Debt Discussions Continue, Still No Decision and The Clock is Ticking Towards Default
In Washington budget discussions between the president and the GOP rivals got to a tension filled standstill. This lead to a proposal made by a top Republican, which stated that the president temporarily receive more power to allow a debt limit increase without receiving the approval of the already divided Congress.
Lawmakers have been summoned at the White House today in order to attempt another negotiation. The negotiation on Tuesday did nothing else than make room for the poisonous exchange of accusations and provocations between Republicans and Democrats.
GOP leader Mitch McConnell stated that he cannot see any possible decision as long as Democrats keep insisting on increased revenues. Therefore he will offer his support for the request made by the president for borrowing authority. He also said that the Congress could thwart this decision only if they obtain the majority of votes to deny him.
McConnell’s plan started some intense debates and was immediately opposed by tea party conservatives which made it unlikely that it would pas the House. On the other hand, neither the president or House Speaker John Boehner felt like dismissing the plan on the spot.
Boehner explained that in an interview for Fox News where he stated that everyone would like the existence of a back-up plan in case there can be no diplomatic agreement between the parties. He also applauded McConnell for his bold move and stated that “Mitch has done good work”.
Considering McConnell’s proposal, Obama could have great chances in securing a debt increase of $2.5 trillion within three separate installments during this year and the next one. He could also make happen the previously proposed spending cuts, or even make spending cuts of bigger size.
The debt limit increase would take automatic effect unless it would be blocked by Congress according to some special. But that action would have to be made swiftly, and even then President Obama would still submit that legislation to veto. The only obstacle is that no one could guarantee that the president receives the necessary votes for increased spending cuts.
Conservative activist Brentt Bozell launched an attack at McConnell’s address stating that he “serves as a check for Obama’s uncontrolled spending”. He also stated that these kind of “shenanigans” lost the Republicans the power in 2006.
McConnell made his proposal public only a few hours before the third meeting of this week started, still seeking ideas to avoid the upcoming default.
Several Democratic officials stated that Obama did not openly reject the idea proposed by McConnell, but also stated that it’s not his “proffered approach”.
McConnell’s plan might have been hatched out of frustration seeing that the Congress and the president are stuck in details while the default date draws nearer. But what if it is a good one?11