Senate GOP mulls new debt strategy

[TerroristFistJab]

 politico.com/news/stories/0711/58801.html

I dont have enough posts to include hyperlinks


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 nationalreview.com/corner/271706/more-contingency-plan-rich-lowry

    The initial legislation would authorize the President to submit a request to Congress asking to increase the debt limit by $700 billion, and would require submission of a plan to reduce spending by a greater amount.

    Upon receipt of the President’s request, the debt limit would be provisionally increased by $100 billion to provide breathing room and avert an August 2nd default.

    The House and Senate would have 15 days to disapprove of the request.

    Within three days of the President’s request, it would be in order for the House and Senate to introduce a joint resolution disapproving of the President’s request.

    Under expedited consideration of the Resolution of Disapproval, the resolution would be placed directly on the Senate calendar; the Motion to Proceed to the resolution would be privileged; there would be 10 hours of debate and passage would require a simple majority.

    If either chamber defeats the resolution, the remaining $600 billion increase would be allowed.

    If both chambers pass the resolution, it would be sent to the President for a veto or signature.

    If vetoed, debate on an override would be limited to one hour.

    If the veto is overridden (which would require a 2/3 vote) in both chambers, then the request would be denied and the provisional $100 billion increase revoked.

    If the veto is sustained in either chamber, the remaining $600 billion increase would be allowed.

    For the second and third requests in fall 2011 and summer 2012, the President could request an increase of the debt limit by $900 billion once the Treasury Department determines that the country is within $100 billion of the debt limit. The President would also be required to submit a plan to reduce spending by a greater amount.  Each of these subsequent requests would be subject to the same disapproval process outlined above.

[NVGonzalez]

I am very surprised to see McConnell fold this early

[cduebelhoer]

I am very surprised to see McConnell fold this early

Agreed.  What's the angle I wonder?

[Iosif]

It lets Republicans vote against raising the debt ceiling without the political fallout from it not getting raised. It's a cop out.

I doubt the house will go for this. They're in kamikaze mode.

[Brittain33]

I am very surprised to see McConnell fold this early

Agreed.  What's the angle I wonder?

McConnell doesn't want to actually destroy the economy.

[Lief 🗽]

So wait... we won? Or?? Because if this happens it sounds like we won...

[Landslide Lyndon]

I am very surprised to see McConnell fold this early

Agreed.  What's the angle I wonder?

McConnell doesn't want to actually destroy the economy.

More likely his Wall Street buddies put the pressure on him to stop fooling around with the global economy.

[krazen1211]

I am very surprised to see McConnell fold this early

Agreed.  What's the angle I wonder?

The angle is to make Harry Reid and company repeatedly vote to raise the debt ceiling smack in the middle of a Senate campaign.

[t_host1]

So wait... we won? Or?? Because if this happens it sounds like we won...

yep, continued dollar dilution, job destruction and destitute dependence - Dem's win.

[True Federalist (진정한 연방 주의자)]

I am very surprised to see McConnell fold this early

Agreed.  What's the angle I wonder?

$700 billion is only about enough to let this last until the middle of the primary season.  Maybe until early April if it has been timed right.

So wait... we won? Or?? Because if this happens it sounds like we won...

An extension that lasts until where people might not get their income tax refunds in the middle of the year is not a win.  Indeed, if Obama goes along with this, he'd be caving from his previously stated position against a short term punt.

[Torie]

Pathetic!

[The Mikado]

So wait... we won? Or?? Because if this happens it sounds like we won...

yep, continued dollar dilution

Considering how relatively low inflation is, I don't know how you can say this.

[TheDeadFlagBlues]

Kevin Drum is really critical of this:
"WTF? This is possibly the most juvenile, most buck passing, most transparently mendacious proposal I can recall from any party leader in recent memory. The bright idea here is to force Democrats to repeatedly vote to raise the debt ceiling during campaign season, and to repeatedly force Obama to lay out enormous budget cuts that have no purpose except to piss off interest groups. The whole thing is so patently, ridiculously political that it's breathtaking. It ought to be named the "Gratuitous Embarrassment of Barack Obama and the Democratic Party Act of 2011.

Does McConnell really think that he's being clever here? That his purpose isn't plain to everyone? The Republican Party has now passed from Alice in Wonderland to Lord of the Flies. It's like dealing with a bunch of kids on a playground. Are McConnell and Boehner trying to prove Obama's point that he's the only adult at the table right now?"

http://motherjones.com/kevin-drum/2011/07/its-now-official-gop-party-sixth-graders

[Lief 🗽]

I think Republicans (and everyone in Washington really) drastically over-estimate how unpopular raising the debt ceiling is. Sure, hardcore teapartiers will base their vote on it, but otherwise it's not a huge game changer. I seriously doubt most Americans even understand what it is.

[TheDeadFlagBlues]

I think Republicans (and everyone in Washington really) drastically over-estimate how unpopular raising the debt ceiling is. Sure, hardcore teapartiers will base their vote on it, but otherwise it's not a huge game changer. I seriously doubt most Americans even understand what it is.

It's not even a minor game changer, people simply don't care all that much about the debt. Even with the huge amounts of media attention on the debt, 42% of Americans think the government should be focused on reducing unemployment as opposed to decreasing the debt.

The idea of Republicans running ads against Democrats for voting to increase the debt ceiling makes me lol. All it takes is one counter ad describing what would happen if the debt ceiling wasn't raised and any small advantage gained by McConnell electorally is dashed.

[t_host1]

So wait... we won? Or?? Because if this happens it sounds like we won...

yep, continued dollar dilution

Considering how relatively low inflation is, I don't know how you can say this.

Lets mark monday 7.11.11 - 120 days prior and 120 proceeding. we'll come back to it.

A heads up - all packaging is presently in down sizing and weight and is in the hopper - look for it on your shelfs starting in 30 - 45 days at a 2 - 6% increase.

[Landslide Lyndon]

So wait... we won? Or?? Because if this happens it sounds like we won...

yep, continued dollar dilution

Considering how relatively low inflation is, I don't know how you can say this.

Lets mark monday 7.11.11 - 120 days prior and 120 proceeding. we'll come back to it.

A heads up - all packaging is presently in down sizing and weight and is in the hopper - look for it on your shelfs starting in 30 - 45 days at a 2 - 6% increase.

Sam, Arkansas is too small a state for your greatness.

[t_host1]

So wait... we won? Or?? Because if this happens it sounds like we won...

yep, continued dollar dilution

Considering how relatively low inflation is, I don't know how you can say this.

Lets mark monday 7.11.11 - 120 days prior and 120 proceeding. we'll come back to it.

A heads up - all packaging is presently in down sizing and weight and is in the hopper - look for it on your shelfs starting in 30 - 45 days at a 2 - 6% increase.

Sam, Arkansas is too small a state for your greatness.

aah ok, it is hot here...

[🐒Gods of Prosperity🔱🐲💸]

well McConnell did say his main purpose would be to stop Obama from getting reelected.  If they were to actually reach a worthwhile agreement with Obama it might get in the way of that, so what we have here is a superficial political solution to a substantive policy problem.  It's a nonstarter and a distraction from trying to find a real solution.

[TerroristFistJab]

thehill.com/homenews/senate/171845-reid-and-mcconnell-expect-to-unveil-plan-b-next-week

Sen. Jim DeMint (R-S.C.), a member of the Senate Tea Party Caucus, pledged on Friday to use “every tool” available to block the "plan B" proposal that Senate Republican Leader Mitch McConnell (Ky.) introduced on Tuesday.

McConnell is negotiating with Senate Majority Leader Harry Reid (D-Nev.) to modify the plan to make it more likely to pass the Senate.

The proposal McConnell introduced would authorize President Obama to raise the debt limit by $2.5 trillion in three requests.

Under the plan, Obama would have to make three requests to Congress which lawmakers could block only through a resolution of disapproval. It gives Obama nearly unilateral authority to raise the debt limit because it would require only 34 votes in the Senate or 146 votes in the House to sustain a veto of a disapproval resolution.

Reid is talking with McConnell about adding $1 trillion to $1.5 trillion in spending cuts to the authorizing legislation.


looks like the  dems are going to win this.

[J. J.]

Obama plan was to stop SS checks; he didn't win it.

[anvi]

The DeMint opposition is interesting, because it puts Republicans on the Hill overtly at odds with one another on the issue.

As many have already noted, there are pretty transparently political motives behind McConnell's proposed "solution;" it does force Obama to take the "heat" for raising the debt ceiling while GOPers get to object each time.  But there is also a structural shift going on here, because the McConnell plan would in effect hand a power that till now belonged to Congress over to the president.  Of course, Congress tacitly cedes more and more power to the executive branch all the time, but this change is pretty dramatically overt.  And it sets a bad precedent.  Congress passes federal budgets, presidents get to edit them a little or veto them, but given its responsibilities, raising the debt ceiling should be the job of Congress.

So, that's two really bad governing precedents the GOP have set this year.  The first one was attaching a policy agenda to raising the debt ceiling.  Granted it was a policy agenda relevant to the debt ceiling, as their goal was long-term spending reductions.  Nonetheless, even under the most dramatic spending cut program, we are going to run government budget deficits for a while longer, whether a Democrat or a Republican sits in the Oval Office, and this gives the opposition party in Congress a free hand to jam the president on the debt ceiling whenever they really want their goodies badly enough. 

But, I guess precedents don't matter anymore.  We're all confirmed political nihilists by now anyway. 

[Bull Moose Base]

Rumor is it's going to be the McConnell-Reid variation.  McConnell's proposal was a clean ceiling lift.  Sounds like Reid intervened and threw $1.5 trillion in spending cuts into the mix.  I predict the public will quickly forget the whole game of chicken happened, though they might feel the effects of 1.5 trillion starting to get sucked out of the economy.  McConnell has of course been pretty transparent that he wants people to hurt so long as they blame it on Obama.  Not that his revealing that makes it more likely they won't do so.  The D base will be frustrated by the lack of revenue but Obama will appease them by calling for more as we head deeper into election season.  The GOP has the tougher political position of no new taxes for anyone but will continue to try to block any bills to reduce unemployment so they can run on that.

[Iosif]

Boehner's going to need a lot of Dems for that to pass the house.

[Bull Moose Base]

Boehner's going to need a lot of Dems for that to pass the house.

And I have a hard time believing he'd pull the trigger on default if it came down to it.  I think Democrats should at this point be counting Tea Party types out and saying we want a clean lift and we know you'll sign off on it.  But all signs are Obama doesn't want that.