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Senate Republican Leader McConnell Folds On The Debt Ceiling
Something troubling happened in D.C. today, where it seems that the Senate Republican leader basically just folded like a cheap suit in the ongoing farscial standoff on the debt ceiling (which luckily should bring the whole comedy to an end and the nation can progress with its previously scheduled ponzi collapse). In essence, as Bloomberg says, according to McConnell's proposed 3-Stage plan, "The debt-ceiling increase could occur without the companion spending cuts, McConnell said." Ironically, when we observing comparable posturing by Boehner from two days ago we said "in two weeks we get news of no tax hikes, and no deficit reduction, which will be spun by the great diversionary media machine as the great compromise, and, of course, leading to a $2.5 trillion debt ceiling hike. Win, win for everyone." It seems precisely this is on the agenda. Details on McConnell's plan to basically let the President do whatever he chooses: "Senate Republican Leader Mitch McConnell proposed a “last choice option” for increasing the U.S. debt limit in three stages in case President Barack Obama and Congress can’t agree on a deficit-reduction plan. McConnell’s plan would let the president raise the limit, while accompanying it with offsetting spending cuts, unless Congress struck down his plan with a two-thirds majority. Don Stewart, a spokesman for McConnell, said the plan would allow Obama to raise the debt limit while putting the onus on him and congressional Democrats for any failure to cut spending." Surely the president would be shaking in his boots knowing that if he were to cut spending the "onus" would be on him. Here is how the Republican justifies this betrayal: "The proposal is “not my first choice,” McConnell said, adding that he wanted to show the financial markets that the U.S. will not default on its debts. He said he continues to seek a broader deal to raise the $14.3 trillion debt limit with congressional Democrats and the White House." Funny: this is the same logic that Jean-Claude Juncker used when validating outright lying to the media, and general public. It appears there are little if any differences between politicians in Europe and the US when it comes to lies.
The increases would come in three amounts: by $700 billion, $900 billion and $900 billion, McConnell said. They would occur over the remainder of Obama’s presidential term, in keeping with the president’s call for an increase in the debt limit that would carry through the 2012 elections.
McConnell’s proposal would need approval in both chambers to become the method used to address the debt-limit increases.
Mike Steel, a spokesman for House Speaker John Boehner, said the Ohio Republican shares McConnell’s “frustration” with the protracted debt-reduction negotiations, but didn’t say he would support the proposal.
“The speaker shares the leader’s frustration,” Steel said. “Republicans are unified in our commitment to ensuring that the debt limit is not used as leverage to saddle small businesses with increased taxes that destroy jobs.”
Senate Majority Leader Harry Reid said he is willing to consider McConnell’s proposal, which he said he didn’t fully understand.
“I’m not about to trash his proposal -- it’s something that I will look at,” he said. Reid, a Nevada Democrat, said he had only spoken briefly with McConnell about the idea.
Of course nobody will trash the proposal: it almost certainly represents what the final outcome on the debt ceiling will be: a grand compromise of muppetry, in which nothing is achieved on either spending cuts, or tax hikes, yet $2.5 trillion in additional debt is added, bringing total US 2012 debt/GDP to about 120%... or about where Italy is today. And that's not counting the $6 trillion in government-guaranteed GSE debt.
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TOO BIG TO BLOCK
Seems like one man's debt ceiling is "a bankster's floor"...
This looks to be a setup of a campaign strategy. Republicans can force Dems to carry the water on raising the debt... "tax and spend liberals" will say the campaign commercials. Republicans get cover from breaking no tax increase pledges. Meanwhile, America goes broke one treasury auction at a time.
Seems unlikely this strategy can get through the house. Red state democrat senators up for re-election might make it tough to get through the Senate too. I'm going to optimistically say this is more negotiating strategy, and not folding just yet.
Koch brothers changed their mind.
Once again they prove they represent the banks and not the people, like there was any doubt.
And when he tried to steal our sunlight, Mr. Burns crossed over that line from everyday villainry to cartoonish super villainy." ---Wayland Smithers
This won't pass the House. This plan is dead on arrival.
Bingo.....but not the end of the story....
Gloomberg has no agenda, right? Looks like a good way to call Oweblahma's bluff from yesterday to veto short term shit.
What a strange, kind of antidemocratic idea. 'Here, we'll substitute this Potemkin village for our Constitutional authority and then use psychologically engineered message points to convince people that this was, in fact, forced, I say, forced upon us by eeeeevildoers.'
Is that about right? That's the 'plan'?
+100000000000000000000000000000000000000000000000mm
From HotAir:
http://hotair.com/archives/2011/07/12/mcconnell-announces-fallback-plan-lets-give-obama-the-power-to-raise-the-debt-ceiling-himself/
Now that the table is set, here’s how the proposed plan would work: Republicans in Congress would agree to vote to authorize the president to propose three separate incremental debt ceiling increases, spaced over the remainder of his term. He would be required to couple each request with a corresponding set of spending cuts that exceed the dollar amount of his sought-after debt limit hike. These cuts would be of his choosing alone. The first pair of requests would come prior to the August 2 deadline. It would be for roughly $700 Billion. The next requests, for $900 Billion, would come in the fall, and the final tranche (also for $900 Billion) would be scheduled for summer of 2012 — in the thick of the campaign cycle.
In all likelihood, on each occasion, Republicans would overwhelmingly vote to disapprove of the president’s debt ceiling increase request. This allows GOP members (and almost certainly some vulnerable Democrats) to technically vote “no” on raising the debt ceiling. If, as is likely, simple majorities in both houses vote to disapprove of the president’s requests, he’d be forced to veto each disapproval, pinging the issue back to Capitol Hill. If Congress can’t override those vetos with 2/3 majorities (and Republicans won’t have the votes, even with some Democrats), the debt ceiling will increase. But not without the exacting a substantial political price from the president and his allies in Congress. They will own the debt ceiling hike. Period. Members of Congress who vote with the president will set themselves up to be targeted by brutal attack ads (“so-and-so has voted to increase the national debt limit three times in the last year alone,” etc).
Playing politics, I guess that is the game right now.
sschu
I think this is being read wrong.
I think it is the spending cuts that are automatic and can be stopped only with 2/3 vote.
I think this can work, provided 300-400B of the spending cuts are FY 2012.
Just think of the possibilities! Congress could cede ALL its authority to the President. Then they couldn't be held responsible for doing anything ever!
brilliant idea. then Michele Bachmann can get elected POTUS. finally God would be #winning
dave, please refocus your efforts from commenting to making a larger avatar.
Switch on the fan! Let the shit hit the fan already!
People are starting to get crushed under this growing mountain of bullshit coming from the banksters' hos in DC!
The fan is on, it's just that the poo keeps changing hands without being slung. Sort of like musical chairs only the song and dance hasn't stopped.
It's all just a matter of when our monetary system will completely fail. It would be nice if it would fail sooner, so that we could recover. Our agony is just being prolonged.
total public sector debt... or is that total federal debt? Total debt is in the 50 trillion range.
Only Congress has the power to raise money. It's bullshit. Political wrangling, they still can be blamed, regardless of whether technically the vote is to raise the limit or to give Obama the authority to raise the limit. It's still Congress/Sentate's deal. They need to hang tough and cut government's size. Fuck the default. Let's Roll !
Time is runnin' out,
Let's roll.
Time is runnin' out,
Let's roll.
No time for indecision,
We've got to make a move,
I hope that were foregiven,
For what we got to
How this all got started,
I'll never understand,
I hope someone can fly this thing,
And get us back to land.
Time is runnin' out,
Let's roll.
Time is runnin' out,
Let's roll.
No one has the answer,
But one thing is true,
You've got to turn on evil,
When it's coming after you,
You've gota face it down,
And when it tries to hide,
You've gota go in after it,
And never be denied,
Time is runnin' out,
Let's roll.
Let's roll for freedome,
Let's roll for love,
We're going after satan,
On the wings of a dove,
Let's roll for justice,
Let's roll for truth,
Let's not let our children,
Grow up fearfull in there youth.
Time is runnin' out,
Let's roll.
Time is runnin' out,
Let's roll.
Time is runnin' out,
Let's roll.
If I was Obama I'd tell the Republicans to pass a clean debt ceiling hike then go fuck themselves.
Without a monetary system overhaul, including getting rid of the central bank and getting back on a gold standard, the debt doesn't mean diddly squat anyway. It'll NEVER get paid back and the banksters will keep the ponzi going long enough to take whatever's left off the carcass.
I agree with your 2nd paragraph, Mr. Boompi.
Obambi threatened them with releasing the zombies!! (no ss checks in august). Why can't congress simply defund a couple cabinet departments?
Or shut down a couple of foreign wars or close down a handful of foreign military bases. This is what ended Rome. And it will end us.
I just can't believe McConnell would propose to give the Dictator President Telprompter more power!
Why not this: Increase the debt limit 1 more time in exchange for:
A) Spending cuts equal to the amount the debt ceiling is raised (Ex: 2 trillion raise = 2 trillion in cuts)
B) A balanced budget amendment to the Constitution.
Those fighting not to raise the debt ceiling have the cards stacked against them by the sheeple American people who want "their" money.
The fact of the matter is that the Dems right now are playing a winning strategy of class warfare that pulls at the heartstrings of the neanderthals who want what the rich have.
These people may have paid heavily into SS and medicaid over their lifetime and they have a right to be angry in many circumstances. However, Dems are focussing this anger towards the more wealthy Americans, while the culprit is the government who can't manage people's money with any ounce of responsibility. The bait and switch is working, and the government will get its money.
How stupid do people have to be to not realize that they are simply voting with their opinion to put more of their hard earned cash into the hands of the same government that mal-invested their cash in the first place?
Ordinarily you'd be right, but polling shows overwhelming public opposition to any debt ceiling increase at all, regardless of circumstances.
They like to say they are against raising the debt ceiling but what people say is often times 100% disconnected from the truth of how they feel. There is sentiment everywhere that shows Americans want the rich to foot the bill.
Right now on CNN there is a poll asking who Americans trust more in the talks over the debt ceiling and a strong majority support the Dems.
Oh, and there is only a small majority of politicians fighting not the raise the ceiling. Most want it raised with stipulations.
This gallup poll is interesting and supports what you say, but it also supports my perspective of how ignorant America is. Look at how many people don't know
http://www.gallup.com/poll/148454/Debt-Ceiling-Increase-Remains-Unpopula...
time for the rating agencies to begin the downgrades
and where is Moody's for the downgrade???
Lots of whining, how about doing something about it? Elect Ron Paul. He even has a solution to the "debt ceiling" problem. Check it here, It's brilliant:
http://curiouscapitalist.blogs.time.com/2011/07/05/debt-ceiling-could-ro...
Tell everyone you know about Ron Paul, post his name in articles/blogs/newsfeeds/social media/do something! Guys like McConnell are just paid shills for corporate fascists that have driven this country to the brink.
Go 'way, bolshevik troll. Back to Counterpunch. Dr. Paul's brilliant "plan" (shell game) is getting rave reviews there to. Ponzai forever.
Three Republicans that lost presidential elections: George HW Bush, Bob Dole and John McCain. What do they have in common. They were all old, all white, all moderate Republicans. So now you want to put up another old, white, tired Republican with zero name recognition who has no chance of winning, ever. Smart. First of all, a Republican nominee has to be a staunch conservative, fiscally and socially. Last I heard Ron Paul was working on a bill with Barney Frank to legalize pot. That's going to go well with the conservative base-not!
Tell this spineless dildo how you feel. Every day it gets worse. They are ALL complete fucking crooks.
http://mcconnell.senate.gov/public/index.cfm?p=ContactForm
REMEMBER THIS??? http://www.youtube.com/watch?v=3cNsumiP6sI
"Not one in a hundred could tell you what not raising the debt ceiling really means".
I'll give it a shot. It means the government has to get its house in financial order. It also means a lot of dishonorable senators and congressmen are going to be replaced come 2012. It means people will begin to regain their confidence in government. It means the road to economic recovery that will translate into more income for everyone including the government to pay its bills. It means bringing home our military from all the unjust wars we are fighting. It means smaller government that translates into more economic opportunity for small business to get started. It means large predator corporations will no longer have government protection and favors through representation by senators and congressmen they have bought off; because they will have been replaced in 2012 by honorable men that will again represent the people and small business.
Government has grown too big by its spending of public funds and dishonestly borrowing more funds to finance a military to fight foreign wars on the pretense of terrorism. War has brought this country to the brink of bankruptcy. 10 years is enough. People have had enough and are sick of these bloodsuckers in congress wasting the national purse on destructive wars, policies, and pork; at the expense of high unemployment and suffering across the land. I will make a perdiction that if this bunch of politicans raise the debt ceiling it will be political suicide for all of them; so I seriously doubt if the debt ceiling gets raised. McConnell is serving his last term in office so he might defect. I might add that President Obama is a one term president for obvious reasons; incompetence for the office as one of them.
It's amusing to read how so many of you are arguing the debt issue through a Rep / Dem prism.
When the nation's debt is over 14 trillion and an additional 2.5 trillion may last another 9 months at the most.. WHAT THE FUCK ARE YOU STILL DEBATING ABOUT?
IT'S OVER! YOU'RE FUCKED!
Precisely. +++
We just want them to tell us they love us before they head out the door.
"No really; I'll call you."
Good point. You're right.
Mitch also said
A "real solution" to U.S. fiscal problems isn't
possible as long as President Barack Obama
remains in office.
mixed signals
His signals are clear. They are losing the PR battle and they don't think they can get anything accomplished with Obama in power and the sheeple Americans behind our great leader.
Yesterday I was wondering where in the h3ll is George W Bush? Obama should get Bush's dry drunk butt in front of a microphone. Bush legislation: the Iraq war would pay for itself in oil revenue? Ok, where is it?
Bush legislation: the Bush tax cuts are in effect now for a decade. Where are the US jobs? Repealing the tax cuts would reduce the deficit by 1/3.
Bush legislation: the Medicare part D doughnut hole. Increased the US deficit.
I say give Bush 30 minutes to talk. Then Obama should find the biggest ghetto oil drum, put Bush's legislation in it, set a match to it, and then tell Boehner and McConnell to sit down and shut up. Boehner and McConnell standing on their own look like dumbbells
Today, Mitch McConnell decided on his own to sit down and shut up. And today, Bush is attending Betty Ford's funeral. Stay out of the way, Repubs., Let the Democrats fix your mess.
Go ahead. You are aware that Pelosi, when running the House, would not propose a tax increase to close the deficit?
Do you think Democrat Senators will vote for a tax increase in the middle of a recession?
Bush having a say will not change the fact that the Democrats will NOT vote for a tax incease.
So what do you do then? Vote for a debt ceiling increase? With a tax increase? You do realize the public polling says 75% of Americans are opposed to any debt ceiling increase, regardless of what accompanies it?
Yes, of course. Blame Bush. How original. Brilliant.
Yeah I don't get all the poltical blamesmanship. Each administration from Reagan to Bush to Clinton to Bush to Obama merely carried on the policy of their predecessor. And each had their head up Wall Street's ass. So there's plenty o' blame to butter both sides of the toast.
You really shouldn't be commenting if you're too stupid to understand that they're all one and the same. Different suit same policies. Go back to kindergarten.
Sweet, now we get to see what the treasury auctions hold in store for us.
China is probably coming back as a net buyer of US debt paper ... /sarc
Another classic (R) ankle grab. The only mystery was whether it would be boehner or mcconnell who went first.
A couple days ago sombody on ZH called it "Kabuki Theater." Perfect description.
Anyone who believes there are two political parties in the USSA today, please raise your hand.
Anyone?
Anyone?
Ah, come on. Nobody?
Hmmmmmmmmmmmmmm.
Heroic Couplet <---- This guy does.
Dudes, you're missing some key points...
First. this is a Plan B offered by one leg of a triangle...the other two being OB and The House.
Second. At least its something different than the same old BS of taxes for millionaires and throwing grand ma off a cliff.
Third. It could die tomorrow as other trial balloons have in the past.
This is not an end game, rather its more like a dalliance. Hedgers should be far more worried about reports that a more complex deal (obama is incapable of doing anything without incredible complexity,) is in the works which will take us beyond August 2nd. These morons really think they can ignore the Aug 2 deadline...incredible...
engineering a selective default is the only way out. select china, japan and the petrodollar economies to take the 95% haircut. use canadian oil to fuel the birds. usa #1
but isn't it most important that the deal be bipartisan? I thought bipartisanship was the most important thing. All else is secondary. As long as no one's feelings get hurt, that's what matters most.
"Senate Republican Leader McConnell Folds On The Debt Ceiling"
Let the bodies hit the floor.
Brick Kicking; This years newest Olympic addition. The olympics will include brick kicking in the next games at last. The public has been clamoring for years for this exciting new sport to be included. Olympians dressed in business suits without protective footwear will kick at various objects that may not be what they appear on a 4 mile course in an attempt to move the objects toward the finish line. Points will be awarded for displaced distance, the ability to smile at all times, the quality of excuses, and if they walk over the finish line.
If there's an ounce of integrity left in DC, the next announcement should be made in white makeup and backed by Taiko drumming.
Is McConnell's proposal even constitutional?
brilliant! Article 1 Section 8
The Congress shall have power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common defence and general Welfare of the United States; but all Duties, Imposts, and Escises shall be uniform throughout the United States;
To borrow Money on the credit of the United States;
So, at least as far as the Pres has any power to control the borrowing of the U.S. (as opposed to the Congress) Mcconnell is full of shit passing the borrowing buck IMO of course the Prez was a "Con Law Prof"
No it's not constitutional. I fail to understand why congress wants to cede more power to the presidency.
This morning Obama talks about the possibility that some of the SS checks might not be sent out after Aug 2 if the debt ceiling wasn't raised.
A few hours later McConnell folds.
Hmmm...me thinks a bunch of boomers got on the phone ASAP to their reps...both Dems and Repubs...and told them that they better make sure the checks keep coming.
What's the difference in the two parties again?
When Lloyd calls and wants something, Democrats pick up a blue hotline, and Republicans pick up a red one.
No surprise here, actually. At the end of the day, Republicans have generally been the party of deficts.
repeal H.J. Res 45, require the fed gov by law to balance the budget...this eternal credit extension is no way to run a country
I can't believe people here are taking this proposal seriously. There is no support for anything like this, and within 48 hours you'll never hear it mentioned again.
you never give me your money
you only give me your funny paper
and in the middle of negotiations
you break down...
Same stealth sellout RINO Republican he always was. He needs to retire with McCain and Orrin Hatch. Their breed is old and tired and leading us down the road to ruin. Embarassing is what they are!!!!!!!!!!
McDik is no different than the rest of the Romney RHINOS, they are Democrats. Guilty..... These pukes are gonna find out what life is like since they keep buttfucking us simpletons.........
No difference in politicians when it comes to spending and "taking" our money----in the end, regardless of their progressive/socialist/marxist differences, they all have one thing in common----the big bank oligarch/elites give them their marching orders----and their marching orders are: SPEND MORE MONEY TO ENRICH THE ELITE BANKERS and concentrate more power in the hands of the KLEPTOCRACY. The bottom line is today the republicans confirmed to the mainstream population what most of us already knew---all politicians are merely puppets of the global elite and bankers.
Sadly, the progressive dishonest mainstream media will not report the fact that all politicians are traitors of the constitution and the people. Instead, the corrupt mainstream media only uses events like today to promote their progressive, socialist agenda. When republicans do anything, the mainstream media makes them look bad to promote their progressive agenda; when democrats do anything, the mainstream media spins it positively to promote their progressive agenda. The bottom line is republicans will never "win" with the mainstream media, but if they had backbone and did what they said, they would stand up to the banking/corporate elite and could have given us a chance to save the republic.
The bottom line here is that the republican party is finished. While they "say" they believe in constitutional principles, they are not willing to fight for them and stand up to the kleptocracy that has stolen our country. The republicans were the constitutions last great hope,and while I recognize that ended years ago, one has to wonder just how much longer the people who elected the republican cowards will put up with it. In other words, the socialist progressives will continue voting for their big government democrats, but republicans are losing all of their support and will ultimately be nothing more than Democrat A or Democrat B.
I would like to say things should get interesting since the population should now fully realize we no longer have any representation in government; sadly, most will just flip on over to Jersey Shore or American Idol and continue to consume the hopium that all but guarantees the end of the republic.
The only thing I want to interrupt my previously scheduled Ponzi Collapse programmig is a permanent blackout.
Last one out turn out the lights!
Most of the Repugnicans I talked to are dead set against raising the ceiling and taking on more debt, thus debasing the dollar even more and thrashing creditors more while debtors Make Happy in the street payng back with cheaper dollars.
I suspect any Rep who votes for raising the ceiling will prepare to leave Washington next election---he will be voted out from what I see.
"I suspect any Rep who votes for raising the ceiling will prepare to leave Washington next election---he will be voted out from what I see."
Yes, and that is quite lucrative for them----vote with the Kleptocracy and there are very lucrative deals awaiting you when you leave. Some say Republicans and Democrats are all the same, but that really isn't true except when it comes to corruption and money---in that sense they are pretty much the same.
While the corrupt mainstream media will just report today's news as good for Democrats and use the news to further ridicule republicans as slowing "progress"---the progressive agenda----the real news that will not be reported by anyone is how the republicans have completely thrown in the towel on any hope that the republic can be saved.
Make no mistake: while the markets will ultimately celebrate (via further money printing), and the population will take another dose of their hopium via their belief that entitlements will continue to flow unabated, today was a "black swan" moment for the republic. The republicans proved today that they are just as much in the back pocket of the kleptocracy, and when push comes to shove they will not stand up for America but instead will crater to the special interests----the banking oligarch. I am sure they were threatened by the corrupt banking oligarch that runs the country----and threatened in a way that was not made public like in 2008. Regardless, the fact is what happened today is the EXACT SAME THING that happened in 2008, only then the republicans put up the "illusion" that they were against the bailouts. Today, these traitors to the consitution totally caved.
Anyone that calls themselves a republican should be ashamed, and while I hate seeing the progressives gain in the next election, in all reality today proved there is little difference between democrats and republicans.
McConnell just bought himself a primary challenge.
I can not believe how many stupid ideologues are on this board. Listen up....you dumb fucks......They are all the same. We have one party rule is the USSA.
Thanks Dr, that was one of the most insightful comments
ever.
Well Cantor must be "soiling" his underwear about now (re: shorting long term Treasuries)..,couldn't happen to a nicer SOB!
While this may be an expedient "political solution", in that the Rethugs! can make Obama and the Dems "own" the increase in spending, and taxes if they choose to use that as an avenue to reduce the debt, it is in no way an actual solution to the problem of the government ponzi scheme.
In fact, I don't get what any of the breathless expectation or faux outrage is about. They're not talking about actual spending cuts, but only reducing the rate of debt increase.
It's an effin' charade.
POTUS is holding the country's debt default acting as tho HE is not responsible. Well, his own Congress wouldn't pass his tax increase last year; so he's forcing a tax increase and if he doesn't get it, well, screw everyone.
What I can't get over is that the Rs are unable to play the politics and finger the problem.
This is not an endorsement of the Rs - but at least they are making some (however lame) attempt to get this under control.
Or: could this be McConnell is trying to tame market concerns and he's the lightning rod?
Or: maybe he's owned by his Wall St handlers who put the heat on him?
Or: maybe he's just a weasel.
Always seems there is more than meets the eye...
One man's folding like a cheap chair is another man's getting some backbone. Finally;)
All is not lost in the good old US of A ;)
What pisses me off is McConnell wanting to give absolute authority to the president to raise the debt ceiling. Obama has already proven he is a twit regarding this issue and can barely balance his own checkbook much less the country's.. This is tantamount to giving Obama a blank check book and saying 'go at it.'
It is evident that McConnel is willing to abrogate his responsibilities to the voters for political gain by PURPOSEFULLY allowing Obama to make issues worse in order to cast blame at the next election cycle. Meanwhile McConnell doesn't give a damn about the harm he or his fellow republicans will cause to EVERY American if this is allowed to happen.
Mitch McConnell, Bainer, etc. - you are all traitors! Choose your fascist. Demoncrat or Rethuglicans.
Welcome to Kabuki theater. All we need now is a fiddler to play while the country burns.