White House and Congress Reach Tenative Debt Raise Deal

[Annika Montaigne]

you never cease to amaze me with retarded posts like this

[Yuan Hung Low]

That's pretty doubtful, especially when the most likely result is that the Boehner will go for getting Democratic party votes rather than his own Tea Party faction. But, hey, if you think Tea Partiers are happy about their Congressmen being marginalized ... cool.



Easy 2012 win so far.

[trey11]

I think Obama is hurt on personal reputation more than republicans as a party.





Time will tell, but it doesn't look that way at the moment.

[i am so peng its unreal!]

*fixed*

[childlibr53]

I suspect debt will be at least 30T in 10 years, assuming we can kick the can that far. Cuts will never happen unless they are forced. None of these cuts are going to happen. Look at the picture. 21B in the first year. Wow that's a gamechanger.

[PMoney]

http://www.blooraberg.com/news/2011-07-31/senate-postpones-vote-on-reid-debt-limit-plan-as-lawmakers-continue-talks.html
White House, Republicans Reach Tentative Debt Deal
By Heidi Przybyla - Jul 31, 2011 12:40 AM ET

The White House and congressional Republicans have found the framework of an agreement to increase the nation’s debt ceiling that would raise borrowing authority through the next presidential election, a person familiar with the talks said late last night. The tentative outlines of the accord include spending cuts of $1 trillion and creation of a special committee to recommend additional savings of up to $1.8 trillion. The new panel would have to act before the Thanksgiving congressional recess in late Noveraber or government programs including Defense and Medicare would face automatic, across-the-board cuts, the person said. A White House official familiar with the talks cautioned after reports of the framework surfaced last night that no final agreement has been reached among involved in negotiations. The prospective agreement wouldn’t include increased net revenue, a sticking point for Republicans who’ve been adamant that any deal with tax increases couldn’t pass the Republican- run House. Democrats, including those who run the Senate, have been insistent that any deal must be a “balanced approach” that includes revenue, raising questions about whether President Barark Obama would find the support of his party for the plan.

Obama Demand
Obama has been demanding an increase in the $14.3 trillion debt limit that lasts through the 2012 election, when he is seeking another term. Obama and congressional leaders yesterday began their new attempt to prevent a U.S. government default on its debt, with Republicans and Democrats expressing greater optimism a deal may be within reach before an Aug. 2 deadline. Senate Majority Leader Harry Reid, last night said he was “confident that reasonable people from both parties should be able to reach an agreement.” Reid, in remarks on the Senate floor before details of the framework emerged, cautioned that “there are many elements to be finalized and there is still a distance to go before any arrangement can be completed.” Still he said, “I am glad to see this move toward cooperation and compromise.” To give the negotiations more breathing room, Reid pushed forward by 12 hours a planned test vote today on his pending measure to raise the $14.3 debt ceiling and cut government spending. The planned 1 a.m. vote was rescheduled for 1 p.m. at the Capitol. Earlier Mitch McConnell, the Senate Minority leader, said he was “more optimistic” and that negotiators have “got a chance of getting there.” John Boehner, the House Speaker of Ohio, also voiced confidence an agreement could be reached.

Markets
Financial markets were restrained in reacting to the impasse on a debt deal through July 29. Treasuries rallied, sending yielRAB on 10-year notes to the lowest level since Noveraber. The yield on 10-year Treasury notes declined 15 basis points to 2.79 percent in New York. Stocks fell as economic growth trailed forecasts. The Standard & Poor’s 500 Index slipped 0.7 percent and turabled 3.9 percent this week for its worst slide in a year.


I'd like to hear the details, that's where the devil hides I hear.

[fangsxupxstarship]

You realize the US is still the world's largest manufacturer...with China right there also?

[JimbossJ]

Yea.. and that stuff that happens in 9 or 10 years, of course, never actually happens.
We're still in the same boat, until someone decides to dump all their US investments, and then someone else freaks out and does it, too... and then before you know it, everyone's running from the dollar.

This would easily coincide with oil moving from the dollar to some other "currency standard" for trade.

[Malitha C]

And this is the true issue. If the credit rating is lowered, it will be because of a corabination of perceived runaway deficits, and a bad short term economic outlook. Realistically, that corabination should lower anyone's credit rating. But the reality is it's pointless in the case of the US. The more I think about it, the less likely I think any meaningful interest rate increase would happen. Now since I have no debt, I'm a little insulated. But I still think it isn't a real concern.

[odd1_4ever]

So your well thought out projection is based on construction in the area where you live? Very impressive.