Posted on 07/10/2011 6:09:09 PM PDT by The Magical Mischief Tour
After meeting for exactly 90 minutes, the president and members of congress achieved absolutely nothing except for what ZH readers already knew: that a debt deal has to be reached by July 22 or else. "President Barack Obama said Sunday that "we need to" work out a debt deal within the next 10 days as he convened a meeting with congressional leaders, aiming to fashion a deficit reduction package for the next 10 years. As the meeting opened, Obama and the leaders sat around the table in Sunday casual dress. Asked whether the White House and Congress could "work it out in 10 days," Obama replied, "We need to." Despite Boehner's preference for a smaller, $2 trillion plan for deficit reduction, White House aides said Sunday that Obama would press the lawmakers to accept the larger deal. Republicans object to its substantial tax increases and Democrats dislike its cuts to programs for seniors and the poor. The aides, however, left room for negotiations on a more modest approach." And just like on Friday when the president's appearance was heralded as a harbinger of a massive NFP beat only to be the biggest let down since Geithner's TV appearances in February which sent the market down by 10 S&P points each time, so the president will address the nation tomorrow. From Reuters: "U.S. President Barack Obama will hold a news conference at 11 a.m. EDT (1500 GMT) on Monday about the status of negotiations to cut the deficit and raise the debt ceiling, the White House said on Sunday. Obama met with congressional leaders for about 75 minutes Sunday evening and will meet again with them on Monday "to discuss the ongoing efforts to find a balanced approach to deficit reduction," the White House said, without giving a time for that session."
More from the AP:
"He's not someone to walk away from a tough fight," White House chief of staff William Daley said. "Everyone agrees that a number around $4 trillion is the number that will ... make a serious dent in our deficit." But embedded among the tough words was rhetoric that acknowledged the "big deal's" prospects had become uncertain at best.
"We're going to try to get the biggest deal possible," said Treasury Secretary Timothy Geithner.
It was an abrupt change from 24 hours earlier. Republicans late Saturday rejected the $4 trillion proposal, the largest of three under consideration, because its tax increases would doom it in the GOP-led House, Speaker John Boehner said.
The Ohio Republican informed Obama that a package of about $2 trillion, which bipartisan negotiators had identified but not agreed to, was more realistic.
Senate GOP leader Mitch McConnell of Kentucky left little doubt that the $4 trillion deal was dead.
"I think it is," McConnell said. Raising taxes amid 9.2 percent unemployment, he added, "is a terrible idea. It's a job killer."
The statements threw into question the extent to which the Sunday meeting, called for 6 p.m. EDT, would move the talks toward a resolution as an Aug. 2 deadline loomed. That's when the nation would begin to default on its debts, administration officials say, if no deal is reached to raise the borrowing limit from $14.3 trillion.
One thing is certain: with each passing day until July 22 or T-Day, the day by which Congress has to pass the debt ceiling legislation, of which there are precisely 10 working days, the market, which has so far completely ignored any concern about a failure in the debt talks, will start getting increasingly more nervous. As a reminder there is a 4 week Bill auction this Tuesday: the last one priced at 0.000%. If the logjam in DC continues after Monday, something tells us the government will not get ultra short-term funding for free.
As for the spin free interpretation of what the "deficit deal" means for America, read our previous observations on the matter here.
That gives the GOP 12 days to fold. I am not optimistic.
Hopefully, he will finish before Rush starts.
Hopefully, he will finish before Rush starts.
There can be no tax increase, no debt increase, no further growth of government, no more continuing resolutions, no more funding of unlawful military actions, no perversion of God given rights, no caving and no compromise in Congress without the aid and assistance of the REPUBLICAN party. It will be interesting to see who the Repubs will represent.
There was an agreement for major spending reductions if Bush 41 agreed to tax increases.
The taxes went up, but the Democrats who controlled Congress thumbed their noses at the President and there were no spending cuts.
Then they used 41’s words “read my lips, no new taxes” to run him out of the WH> Generally speaking the Republicans do not do well when negotiating with the dems.
We will never get help from the MSM, so we must tell every friend, relative, neighbor and co-worker that the govt will have billions of dollars flowing into Treasury to cover debt payments, defense spending, social security, and Medicare. Obama and the MSM are counting on the ignorance of the American people, and it is up to us to spread the truth.
Earlier this year the House already passed a bill to prioritize all revenues to cover the priorities noted above. Reid buried the bill in the Senate. However, at the correct moment, the House can re-pass this bill, send it to Reid, and dare him to try to bury it. Reid has too many RAT senators from red states who must face the voters next year, and he will not be able to hold the dam. So the SS game will not work unless we allow it to.
The GOP is holding four aces and the RATS are in total denial that Keynesian economics are dead.
I do not understand why the Progressive’s are all wee wee’d up.
Obama agreed to keep the Bush tax rates to the end of 2012 (agreement struck Dec 2010)
Obama agreed to NO NEW TAXES, NOT EVEN THE “RICH”
And, the debt ceiling is capped.
Obama, the decider, will have to make decisions on how to spend the current incoming revenue. Congress ought to demand we pay the interest on the debt, followed the Military.
Then, Timmy can wind up the printing press to cover all of the T_Bills bills the SS Fund will need to sell to cover SS payments to seniors
I hope he remembers to roll up the sleeves on his golf shirt.
hold tight...your investment will sky rocket on the day after the 2012 election.
Obama hasn't realized that nobody cares what he has to say and his rhetoric will change nothing.
I guess it gives the MSM some talking points to blame GOP.
I laughed out loud, thanks!:)
He never finishes before Rush starts. He wont start til oh, 1130 or so. That is part of his bullying.
This is playing out like a cheap paperback novel.
Why?
Because I’d bet dollars against donuts that about two hours before the deadline, there will be an announcement on all the MSM that they worked around the clock and finally reached a deal.
The Dems will give some and try to make out the pubbies as the bad guys, and vice versa.
Because they know damn well that if the deadline passes, and Grandma Iowa goes to the bank with her SS check and the bank refuses to cash it, that’s when the blood might start flowing in the streets.
Boehner should tell them he won’t consider revenue changes until the Democrats pass the spending cuts they’d promised Reagan and Bush1.
contact him here
http://www.speaker.gov/Contact/
Blame Republicans on national television (= free campaign commercial)
My post was the 11th and yours the 22nd. Spooky by any analysis.
Nah, he’ll be late getting started.
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