|Boehner, Obama and Reid (Whitehouse.gov)|
"If an agreement is reached to raise the debt ceiling but nothing meaningful is done in terms of deficit reduction, the U.S. would likely have its rating cut to the AA category, S&P said." (Reuters)
"The U.S. government may lose its AAA credit rating even if lawmakers reach a plan to avoid a default, said Mohamed A. El-Erian, whose Pacific Investment Management Co. is the world’s largest manager of bond funds." (Bloomberg)
Monday July 25, 2011
*Harry Reid's plan vs. John Boehner's "Cut, Cap & Balance" plan (Bloomberg)
"Boehner’s two-step plan would raise the U.S. borrowing limit by up to $1 trillion, with larger spending cuts, and require a new vote on more reductions before an additional $1.6 trillion debt-limit increase next year. It could be voted on in the House within two days. Obama and Senate Democrats oppose a short-term extension, which could lead to another debt standoff next year.
By contrast, Reid’s proposal would cut $2.7 trillion in spending and give Obama the full $2.4 trillion in additional borrowing authority he seeks, enough to get through the 2012 elections."
Speaker Boehner's response to Obama's address (CSPAN.org, 7/25/2011)
President Obama's statement to the nation on the debt limit (CSPAN.org, 7/25/2011)
House Speaker John Boehner's news conference (CSPAN.org, 7/25/2011)
Senator Harry Reid's news conference (CSPAN.org, 7/25/2011)
No endgame in sight as debt default looms (Reuters)
Sunday July 24, 2011
‘Gang of Six’ Plan Derails Boehner-Obama Deal (Bloomberg)
Republicans, Democrats Prepare Rival Debt Plans (Bloomberg)
Republicans Back Short-Term Debt-Limit Agreement, Risking Veto From Obama (Bloomberg)
John Boehner on Fox News: Debt Limit Solution Must Adhere to Principles of "Cut, Cap, & Balance" (Youtube, 7/24/2011)
Cut, Cap & Balance = "spending cuts and reforms exceed any debt limit increase; the cause of a balanced budget amendment to the Constitution is advanced; and there are no tax hikes"
Reid Statement On Status Of Debt-Ceiling Negotiations (Senate.gov)
"Washington, D.C. – Nevada Senator Harry Reid released the following statement on the status of debt-ceiling negotiations.
“Tonight, talks broke down over Republicans’ continued insistence on a short-term raise of the debt ceiling, which is something that President Obama, Leader Pelosi and I have been clear we would not support. A short-term extension would not provide the certainty the markets are looking for, and risks many of the same dire economic consequences that would be triggered by default itself. Speaker Boehner’s plan, no matter how he tries to dress it up, is simply a short-term plan, and is therefore a non-starter in the Senate and with the President.
“In an effort to reach a bipartisan compromise, we are putting together a $2.7 trillion deficit reduction package that meets Republicans’ two major criteria: it will include enough spending cuts to meet or exceed the amount of a debt ceiling raise through the end of 2012, and it will not include revenues. We hope Speaker Boehner will abandon his ‘my way or the highway’ approach, and join us in forging a bipartisan compromise along these lines.”"
Barack Obama accuses the US Congress of risking a global banking catastrophe as debt talks collapse (Guardian