ABC News: White House, Republicans Strike Tentative Deal To Raise Debt Ceiling

[Bluebear]

White House, Republicans Strike Tenative Deal To Raise Debt Ceiling
July 30, 2011 10:39 PM

ABC News' Jonathan Karl reports:

ABC News has learned that Republicans and the White House have struck a tenative deal to raise the debt ceiling before the Aug. 2 deadline. It's not done yet, but here is the framework of the tentative deal they have worked out, according to a source familiar with the negotiations:

Debt ceiling increase of up to $2.8 trillion
Spending cuts of roughly $1 trillion
Special committee to recommend cuts of $1.8 trillion (or whatever it takes to add up to the total of the debt ceiling increase)
Committee must make recommendations before Thanksgiving recess

If Congress does not approve those cuts by late December, automatic across-the-board cuts go into effect, including cuts to Defense and Medicare.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=433x727367

[Parker CA]

1. WH and R's. Where the hell are the Dems?? If true, garbage, but unfortunately not unexpected. nt

[senseandsensibility]

2. Agreed.

Disgraceful.

[TheWraith]

16. You don't negotiate with the people who agree with you. nt

[Inuca]

51. Don't try to be rational

I am afraid it does not help :-(. Nor does it help to mention that D leaders have obviously been in the loop all along.

[Ruby the Liberal]

3. Shit!

[Stinky The Clown]

4. There ya go.

The Democrats don't matter.

This is NOT good news.

[scheming daemons]

8. Wanna bet Harry Reid endorses this?

[grahamhgreen]

41. With tears borrowed from the crying tangerine.

[FourScore]

5. This is bullshit. n/t

[FLAprogressive]

6. This has been the plan all along, create chaos and urgency and ram something through at the last

minute.

[scheming daemons]

7. Yes... but this "something" does not have SS cuts, does it?

Crazy like a fox.

[kelly1mm]

20. No, just cuts to that worthless program medicare. Winning!

:wtf: :sarcasm:

[Joe the Revelator]

There are no cuts to Medicare. And there never will be because..

Republicans will not allow defense to be cut.

[kelly1mm]

36. You hope. nt

[LaydeeBug]

12. Yup. And progressives have nowhere to go at all...

Remember all the "let it sink" part of DU a while back? WELL EVERY LAST ONE OF THEM OUGHT TO HAVE 'LET IT STINK' rammed to them now.

[alcibiades_mystery]

32. The "plan all along" being how the vast majority of legislation

and legal deals for that matter, are accomplished.

Wow, what a conspiracy. The dealing goes on until the last minute and then gets done all at once. Sounds like every securities issue I ever worked on EVER.

There's a reason they keep the financial printers open all night, you know?

[Le Taz Hot]

49. Absolutely!

And a wide-eyed Obama shrugs, hands palms out and asks, "What else could I have done?" You're right, tt was the intention all along and the only way they could have gotten away with it was with a weak president. I'm sorry, he just was NOT ready for prime time . . . they're making minced meat out of him, and us in the process.

[Zenlitened]

9. NYT has a similar outline:

The deal they were discussing,... would immediately raise the debt ceiling by about $1 trillion and set up a new bipartisan committee that would work to find deeper cuts in exchange for a second debt limit increase that would extend through the 2012 election.

A failure of the new committee to win enactment of its proposal could then set off automatic spending cuts across the board, including to entitlement programs. Other ideas were swirling around the Capitol as lawmakers searched for a way to avoid default. Mr. Reid said he intended to convene the Senate at noon on Sunday and one of his top lieutenants said he saw at least a glimmer of hope.

Link:
http://www.nytimes.com/2011/07/31/us/politics/31fiscal.html?_r=1&hp

[leveymg]

10. Raw Deal. There is no real emergency. The Fed would cover the Treasury if there is

no agreement reached by Tues. This is high order kabuki theater intended to frighten the public and stampede Congress into cuts.

For a discussion of the Fed's emergency powers (that have already been exercised to the tune of $16T in QE2), see, http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x1604107#1604160

[SoutherDem]

11. Where does the $1 Trillion come from???

Defense? Social Safety Net? Just where?

No Tax Increase?

Who gets to be on the Special Committee?

Obama and Republicans? What about Democrats?

Sounds like the Republicans are winning this round.

[JCMach1]

13. What about Sanders?

[elocs]

17. If there are no new taxes, no new revenue, Republicans will strut & crow that they won.

Count on it and try not to puke.

[kelly1mm]

22. Newsflash: If this is the deal then they did win. nt

[Joe the Revelator]

35. How so? What did they get?

No cap. No balance. What did they win?

[kelly1mm]

42. No new revenue, automatic cuts to Medicare - do you really think

this is a win for Democrats?

[CelticThunder]

14. Fucked without getting kissed, as usual.

[toddwv]

15. I would LOVE to say that I was wrong...

but...
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=4941408&mesg_id=4941915

[Jon Ace]

18. Last minute cluster-fuck... yet again.

I hope a lot of people expected this...

[Ruby the Liberal]

19. So much for Obama wanting a "balanced" approach...

[lonestarnot]

24. Back off, you don't know what the fuck deal was struck or even if there really is one.

[Ruby the Liberal]

26. He called for a balanced approach. Neither house of congress did that.

Which leads to believe that *HE* would if left up to him to negotiate.

You see revenues on the table?

Me either.

[Joe the Revelator]

37. Got anything to add other then hate? What did the republicans get?

[jimlup]

21. This concerns me... if true Obama's blundered his 3D chess game...

This isn't good politics and it isn't good for the country for the president to be compromising with the loony tunes Republicans while ignoring the dems. If the senate has any guts they will vote this damn thing down if it doesn't protect some key programs.

God damn it Barack - I'm worried - are you that desperate? I'm not "chilled the fuck out" because I'm really not confident that you've "got this"

[fishwax]

23. 2.8 trillion over ten years?

seems like I saw that somewhere, but it's not in the ABC report ...

[aquart]

25. NO! This is a complete sell-out of the American people.

[Bluebear]

27. Surprise!

[adhd_what_huh]

28. The R's look hateful and greedy....the Pres.

looks reasonable and independent. If the goal is to win back the house and get a larger majority in the Senate then this will help.

[Bluebear]

30. Lolololol

[grahamhgreen]

43. All the Dems had to do was DO NOTHING AND THE BUSH TAX CUTS WOULD HAVE EXPIRED

I don't give a rats ass how he "looks", this means old, frail, people will not have enough to pay their bill and eat.

[adhd_what_huh]

47. just not true....these fake cuts take place years from now

and will never happen because future congress cannot be bound by past congress.

[grahamhgreen]

53. You got an itemized list of those "fake" cuts? Didn't think so.

[adhd_what_huh]

55. do you have a list of THE CUTS...back at ya!

[grahamhgreen]

56. You are the one falsly claiming the cuts are 'fake'. They are real and will most likely result

in real hunger, homelessness or worse for some people.

Note that the 1.2 trillion in cuts is not itemized.
--------------------

Details Of The $2.7 Trillion Senate Democratic Package:

$1.2 Trillion in Discretionary Spending Cuts. The $1.2 trillion in discretionary spending cuts include both defense and non-defense spending. Before Speaker Boehner broke off talks with the White House on Friday, he had already agreed to $1.2 trillion in discretionary spending cuts.

$100 Billion in Mandatory Savings. The proposal includes $100 billion in mandatory savings that were negotiated by Democrats and Republicans participating in the negotiations led by Vice President Biden. These savings will not impact Medicare, Medicaid, or Social Security benefits in any way. The mandatory savings will include:

$40 billion in Program Integrity Savings. The proposal saves $40 billion by reducing fraud and abuse in mandatory programs. This includes: Continuing Disability Reviews and SSI redeterminations, Internal Revenue Service tax enforcement, health care fraud and abuse control, and Unemployment Insurance improper payment reviews.

$30 Billion In Fannie Mae/Freddie Mac Reforms.
$15 Billion In Spectrum Sales
$10 -15 Billion In Agricultural Reforms
Higher Education Program Reforms Whose Savings Go To Sustain The Pell Grant Program

$1 Trillion in Savings From Winding Down the Wars in Iraq and Afghanistan. Winding down the wars in Iraq and Afghanistan will save $1 trillion. Paul Ryan’s budget also included this savings in its deficit reduction calculation, which was supported by 235 House Republicans and 40 Senate Republicans.

$400 Billion in Interest Savings. The package includes $400 billion in interest savings, $220 billion from the discretionary spending cuts and $180 billion from winding down the wars in Iraq and Afghanistan. Both the Ryan budget and the House Cut, Cap and Balance plan similarly included interest savings in their total calculation.

Establishes Joint Congressional Committee to Find Future Savings. In addition to $2.7 trillion in concrete savings, the Senate package will establish a joint, bipartisan committee, made up of 12 members, to present options for future deficit reduction. The committee’s recommendations will be guaranteed an up-or-down Senate vote, without amendments, by the end of 2011. http://www.businessinsider.com/reid-introduces-democratic-deficit-plan-2011-7

[adhd_what_huh]

57. which cuts take place in 2012 and which occur the 9 years after

I'm saying the cuts are scheduled for the out years and that we need to win back the congress in 2012 so we can blow that crap up. A future congress is not have to abide the spending of a previous congress.

[grahamhgreen]

58. And i don't believe the future congress will do anything about it even if we do win it back,

and my reasoning for this is the fact that they could not even do nothing and allow the Bush tax cuts to expire.

[adhd_what_huh]

59. Look-it...we did not have enough Senators to block

the filibuster of the Unemployment extension and had to extend the Bush cuts to get the Unemployment extension to pass the Senate.

They want you to be pissed and cynically. Do not give in.

[grahamhgreen]

60. What we traded was one year of unemployment, for the current crisis which is headed toward

gutting unemployment, and all social programs.

[Tx4obama]

29. ********************* There is NO deal yet **************************

thinkprogress
RT @samyoungman: Dem familiar with situation disputes ABC report

http://twitter.com/thinkprogress/status/97502157829447680

[Chan790]

45. I'm more prone to believe Youngman's being fed disinfo...

doing so creates breathing room necessary to craft a quickly-passable deal before it can be scuttled by trial-balloons or factional fights on the GOP side.

Youngman is more likely as well to report exactly what he is told, whereas ABCNews would not report a statment from the press office if it directly contradicted what they were hearing and seeing though unofficial channels and chatter. The Hill (where Sam Youngman works), like Politico, gets more credibility outside of DC than it deserves...it's basically a political tabloid.

In short, the Youngman post makes me more likely, not less likely, to believe a deal is in-framework and close.

[Starry Messenger]

31. recommend.

[socialshockwave]

33. I'm confused. Is there a deal or not? n/t

[JVS]

46. The deal is unofficial until talking points are issued.

[ClarkUSA]

34. @whpresscorps (White House Press Corps) now reporting ABC info incorrect

[Renew Deal]

40. But the info can't possibly be incorrect. It MUST BE a trial balloon

Because we all know reporters never report BS.

[izquierdista]

38. You've been Shock Doctrined

Now you'll be glad to take the cuts to get them to cut the voltage, won't you?

[grahamhgreen]

39. Obama leads R's to 'cuts only', 'congress canceling', 'no tax on rich amendment' "compromise".

[mzmolly]

44. Medicare ... part D?

ehem.

[DCBob]

48. and yet this may not be enough to keep our AAA rating.

Love em or hate em the rating agencies have tremendous clout on this situation.

[TNLib]

50. Tentative Deal? I'm skeptical

nt

[Marrah_G]

52. So the poor, working class and middle class get fucked over AGAIN

And the fucking wealthy and the corporations continue their hoarding of EVERYTHING.

A great big FUCK YOU to all three branches of Government. You are ALL nothing but PARASITES on our society.

[Name removed]

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