Posted on 07/18/2011 10:49:00 AM PDT by kcvl
The White House on Monday warned President Obama will veto GOP legislation to “Cut, Cap and Balance” spending and the budget.
In a statement of administration policy, the White House Office of Management and Budget labeled the GOP bill as an “empty political statement.”
The House Rules Committee is expected to take up the measure on Monday, and it is likely to receive a floor vote on Tuesday. The measure would cut spending in Fiscal Year 2012 by $111 billion, cap future spending at 18 percent of gross domestic product and approve a balanced budget amendment to the Constitution. It would also raise the debt limit.
The administration said the measure, which is not expected to move through the Senate, is unnecessary and unrealistic.
“Neither setting arbitrary spending levels nor amending the Constitution is necessary to restore fiscal responsibility,” the White House said in its statement. “Increasing the federal debt limit, which is needed to avoid a federal government default on its obligations and a severe blow to the economy, should not be conditioned on taking these actions. Instead of pursuing an empty political statement and unrealistic policy goals, it is necessary to move beyond politics as usual and find bipartisan common ground.”
Republicans are rallying around the measure as their answer to the debt talks as negotiations between the administration and congressional leaders have stalled.
(Excerpt) Read more at thehill.com ...
As a senator, Barack Obama said in 2006 that a bill to raise the debt limit was “a sign of leadership failure.”
leadership failure
leadership failure
leadership failure
leadership failure
leadership failure
Go ahead and Veto you sack of s#!t. Make my day. Then we can see what your precise ideas are, Obummer.
I’d just as soon see the balanced budget amendment taken out of this bill. The budget is the immediate issue. People understand the argument of “We submitted a budget, where’s his?” I’d put the balanced budget amendment in a separate bill, as it’s a long-term change that should be addressed separately. They can still pass it and give it to the President at the same time, but it separates out the debate and keeps Obama from making the debate all about the amendment.
Let the man without a plan give their plan a pan.
Fill it then you clueless POS!
“The Senate has no more important task than making sure the United States does not fail to pay our bills,” Reid said in a statement. “To ensure that we meet this responsibility, the Senate will stay in session every day, including Saturdays and Sundays, from now until Congress passes legislation that prevents the United States from defaulting on our obligations.”
Reid is working with GOP leader Mitch McConnell of Kentucky on a plan to give Obama sweeping authority to issue new debt without approval by Congress. But tea party forces will first have their day with a House vote on a separate plan requiring immediate spending cuts and adoption of a constitutional amendment mandating a balanced budget as a condition of raising the so-called debt limit.
Obama prefers his plan: of golfing, vacations, and fundraising.
Obama prefers his plan: of golfing, vacations, and fundraising.
If the debt ceiling talks fail, is August 2 really the drop dead date for a U.S. default?
Perhaps!
The President has said that the Congress needs a deal by July 22 to get legislation through Congress by August 2. I don’t buy it.
As long as a deal is struck by August 2, something can be patched together. However, the President and Treasury Secretary have so convinced most everyone that Treasury will be out of money by August 2, that a week before, interest rates investors demand on Treasurys may rise precipitously and the bond market routs. At that point, there may be no turning back.
It is unfortunate the President and Treasury Secretary are spreading around calamity scenarios, because the Treasury really does have options after August 2 if they don’t scare the markets into panic before then.
The Treasury will still be receiving 55 percent of its tax revenues and can easily pay the interest on the debt, and should then be able to roll over bonds coming due. For the balance of Federal expenses, the Treasury will have to prioritize, but it will have enough money for Social Security, Medicare and Medicare. Some checks may have to be spread out to accommodate discrepancies between payment dates and cash flows, but interest payments are modest enough, relative to the total cash coming in, that those can be met on time.
Selective payment of federal bills is possible—it was planned for government shutdowns when the Congress and President failed to approve appropriations—and it can be accomplished again if planned prior to August 2.
If no other sources of funds are found, the bond rating agencies have indicated failure to pay vendors and contractors on time would result in a downgrade in U.S. government’s AAA rating; that is likely to happen but a downgrade is not a default. As long as interest is paid on the bonds, the United States has not defaulted on the national debt.
A downgrade is likely no matter what comes out of current negotiations. Specifically, Standard and Poor has indicated a $4 trillion deficit reduction package is necessary by August 2 to avoid a downgrade. That simply is not possible given the President’s aversion to genuine spending cuts—evidenced by his failure to table concrete spending cut proposals—and the insistence on no new taxes by many members of the Republican House caucus.
Also, S&P is assuming a 3 percent GDP growth rate in projections of the future revenue, spending and debt to GDP ratios. Three percent growth is not likely to be attained this year or next without pro-growth reforms the President is ideologically opposed to accepting. This will all come to a head in February when the Administration publishes its FY2013 Budget proposal and 10 year deficit projections.
Read more at: http://www.foxbusiness.com/markets/2011/07/18/funding-government-if-debt-ceiling-talks-fail/#ixzz1STobO1Py
Fine. Don’t sign it. Don’t mail out granny’s SS check. Go play a few rounds of golf. Have some ice cream. Hold your breath and stomp your feet like a little spoilt two year old. But do NOT dare threaten We, the People to call your bluff.
Senate debt plan emerges
Members seem likely to raise limit; outcome in House more iffy.
A bipartisan effort in the Senate to allow President Barack Obama to raise the federal debt ceiling in exchange for about $1.5 trillion in spending cuts over 10 years gained momentum Sunday, as leaders agreed they would have to act in the next two weeks to avert a potential default by the U.S. government.
The growing sentiment for raising the federal limit on U.S. borrowing sets the stage for a week of largely scripted actions on Capitol Hill, where leaders in both chambers are looking to build support for the plan being crafted by Senate Majority Leader Harry Reid, D-Nev., and Senate Minority Leader Mitch McConnell, R-Ky.
Republican leaders will first push forward in the House and the Senate with a constitutional amendment to balance the federal budget. The measure is virtually certain to fail in the Senate, which will then take up the debt limit proposal by midweek.
If that clears the Senate, the House is expected to revise the measure, adding a proposal to reduce the deficit by $1.5 trillion over 10 years — savings that will come through cuts to domestic programs and not cuts to entitlement or new taxes.
The plan would also create a new congressional panel that would, by the end of the year, seek to come up with a way of reducing the deficit by another $2.5 trillion or more through cuts in entitlements and other steps.
At the same time, the White House will continue to push for as big a deal as possible to cut the deficit, which would include spending cuts and changes to entitlements as well as tax increases.
On NBC’s “Meet the Press,” Jacob Lew, Obama’s budget director, said he hoped the Republicans could compromise with Obama on a big deal. But he did not express optimism. “The question is: Do we have a partner to work with?” he asked.
I see the seeds of a great GOP Primary political ad in that Obama WHOMB statement.
Obama issues veto threat against House GOP debt plan
The White House on Monday issued a veto threat against the House Republican plan for balancing the budget and raising the debt ceiling, saying the plan is “inconsistent with [a] responsible framework to restore fiscal responsibility.”
The GOP “cut, cap and balance” plan “sets out a false and unacceptable choice between the federal government defaulting on its obligations now or, alternatively, passing a balanced budget amendment that, in the years ahead, will likely leave the nation unable to meet its core commitment of ensuring dignity in retirement,” the White House said in a statement.
The statement reiterates the argument President Obama made during a press conference on Friday, when he dismissed the GOP plan as empty politicking with unrealistic policy goals.
With talks stalled over a plan to raise the debt ceiling, the House is set to vote on the “cut, cap and balance” plan on Tuesday. Washington leaders just two weeks to reach a deal before August 2, when the Obama administration says the U.S. would be “running on fumes” without an increase in the $14.3 trillion debt ceiling. The U.S. could risk defaulting on its loans or failing to meet its other financial obligations, which could significantly disrupt the U.S. and world economy, they say.
The House “cut, cap and balance”plan makes raising the debt ceiling contingent on a balanced budget amendment. It would also cap government spending at 18 percent of economic output over the next 10 years.
http://www.cbsnews.com/8301-503544_162-20080378-503544.html
Not to pick nits, but how can you cut the budget by 100 Billion, when there is no budget?
“The U.S. failure to lift the debt ceiling limit has not led America’s creditors to lose confidence yet,” said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. “Foreigners continue to buy now, but they may yet get cold feet.”
July 12, 2011
U.S. Debt Ceiling Increase Remains Unpopular With Americans
More are concerned about higher level of spending than risk of economic crisis
http://www.gallup.com/poll/148454/debt-ceiling-increase-remains-unpopular-americans.aspx
Despite agreement among leaders of both sides of the political aisle in Washington that raising the U.S. debt ceiling is necessary, more Americans want their member of Congress to vote against such a bill than for it, 42% vs. 22%, while one-third are unsure. This 20-percentage-point edge in opposition to raising the debt ceiling in Gallup’s July 7-10 poll is slightly less than the 28-point lead (47% vs. 19%) seen in May.
would presume cuts to the continuing resolution, assuming that it the Sneate plan — yet another leadership failure.
The House will do its job properly, legally and go thru the appropriations process.
Too bad the MSM will deliberately fail to notice.
LOL, you have enlightened ME!
You are right, however the spending is still there and the cuts in spending still need to be implemented. : )
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