U.S. Senate and House of Representatives leaders are preparing separate backup plans to raise the federal debt limit after Congress and the White House failed to come up with a bipartisan agreement Sunday.

The leader of the majority party in the House, John Boehner, called Sunday on his fellow Republicans to support what he called a “new measure” that would involve a short-term extension of the debt ceiling accompanied by a package of spending cuts. Boehner earlier said he was not sure a bipartisan deal could be reached.

Senate majority leader Harry Reid, a Democrat, wants a longer-term deal on the debt ceiling, while also cutting trillions of dollars in spending.

President Barack Obama, the country’s top Democrat, has said he wants an ambitious debt-reduction package that would keep the issue off the agenda until after the 2012 general elections.

August 2 is the deadline for raising the debt ceiling and allowing the federal government to continue to borrow money. The Obama administration and congressional leaders had hoped to announce a framework for an agreement before Asian financial markets opened Monday. But that time passed with no deal announced.

Global investors have been closely watching the debt ceiling discussions. Some large investors fear major credit-rating firms could downgrade the high U.S. rating.

Comments

comments

5 COMMENTS

  1. The Asian markets didn’t even bat an eye.
    I hope they get the smaller deal passed, then we can do it all over again in April. Awesome. Having this debate at the same time as the voters are seeing how much they actually pay in taxes? Priceless.

    I must say I am proud of Boehner, he is holding firm.

    • Great minds think alike. Yeah, I was watching the market also and I guess the sky didn’t fall.
      I was a bit worried that the Speaker would cave, but I think the TP group and public opinion is going to keep him on a steady course.
      New Subj: I see the SA told you you could use the same name if you got it first. Do you know if that means they are going to stop using Disqus? The screen name is registered with Disqus, not the SA.
      Also, since I’ve been blackballed could you ask them why all the other comments were removed? I doubt they’ll give you an answer, but I’d like to have a reason. It just makes them look so petty by removing so many in one fell swoop. Mahalo and GBA.

      • As far as the credit rating of the US goes, Egan Jones already downgraded it. Credit rating are more to do with how much debt we have not on whether we are willing to take on more.

        New Subj: I am being really careful. Not that it matters, but I would like to be able to see my old posts for reference if I need to.
        Isl Lib aka bydiamondhead responded to one of my posts earlier and they both got completely removed, not even a “guest” “comment removed”

        I’m one of the few that can still post for now. But I noticed that all the liberals are still posting just fine.

        Maybe my nice comment yesterday buttered them up a bit. Funny though, hybrid1 replied “you wont be missed” even though I never said I was leaving.

        I probably wont sign up next week, I won’t support a news agency that so blatantly censors the comments that they disagree with.

        Nice to be able to keep in touch with many sharp minds over here.

  2. I watched Obama’s speech this afternoon. He gave a impassioned account about overspending by government right up to 2007. No mention about how increased spending by 25%.
    I will do everything I can to make sure he is not reelected in 2012.
    About those SA comments that were disappeared today, it is not surprising. That is how tyranny and oppression operate. Silence the opposition. All I said was “There’s a purge going on. “By their fruits ye shall know them.””
    Then phhhhhhht! I’m banned! I will NEVER read SA again. I will relate their censorship to everyone I can.
    They are an insult to the First Amendment.

    • Aloha IL!
      Interesting that both our comments disappeared. I was a little surprised that they completely removed them. There is some serious problems with that.

      The petulance of Obama is shocking. I didn’t think anybody could be that childish. Ann Coulter is right. Only a mob could elevate someone that terrible to the highest position in the world.

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