed the idea and accused McConnell of capitulating in the debt debate. The conservative blog RedState even called on supporters to send McConnell a weasel -- and provided a link to a toy weasel on Amazon.com -- as "a testament to his treachery."

A top Senate Democratic aide said many view McConnell's proposal as "a pretty cynical ploy" aimed only at protecting Senate Republicans from having to make tough political votes on raising the debt.

McConnell made "a miscalculation given the violent reaction on the right," said the aide, and the proposal is "probably a nonstarter since it doesn't seem like it has any chance of passing the House."

Speaker John Boehner (R-Ohio) wouldn't outright endorse or dismiss McConnell's proposal during a Tuesday interview on Fox News, calling it one of several "backup" measures that Republicans have discussed if negotiators can't reach an agreement.

"I think Mitch has done good work," Boehner said.

But some House Republicans balked as they learned details of McConnell's proposal.

"Don't know what in the world McConnell in the Senate is thinking. Wow. Stupid idea," Rep. Jason Chaffetz (R-Utah) tweeted Tuesday evening.

And McConnell's offering only added to the GOP's mixed messages on where they draw the line in the debt debate. As Politico's David Rogers wrote, McConnell's move put on full display how Republicans are beginning to look "for an escape path from the default showdown they helped create."

Adding to McConnell's woes, the White House publicly embraced his proposal late Tuesday, a move that will likely further alienate the GOP leader from conservatives in his flank.

"Senator McConnell’s proposal today reaffirmed what leaders of both parties have stated clearly, that defaulting on America’s past due bills is not an option," White House Press Secretary Jay Carney said in a statement

"The President continues to believe that our focus must remain on seizing this unique opportunity to come to agreement on significant, balanced deficit reduction. As the President has said, 'If not now, when?' It is time for our leaders to find common ground and reduce our deficit in a way that will strengthen our economy."

Beyond that, other sources familiar with the meeting signaled that not much came of Tuesday's huddle. One Democratic aide said House Minority Whip Steny Hoyer (D-Md.) said that negotiators need to go big with their compromise; another source called the meeting "sleepy." Democratic leaders reiterated that Medicare cuts are not acceptable, while Boehner pressed Obama for details on a scored White House budget plan.

A senior House GOP aide noted that, at one point, Boehner urged Obama and Democratic leaders to support amending the Constitution with a balanced budget amendment, an idea backed by conservatives. But the White House resoundingly shot down that suggestion last week.

Staff to respective parties were set to coordinate on consensus areas of cuts late Tuesday night.

Mike McAuliff contributed to this report.

See original article at:

http://www.huffingtonpost.com/2011/07/12/mcconnell-debt-ceiling-obama-deficit_n_896649.html

[TampaYankee]

It seems that Wall St has told Boehner and McConnel that enough is enough. Make the deal or else pass a clean Debt Ceiling.

This may well be the end of both Boehner and McConnel. Among the Tea Party, this is as bad for the leaders as signing on to tax increases -- no cuts to spending, no limit on the debt ceiling.

I mentioned last fall during election season that the GOP leadership had gotten in bed with the devil and that bed was between a rock and a hard place. That eventually they would be done in by their embrace of the crazies. It seems the time has come to pay the piper.

That does not mean that the GOP will cease making every attempt to obstruct Obama short of alienating Wall St and Big Business. It does mean that the two leaders are damaged goods in the eyes of the rank and file in Congress and the rank and file GOP in middle America.

They have walked away from the demands of the Tea Party to put a monkey wrench in the machinery of government operations and they have offended more classical Republicans by giving up major concessions on entitlement spending and STRONG deficit reduction, the former sought by the GOP for decades, the latter a national crisis according the the GOP and almost everyone else. They are just walking away. The look weak to both factions. Who in the GOP can be happy with them?

Waiting for the second shoe to fall...

[RA1]

No matter who "wins" this debate, I can tell you who the biggest loser will be and that is the middle class tax payers. The whole country could easily be right there also. Very sad.

Best regards,

RA1

[TampaYankee]

No matter who "wins" this debate, I can tell you who the biggest loser will be and that is the middle class tax payers.

Best regards,

RA1

What's new?

[RA1]

Nuttin, honey.

Best regards,

RA1

[TampaYankee]

No matter who "wins" this debate, I can tell you who the biggest loser will be and that is the middle class tax payers. The whole country could easily be right there also. Very sad.

Best regards,

RA1

It was reported today on the Dylan Ratigan Show that the big banks/bankers that were the stewards of our economy and who drove it into the biggest crash since the Depression are getting off with paying a few billion dollars in fines. This even though there was clear deliberate fraud fueled by greed in their actions. The few billions a paltry fine considering they caused trillions lost to our economy and 401ks and lost jobs and tax revenues. To add insult to injury the government gave them the bailout funds that they will use to pay the fines. As a final ignominy, they leave the American Taxpayer holding trillions in worthless mortgage securities.

Why is that the Big Boy Crooks never go to jail for their crimes. Simple, they own Congress -- pick your party.

[TampaYankee]

It seems that Wall St has told Boehner and McConnel that enough is enough. Make the deal or else pass a clean Debt Ceiling.

This may well be the end of both Boehner and McConnel. Among the Tea Party, this is as bad for the leaders as signing on to tax increases -- no cuts to spending, no limit on the debt ceiling.

I mentioned last fall during election season that the GOP leadership had gotten in bed with the devil and that bed was between a rock and a hard place. That eventually they would be done in by their embrace of the crazies. It seems the time has come to pay the piper.

That does not mean that the GOP will cease making every attempt to obstruct Obama short of alienating Wall St and Big Business. It does mean that the two leaders are damaged goods in the eyes of the rank and file in Congress and the rank and file GOP in middle America.

They have walked away from the demands of the Tea Party to put a monkey wrench in the machinery of government operations and they have offended more classical Republicans by giving up major concessions on entitlement spending and STRONG deficit reduction, the former sought by the GOP for decades, the latter a national crisis according the the GOP and almost everyone else. They are just walking away. The look weak to both factions. Who in the GOP can be happy with them?

Waiting for the second shoe to fall...

It is interesting how the worm can turn in a short time. I wouldn't be surprised if Boehner and McConnell secretly wish that Obama would use the Constitutional Option to pull their asses out of the deep hole they find themselves in. They could tell their rank and file that there is nothing they could do. While shouts of impeachment would be ringing from the House Floor, I also wouldn't be surprised if any vote somehow fell short of a majority or more likely failed to materialize at all. If a vote did materialize then I suspect the Senate vote wouldn't even achieve a simple majority much less two-thrids. All but the Tea Party contingent will be happy to escape this embroglio with skin intact.

I don't think Obama will let them off so easy. At least not without getting some big concessions from McConnell about more timely confirmations in the Senate. At least he should if it comes to that.

[Guest Conway]

It sounds as if the Tea Party Plan takes center stage beginning tomorrow. We'll see how flexible Obama is and how committed to trimming the debt he is when faced with a plan that cuts 2.4 trillion over 10 years with non new taxes and starts with a $100 billion savings in the coming budget year.

This is a necessary evil and you have to admit that it is the only plan that doesn't kick the expense reductions down the road.

The rest of the world is tightening its belts. We must, too.

[Lucky]

My belt is pretty tight as it is, not that the Republicans would care.

[TampaYankee]

It sounds as if the Tea Party Plan takes center stage beginning tomorrow. We'll see how flexible Obama is and how committed to trimming the debt he is when faced with a plan that cuts 2.4 trillion over 10 years with non new taxes and starts with a $100 billion savings in the coming budget year.

This is a necessary evil and you have to admit that it is the only plan that doesn't kick the expense reductions down the road.

The rest of the world is tightening its belts. We must, too.

That bill won't go anywhere if it is the Cut Cap and Balance bill, for a variety reasons.

I would never elect anyone who voted for a balanced budget amendment. NEVER. Not that I am against a balanced budget. However, there are times the government needs to spend in excess of revenues on an interim basis-- wars are one example. Wall St crashes are another.

The Congress has the power and responsibility to govern and control spending. Let them do it in a compromise that both can swallow and face the voters for approval. I don't want to live in a country where one party can control the big issues -- either party.

More importantly, the GOP has revealed it's strategy. What it cannot get through fiat or compromise it will get through obstructionism. THe GOP would love nothing more than to starve the Social Security and Medicare out of the Budget. All they would have to do is vote nyet or possibly even fail to vote, depending on the Amendment language.

I do not perfer government by minority party obstructionism. I certainly do not want the fate of SS and Medicare held hostage to it. That is just where they want to maneuver circumstances.

The 2.4 Billion version won't fly without $.5 billion in revenues included. That was an artifact of the Biden talks.

If you believe the Tea Party Congressmen, they won't vote for anything without a Balance Budget Amendment or 4 trillion cuts without revenues. I think they are going home unhappy.

Whatever passes the House will have to have Dem support. That is another reason your scenario won't happen.

IMO Obama will stick with the $4 trillion with revenues until the end and will compromise to 2.4 with revenues. Failing agreement on either of those then either a 1 trillion without revenues or a clean bill. If he can get some commitments on legislative initiatives (trade deals and judicial confirmations) or unemployment and infrastructure he might accept the trilliion deal.

He has already won the high ground in this fight in the public arena. If the the GOP continues to play intransigent hardball he'll continue to beat them like a rented mule.

[Guest Conway]

More importantly, the GOP has revealed it's strategy. What it cannot get through fiat or compromise it will get through obstructionism. THe GOP would love nothing more than to starve the Social Security and Medicare out of the Budget. All they would have to do is vote nyet or possibly even fail to vote, depending on the Amendment language.

I'd hardly call the President's position higher ground. He has a steadfast position that there is no way to approach reduction of the deficit except to raise taxes and slash defense spending. The fact that he won't even consider the reduction of spending on entitlements pretty well confirms the facts that he is every bit as inflexible as those he criticizes for being inflexible.

I guess you could say he has taken the higher ground as long as taking the higher ground embodies embracing inflexible positions in the negotiations.

[TampaYankee]

I'd hardly call the President's position higher ground. He has a steadfast position that there is no way to approach reduction of the deficit except to raise taxes and slash defense spending. The fact that he won't even consider the reduction of spending on entitlements pretty well confirms the facts that he is every bit as inflexible as those he criticizes for being inflexible.

I guess you could say he has taken the higher ground as long as taking the higher ground embodies embracing inflexible positions in the negotiations.

It seems we have orthogonal polarity receivers. We observe the same play but see totally different images and hear totally different dialog.

The GOP has issued the inflexible position of no new revenues -- not new or more tax or higher rates rates but revenues, any revenues through loophole closing.

I could go on about Obama offering entitlement reforms and cuts but you would say the GOP doesn't believe him to which I would say: call his hand. Sit at the table with a potential increase of 1 trillion in new revenues and force him to come up with 3 trillion in cuts to reveal him as the liar the GOP wishes to paint him. It is easy to do. It might produce what the GOP says we desperately need: cut spending and deficit reduction. Why doesn't the GOP have the courage of their convictions that the deficit and spending are the most critical problems facing the nation. I would think that the GOP would love either outcome. Where are they? Being stubborn and inflexible it appears to me and most of the country, if you believe polls.