A Deal Is Born

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Reactions? The Congressional Black Caucus wasted no time making its feelings known, characterizing the deal as a “sugar-coated Satan sandwich.” “We all may not be able to support it or none of us may be able to support it,” said Nancy Pelosi. House Rep. Tom Graves (R-GA), who told Fox News he would likely oppose the latest offer, countered. “We need a balanced-budget amendment sent to the states,” he warned. “This is the time. If we’re going to get it done, we’ve got to do it now,” he added. The president also weighed in, reiterating his desire for tax hikes on Americans making more than $200,000, saying he would push for a “special committee” to come up with such increases.

Will the deal go down? While it is likely to be a tougher sell in the House, due in large part to the strong convictions of Tea Partiers, the real key likely remains, not how many votes each side can garner from its respective members, but how many they can get from the other party. Thus, even as Mr. Reid and Mr. Boehner will do their utmost to convince Senate Democrats and House Republicans respectively to jump on board, both men may need members of the opposition party to reach the threshold number of votes for approval in both chambers. CNN is reporting that the Senate will vote first this afternoon, and if that vote survives an expected Republican filibuster, it will move to the House for a vote tonight.

All well and good—as far as it goes, along with the political analysis of who the winners and losers are. But once again, Americans must remember that it is not the debt ceiling that constitutes the major threat to the American economy, but the debt itself. Although Moody’s has not weighed in on this particular proposal, last Friday the ratings agency noted that the “limited magnitude” of the current debt reduction proposals “would likely lead Moody’s to adopt a negative outlook on the AAA rating,” of the United States. “The chances of a significant improvement in the long-term credit profile of the government coming from deficit reductions of the magnitude proposed in either plan are not high.” Deal or no deal, that outlook remains the same. It is an outlook which, were it to come to pass and the country’s credit rating is lowered, it would make a virtual mockery of the deal currently on the table.

That is the big picture. And it will remain the big picture until both parties in Congress and the president get their respective acts together and address it.

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  • StephenD

    What sticks like a thorn in my side is the lies. Pelosi "…Life on this planet as we know it." Obama "S.S.N., Medicare, Medicaid and VA benefit checks may not go out."
    But what frosted mine the most was how Harry Reid was able, time after time, to say Reagan increased the Debt Limit 18 times. Then he would insist that this increase MUST take us through the next election. Not because of the election but because it was the only thing that would satisfy those setting our credit rating and the only thing that would ensure our economy was stable.
    Now do the math. Reagan was in office for 8 years. The Debt Ceiling was raised 18 times. That averages out to every 3-4 months!
    Not one Media Outlet called him on this. Pathetic.

    • Amused

      YOU do the math genius , no one called Reid out BECAUSE ITS TRUE —18 times from '81 to '87 ….who was President , genius ? 7x's under Bush , 3x's under Obama , and NONE under Truman . You got a teabagger mind , one lies and the other swears -PATHETIC .

      • StephenD

        Ok…18 times ~ 8 years in office. hmmmm that equals on average….Am I missing something here? I'll defer to your "superior" mind with the math. Go on…tell me what I missed.
        Now, tell me why it would have been so devastating to the economy for the increase to be less than 18 months (coincidentally bringing us past the next election)? I appreciate the compliment but I don't think it takes a "genius" to see this was purely political and not necessary for the economy to go 18 months now was it?
        I only wish I was as clear thinking as the TEA PARTY folks. Perhaps one proud day, I can be counted among them. But you said something about lies…go on, tell us.

      • coyote3

        Gee, if you really want to decrease spending, it would seem it doesn't have to be increased at all. That would be a start, then just start defunding eveything that is not congress' exercise of an enumerated and delegated power.

  • umustbkidding

    I am sick of hearing about cuts of 1.2 trillion or 2. what ever trillion – OVER TEN YEARS- ???

    Who cares those aren't cuts at all. They are spending and additional 14 trillion over the next 10 years, big whoop they cut a couple of trillion off of project additional spending.

    Get rid of them all. Let nominate some more tea party members in next years primaries. Stop the double speak.

  • umustbkidding

    Besides if government doesn't back off and allow the private sector to grow, it will all be a moot point anyway. There will be no tax revenues to pay for the gluttoness spending. BAM spending the cuts the brutal way.

  • sharpsrifle

    The TEA Party needs to target the RINO's who went along with this abomination for defeat. This is a war of ideas, but must be fought like a war for survival, because in the end, that's what it is. Target the enemy, both R and D, and take them down! They must NEVER hold office again!

    First Boehner…then Cantor…and on down the line. I hate to sound Stalinist, but in times like these, we need to be ideologically pure. We have to be united and strong to defeat the Marxocrats. RINO's like Boehner are no better than Marxocrats.

  • Supreme_Galooty

    Just imagine a committee composed of three Democrats and three Republicans doing meaningful work, making informed decisions, seriously addressing the cheese platter and sampling the splendid wines. It raises an interesting question: If in the land of the blind the one-eyed man is king, then does it follow that in the land of the dummies the half-wit is king?

    "What a fine mess you've gotten us into THIS time, Ollie!" – Stan Laurel

  • RiverFred

    So what is wrong with our economy? They blame everything and never mention the real cause: Nothing is made in America anymore and if it is it is outsourced thanks to the world trade organization free agreeements. Does anyone elected have common sense?

    • Amused

      nope . your dead on pal .lets not forget greedy corporations .

      • coyote3

        As President Obama said, "that train left the station, a long time ago." Let's see corporations, responsible to the shareholders, make money? Greed???? Sounds like that is what they are for.

  • tagalog

    OK, now it's time to start on repealing Obamacare!

    • tanstaafl

      What just a sec, tags. That makes way too much sense for our elected officials. How can Obama hold up his head at the annual Progressive Liberal Socialist Wacky Party Dinner with his massive grab for power gets rescinded?

      He is not worried about getting people jobs, unless they are unionized bureaucrats!

  • Asher

    Do Ya Think they will Read the Bill to know whats in it this Time???? Is there anything hidden in the bill that will be sprung on the people later, like more entitlements and tax Hikes???

  • Amused

    HEY STEPHEN D , the reason "no one called Reid on his claim , is because it's TRUE .
    Office of Management and Budget-
    Among its historical tables is one labeled "Statutory Limits on Federal debt 1940 – Current" (Table 7.3) The table lists 106 increases to the federal debt limit since 1940.

    More specifically, it lists 18 increases to the debt ceiling between February 1981 and September 1987. In other words, there were 18 under President Ronald Reagan, as Obama said. And there were seven increases between January 2001 and January 2009 — during George W. Bush's presidency. We should also note that it has been raised three times already under President Obama, on Feb. 17, 2009, Dec. 28, 2009 and Feb. 12, 2010.

    AND the ONLY President who did not raise the debt limit was Harry Truman . Your "facts " are PATHETIC.

    • StephenD

      What is with you?!? I never said it wasn't true. You missed the point entirely. My point is that since Reagan raised it 18 times in 8 years that averages out to every 3-4 months it was raised. Meaning it wasn't passed for 18 months as REID is insisting it must be for a stable economy. In other words, his insistence is based PURLY on the next election NOT on the need for a stable economy.

      • Amused

        you're bad at backpeddling , that's the trouble with LIARS, they can't remember their lies .

        • coyote3

          Well you are "an authority".

  • Amused

    You guys are beginning to believe your own bullsheeet .

  • WilliamJamesWard

    Reid and Bonehead are a new version of the Blues Brothers, where ever they
    go we get the Blues. The sucking sound you hear is the value going out of our
    currency, political, monetary and believability. It is all a lie and social scientists
    are reshaping our world without our consent. The new spending in Washington
    will lead to a depression that will never quit and we need to turn the clock back
    to the "30's, the great depression will be known as the good old days.

  • Wesley69

    First off; this bill is far from perfect, but it is the best that can be achieved with divided government. Sure, we could default and if there are negative effects, the media will blame the Republicans and we get Obama reelected. This is the down payment. 2012 is where we set a new course.

    Let's see where we are and what Speaker Boehner and House Republicans need to do next after this bill is passed by the Senate.

    1-EDUCATION IS IMPORTANT TO EXPLAIN WHY CUT, CAP & BALANCE IS BEST FOR THE COUNTRY'S FUTURE. (Representative Paul Ryan as the Republican Nominee is best equipped to take on Obama on any economic issue)

    2-then, pass a bill laying out the priorities for gov't spending should the debt limit be exceeded; NOT NEEDED WITH COMPROMISE BILL.

    3-offer the President a 6 month extension on the debt limit in exchange for immediate cuts with more negotiated within the six month period; (Boehner Plan) GIVEN UP BY THE REPUBLICANS.

    4-try passing a Constitutional Amendment to balance the federal budget; NEEDS TO BE DONE REGARDLESS OF THE COMPROMISE.

    5-should the amendment fail, issue a call to the states to request a convention for the purpose of proposing a balanced budget amendment bypassing both the Congress and the President; THIS NEEDS TO BE DONE AS PART OF THE STRATEGY TO PUT PRESSURE ON THE DEMOCRATS & SHOW THE AMERICAN PEOPLE THE REPUBLICANS ARE SERIOUS ABOUT THE BUDGET.

    6- MOST IMPORTANT PART OF THE STRATEGY – pass individual spending cuts ONE AT A TIME and send them onto the Senate. There may be 100 maybe 200 individual bills. Make the Senate consider each of them. Reid will probably reject to discuss every one, but put him in the position to make that decision. Once again, the pressure must be kept on them. ******MOST IMPORTANT******* THIS MUST BE DONE. THE DEAL TO RAISE THE DEBT CEILING IS THE COMPROMISED, BUT TO STAY ON THE OFFENSIVE AND KEEP CUT, CAP & BALANCE ALIVE, THIS MUST BE DONE ALL THE WAY UNTIL ELECTION DAY.

    7-WARN the President to don't even think about using the provision within the 14th Amendment that discusses paying the debt of the country. It would be an unconstitutional power grab. WAIT AND SEE IF THIS IS NECESSARY.

    8-any Saul Alinsky's tactics (Rules for Radicals) needs to be met head on. USE THEIR OWN TACTICS AGAINST THEM.

    Could this work??? Could the Republicans, themselves, take advantage of a crisis promoted by Obama and his gang of opportunists??? I believe it is a strategy that should be considered. This is a war over two ideas of government – limited and all-powerful. To win in 2012, the Republicans need to push their message and the disaster that awaits if we continue down the road of unlimited government spending.