The single most important thing that House Democrats could demand, in exchange for the tax cut bill’s passage, is an increase of the debt limit inside the package. It would in effect protect whatever stimulus you might get out of the bill, and deny Republicans another hostage-taking event.
But Harry Reid is somehow of the mind that House Republicans should have to own that debt limit vote, that they’ll have to come up with some responsible solution, and that it will set a trap with their base. He’s entitled to his opinion. It happens to be extremely wrong.
Sen. Bob Corker (R-Tenn.) said Tuesday he’s hoping to assemble a bloc of senators who will demand tax and spending reforms before agreeing to vote to raise the U.S. debt ceiling next year.
Corker said he’s begun conversations with colleagues looking ahead to a vote next spring on the debt ceiling, a highly anticipated moment that’s seen as a possible turning point in the debate over deficits and U.S. debt.
“I’m already talking to folks on both sides of the aisle,” Corker said on CNBC. “I think you’re going to see resistance to voting for the debt ceiling increase later this spring without us doing something that is real as it relates to all of these issues you are talking about.”
Congress is expected to vote sometime in the first half of next year on legislation to raise the amount of money the government is legally allowed to borrow to finance its deficits. By that point, Republicans will control the House and will have strengthened their numbers in the Senate, and they hope to use the debt ceiling vote as a bargaining chip to secure spending cuts.
And Corker’s Gang of Spending Cuts will have a perfect event to point back to and prove the need for spending reform – the tax cut bill he just voted for along with 37 of his colleagues in the Senate. Since that massively increased the near-term deficit, Team Corker must slash spending – which is not going to fall on defense contractors, but real people in things like Head Start, Section 8 housing or other vital services – to make up for it.
This could not have been a more obvious scenario. Before the vote even passes in the Senate, you see Republicans already preparing for battle. The debt limit vote, and subsequent “compromise,” will wipe out the stimulative effects of this tax cut bill. Book it. And it won’t even take that much in the way of spending cuts to pull that off, considering how weak the stimulus is from the tax cuts.





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Well, I’m underemployed and turning 60 next year and have planned my retirement around social security and medicare at 65. I guess I’ll see.
So let me see if I understand this.
The debt ceiling vote comes up. The Republicans demand cuts to every social program as the price of raising it.
Harry Reid’s plan involves the Senate Democrats and/or the President staring them down and saying “over my dead body.”
Uh-huh.
For the sake of playing devil advocate here:
Republicans will never ever not raise the debt ceiling. It would lead to to lost profits on wallstreet…can’t have that.
That said, Dems will still cave to them. Everyone knows reps are bluffing. Reid and Obama are right that they are bluffing. But dems will still cave, cause in the end, dems really do want to cut social security.
Instead the Dems + President reply, “how about if we fall down and ‘play’ dead?”
Hoocoodanode!
I mean, it’s not like anyone saw this coming…
Democratic defenders, HOW much evidence do you need before you SEE that the Democrats in Washington are IN ON THE CON???
Will it take a TV news conference in which they all get on the teebee machine and confess out loud? WTF?
This is the kind of thing that happens when one pre capitulates. What’s Gibbs going to do now? Come out tomorrow morning and say we’ll eliminate Social Security and medicare if the Republicans will please, oh please allow us to raise the debt ceiling? Thank you Neville Chamberlain.
Wish I was underemployed. Or any kind of employed but “un”.
How many times does Lucy have to steal the football before the Democrats get “it”
Put war spending on the table is the least we can do. Either the GOP finds cuts or the war ends.
This undoubtedly plays into the game Moody’s is playing with the US Debt Rating. We’re being set up like fish in a barrel.
Moody’s is talking about cutting our bond rating lets see the GOP find some spending cuts without ending the wars.
Why bother to prepare for “battle” when it’s a foregone conclusion that, as we’re “enjoying” the Bush III on steriods Admin, we’re going to get everything single thing the Republics want… and MORE!
Obama & Reid *may* engage in kabuki show, although with Obama pre-capitulating on the Bush tax cuts last week, I think Obamaco & the “Democrats” aren’t even bothering to “play act” anymore. From my perspective: why bother?? Cut to the chase and be honest about being the corporate hack-shills that they are, demonstrating very clearly just who they all work for: the Oligarchs.
And it was easy to see from the beginning.
Just like it’s easy to see why they changed the Make Work Pay tax credit to a 2% payroll tax holiday.
At this point they’re becoming so blatant that the only folks not seeing it are ones that just don’t want to see it.
Great idea; too bad it’ll never happen. Conservatives – which includes Obama & just about every single “Democratic” politician these days – will never ever cut warz spending because it’s just d*mn profitable for the big guys ‘n gals.
Who coulda anticipated.
Or just can’t be bothered to pay attention… pass the clicker, I wanna see the World’s Biggest Loser, you loser. /s
I know! I’m sure you’re as *shocked* as I am!
i’m past the point of outrage nowadays. I fully expect to die in the street, hopefully in a long overdue social action of some type, but more likely when the conditions exceed the R value of my
appliance boxhome.Lately, I find it increasingly difficult to remember that we must never give up. But we mustn’t! Illegitimae Non Carborundum!
And Democrats…fucking corporate-owned-Wall-Street-ball-sucking-spineless-bitch Democrats… are giving Republicans the loaded gun, and saying “fire away”
Obama is Keyser Sozé! And like that…poof…the middle class will be gone!
Now that they’ve painted a target on the poor and middle class that is…
Shock Doctrine America funny South America has just recovered from the Shock Doctrine we gave them and the GOP’s precious rich are using their tax cut profits to invest in Lefty countries even with Hugo rather than crate jobs in America.
Wallmart our richest corporation and biggest employer has seen 6 quarters of down sales rather than cut prices they are expanding in other countries.
This is the country we get when people without a conscience are making the decisions.
And the country we get when people engage in reflexive voting. People are still sleepwalking while the house is burning down around their ears.
The WH economists are well CheerLeaders on speed they believe the banks making ponzi scheme bets are saving the economy. Moody’s the rating agencies are in bet with them smoking the same pipe.
The thing is nobody can predict the market much less nobody can predict when a ponzi scheme will fall the thing is the bigger the debt gets the more likely it will fall.
The banks and Government will want us to pay to save them again. They think they can force us to save them and maybe they can…they don’t realize that we don’t have enough cash to save them.
Kooky Kabuki, Act II …
This is what happens when an inbred Ruling Elite does not weed out anyone the psychos instead of going to jail get protected and promoted.
The Bush/Obama economic team if not for the Ivy League should all be Mob bookies or accountants for industrial Meth Labs.
I think they might be looking for scapegoats to blame and Obama is offering them Us, Gays, Hispanic Immigrants etc.
Reminds me of the good ol’ days when the “enemies of the state” were all commie f*g junkies, except it was the Nixonians calling us that.
That things are going to get really bad is no longer in question. We need to be ready with some kind of agenda and positive solutions when the sh*t hits the fan.
The devil doesn’t need an advocate, he does quite well on his own.
I wasn’t alive for that, but proudly wear the title of DFH today :)
Oh, and fuck Nixon.
Didn’t Pat Buchanan come up with that line? He’s still on tv murdering Nun Raping I’m a Contra too bastard the Catholic Church has never threatened to excommunicate him.
Us well they would like to but then they would lose how much of their flock?
Corker is up for re election in 2012. If Dems were smart they’d field his candidate right now. Unemlployment is 9.4% there. 1.2 million kids rely on Medicaid. Half a million relied on food stamps in 2009. Foreclosures are up. If after cutting taxes for the top 2% they want to scream deficit it needs to be pointed out again and again and again from now until 2012.
Everybody is forgetting that the economy is going to grow like gangbusters after this deal is passed. The treasury will have SO much money that the US will be able to afford another war.
Has Corky or Harry or, for that matter O, noticed that the economy is acting kind of shocked right now? As in low vitals, weak, practically immobile?
This tax bill is nearly 2000 pages long and filled with earmarks. That’s passing. Corker obviously isn’t down on that.
we did
love,
Cassandra
Wow, they haven’t even pass the tax cuts yet and are back to screening about the deficit. You would think they could muzzle it for a couple of days. Though, it clearly does not mater to Obama, he doesn’t care that he is being set up.
No one on Obama’s team could figure this out? Why didn’t he demand a debt limit increase as part of his Great Giveaway Compromise?
When I realized it wasn’t there I figured Obama didn’t want to have that vote now. He wants to be able to use it to tell the public that the mean Repubs forced him into giving them those cuts on SocSec. Or Medicare. That’s his MO.
What? Didn’t you have a nice “recovery summer?”/s
…and this is why obama is a Trojan Horse for progressives – he has opened the floodgates for the slovering indecent hoards to realize their wildest fantasies of destroying middle and working class America, turning American workers into 3rd world sweatshop victims.
“Cut to the chase and be honest about being the corporate hack-shills that they are, demonstrating very clearly just who they all work for: the Oligarchs.”
That will never happen because too many Americans would finally wake up from their slumber and realize what is really happening to our country. Far easier to maintain the “us vs. them”, “Democrats vs. Republicans” illusion of a difference in the parties in order to maintain wealth and power.
“At this point they’re becoming so blatant that the only folks not seeing it are ones that just don’t want to see it.”
Exactly. What a sad time for our country at all levels…watching a slow motion train wreck in action.
Gobless you.
I’m in the same pickle because, being disabled they are really going to come after me since SSI comes out of general tax revenues…it’s charity.
I can just see my letter next year. Two years with no COLA are starting to take their toll. As far as I’m concerned they’ve already cut Social Security.But they won’t be satisfied until nobody gets anything.
I still believe this is payback for all us hippies who were the only ones in the last 60 years to protest ANYTHING the government is doing except the tea baggers and they just shoot themselves in the foot every time Armey says “AIM!”
I think we’re all going to have to buddy up in the coming years and stick bodies everywhere there’s space in our houses and on any land.
Hopefully, they will be alive
Republicans = Hitler
Democrats = Vichy France
To reiterate a point I’ve made here before:
We don’t ever need to raise the debt limit, or for that matter, run a budget deficit since coin seigniorage is booked as miscellaneous receipts (just as the Federal Reserve’s net profits are) and not debt. The key point is the Fed buys all coins at face value. For example, a dollar coin costs 12 cents to make, the remaining 88 cents in seigniorage go to miscellaneous receipts.
The Secretary of Treasury has been delegated pretty damn broad seigniorage power (“specifications, designs, varieties, quantities, denominations, and inscriptions”). Tsy could mint a trillion dollar platinum coin (cost of minting is not related to face value) and deposit it with the Fed. The US Mint Public Enterprise Fund is credited with $1 trillion. The Secretary can sweep out the Fund at any time into miscellaneous receipts and the deficit drops by $1 trillion with no borrowing. The Fed will still have to pay interest on reserves to keep the federal funds rate from dropping to zero. With a 0.25% IOR rate, that would cost $2.5 billion a year in reduced Fed profits versus more than $30 billion a year in net interest if Uncle Sam had sold, for no reason at all really, $1 trillion in Treasuries. The things people worry about, geez.
There shall be established in the Treasury of the United States, a United States Mint Public Enterprise Fund (the “Fund”) for fiscal year 1996 and hereafter… the Fund may retain receipts from the Federal Reserve System from the sale of circulating coins at face value for deposit into the Fund… at such times as the Secretary of the Treasury determines appropriate, but not less than annually, any amount in the Fund that is determined to be in excess of the amount required by the Fund shall be transferred to the Treasury for deposit as miscellaneous receipts…
51 USC 5136
The Secretary may mint and issue platinum bullion coins and proof platinum coins in accordance with such specifications, designs, varieties, quantities, denominations, and inscriptions as the Secretary, in the Secretary’s discretion, may prescribe from time to time.
31 USC 5112(k)