Today is Thursday. Tuesday, the Republicans surrendered and quit negotiating for anything they wanted for raising the debt ceiling. President Obama did not accept their surrender or the conditions they proposed.
First, by quitting, the Legislative branch is refusing to do its job. The President found that to be completely unacceptable. They aren’t getting off Scott-free. Governing takes work, it takes compromise, and it takes those we elected to step up and do what is hard to do. This means these divorced-from-reality Republicans (we’re talking to you, Eric Cantor) will have to stuff their ideology and pledges to Grover Norquist in a drawer, grow a spine, and pay the country’s debts.
The Republicans proposed to give President Obama the full authority to request a bill to raise the debt ceiling. The bill would contain the debt ceiling hike and language that the amount ($2.5 trillion) must be offset by budget cuts, eliminate tax loopholes and some subsidies, and enforce all tax laws to improve revenue collections.
Are red lights and sirens going off in your head? They are in mine.
By adding the spending cut and revenue hike language, it takes a lot of heat off the Legislative branch, and puts it on the President. But the debt ceiling would be raised and the President would decide what is cut and what revenue is increased. The Legislative branch would not be able to interfere with any decisions the President makes.
Here’s the kicker. The President would request the bill from Congress. The Congress would write a bill disapproving the President’s request to raise the debt ceiling and offset the hike with cuts and revenue increases, as described above. The debt ceiling would not be a one-time number increase either. It would be increased in three increments through December 2012.
In my head, the lights just got redder and the sirens just got louder.
The House and Senate would pass the bill of disapproval and send it to the President for signature or veto. The President would veto the bill, thereby raising the debt ceiling and giving himself full authority and responsibility to decide what is cut and what revenue is raised. There would not be enough votes in the Senate to override the President’s veto, and probably not in the House either.
Such a bill would put all the budget cuts and revenue increases on the President’s shoulders alone. Republicans would then use each incremental increase against Obama throughout the 2012 campaign.
Were I President Obama, I would not have agreed to those terms either.
By surrendering, the Republicans lost the game. They emasculated themselves to a President who has the balls to have three pirates shot in the head and successfully have Osama bin Laden found and killed. This President will not be held hostage, nor will he allow the country to be held hostage by a minority rogue group of ideologues. They underestimated his willingness to negotiate and put things on the table to mean he is weak and would cave in to their every demand.
Talks to raise the debt ceiling resumed yesterday, continued today, and will continue with the Republicans in a weaker position as each day passes and gets closer to August 2.
What will likely happen is some bill with cuts and/or revenue increases will come out of the House, and make it through the Senate. If it’s a reasonable bill and contains a balance of revenue and cuts, the President will sign it.
If it is not reasonable or only contains cuts, the President could still veto it at 11:00 p.m. on August 1 and still get a single-sentence debt ceiling increase passed and signed before midnight when the default would actually happen.
The President and Democrats would end up with the needed bill with no strings attached. This is how debt ceilings have always been handled. There may have been a bit of jockeying, but they never went so far as to think a default could be allowed.
If no debt ceiling increase bill passes by midnight on August 1, the President can invoke the 14th Amendment of the Constitution, avoiding a default.
To push Republicans along, Moody’s is threatening to drop the U.S. bond rating from AAA to AA, and Standard & Poor’s is threatening to downgrade the U.S.’s credit rating, which would be very bad.
See my recent post “What will happen if the U.S. doesn’t raise the debt ceiling?” for more information on the consequences of a default.
Photo from Huffington Post, July 14, 2011
\\ tags: Autust 2 2011, Barack Obama, choosing to ignore facts, debt ceiling talks continue, Eric Cantor, GOP surrender not accepted, national debt ceiling





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