The President has a deal for you. He will pay you 2.5 trillion over ten years as he raises the budget deficit 1.5 trillion each year (as he’s done for the last 3). This doesn’t count the Stimulus, Obamacare or the many other debt items. The plan is also oh so vague and jello-like; since it’s not in writing, it can change at any time. The cuts will likely never happen. Don’t forget, these are cuts to growth spending, not really cuts at all.
Word out now is that Boehner, Reid and McConnell are working on a plan – Reuters Reports – Republicans in the House of Representatives will push legislation to cut $1.2 trillion in spending over 10 years and provide a short-term, $1 trillion increase in the government’s borrowing limit, a Republican aide said on Monday. These are real cuts. Supposedly, the President is angry. Reid confirmed a prior deal that has now been rejected by Obama. Read here: Deal rejected
From Financial Bin: House Speaker John Boehner, R-Ohio, on Saturday had asked for a debt framework before then, intended to give the Asian markets time to process a last-ditch bid to ward off the market turmoil.
Reid is taking a proposal for “at least” $ 2.5 trillion in spending cuts as part of a debt-ceiling deal, seeking Obama’s approval, according to an aide.
Both Reid and Boehner are advancing plans to raise the debt ceiling. The biggest difference is that the Reid plan would increase the borrowing limit through at least the November 2012 election, while the Boehner proposal would have two stages – with the debt ceiling increase coming early next year and allowed only if matching spending cuts are enacted. Democrats have said that carrying the borrowing authorization past the election is a make-or-break provision. Republicans want two votes, saying they hope to wring more savings.
Read here: Smoke and Mirrors