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The Next Mythical Cliff: The Debt Ceiling

(10 am. – promoted by ek hornbeck)

Cross posted from The Stars Hollow Gazette

The sequel to the the Bush/Obama tax debacle  is the unconstitutional debt ceiling. According to the 14th Amendment, the US has to pay its bills, even if the government has to borrow the money through bond sales. So the debt ceiling is another manufactured “cliff” that was created to curb spending which it didn’t, obviously, or we wounded be having another media side show staring the White House and the Congressional leadership. So get comfy and grab you favorite munchies as we watch the 99% get raked over the coals.

President Obama:

Obama Debt Ceiling Statement: Limit Increase Not Up For Debate After Fiscal Cliff Showdown

from Reuters

“While I will negotiate over many things, I will not have another debate with this Congress about whether or not they should pay the bills they have already racked up,” Obama said in remarks in the White House.

McConnell: Spending fight coming whether Obama ‘wants it or not’

by Alicia M. Cohn, The Hill

Senate Minority Leader Mitch McConnell (R-KY):

President Obama will get a fight over government spending with a hike to the debt limit “whether he wants it or not,” Senate Minority Leader Mitch McConnell (R-Ky.) wrote Thursday.

In an op-ed for Yahoo, McConnell wrote that Republicans would focus on reducing spending in the next Congress, and in conjunction with the debate over raising the $16.4 trillion debt ceiling. Congress will likely need to take action on the debt limit within the next two months.

“The president may not want to have a fight about government spending over the next few months, but it’s the fight he is going to have, because it’s a debate the country needs,” McConnell warned.

Speaker of the House John Boehner (R-OH)

Boehner tells GOP he’s through negotiating one-on-one with Obama

by Russel Berman, The Hill

Speaker John Boehner (R-Ohio) is signaling that at least one thing will change about his leadership during the 113th Congress: he’s telling Republicans he is done with private, one-on-one negotiations with President Obama.

and just to prove that the 113th Congress will bear little difference to the 112th

Let the games begin: Thunderdome

34 comments

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  1. TMC
  2. Xanthe

    in not negotiating with the Great Negotiator, Obama – the hope of the world – because Obama will certainly cave in to what Boehner and his ilk want.  Though “cave-in” is misleading – it what O wants as well.  Never made a secret of it.

    However – look at it this way.  If he sends the errand boy Biden in again – or some other messenger – Obama looks all the better when the social safety nets cuts come (and come they may).

    There is a story on the internet that Harry Reid took a tougher stand than Biden when SS/Medicare was brought up again and was disgusted with it. Enter the errand boy Biden on behalf of Obama, though Obama’s name is kept a bit at bay.

    When McConnell says O is going to have a fight on the spending side — Duh – O gave up his leverage on the revenue angle. What do we know as to cuts? Defense won’t be hit much, if at all.

    But the working class will be hit in cuts to SS/Medicare – disgustingly Medicaid.

    This am on Morning Joe (God knows why I watched it for a few moments)- I was struck again how well dressed, how healthy and sure of their position in the world these people appear as they talk about “let’s come together on the cuts.”

    Have they no shame – do they know what it’s like out here.  We need a miracle.  The biggest miracle of all is that the American people wake up – all Americans (red and blue)-

    We are being hammered, get it!

    Obama gave up the ghost on the revenue side – lost his leverage – so why should we be surprised it’s going to be austerity hysteria  from now until the debt ceiling showdown.  

    Why, Mika may need a new wardrobe soon –  expensive but tasteful as always – but subdued, the scolds mustn’t appear too wealthy as they talk down to us.  

     

  3. Xanthe

    if people aren’t drugged maybe they’ll take a look at what’s going on around them.

    Internet – scary that.  We need the internet even if it’s bootleg – what could we depend on for gawd’s sake – the mainstream media.  

    but I haven’t been here for a bit, so am surprised to see you are more cynical, Banger, than i remember but then so am I.

    When our children and grandchildren go hungry in larger #s than now — that might be a lightening rod.

    And – medicaid cuts!!  I’m sick!

    Something will happen that may ignite awareness — it may come out of left field  – but I believe it will come.

  4. tahoebasha3

    Yahoos, at Yahoo News:

    . . . . Financial markets that had been worried about the fiscal cliff showdown welcomed the deal, with U.S. stocks recording their best day in more than a year. The S&P 500 achieved its biggest one-day gain since December 20, 2011, pushing the benchmark index to its highest close since September 14.

    The debate over “entitlement” programs is also bound to be difficult. Republicans will be pushing for significant cuts in government healthcare programs like Medicare and Medicaid for retirees and the poor, which are the biggest drivers of federal debt. Democrats have opposed cuts in those popular programs.

    “This is going to be much uglier to me than the tax issue … this is going to be about entitlement reform,” Republican Senator Bob Corker of Tennessee said on CNBC.

    “Now that we have this other piece behind us – hopefully – we’ll deal in a real way with the kinds of things our nation needs to face,” he said.

    The fiscal cliff crisis ended when dozens of Republicans in the House relented and backed a bill passed by the Democratic-controlled Senate that hiked taxes on household income above $450,000 a year. Spending cuts of $109 billion in military and domestic programs were delayed for two months. (emphasis mine) Bigger fights loom after “fiscal cliff” deal.

    This is the kind of misleading information that’s disseminated on a daily ad nauseum basis.  The utter gall to say that the Medicare and Medicaid programs (which we pay into) are the biggest drivers of the federal debt is unbelievable.  So, the unfunded wars and our various side adventures elsewhere in the world ARE NOT . . . . ?  The Bush Tax Cuts (also unfunded) that added $2.4 trillion to the debt between 2001 and 2010 WAS NOT  . . . . . ..?  The bad pharmaceutical bill Bush negotiated did not drive up the costs of medicines, etc.?  Wall Street caused and added NO costs . . . . ? ETC.

    And they keep talking about raising the taxes on those making $400,000 and above.  Removing the Bush Tax cuts is what they refer to as raising the taxes.  But all those making $400,000 and above still enjoy all the tax loopholes afforded by the Tax Code, still not yet dealt with, if it ever will be.

    Yep, we’re in for another disgusting month.

    Only good thing that happened was a number of progressives got sworn into Congress!  But we’ll see about that, too!

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