I noticed a fair bit of good Democrats and Obama defenders throwing cold water on what Elizabeth Drew reported in the New York Review of Books about back-channel negotiations aimed at a “grand bargain” on the budget, tax reform and even entitlements. Jon Chait didn’t like the sourcing. Neither did Kevin Drum. At least Steve Benen acknowledged that there have been bipartisan talks happening in the Senate since at least December, but he doubted much would come of them.
A day or so later, the New York Times reports on… back-channel negotiations aimed at a “grand bargain” on the budget, tax reform and even entitlements.
The White House has already opened back-channel conversations to test Republicans’ willingness to negotiate about the soaring costs of Medicare and Medicaid, Social Security’s long-range solvency and an income-tax code riddled with more than $1 trillion a year worth of loopholes and tax breaks.
The Senate Republican leader, Mitch McConnell, all but invited Mr. Obama on Tuesday to start huddling about the issues, and a bipartisan group of senators held a third meeting to write debt-reduction legislation based on the recommendations in December of the majority of a bipartisan fiscal commission established by the president [...]
While no budget summit is imminent, Mr. Obama said he and Republican leaders are “going to be in discussions over the next several months.” He said moving forward required “a spirit of cooperation between Democrats and Republicans. And I think that’s possible.”
And the Washington Post basically had the same thing.
“This is not a matter of ‘You go first’ or ‘I go first,’ ” Obama said. “This is a matter of everybody having a serious conversation about where we want to go and then ultimately getting in that boat at the same time so it doesn’t tip over.”
In the Senate, where the December deals were forged, Republicans were receptive to that message. But they argued that Obama missed a chance in his budget to send a signal that costly entitlement programs are on the table.
“Entitlement reform will not be done except on a bipartisan basis with presidential leadership,” Senate Minority Leader Mitch McConnell (R-Ky.) told reporters. “I’ve been inviting the president to have that conversation since he took office two years ago,” he added. “It doesn’t have to be in public. We all understand there are some limitations to negotiating significant agreements in public.”
More from CNN.
Here’s the lay of the land. Republicans want to hide behind the President in doing anything that cuts Social Security or Medicare. Surely they will turn right around the next election and accuse Democrats for implementing the cuts; consistency ain’t their strong suit. But it’s crucial to them that Democrats, not Republicans, kick off that conversation. The White House is basically resisting that push, and wants everybody to jump in the boat at the same time. This has been their longtime theory of governing – let Congress take the lead, say nothing definitive publicly, work behind the scenes. But the end result is exactly the same.
The Obama Administration has wanted this kind of grand bargain ever since they walked into the White House. They scheduled a fiscal responsibility summit with Pete Peterson as the lead speaker a month into their term (Peterson got dropped after public outcry). As Ezra Klein notes, the entire class of new people Obama brought into the White House – Bruce Reed, Gene Sperling, Jack Lew, Bill Daley – are deficit hawks who pursued deficit reduction in the Clinton Administration, and wanted entitlement “reform,” too, before the Lewinsky mess. Reed was the executive director of the cat food commission. And the Administration clearly believes they can take the deficit “off the table” and secure their futures in the next election. You’d have to be willfully blind not to notice what’s happening here.
The framework for this “grand bargain” is already in place, with the cat food commission report and the bipartisan group in the Senate using it as a baseline.
A bipartisan group of senators that has been meeting behind the scenes during the past several months is emerging as the focal point in a battle over spending with no obvious end in sight. The gang met again Tuesday morning and Democrats uninvolved with the group were tipped off about the talks at a lunch with colleagues later in the day.
Five of the six key members of the group are the usual suspects: Budget hawk Kent Conrad (N.D.) and wheeler-dealer Mark Warner (Va.) on the Democratic side, joined by conservative Republicans Mike Crapo (Idaho), Saxby Chambliss (Ga.) and the Dr. No of the Senate, Tom Coburn (Okla.).
The sixth man is Dick Durbin (Ill.), the Democratic whip whose liberal bona fides make him an unlikely ally of the deficit hawks. A Durbin aide said that the number-two Senate Democrat has joined the group’s negotiations so that progressives have a seat at the table, arguing that such discussions would be taking place with or without liberal input.
At least two of those six Senators – Dick Durbin and Tom Coburn – are either personally or politically close to the President. Kent Conrad is retiring and doesn’t really care what happens. Four of the six voted for the cat food commission report (Durbin, Conrad, Coburn and Mike Crapo). They’re calling themselves the D-triple-C. Like the campaign committee.
Why deficit reduction needs to happen now is impossible for even supporters to explain. It’s just moral and just and we all have to share in the sacrifice. Of course, the people making the decisions won’t have to personally sacrifice at all, while those suffering the consequences of the decisions, who have almost no voice in them, will see their safety net in tatters and the economy a shambles as well. The other major country going full-bore for austerity right now, Britain, has seen GDP drop and unemployment rise as a direct result.
A few groups have raised concerns about these grand bargain talks, but not nearly enough to make them toxic. One such group, Democracy for America, organized a meeting between them and a Durbin staffer in Illinois. When talking about potential cuts in Social Security, the staffer told the organizer, an older woman, “Don’t worry, it won’t affect you.”
That’s how these people think. If they just exempt the power-brokers, they can make everyone else suffer. Never mind the fact that letting the Bush tax cuts expire and moving to the tax rates of the Clinton era would COMPLETELY END THE NEAR AND MEDIUM-TERM PROBLEM.




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But .. but .. but .. you are a firebagger!! .. and you are not to be believed .. no matter what .. because you are mean to the President!
I do not think deficit hawk is the right word here. I do not recall any of these people demanding stronger health care cost controls, insisting that wars be funded, or fighting back against the extension of the Bush tax giveaway for the rich. These people are proponents of the Predator State, and opponents of social insurance.
That is not the same thing.
The next round of responses will be the votes are not there. We are in Step 2.
Step One – How dare you draw any inferences that are not entirely based on statements by Obama himself? Obama Derangement Syndrome! Hysteria! HYSTERIA!
Step Two – He’s saying these politically unpopular things for political reasons. He doesn’t mean it. Besides, the votes are not there. It could never happen.
Step Three – Obama has to support this odious policy that now has the votes. The Republicans are making him do it (somehow). Why are you against compromise? Rome was not built in a day. FDR left African Americans out of SS.
Step Four – What are you stupid? Everyone knew the President (who must always be trusted) didn’t mean those things. You were not listening to the fine print. Besides, we all always wanted this odious policy, you commie!
Repeat
Step Five – Add deficit reform to the lists of “big things” this president has done. No one can doubt he’s accomplished more than any other president since FDR or maybe Lincoln.
“Entitlement reform” has been the unhidden dream of Rubinites, including Obama, for years. I give you Obama at the very beginning of his presidency.
http://blogs.abcnews.com/george/2009/01/obama-calls-for.html
Right on with those steps. I would throw in a few other quotes into Step Three. “Its a first step” but, don’t ask what those other steps are. “This budget won’t please every body on the radical left or the right, but we all must make sacrifices” and by all he means only americans who make less than $200,000 a year.
Great additions to my list from both David and Hopeful.
Same BS we heard before the “tax reform” in 1986. Back then the mantra was “money made by money should be taxed at the same rate as money made by people.” Almost all middle-class tax breaks were gutted and taxes on capital gains were raised. The rich complained and the capital gains rates were quickly restored (reduced), but the middle-class breaks were gone for good. Oh, and the highest bracket went from 50% to 28%.
Apparently transparency is no longer “vital” since elections are over. And, as the late George Carlin said, “Bipartisanship just means there’s a bigger than usual deception taking place.”
I love it! Great term.
It is the title of a book by Jamie Galbraith: The Predator State: How Conservatives Abandoned the Free Market and Why Liberals Should Too.
Highly recommended.
Grand bargain means only one thing to me: the poor & middle class get screwed.
Then start by rescinding the idiot tax cut bill from 12/10, and eliminating the cap on SS withholding, you corrupt moron shithead fucktards.
Not included in the “grand bargain.”
Of course not. Part of the Grand Bargain is that you have to pay for your own.
It has to happen now because that’s the Village narrative. And our government responds to the Village and not to the people.
Thanks for referencing Eliabeth Drew. I’ve been getting tired of Politico being everyone’s primary source for “what the Obama administration has been doing”.
You are right on the money about the Republicans wanting to hide behind Obama and the Congressional Democrats in cutting Medicare and Social Security. Too bad that Democrats are not smart enough to hide behind the Republicans on cutting military spending.
Yes, economically this is Hooverism writ large. The only action left to get the economy moving is direct action demanding that corporations take the money that they have on the table and invest in good jobs. Oh, wait. I forget. This is not Egypt.
The word you are thinking of is “deficit peacock”.
For more on the Grand Bargain, here’s the DLC’s Will Marshall in 1999:
Who other than Clinton? His Rubinite heir, Barack Obama, of course.
They’ll call it “The New Steal”!
I will note for Mr Obama’s sake that after going to China (the 1970s equivalent of the current Grand Bargain) Richard Nixon was driven from office. A cautionary tale, if you will.
These Grand “Bipartisan” Bargains always amount to Democrats going against their own rhetoric to go along with the bullshit that the Republicans’ rhetoric is designed to make sound good, though it isn’t.
Absolutely. The discussions are around who will take the political heat for cutting Soc. Sec., Medicare, School funding, school lunches and who knows what else (other than the sacred cow of homeland bullshit) all the cuts are a done deal. The only thing that might be not yet settled is how much the payoff to the Great WH Whore is for this particular deal.
Priceless!
Heh. OFA email, just arrived on this subject, includes everything but jobs. Giving respondents limited veal pen choices.
Got that, too. Went in the round file.
I emailed it back say “jobs; nothing you mention is worthwhile until there are jobs.” Didn’t get an error back, but I suspect all returns go into their round file.
Yep, and I won’t be satisfied until Obama sits down and talks WITH me – not at me.
‘Cause nothing bad ever comes from secret deals by politicians.
Obama – the corrupt moron shithead fucktard – only meant that it’s time to get serious about deciding which way to screw over the American people so the super rich can keep on fiddling for a few more years.
Bingo.
Everything in this administration has been secret. These jerks are worse than Nixon.
O/T. Taibbi’s latest is now up. Here.
It’s all about Obama winning the suburbs in 2012. Throw the poor under the bus (those that are still standing).
@Phil
lol! better to laugh then cry
The idiotic thing is that the Republicans have no candidate to oppose Obama, so he doesn’t have to throw the poor under the bus, unless as some here have proposed, he always meant to.
Separate state form government…officially that is. Corporate divinity state. S)
Step Six.
“I have a life threatening ailment, oh you bet I do! You must want me to die if you criticize Barack -corrupt moron shithead fucktard- Obama’s insurance company bailout scam! Bastard!
Bleat!”
Wow Borders is out and has it back ordered. The link shows interesting reviews. Galbraith criticizes liberals as well.
Change could have come after the meltdown, now less likely.
“They’ll call it “The New Steal”!
Good one!
Obama Mubarak same policies torture, corruption and stand on the little people. Is there a diference?
I think Borders is closing. You might want to try someone else.
You are right, that it is not just a critique of conservatives. He also describes how many liberals have accepted many conservative ideas, which ensure that their solutions are only tinkering around the edges rather than getting at the real problem. And attempts to win conservatives over by adopting these stances will not work when they abandoned them a long time ago.
We MUST keep the pressure on these guys as the pressure we put on OB and Congress in NovDec had a positive effect…we MUST keep the message out that opening up the cap is the right answer not cutting benefits…
Can’t let these guys get away with this crap!!!
Anyone who is terminally ill knows that Obama’s HCR plan is not going to save their lives or save their homes. It is Obama who wheels out the threat of their losing care as a consequence of Republican opposition to HCR. You might want to hold Obama responsible for doing that and not those who are ill. Just sayin’……
Cutting SS will not go over well in the suburbs, or anywhere outside of the veal pen.
I was implying that rather than being Bleated by people who were actually ill, Step Six was Bleated by OFA/CoC operatives such as HBGary and various sockpuppets. I realize I wasn’t entirely clear about that, but it seems obvious that Step Six would be a necessary part of perception management to the various scumbags involved. Billable hour units are billable hour units, after all.
What scares me is how Obama, Lew and Geithner talk of the lame duck give away to the rich as being an example of great bipartisan achievement … If that cave in is the best they can do we can kiss Social Security goodbye.
Well no. They are afraid of us, that’s why all the subterfuge and doubletalk. SS isn’t called the third rail for nothing. Shake your ass, Barack.