Obama quickly signs bill, behind closed doors.
Treasury won an immediate reprieve of $400 billion in new borrowing authority Tuesday, as the Senate gave final approval to a hotly contested debt and deficit-reduction agreement hammered out with the White House Sunday night.
The bipartisan 74-26 roll call followed a 269-161 vote in the House Monday evening and the bill was quickly signed by Obama, ending an unprecedented, hard-edged political struggle that pushed the nation to the brink of default.
Indeed, the stakes were far larger than the April shutdown fight, and more than any single event this year, the debt ceiling fight captured all the power—and critics would say extreme risk-taking—of the anti-government backlash that fueled the GOP’s gains in the 2010 elections.
……The immediate $400 billion will be followed by a second $500 billion adjustment in the debt ceiling this fall that is all but guaranteed under the procedures agreed to by the Republican leadership. And to get through 2012, Obama will be able to tap another $1.2 trillion to $1.5 trillion depending on the success or failure of a new joint committee assigned to report a major deficit reduction bill by late November.
The first two increments, totaling $900 billion, are offset by $917 billion in 10-year savings achieved by cutting annual appropriations down to $1.043 trillion in 2012 –nearly $100 billion below Obama’s February budget—and then slowing the rate of future growth to a fraction of inflation.
$2.4 $7 trillion more in debt.
The debt compromise passed the House on Monday evening with a vote of 269-161.
174 Republicans and 95 Democrats voted to pass the debt ceiling increase, while 66 Republicans and 95 Democrats opposed the debt deal. Three Democrats did not vote in favor or against.
After Speaker Boehner announced that the compromise passed, cheering was audible from House members.
At $32 billion per page.
The government immediately started borrowing again as soon as the debt increase gave it the green light. The government just got a blank check for higher spending, thanks to the scare tactics by Washington politicians.
The debt ceiling isn’t the crisis, the real crisis is debt, deficit, and insane spending. If you think this country’s economic condition was bad before, just wait for the effects of this latest disaster to kick in.
At least one columnist thinks that Tea Party principles prevailed in this, that the goal of reducing government to its pre-welfare state level is becoming realized.
Boehner says he got 98% of what he wanted. We’ll see how the rest of us feel about that.
James Taranto describes the wailing and gnashing of teeth by the Left.
I don’t think the bill has gone far enough by a long shot. Raising the debt ceiling simply gives the feds more permission to spend. I guarangoddamntee you that it will bust right on through that new debt ceiling and we will see another battle in Congress, complete with more Dem scare tactics over the “poor, elderly, social security, medicare” crap.
Speaking of battle, the fight over tax hikes and cuts is about to start all over again.
The circus continues.
Democratic and Republican leaders in both chambers of Congress will meet with their caucuses Monday for a hard sell of a compromise debt-reduction package that gives Obama up to a $2.4 trillion hike in the debt limit as long as lawmakers can find an equal or greater amount in spending cuts.
But even if they can’t come up with solutions, the cuts will be found for them. If a committee set up by the proposal fails to have their recommendations for additional cuts approved by the end of this year, a “trigger” in the plan will automatically enact across-the-board cuts.
“…as long as lawmakers can find an equal or greater amount in spending cuts.”
Good luck with that.
I can hardly wait to see the names of the ‘bi-partisan’ debt committee. They’re going to get so much email from me it will make Obama’s twitter campaign look like a picnic.
Here is a look at what is in the framework of what is called the Budget Control Act of 2011.
There are still so many flaws in this shit it’s unbelievable. The debt goes up by 2.1 trillion right away, and spending cuts may or may not happen to the tune of .9 trillion.
Regardless of what happens now, we are still likely to lose our AAA rating. If Moody’s and Standard & Poors had been doing their jobs we would have lost that rating a hell of a long time ago. Any country that borrows, spends, and wastes revenue the way ours does, doesn’t deserve a high rating.
Michelle Malkin has running updates.
BTW: The American government has defaulted before and royally screwed the American people under the Dems and FDR.
Another bad thing in the proposal: Leaving future decisions on the deficit and debt reduction to a committee instead of firming up those requirements through legislative action. Not good.
John Boehner’s Power Point presentation of the debt framework, HERE.
Summary of the bill:
It would immediately increase the debt limit by $400 billion, with another $500 billion envisioned unless Congress blocks it. At the same time, it would cut more than $900 billion over 10 years from the day-to-day operating budgets of Cabinet agencies. For the budget year that begins Oct. 1, spending would be held $7 billion below current levels.
The measure also establishes a 12-member House-Senate committee that will be charged with producing up to $1.5 trillion in additional deficit cuts over a decade. If the panel succeeds, Congress will be required to vote on the recommendations without possibility of changes.
If the panel deadlocks or fails to produce at least $1.2 trillion in deficit savings, then spending cuts are to take effect across much of the federal budget. The Pentagon, domestic agencies and farm subsidies would be affected, as would payments to doctors and other Medicare providers. But individual benefits under Social Security, Medicaid, Medicare and programs for veterans and federal retirees would be exempt.
At the same time, the debt limit would rise by at least another $1.2 trillion, and perhaps—depending on the results of the committee’s work—as much as $1.5 trillion.
Additionally, the legislation requires both the House and Senate to vote on a balanced-budget amendment to the Constitution.
The bottom line:
The reason our economy is in such crappy shape, is because of the wild-assed spending that keeps busting through whatever debt ceiling we have, from administration to administration. Obama took our country to hell in a socialist handbasket with hostile government-forced takeovers of 2/3rds of the auto industry and the engineered collapse of the banking infrastructure.
He took a bad economy and made it worse by destroying America’s financial stability. To justify his tactics, he holds up seniors and the disabled as a fear factor. We are in serious trouble. Moodys and Standard & Poor’s keeps raising their own red flags with the looming threat of losing our AAA rating.
The last time we lost our high credit rating was just after Pearl Harbor. Obama has created his own Pearl Harbor with a kamakazi-style attack on our Democratic Republic. His visceral hatred for successful entrepreneurs and support for union thugs—not the working people who struggle through life under the strain of increasing government intrusion—is reflected in every one of his domestic policies.
A $14 trillion debt, uncontrolled borrowing and spending, higher taxes on the horizon, the economy in a nosedive, high unemployment, a lengthy history of government mismanagement, and a Marxist regime that refuses to stop gouging people for their class war.
The train wreck has to stop.
- After Sweeping Away The Debt Ceiling Rubbish (businessinsider.com)
- Mean Street: Why the Debt Ceiling Debacle Is a Good Thing (blogs.wsj.com)
- From the WSJ: A breakdown of the debt-ceiling deal, as it currently stands. With specifics. (shortformblog.tumblr.com)
- Negotiating All But Done for $2.7 Trillion Deficit Reduction Deal … Now Comes the Selling (blogs.abcnews.com)
- If You Think You’re Upset About the Deal, Read the Liberals http://minx.cc/?post=319569 (Ace of Spades)
- American Sauce: Debt deal cheat sheet (politicalticker.blogs.cnn.com)