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Senate Republicans unexpectedly proposed yesterday that Pres. Obama be given new powers allowing...

  • Wednesday, July 13, 2011, 5:45 AM ET
    Senate Republicans unexpectedly proposed yesterday that Pres. Obama be given new powers allowing him to request an increase of up to $2.5T in the debt limit as long as he simultaneously suggested spending cuts of greater size. Notably, legislative technicalities mean the debt limit increase would be a shoo-in with no guarantee the spending cuts would ever face a final vote.
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This news story has 21 comments:

  •  
    The fear of default has caused a bull rally in Treasury issues. I would expect that this news would take away the default fear and bonds should now decline. If there was to be a default, there most probably would not be a flow of new issues for refunding. Supply and demand would dictate a decline in interest rates. I read on a blogger's analysis that the flow of tax receipts could fund the flow of payment in the short run. With Congressional authority to increase the debt limit - expect a flood of new issues hitting the market with a corresponding sharp increase in short-term rates.
    13 Jul 2011, 06:09 AM Reply Like
  •  
    Not only is the canned kicked, but congress now abdicates it's power? Wowza. It isn't the executive branches job to create spending bills and levee taxes...that responsibility is the legislative branch. Since they have been incapable of doing their job (+800 days with out a budget) can we kick them out and get some fresh blood in there?
    13 Jul 2011, 06:23 AM Reply Like
  •  
    Party lines disappear when Congress is threatened.

    But this proposal would be good. It would basically mean there is no debt limit.
    13 Jul 2011, 06:28 AM Reply Like
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    Cynic - Here's a thumbs down.
    13 Jul 2011, 08:24 AM Reply Like
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    The Republicans know the debt limit has to be raised. This is a way for them to save face. Darn, I wish I could remember who the Republican was that was bad mouthing the current crop of Republicans. I too am a Republican that does not like the current crop. I hope the radical right Teabaggers get dumped in Boston Harbor and soon before they complete the destruction of this country that GW started.
    13 Jul 2011, 06:50 AM Reply Like
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    We most certainly need to increase the Debt Limit.

    But, this proposal is just Political Theater. It is just a convenient way for Congress to continue its gridlock and get nothing done. It virtually assures no meaningful action on the budget.

    The Republicans have realized that a budget deal means revenue increases. They are starting to accept that their hard line won't get it done. So, they now are willing to throw the whole budget compromise under the bus rather than make concessions.

    Just another example of Dogma over Reason.
    13 Jul 2011, 06:58 AM Reply Like
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    The devil is probably in the details.
    13 Jul 2011, 07:13 AM Reply Like
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    Agree with you all. Cowards way out, just a way to make sure ya get re-elected. Obama should stick with the big plan, nows the time. Well, 20 years ago was the time.
    13 Jul 2011, 07:27 AM Reply Like
  •  
    Here is one dems take on this:
    The republikan leadership got their arms twisted by their smart base, the CEO's. So they raised the debt limit, but in a way that's so convoluted that their dumb base, the tea party guys, wouldn't understand what was going on.
    Whatever. We dems are happy with this move.
    13 Jul 2011, 07:55 AM Reply Like
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    I don't know. I'd rather a grand deal be made. Yes, close to impossible, but let them do their damn jobs.
    13 Jul 2011, 08:04 AM Reply Like
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    Trust me, the Tea Party will see this a s a massive cave in by the Republicans. And trust me....they will be pissed to the max and will show it in 2012. This is the most insane idea....but it is typical of the RINO's.
    13 Jul 2011, 08:26 AM Reply Like
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    being a middle of the roader, I normally like to see something close to a 50/50 mix of Dems and Repubs. I think neither party has all the answers and a good mix of ideas and compromise is good. In my 40 yrs of voting the large majority has been for the Repubs, but, this time I hope the Teabaggers and the mainline Repubs fight amongst themselves and get their collective butts kicked out of office.
    13 Jul 2011, 09:09 AM Reply Like
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    This is a ploy to put the ball in Obama's court and set up any increases in debt as contingent on Repub demands.

    If it works it's actually a loss for Obama and it is very slick maneuvering on the Repub part.
    13 Jul 2011, 08:34 AM Reply Like
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    I'm thinking just the opposite. The Dems get the increased Debt limit without any cuts to social programs. Plus the Republicans said no increase in DL without cuts and they are the authors of the plan circumvent these cuts. Looks to me like the Republicans are scrambling to cover their ignorant asses.
    13 Jul 2011, 08:58 AM Reply Like
  •  
    Here are the intersting parts in my view:

    "the president's spending cuts would be debated under normal procedures, with no guarantee they ever come to a final vote."

    "There was little or no dispute among senior officials about the importance of avoiding default."

    "In essence, McConnell's proposal would greatly enhance Obama's authority to avoid a default, while also virtually absolving Republicans of responsibility if one occurred."


    In the end however, Republicans effectively neuter his ability to pass any tax increases, period, while forcing him to take the burden of both proposing and putting in effect spending cuts.

    It almost looks like a kick-the-can setup but it seems to rebalance the field in the Republicans' favor.
    13 Jul 2011, 09:44 AM Reply Like
  •  
    And a reason for Obama to ignore it. Just push for the reform! Would everyone just show some guts!
    13 Jul 2011, 09:52 AM Reply Like
  •  
    Raise debt ceiling.

    Raise taxes for all, including repeal Bush tax cut.

    Cut spending across the board.

    That's the only logical choice.

    Contrary to Bohner (moron) this is EVERYONES problem, not just another bi-partisan smokescreen diversion.
    13 Jul 2011, 09:54 AM Reply Like
  •  
    Pain/responsibility has to be felt by all.
    13 Jul 2011, 09:59 AM Reply Like
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    So the end result is....
    Repubs give Obama power to raise the debt limit himself but it can be blocked by Congress.
    Obama raises the limit
    Republicans vote against it then go on TV saying how they are trying to stop his power mongering.
    13 Jul 2011, 10:12 AM Reply Like
  •  
    And what if Obama say "what you are asking me to do is unconstitutional, it is your job, so do it."
    13 Jul 2011, 10:47 AM Reply Like
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    As we move closer to default, it can't be repeated enough that Republicans have always told us that we spend too much and if we don't get this problem under control we will default on our debt, go bankrupt and ruin our economy.

    The Republican solution for this?.... Default on our debt, go bankrupt and ruin our economy.
    13 Jul 2011, 01:30 PM Reply Like
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