Obama Wins! Announces Deal with GOP to Hike Debt Ceiling
by PubliusFrom The Associated Press:
Ending a perilous stalemate, President Barack Obama and congressional leaders announced historic agreement Sunday night on emergency legislation to avert the nation’s first-ever financial default.
The dramatic resolution lifted a cloud that had threatened the still-fragile economic recovery at home—and it instantly powered a rise in financial markets overseas.
The agreement would slice at least $2.4 trillion from federal spending over a decade, a steep price for many Democrats, too little for many Republicans. The Treasury’s authority to borrow would be extended beyond the 2012 elections, a key objective for Obama, though the president had to give up his insistence on raising taxes on wealthy Americans to reduce deficits.
The deal, with scant time remaining before Tuesday’s debt-limit deadline for paying government bills, “will allow us to avoid default and end the crisis that Washington imposed on the rest of America,” the president said in an announcement at the White House.
Default “would have had a devastating effect on our economy,” he said.
House Speaker John Boehner telephoned Obama at mid-evening to say the agreement had been struck, then immediately began pitching the deal to his fractious rank and file.
Read the whole thing here. See, those silly folks in Congress kept fighting amongst themselves, rejecting each other’s plans. Now comes Obama to cut the deal that will save the world. Or, something like that in tomorrow’s news. Well played, GOP.
Email this to a friend | Print |
Share on Facebook
| Tweet this
| 
Follow Us on Twitter
Subscribe via RSS
Got a Tip?
209 Comments
The deal isn't done, yet.
Republicans, and Democrats on both sides of the aisle seem non-plused and unimpressed. They are all saying they want more details.
I concur.
It will be interesting to see how the Market opens in the morning. It will be further interesting to see if the Ratings Agency's downgrade US, after the fact.
Not happy about this at the moment.
Get the popcorn folks, cuz the vote on this one is going to be something else. Boehner has made a fundamental error here. A significant portion of the House is no longer the Rank and File who will just do as they are told by "leadership".
My prediction, a HUGE backfire is afoot.
I am envisioning a debacle like when Pelosi took the first TARP bill to a vote in the fall of 2008, and got her head handed to her on a plate. THAT was historic, and a pleasure to watch.
I hope the CONgress does the same thing to Boehner this trip.
There is still time to take what is left of the Country back.
Weren't they already saying previously that if there wasn't serious substantial cutting it was going to happen anyway – the downgrade? Pretty sure this "compromise" is a far cry from any legitimate and substantial cuts.
I have a feeling it ain't over yet.
And after Moody's downgrades us anyway, what will obama say?
I hope you're right (even though I wish I didn't)
Obama is the most unifying force EVER to inhabit the White House!!
Thank god he was able to broker a deal which truly is symbolic of the compromise that was the essence of hope and change. By uniting the House of Reps and the Senate, Obama has given ALL of us hope for a unified future, driven by compromise and post-partisan debate on how to best ensure that everyone pay their fair share in whittling down the horrifying debt amassed by Bush.
Additionally, further kudos need to be spent on Mr. Obama for his calming and pragmatic speeches directed at the American citizenry. In retrospect, certainly they will be looked at with the same awe as FDR's fireside chats and even Lincoln's Gettysburg Address. In delivering the vital information necessary for the citizenry to fully understand the complications of not raising our spending ability; Mr. Obama was able to avoid hyperbole, partisan vitriole and scare tactics.
Well Done!!
/sarc….as if necessary.
A win? He now has the authority to borrow money to keep the lights burning. Nothing extra. He had 2 years of uninterrupted spending until the Tea Party arrived. Back in November the Tea Party win had unforeseen consequences for the Obama administration. Turns out to be $2.4 trillion dollars worth of consequences.
"Obama wins" is BS. America loses is the gospel. As long as this disfunctional Congress bickers, we all continue to lose. This is "wag the dog" played out again and again. Meanwhile, battles continue on the regulatory and judicial fronts while all focus is on this debacle. It was never about DEFAULT and we will lose our AAA rating and the beat goes on.
I do not think it is over.
I have been closer to deals than this, and had them fall apart.
All they said they had agreed to, was an agreement in principal as to structure. Too many loose ends and pieces can fly off at this juncture.
I hope the Freshman Class "just says no!"
"Obama is the most unifying force EVER to inhabit the White House!!"
Well put.
I have said since he was elected, that every generation must have its very own Jimmah Carter, to pave the way for the next Ronald Reagan. Obama is doing well.
One article I read said there will be no cuts until 2013. Since they pass a new budget every year, that means there are no real cuts to discretionary spending that wouldn't just be renegotiated every year anyway. On the surface this looks like any difference to a clean debt ceiling bill is just for show. I hope I'm wrong.
At least there hasn't been a vote yet.
Expect a lot of stuttering with injections of Bush….same as always.
He'll blame the Tea Party,republicans, the rich or somehow corporate jet owners.
Let me get this straight, these guinesses can prepare trillion dollar spending for the next ten years, then why did't they come up with a plan TEN MONTHS AGO?!!!!!
Wouldn't his potrait be ideal on the dollar bill? Bye, bye Greoge and welcome our fearless leader ZERO.
But at least he would have to be room temperature to qualify and we could continue to view him in our rear view mirrors.
Carves 2.4 Trillion in 10 years.
Obama will use that savings up next year.
I can't imagine the House Tea Party Reps jumping on board, Ash. The only way I see House passage is if all Dems jump on board. My hope: that it all goes down in flames. And that the American voters continue to hammer the switchboards in DC.
Ten months ago, they all had other priorities.
They were all busy running for election, or re-election……….
This is a defeat for the GOP and for patriots.
I believe the market will rally unless word is leaked that not all is well as regards this insane deal, CL.
And what the hell happened to Boehner's promise to post the Bill on the net for 3 days before a vote ???
It will be interesting to see the open in Europe – glancing briefly at the closes for last week were all looking down on the week. It didn't look like a huge amount of money was going turtle. Maybe more like shuffling the deck chairs for the moment.
I suspect we'll see something more akin to a timid sigh if much.
Moody's and S & P should downgrade us no matter. Hell, they should have downgraded us under LBJ.
As for what will the O say? He'll make them irrelevant and have his goons do Alinsky hit pieces, MS.
Obama Wins? This is exactly what bothers me. If anyone SHOULD win, it should be the Republicans, and by default! Let me explain my opinion quickly… The solution to the Debt Crisis is actually a pretty simple one. If there was one time in the history of our country, not including wars, that our government needed to do the RIGHT THING, it is now. We, as Conservatives and some people as Tea Partiers, aka the people who are correct about this, know what to do. I won't lay it out, you all know what I mean. It's like handling a family or business budget… CORRECTLY.
Long story short, the old guard Republicans, if they stuck to their Conservative roots like the Tea Partiers and House Freshmen, would do the right thing because it is what we believe in, we know it works, and we know it's correct. By default we should have the correct position.
But the Republican leadership, despite a landslide win last November, and Obama and the Dems spending us into oblivion, refuse to stand by their principles and DO THE RIGHT THING. They take the Democrat bait EVERY TIME they lay it out. And what is tha bait?…
"we have to COMPROMISE"…
No, we do not have to compromise, darn it! We need to stick to our principles, what we know is right, and what we know WORKS.
Anything other than doing what is right, will not only hurt this country and its people, but since the politicians REFUSE to stop playing politics through what is potentially a very dangerous time for ALL of us (especially the damn Democrats. I mean… COME ON ALREADY!), Obama will most likely be reelected, we will lose any momentum we had or could have had, and the only way we, conservatives, will ever see power again, is when this country is in ruin. And we can thank the Democrats AND the Old Guard Repulicans.
You have ALL put your political fortunes ahead of the very existence of our possibly soon to be once great country.
Thank you Democrats, thank you Old Guard Republicans, thank you President Obama, and a very special thanks to all the super intelligent American citizens out there that know everything… But still voted for Obama and the Democrats. Thank you, Ignorant citizen! Thank you!
On a dollar bill??
LOL…what on earth will we be needing dollar bills for???
I reckon he forgot that promise.
Boehner, like all politicians have a streak in them that reminds me of my ex-wife.
They all "meant it at the moment".
What budget ??? They haven't passed a budget in over 2 years. And while Pelosi and Reid got PAYGO passed, they haven't used it once because everything has been an "emergency". And the tax increase we will all be seeing come January 1, 2012 from ObamaCare will require many to work 4 to 5 jobs, 24/7.
As it stands right now, sul, you are right – the bill is just for show giving the O what he wants.
Absolutely wonderful! Haha!
Funny thing is, if you were to post that on some leftist site you would probably receive countless "likes"!
Thanks for sharing!
we need to raise the roof on that place, and get some new politicians that understand basic economics over there. why not cuts today, and raise the ceiling later?
"Thank you Democrats, thank you Old Guard Republicans, thank you President Obama, and a very special thanks to all the super intelligent American citizens out there that know everything… But still voted for Obama and the Democrats. Thank you, Ignorant citizen! Thank you!"
Here.
The epitome of an Obama voter http://www.youtube.com/watch?v=-9SPdh4Nzy4
This all has to still pass the required votes to get to Obama's desk. I'm not convinced that it can do that.
> avoid the nation’s first-ever financial default.
No, this is NOT the first time the Federal Government defaulted on its debts.
In 1968, the federal government defaulted on all silver certificates and all silver bonds.
In 1933, the federal government defaulted on all gold certificates and all gold bonds.
During and after the civil war, the federal government defaulted on all silver and gold certificates and all silver and gold bonds.
In the immortal words of Archie Bunker,
"Terlit paper".
Nice one, CL. Add my ex of 100 years ago to that mix …OK, I embellish a tad.
Cuts? How do we know there are any cuts? Inflation is as high as it's been since Bush's last year. I don't think those "cuts" are going to lead to an improving economy. Obamacare is in place and is enormously expensive.
But a vote on the 'agreement' hasn't happened yet. I'm not sure that Boehner can get it passed. It's not like he's got the testicular fortitude that Nancy Pelosi had.
Republicans just handed Obama a blank check through 2012 – I'd say he wins.
I swear to God, in 2012, on every single position up for election/re-election, I'm writing in "Lobotomized Monkey". We'd be so much better off.
The re-election guys were also very busy looking for and getting their insider trading tips.
Yet, has this scheme made the airwaves or has the SEC done any investigations? NO.
Hammering the switchboards in DC doesn't matter. They won't listen anyway. If you showed up in their offices, placed a noose around their necks and marched them to the gallows, I still don't think they'd give a damn about what the American people want.
That's fantastic! Haha! Highly recommend, if anyone else sees the link. Can't wait to share!
I hope I see quite a few similar videos.
To be honest though, when I think of Democrats and clueless voterst I tend to think of those people they interview on the street. The ones who don't know who the VP is, or how many states there are, etc.
They even had a new one asking people what the debt ceiling was… It was kind of scary.
I am not either.
There is too much rumbling in the ranks.
Boehner telling everyone last week to "get your asses in line", coupled with that nimrod McCains remark comparing the Tea Party Freshmen as "Hobbits" did some real damage, and opened some deep wounds.
You lying sack of expletive deleted…Obama doesnt win anything he was hiding in the White House at the time. Secondly there was no default expected to occur on 2 August….thats another Democrat lie. If the cuts arent real, then no deal, in the House
He'll say that they didn't do their job in a timely manner and that's why he is assuming dictatorial powers, under the 14th Amendment to silence all critics, seize all manner of weaponry, pillage your 401k retirement plans and has approved wiretapping every home in the nation.
(Granted, it is a parody video, but it is spot on)
LOL …great video link, CL. Nothing like "seeing the light".
Why don't they just cut Obamacare?
Eliminate it totally.
All Republicans need fired, Local, State, and Federal.
Hey Terry! Got any room up there for potential ex-pat Americans?
Just wait until you see the ObamaCare tax increases that hit January, 2012 – Americans will be livid on both sides of the aisle – even those on welfare.
yeah but that would be a good start….
It does matter, zebo – if only to oneself. It is the right thing to do. As for the latter part of your statement – ropes would make it through all security checks …just sayin'
It should be 100% illegal to talk in terms of 10 years. The cut is 240 billion a year. Given we over spend by 1.5 trillion a year and our total spending is close to 4 trillion that's a cut of 6%. OH WOW! A 6% cut and probably on intended spending, NOT on real spending.
It's likely that the Democrats will sign onto anything that Obama has given approval to. Now, it remains to be seen if Boehner can get 24 squishy Republicans to join him in voting for it. God knows there are enough of them to do it, but will they be willing to commit political suicide for Boehner's raw deal?
At the end of the movie Chinatown, Faye Dunaway's character asks Jack Nicholson's character to explain what just happened, 'cause she didn't understand anyone's motives, he replied "That's because it's Chinatown"
One could easily substitute DC for Chinatown and be exactly correct…Unfathomable to give Obama more money to buy votes and kick the can over the cliff on our grandchildren…
Obama's been behind the scenes telling bankers there will be no "default". The media did his dirty work by working up the citizenry with their "default" fearmongering–with easily proven lies. They also got in plenty of demagoguery of the fiscal conservatives.
The Democrats in this country need to be saved from themselves–their willful ignorance is awfully tiresome…and dangerous.
I think it is getting to be time for PEACEFUL, civil unrest and demonstrations.
It worked for Ghandi.
It worked for martin Luther King.
It can work for US.
If those 545 clowns running this outfit in DC think they have gridlock now, it might be time for a half million or more American Patriots to show up in DC. Of course, they had to get this legislation passed now, and need to wrap it up by Tuesday.
Why that specific date?
Why this week?
So they can all go home for their August vacations.
Everyone has apparently overlooked that little fact…………………
"The more the plans fail, the more the planners plan."
And the next 2 million march on DC Tea Party rally is scheduled for……
oh wait, there is none.
We're doomed.
The cuts appear to be smoke & mirrors to me as they are based on annual increase in spending of 10%. Do you get a 10% annual raise to spend?
I guess I've just had my fill of all the lies, doublespeak and games of our corrupt federal government. Commenting here really does not materially affect the preordained outcomes. Our government has become way too powerful and corrupt and could not care less about the American people. My one vote will be cast , but our future destiny as a nation has been well thought out. I just hope there are enough true patriots left behind to rebuild her.
If obama wins, Americans loses…..
I know, for a fact, that it does no good. The phone calls won't change a single vote.
One representative might listen to another and be persuaded, but if you call your congresscritter, it makes absolutely no difference. You'd be better off saving your breath and your fingers.
Writing a letter also makes no difference. They really don't care what their constituents have to say about anything.
The town halls made no difference. They passed Obamacare anyway. They wouldn't make any difference today either.
I'm pissed off. I'm disenfranchised. I'm very close to the point of letting it all crumble. You folks can be the Dagny Taggarts and Hank Rearden of the world. I won't be.
The RINOpublicans will cave and have very likely done so already. Compromising with Marxists means they get to goose step too.
I am a betting man.
I won't yet bet that this deal gets done.
I would bet that they are moving the line as we speak.
Fire all liberals who have nearly brought this country to its knees. And that includes Obama!
Bingo Pete! You are so correct. This years deficit 400% GREATER than George Bush's last deficit.
Why aren't we talking about cutting the Obama deficit by 75% this year?? All Democrat Party politicians do is buy voters with taxpayer money.
WTF GOP people? If your Congressman/woman is NOT one of the 22 who voted against Boehner's plan on Friday YOU personally need to be in your Congressperson's district office on Monday 08/01/2011 with a bucket of tar, a bag of feathers, and a pitchfork. Give 'em hell!
Two Words: Vince Flynn.
we are close to a go…if they BK our country heads roll…
The old "Wimpy" process, a hamburg today & I'll pay you back next werk
Want to bet that Boner got hoodwinked again
"I just hope there are enough true patriots left behind to rebuild her."
Sadly, there are but a handful.
With the 50-50 number, of producers versus non-producers, coupled with the elite political class, and everyone who feeds off of them (consultants, advisers etc), and in conjunction with everyone who works for the bloated Federal, State and Local Governments, and in addition to all the UNION members, WE are sadly outnumbered.
I know how Bowie, Travis and Crockett felt, looking out over the walls at the Alamo, as Santa Ana's buglers played "Degüello".
I remember seeing a comment on a yahoo news article a few months back responding to a Ron Paul supporter that was to this effect.
"Yeah if only Obama and Paul would have a bipartisan ticket in 2012, that would be my dream"
Can't remember the exact wording but you could tell it was serious and not sarcastic. Guy didn't even realize that they are near opposites.
Zebo,
Buck up.
Don't throw in the towel that easily!
That is what they count on.
Demoralizing US.
Boehner 4.0 – Basically, gives Obama more than a trillion dollars to give to his union buddies and other Democrat cronies so they can give it back to him as political donations for the 2012 election. Oh, and they promise promise promise to cut spending in the future. Kabuki theater for ugly actors. The debt ceiling extends past the 2012 election, thus taking this off of Obama's plate. Thanks, Mr. Speaker!
Fire them? Or fire at them!
The way I see it we should pass a 2012 budget that actually spends billions less than the Ryan plan. Knock off 5% or more on every spending plan from 2011 levels. People have done far more dramatic cuts to their own budget.
We don't need solar power subsides.
Obamacare is increasing spending.
Lets remembe Obama still has to get the fiscal year 2013 budget approved before election. I doubt that even a democrat senate will want to be seen not passing a budget four years in a row.
Walter Hanson
Minneapolis, MN
If those 545 clowns running this outfit
I walked by a TV today that had a semi-news semi-documentary on congress handling the debt ceiling today. Showed a lot of the day to day of congressman in it. I think a saw a quick shot of a congressmen(don't know which or which party) walking a small poodle through the halls of congress, presumably going to his office or something. Can anyone confirm that this is what I saw? Anyway, it shows a disrespect for the capital building and a detachment from the vast majority of the people in my opinion.
Without a doubt, Boehner is about the single one dumbest sumbitch I have ever seen.
I'd be willing to bet that he couldn't get through a glass door, if it didn't say "Push" or "Pull" on either side.
I'm listening to Bill Cunningham – a Rep being interviewed said the "deal" includes raising the corporate tax rate. Sorry, did not catch by how much or the name of said Rep. This Soooo sucks.
What is it, no deal is better than a bad deal. We will see how this plays out as the details come out on Monday.
Since we'll be going through raising the debt limit again in 2013, it'll make a good campaign issue for the Tea Party, both in primaries and the general election. That's about the only hint of a silver lining I can see in this Washington DC airbiscut…. er, I mean cloud.
I am so sick of reading "to avert the nation’s first-ever financial default". We are not going to default! Plenty of money to make at least the minimum payments on the debt. It's so misleading…and from the Associated Press…not exactly shocking.
Is this http://www.washingtonpost.com/wp-dyn/content/gall... the clown you saw walking the pooch? Scroll through the photos, you will be angrier……….
You, as always are right. Know what it is like riding a bronco, whether a bull or a new horse, they want to throw you off. I always went for the horses, they were better friends when I was young. I rounded up the cows with the horse.
Are you supporting a Democrat coup? Let's be clear here, friend. I'm ready to take up arms, but this message of yours is just plain misleading.
This was going to happen. Just like ObamaCare. We couldn't stop it with the tools we had. It's up to us to turn it around, and we can't do that without a viable opposition Party.
We DO need NEW LEADERSHIP, but we HAVE to work with what we have between now and then. Trust in God, and trust in the heartland of America. This isn't over, but it IS beginning to come to fruition. It is all aligning with the book of Revelation. Ironically, the U.S. is not mentioned in that book. This might be why.
Gotcha. CL, Ramadan starts.
Do I win the prize?
sulmak,
My particular favorite was Photo #16 http://www.washingtonpost.com/wp-dyn/content/gall... , depicting Robert Byrd and drunken Teddy Kennedy. That was back when they had to velcro Byrd into his chair. In this photo, I think the velcro let lose…….
Ramadan dates this year are 1 August – 29 August.
The country deserves to go under. The liberals did it deliberately and the conservatives sat on their hands for decades letting it happen. People get the government they deserve. Feel sorry for your kids, you did this to them.
It's getting REALLLLLLY close to make some heads roll. You can have all the peaceful demonstrations you want. At this point of this Marxist government that's entrenched in DC, all you'll get is another Tiananmen Square. This government has nothing but contempt for the very ones that finance their crime and their lifestyles.
I don't know why you think it worked for Ghandi and MLK. It got them shot and the civil rights movement today is a joke. But by all means, make a sign and walk around DC. Been there, done that. Not doing it again. Next time, it'll be with dry powder.
I'd rather die fighting to free a country from tyranny than live in it. America is over. Welcome the new Amerika. The Marxists won. They're in both parties and they have utter contempt for the ones that finance them. All that's left at this point is Jesus. It was a good run, but it couldn't sustain itself.
"Feel sorry for your kids, you did this to them."
Yup.
Complacency.
Yeeeah, riiiight… Because of Obama's awesome 'winning-ness', and the 'big deal', [that he pouted he didn't totally approve of, ya know, just in case it fails to deliver], Obama will be certain to restore the economy to its full glorious bloom just in time for his magnificently triumphant re-election! Right? That's what's gonna happen alright. Yay Obama for saving the planet as we know it.
Happy days are here again folks! Oh wonder of wonders! Why…I'm gonna go start a small business right now!
That's no deal. Not enough immediate cuts are being realized. As a result, Boehner should face some issues with the freshman in congress. Needless to say all cuts will be back-loaded, and future congresses are not held to decisions of this congress. Interesting item is the clean up of the tax code. That should be a three ring circus with all those special interest groups involved. Best solution is a flat income tax of 15% for both corps and individuals with no exceptions and no exemptions. However, that tax proposal will never pass the senate or administration.
Our credit rating could be downgraded. But don't count on it. The rating agencies were just playing BO politics – crying that the sky is falling and the world will come to an end. Personally, I feel that it should be downgraded. It might force congress to wake up that something serious has to be done about the deficit and runaway spending.
Ohhh, the cuts are precisely zero help. They can only accurately be called cuts in an alternate dimension.
Wow, we gave up nearly everything. The only thing we got was no tax hikes. We got paltry cuts spread out over so many years they won't make a difference even if they are implemented, which they probably won't be because future congresses won't abide by them. We gave up on requiring a balanced budget amendment with a spending cap. We gave in to the demand to postpone the next ceiling battle until after the elections. Exactly what did the Republicans do for us? Sold us out is what. The Democrats know exactly how to play this game: Listen to Republicans talk conservative, hold out until the last second, then the Republicans do 95% of what the Democrats want. They Democrats knew this from history, did it again, and surprise, surprise, we got the same results.
I HATE the Republican party.
How the Tea Party ‘hobbits’ won the debt fight
By Marc A. Thiessen, Sunday, July 31, 2:33 PM
Really? Lets see some details first>
Whoa.
Your statement is not totally correct. Granted, both Ghandi and King were shot, but they did effectuate change through non-violent means prior to their demise. I agree wholeheartedly that today the Civil Rights Movement is a total and absolute joke. But back in the day, in the 1960's, it was not. That was prior to the likes of Sharpton and Jackson hijacking it, and basterdizing it.
If you are planning to go to the Federal City in the Federal District with dry powder, I don't reckon i would advise that. That would get a man shot a whole lot quicker than peaceably sitting down at a lunch counter; but hey, it's a free country, and you appear to be free and twenty-one. Have at it.
Let us know how that works out for you.
Forgot to add, we didn't get enough cuts to prevent a downgrade of our debt, AND Obamacare is firmly in place. We got practically nuthin', folks. Primary 90% of the Republicans in Congress, even the ones who called themselves Tea Party. Evidently they didn't mean what they said.
Uggh… I was hoping it wouldn't be a Republican. I'm actually not sure it is the same person or dog, I thought the poodle was smaller. The problem is far worse than I thought, now I must take a walk.
You must be logged in to post a comment.