Complete US Debt Talks Update

Tyler Durden's picture

A complete summary of what is happening (or not, as the case may be) in the third and final act of the debt talks tragicomedy courtesy of Reuters.

  • President Barack Obama has no scheduled face-to-face meetings with Democratic and Republican leaders in Congress.
  • Senate Democratic leader Harry Reid and Senate Republican leader
    Mitch McConnell are discussing modifications to a plan put forward by
    McConnell that would raise the debt limit and put nearly all the burden
    on Obama to carry it out. The plan could include about $1.5 trillion in
    spending cuts and set up a congressional panel to find further savings.
  • White House budget director Jack Lew tells Sunday talk shows that
    progress being made in debt talks and lawmakers have time to reach a
    deal on substantial deficit reduction ahead of an Aug. 2 deadline when
    the government will be unable to pay all of its bills.
  • Senator
    Dick Durbin, the second ranking Democrat in the Senate, says on NBC's
    "Meet the Press" that a constitutional amendment to balance the budget
    will not pass the Senate, but the Senate will consider such a measure
    next week.
  • Senator Jon Kyl, the second ranking Republican in
    the Senate, tells ABC's "This Week" that "If all else fails...we will
    not be the ones who took the country into default, the United States
    will not default on its debt."
  • Republican Senator Jim DeMint
    says on NBC's "Meet the Press" it is time to "draw a line in the sand"
    because "a day of reckoning is going to come."
  • Republican
    Senator Tom Coburn, who has participated in bipartisan deficit reduction
    talks, tells CBS's "Face the Nation" that he will offer an ambitious
    plan to cut the deficit by $9 trillion over 10 years. He concedes it
    won't pass the Senate. It includes items difficult for Republicans such
    as cuts for defense spending and revenue increases from closing special
    interest tax breaks.
  • The Republican-led House of
    Representatives to vote on Tuesday on a plan calling for immediate
    spending cuts and capping the level of federal spending to a percentage
    of the economy, 18 percent by 2021. The House also is to consider a
    constitutional amendment requiring a balanced federal budget.
  • Lawmakers are under intense pressure from state governors, U.S.
    businesses and U.S. creditors to strike a deal and raise the debt limit.
    Connecticut Governor Dannel Malloy, a Democrat, said on Saturday at a
    National Governors Association meeting in Salt Lake City, "This is a
    dangerous and equally ridiculous situation that's playing itself out."

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Mongo's picture

Keynesian solution: Keep repeating "The US cannot default"

wanklord's picture

Americans are a bunch of stupid animals easy to manipulate and subdue.The sooner the US economy collapses the better, so these brutes will finally learn NOT to live beyond their means.

Cognitive Dissonance's picture

These brutes?

My my, such strong language from a wanker.

I assume you are holed up in some fourth world country that is not affected in the least by what the rest of the world does or does not do. Not that I don't wish to see this entire stinking mess cleanse itself as well. But my friend, unless you are indeed living in that fourth world country, you are a brute too. You are just in denial about it.

Et tu Brute?,_Brute%3F

SMG's picture

No the "Illuminated" Oligarchy ruling the US are the brutes Mr. Weishaupt.  They are the ones who involve us in unending wars, undermine our currency, infect our banking institutions , silence any mass media that tries to tell us the truth, trick us with easy credit, corrupt our government, religions, and political system.   You know what is brutish? Torturing and  enslaving people for your own amusement.  Programming and abusing people from when they are really little to break their will and don't question orders when they are adults. Performing unmensionable acts on innocents, all in the name of some fraudulant "magick" religion.  Killing people just because the speak the truth or get in your way.  Those are the real brutes.

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

100% correct!


"We have met the enemy and he is us!"   POGO


Tuco Benedicto Pacifico Juan Maria Ramirez

RockyRacoon's picture

You stole my line.   And Porkypine would agree.   A full 24 inch size framed and signed copy of the cartoon hangs above my desk.   Porkypine's opening line is "Ah, Pogo, the beauty of the forest primeval gets me in the heart."   At a long distance many things look pristine and beautiful, but up close we can see the grime and the pollution.    Flying over the United States is thrilling, but stopping in to get a close-up of the heart of most American cities reveals the truth.   It is the trash in the streets and the petty crime that infect us as individuals.   All of that to work its way up to the top with the election of those who would trash the economy and steal us into oblivion.   In the end it is we who are signing our own societal death warrant. Sigh.

WmMcK's picture

And up close it will get you in the feet.

RockyRacoon's picture

It is hard walkin' on this stuff.

Atomizer's picture

Never underestimate Americans. We took down the banking cartel once before.

AldousHuxley's picture

You mean never underestimate the idiocy of Americans? So stupid that they just got rape by the banksters and all they are worried about is gay marriage. Hey gays, marriage is nothing when you don't have any job/money.


Sh!t will have to get much worse, before Americans learn the hard way. But Fed is keeping the American Dream lottery with another bubble.

sasebo's picture

When was that? Why didn't they stay took down? And who is "we"?

Just wondering.

Jack Napier's picture

The founding fathers took them down when they declared independence from the crown. Andrew Jackson took them down when he vetoed renewal of the National Bank's charter. Lincoln took them down when he prevented them from dividing our great nation which would have made their job much easier. In the end they still came back and won in 1913 with the Federal Reserve Act. Took down is really the wrong phrase, rather ran off. They're multigenerational parasites and their name is Rothschild.

If it isn't obvious already this problem is bigger than just the USA. Just because the media is stuck on trivial crap doesn't mean the people are. The peoples' voice is under attack, but thanks to sites like this we will be heard.

sgt_doom's picture

Yo, people!

This is the only article one need peruse regarding this entire fiasco and political theater of the absurd:

(And for any members of the Obama Apology Network who still disbelieve that, like the Clintons, Obama is just another neocon, please refresh your memories on this WaPo article from 1/2009:)


cossack55's picture

I guess its ok to hear from different dimensions.  Which dimension does that moron live in?

pods's picture

Wow.  That was a piece straight out of lala land.  

I especially liked the header up top:

"A project of the Franklin and Elenore Roosevelt Institute."

Yeah, figured that one out in about 30 seconds of reading.  I wonder if the writer actually believes this tripe to be true and factual?


sgt_doom's picture

Yo, people!

This is the only article one need peruse regarding this entire fiasco and political theater of the absurd:

(And for any members of the Obama Apology Network who still disbelieve that, like the Clintons, Obama is just another neocon, please refresh your memories on this WaPo article from 1/2009:)


John_Coltrane's picture

The article was unnecessarily complex in describing the roles of government as:

– it provides for the national defense.

– it purchases goods and services from the private economy for a wide range of public purposes, most of them individually quite small-scale in relation to GDP.

– it regulates a wide range of private-sector activity, for safety, health, environmental and other purposes, including financial stability – or so one should hope.

– it administers Social Security, Medicare and Medicaid, as well as other pension and health benefit programs.

Instead it should have stated:

The role of government is income transfer.  Who gives up income and who gets it is determined by "experts" who think they "know it all". 

Like bankers, lawyers, and other parasites government serves the role of friction on the real economy.

lolmao500's picture

In other news, the fear mongering has now reached fever pitch... raise the debt ceiling or else, Al-Qaeda will strike America...

A reduced US credit rating by any of the big three credit rating companies could provoke possible mayhem in financial markets around the planet and vastly escalate borrowing costs for the federal government and businesses, which would have a directly negative impact on public finances and further depress the nation’s overall economy.

“So you can understand why Al Qaeda, or any other terrorist organization motivated by the jihadist ideology, would see that America is highly vulnerable right now – perhaps more than it’s ever been - to an attack or attacks the impact or direct effect [of which] would be further depression of the US’s economy,” one of the counterterrorism officials said.

lolmao500's picture

129h10 left till July 23 0000 EST.

FunkyMonkeyBoy's picture

The only terrorist on this planet are the U.S. government... with the U.S. citizenry being ardent, unquestioning and unwavering supporters of this evil.

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

That's spelled "Al Ciaeda"!



Cognitive Dissonance's picture

Let's make a deal. If Congress forces the NFL to settle, then Congress can raise the budget ceiling by the amount of income the NFL takes in over one year.

That should give everyone in Congress and the Obama Admin a few more hours of additional time to negotiate the end of the world as we know it. And I get to watch some preseason games in August as God intended.

snowball777's picture

Priorities! ;)

Less bread, more circuses!

Cognitive Dissonance's picture

I'm just trying to get my little ole piece of the action man. What's a poor boy to do, but leverage what little he's got? And what I got is my fat ass on a sofa waiting for the beer commercials and preseason. :)

Uncle Remus's picture

What's a poor boy to do


Except to sing for a rock n roll band...

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Good idea, but remember pre-season games still don't count!:)



Cognitive Dissonance's picture

Because you just don't bet on things that don't count.......right? :)

$10 says the next time you turn your head it will be.........left.....right.....left....and not right.....left.......right.

Come on man, I need some action. The British Open is over already and the Asian markets don't open for another.........

Cognitive Dissonance's picture

That's "Pay up sucker ".

OK, double or nothing. The next Gold tick will be.........down.

snowball777's picture

Poor mofo tatoo'd a dying currency on his hand. LOL


StychoKiller's picture

Looks like a snake wrapped round a stake to me.  :>D

lolmao500's picture

And top republican told McConnell to go suck a bag of dicks.

Top Republican: House Conservatives Will Not Support McConnell Debt 'Cop-Out'
snowball777's picture

A "true believer" with a need for limelight...but his "Tax and Expenditure Limitation Amendment" sounds interesting.


knukles's picture

"Tax and Expenditure Limitation Agreement."

A temporary solution to a permanent problem manifesting itself in unlimited renewals and extensions.


OneEyedJack's picture

I want my.....

I want my.....

I want my..QE Three.........

Dire Straits

snowball777's picture

No talk. Install u-wave oven. 

Uncle Remus's picture

It's always about the ovens...

RockyRacoon's picture

Shhh!  You'll stir up the Travs of the site and get them in here to trash the discussion.

honestabe's picture

In summary, all parties are far apart and not really talking at this point. The potential House Bill also contains a long laundry list of pork and repeals of previous House legislation which will absolutely anger the Senate. Things are far worse than pictured here. But, the House has not yet formally proposed anything.  Budget legislation begins, by Constitutional law, in the House. So we are at square zero this  Sunday afternoon.

InvalidID's picture

So the general theme is: We know we can't get anything passed, so we'll pretend to try to get everything passed? Is that about right?

 Fucking theater.

Steroid's picture

It's time to kill Osama again!

cossack55's picture

Viking funeral this time. Burn, Biny, Burn.

BlackholeDivestment's picture

...brilliant. That's comedy, I recognize it.

...yeah, we could call it ''Thaw''. ''U.N.-Thaw'', peace keeping with a ''pre-emptive'' Nobel Prize, for nuclear NONproLIFEration, given to Rosemary's Baby. What a spiraling vortex of bullshit. Of course they could take Colonel Kurtz's advice and just drop the O'Bomba and also go with the Comet that cometh.

StychoKiller's picture

Hey, Lord Voldemort returned to torment righteous Wizards and Witches everywhere!

CalibratedConfidence's picture

I want my Qe 3 Qe 3 Qe