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31 Jul 2011 00:27

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U.S.: Breakdown: The new new NEW new nü NEW debt ceiling framework

  • So, those Republicans finally got a framework! If anyone feels like you might be on the most boring roller coaster ever, you are, as there have been so many high and low points with this debt ceiling dramarama today that you probably feel so dizzy that people might mistake you for being drunk. Anyway, in the latest developments, Republicans have apparently reached a framework with the White House to make this debt ceiling deal happen. Based on this, which side do you think won the day? Here’s a roundup:
  • ceiling The debt ceiling would rise to $2.8 trillion (though this number is conflicting; AP reports $2.4 trillion). This would be enough to get us past the 2012 elections.
  • cuts Republicans would reportedly agree to roughly $1 trillion in cuts now, and then another $1.8 trillion later. Ignore our earlier version of the post; this is significant.
  • condition Republicans will get one thing out of the mess which in the end won’t mean anything — a vote on a balanced budget amendement. This will not pass. source
Posted by Ernie Smith • 0 Comments • Permalink

24 Jul 2011 10:42

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Politics: The long and short of it: Debt ceiling talks get complicated, stay complicated

  • long The Democrats are pushing for a longer-term debt ceiling increase in a deal that includes some revenue increases. House Speaker John Boehner has suggested that he favors a long-term plan that goes through 2012, but is having trouble selling it to his own party.
  • short Republicans, on the other hand, have suggested increasing the debt ceiling for a period less than a year in length, in part for political leverage so they can push for later long-term spending cuts during an election year. Obama suggests this is akin to playing with fire. source
  • » So, who’s the loser in all of this? The consumer and taxpayer. The uncertainty on this issue has affected the markets in some ways already (see the price of gold for example), and could endanger your ability to get a loan at a reasonable rate if the talks fail to straighten course. You may see some possible instability this week, as a deal perilously hangs in the balance.
Posted by Ernie Smith • 0 Comments • Permalink
 
 
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