Sunday, July 24, 2011

Democrats: Obama Would Veto a Short Term Extension of the Debt Ceiling; Republicans: Obama Will Be Forced to Sign Short Term Extension of the Debt Ceiling;

And Both Parties Wonder About Their Approval Ratings

As a hot Sunday continues the hot rhetoric between Democrats and Republicans on raising the debt ceiling so the U. S. can pay for expenditures already approved also continues with about as much heat as the weather.

The Republicans seem intent on attempting to pass a temporary increase the debt ceiling with about $100 million in budget cuts each year for the next ten years.  They would then come back in January and go for another $200 to $300 billion a year in cuts, thus completing their election year agenda of devastating cuts in social programs, Medicare, Medicaid and Social Security.


White House Chief of Staff William Daley unequivocally said for the first time that President Barack Obama would veto a plan that does not raise the debt ceiling through 2013.

When asked on NBC’s “Meet the Press” whether the president would veto such a plan, Daley said, “Yes, the president believes that we must get this uncertainty ... out of the system.

Of course, this type of rejection just increases the desire of Republicans to pass such a proposal.

Sen. Tom Coburn, one of the GOP members of the bipartisan “gang of six,” said Sunday that President Barack Obama would have no choice but to sign a short-term debt limit increase if it crosses his desk.

So the scenario is continuing to play out much the way The Dismal Political Economist predicted it would except in a two act play rather than a one act play..  The Speaker of the House of Representatives will try to pass legislation extending the debt ceiling on a “take it or leave it” basis, leading ultimately to huge cuts in government programs with no tax increases on the wealthy. 

And what happens on August 3, the day after the U. S. defaults on its debt obligations?  Why that is the kickoff of the Blame Game, all we are doing now is awaiting the toss of the coin to see who goes first.

1 comment:

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