Obama reaches an agreement with leaders, but congress must weigh in
Updated on Aug. 1, 2011 at 12:59 AM - Tonight, President Obama spoke in support of a bipartisan deal to reduce the nation's deficit and avoid default. It extends the debt limit to 2013, removing the cloud of uncertainty over our economy and ensuring that no one will be able to use the threat of default now or in only a few months for political gain.
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Obama and Congress are said to have reached a debt deal compromise and full details of a debt ceiling increase and spending cuts are expected this afternoon.
What we know is that the deal hasn’t been signed and until then nothing is final. But Obama and Congress are said to agree on raising the debt ceiling as long as it implements matching cuts in spending.
That means a committee has to form and decide what gets cut during the next five months. With the debt ceiling increase, Obama can borrow into 2012 which gives him a safety net of sorts for the 2012 Presidential campaign.
The military construction appropriations bill is said to be the source of extension funds. If Congress doesn’t agree to increase the debt ceiling, Obama can veto their rejection.
Going into the compromise negotiations, Obama said he wasn’t interested in short-term debt deals or savings plans that included tax increases. As details of the debt deal emerge, revenue increases haven’t been mentioned.
Under the latest agreement, the debt limit rises approximately $2.4 trillion. Republicans are agreeing to the debt limit increase as long as there spending is cut by the same amount. The first trillion dollar cut would go into effect right away. The second would hit in Thanksgiving.
The debt deal includes creation of a “Super Committee” to supervise spending over ten years. The Super Committee will also negotiate trillion dollar spending cuts twice before Thanksgiving. If the Super Committee can’t reach effective compromises in spending cuts, the Congress has to send balanced budget amendments to states for approval.
In the event that doesn’t happen, then Congress and Obama face the challenge of cutting Medicare and defense spending. Without raising the debt limit, most agree that Congress would withhold or stop Medicare benefits, social security checks and military payments.
Navy Federal Credit Union offered pay advances to military members in the event of default.
News that a debt compromise looked more hopeful hit late last night. Senate Majority Leader Harry Reid delayed a 1 a.m. Sunday cloture vote. The delay suggested that Congress was closer to reaching a debt deal.
60 yes votes are needed in the Senate today to end this budget battle on raising the US debt ceiling. Many voters feel Republicans are to blame for the stall that has tainted the US image as a financial superpower. News comment boards repeatedly suggest that GOP hatred for Obama and the desire to paint Obama as an inept financial leader has led to the eleventh hour negotiations that threaten to disrupt global markets.
Asian Markets will open today at 5 pm EST. It is hoped the US will have signed a budget agreement by then.
An article I got form the web: Notice on the page I copied the advertising link about declaring bankruptcy. You have to click the article link to see it..
Update: Aug 1, 1:21 AM EDT - The agreement would slice at least $2.2 trillion from federal spending over a decade, a steep price for many Democrats, too little for many Republicans.Updated on Aug. 1, 2011 at 12:59 AM - Tonight, President Obama spoke in support of a bipartisan deal to reduce the nation's deficit and avoid default. It extends the debt limit to 2013, removing the cloud of uncertainty over our economy and ensuring that no one will be able to use the threat of default now or in only a few months for political gain.
-----------------------------------
Obama and Congress are said to have reached a debt deal compromise and full details of a debt ceiling increase and spending cuts are expected this afternoon.
What we know is that the deal hasn’t been signed and until then nothing is final. But Obama and Congress are said to agree on raising the debt ceiling as long as it implements matching cuts in spending.
That means a committee has to form and decide what gets cut during the next five months. With the debt ceiling increase, Obama can borrow into 2012 which gives him a safety net of sorts for the 2012 Presidential campaign.
The military construction appropriations bill is said to be the source of extension funds. If Congress doesn’t agree to increase the debt ceiling, Obama can veto their rejection.
Going into the compromise negotiations, Obama said he wasn’t interested in short-term debt deals or savings plans that included tax increases. As details of the debt deal emerge, revenue increases haven’t been mentioned.
Under the latest agreement, the debt limit rises approximately $2.4 trillion. Republicans are agreeing to the debt limit increase as long as there spending is cut by the same amount. The first trillion dollar cut would go into effect right away. The second would hit in Thanksgiving.
The debt deal includes creation of a “Super Committee” to supervise spending over ten years. The Super Committee will also negotiate trillion dollar spending cuts twice before Thanksgiving. If the Super Committee can’t reach effective compromises in spending cuts, the Congress has to send balanced budget amendments to states for approval.
In the event that doesn’t happen, then Congress and Obama face the challenge of cutting Medicare and defense spending. Without raising the debt limit, most agree that Congress would withhold or stop Medicare benefits, social security checks and military payments.
Navy Federal Credit Union offered pay advances to military members in the event of default.
News that a debt compromise looked more hopeful hit late last night. Senate Majority Leader Harry Reid delayed a 1 a.m. Sunday cloture vote. The delay suggested that Congress was closer to reaching a debt deal.
60 yes votes are needed in the Senate today to end this budget battle on raising the US debt ceiling. Many voters feel Republicans are to blame for the stall that has tainted the US image as a financial superpower. News comment boards repeatedly suggest that GOP hatred for Obama and the desire to paint Obama as an inept financial leader has led to the eleventh hour negotiations that threaten to disrupt global markets.
Asian Markets will open today at 5 pm EST. It is hoped the US will have signed a budget agreement by then.
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