Kinda Sorta Real Time Thoughts on Meet the Press (July 31, 2011)

Deal or default?  What’s going on?  Congress is unwilling to compromise on entitlement spending cuts and tax increases, whatever else happens. Though one hopes that Congress can pull out a deal on at least raising the debt ceiling, come what may. And there’s only two more days to go. This is it.

White House Advisor David Plouffe is here to talk about the White House’s position on the debt ceiling argument and possible default.

This is really strange stuff.  Two days before we run out of money to fund its expenses, and defaulting on its loans, the president has sent in David Plouffe to speak to David Gregory.

The deal on teh table now is that in exchange for raising the debt ceiling there’d be a cut in government domestic spending. The second stage would require a committee to come up with feasible revenue raises and spending cuts.(That is, the government is acceding to another committee which may not see its prescriptions adopted as policy, though there is some talk of some kind of enforcement mechanism, though no one knows what that is.)

The administration wants the debt ceiling to be raised past the 2012 election, under the argument that this is good for the American people. (No doubt it is, but the political benefits of that being the case are quite transparent.)

So far we know that Obama will not employ the clause in the 14th Amendment that the President of the United States can unilaterally raise the debt ceiling.

Senators Claire McCaskill and Senator John Thune are here. Sen. Thune, in play here, is playing the GOP song.  What’s at issue is the difference between tax increases versus tax reform.

David Gregory is surely right that the problem is that Republicans are scared sh!tless to raise taxes, whilst Democrats aren’t interested in cutting entitlement programs.  At this point, there’s a political solution in the works, but no far so real deal on teh underlying issues that are at the root of our debt.  There is no tax increase, nor any entitlement cuts in the legislation that is now being negotiated.

Jennifer Granholm, Jim Kramer, Tom Brokaw and Tea Party backed Congressman Raul Labrador.

Jim Kramer is telling David Gregory that the issue is what bills will get paid. Markets will go down if no deal is reached today. This is a global problem.

Brokaw is saying that the local problem is a political default. Neither Democrats nor Republicans are willing to work together. And there will be hell to pay soon.

Raul Labrador is saying that he’s not the problem. 30 years of Republican and Democratic rule is at issue. (Okay, so what!) He is refusing to say why the Tea Party backed Congress is not willing to compromise-which he knows well works in Republican favor-because the package wasn’t ideal for the Tea Party.

Tom Brokaw just laying out the history of the last 30 years of government and private spending.

Jim Kramer is saying that if this impasse is not resolved, the government will cause a double-dip recession.

Labrador is saying that the Senate crafted bill which will piggy back on the Boehner bill that passed the House (but without the poison pill.) The bill will pass.  (What he failed to mention is that it will pass the House with Democratic votes.)

Everyone is taking a whack at Barack Obama.  And there are reasons why some of that blame does belong to President Obama. (Why for instance, did he not speak to the American people about what this debt ceiling debate actually means. He didn’t get ahead of the story.)

~ by Faheem Haider on July 31, 2011.

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