Debt deal time may be tighter than thought, Democratic officials say
President Obama speaks during a press conference on the national debt in the East Room of the White House.
July 1st, 2011
08:35 AM ET
2 years ago

Debt deal time may be tighter than thought, Democratic officials say

WASHINGTON (CNN) – Time may actually be tighter for the Democrat and Republican sides to reach an agreement on raising the nation's debt ceiling than the August 2 deadline would suggest, Democratic officials familiar with the negotiations said Friday.

They believe the White House and congressional leaders would need to come to a deal before the last week of July in order to get a bill done and through both houses of Congress to meet the August 2 deadline.

The officials are looking at around July 22 as the practical deadline.


Filed under: Congress • Debt • Deficit • White House
soundoff (21 Responses)
  1. GI Joe

    He always believes the best in people will come thru. He is (in this case) wrong. The Anal Cavities in the republican party work for corporations, not WE THE PEOPLE.

    July 1, 2011 08:55 am at 8:55 am |
  2. Name king

    What a dangerous time for the repugs to start playing Russian rullet with the nation's future, they've convince our gullible Americans that not raising the debt is the way to go. Yet Greece has about 1/1000 of the investment capital compare to America has and brought the world economy to its knees twice, and yet the repugs have said it won't be much of a disaster, this is from the party that had just devastated the world economy 2 years back. We need to stop fooling our selves, our economy is too fragile to take a blow that enormous, this time might as well cover the casket and start pouring dirt on our graves.

    July 1, 2011 08:56 am at 8:56 am |
  3. Rudy NYC

    Let's face facts. The Congress is going to let the debt limit expire wihout a bill. As much as one side or the other wishes to blame the other, the ultimate blame will fall on the Congress.

    The President cannot pass the laws for Congress, all that he can do is negotiate with the two sides and promise not to veto the bills they pass. That is all that a President can do, influence.

    When one side comes into a negotiation with the attitude that "what's mine is mine, and what's yours is negotiable" then the other side is forced to take a similar stance. Why short term budget issues (I though Republicans had already agreed to, voted on, and passed this year's budget) are being included in the long term debt bill is pure politics.

    July 1, 2011 09:01 am at 9:01 am |
  4. Joe from CT, not Lieberman

    At some point, Speaker Boehner and Senator McConnell will be called to task by their masters from Wall Street for failing to deal with the Debt Ceiling problem. These two men are going to have to then instruct their caucuses that they will need to compromise with the Democrats and accept some Tax Increases and elimination of Tax Credits in order to get the spending reductions they are looking for.

    This also means the Right Wingnut Tea Party types will be the only votes in opposition to this bill which will raise the debt ceiling, eliminate some tax credits, raise taxes for the top 1%, and provide reductions in discretionary spending – including the Defense Department, as well as changes in non-discretionary programs, such as raising the eligibility age for non-disability based Medicare, an increase in FICA and Medicare witholding for the top 2% of Wage earners, and "means based" Social Security payments for Seniors receiving retirement payments from other sources in excess of $75,000 per year. Unfortunately, many of the above recommendations (except for raising the Medicare age) are also anathema to most Conservatives.

    July 1, 2011 09:02 am at 9:02 am |
  5. Candide

    Mr. President, take of the gloves and make sure that the American people know that the GOP is playing a very scarey game of chicken with all of our futures in order to advance their ideolgical agenda that boils down to the moronic position that somehow the US is going to dig itself out of a mountain of debt caused primarily by tax cuts and ill conceived wars by cutting social programs. This being the Fourth of July, I don't think that this country was founded on such cynicism nor have its sons and daughters served and given their lives to protect a country based on the selfish motivations that appear to be at the heart of the GOPs actions.

    July 1, 2011 09:07 am at 9:07 am |
  6. Rudy NYC

    Grapevines are beginning to whisper that Republicans are doing everything and anything they can to stall the recovery, if not make it worse for the sole purpose of laying blame at the President's feet. They are accused of being willing partners with their donors (who can afford it) to cripple the economy to raise their odds of winning more power in 2012.

    If that were true, one would suppose that it could be viewed as a short term loss to leverage a long term gain. Some argue that strategy did not work in 1995, which cost the Republicans dearly, so why would they repeat that mistake. First, these are not the same Republicans. Second, they seem to think that a bad economy worked to their advantage in 2010, and it will work again in 2012.

    If Republicans are tyring to tank the economy for political gain, then they American people will see through it. Most Americans already have strong suspicions that that is their strategy. All they need for confirmation is a victory celebration by Republicans after the country defaults on debts created by those same Republicans. Don't forget, America had a budget surplus before Republicans cut taxes and started two wars.

    July 1, 2011 09:09 am at 9:09 am |
  7. Randy, San Francisco

    The two party system no longer works. Time to look seriously at a third party. Coalitions will have to be made to form majorities to pass legislation, thus promoting compromise.

    July 1, 2011 09:21 am at 9:21 am |
  8. Tony Z

    When will Congress put America first. America is both conservative and progressive. A deal that is beneficial to all is what will save this economy. How can you continue to give tax breaks to companies and individuals who will survive without them while woman and children are just trying to survive. This is not the America our Founding fathers envisioned. We the People, One Nation under God, indivisible with liberty and justice for all.

    July 1, 2011 09:32 am at 9:32 am |
  9. Honestly

    The Constitution does not permit default. Read the 14th amendment if you don't believe me. And yet, Republicans are saying "default won't be so bad". This is the worst behavior, by either party, since the one Senator almost beat another to death on the floor of the Senate.

    Republicans have already voted to end Medicare so as to free up several trillion dollars for reducing the top tax rates. Now they talk cavalierly about wrecking the nation's credit ratings, resulting in economic upheaval and tax payers paying more on interest for the debt!

    July 1, 2011 09:33 am at 9:33 am |
  10. Stephen in VA

    This actually may end up being a good thing for this nation, as the right wingers who have invested parts of their fortunes in government bonds realize the cost to them of the U.S. defaulting on our financial responsibilities and, in late July, flip their stances, leaving the Tea Party idiots standing alone on the ideologically and financially silly high ground.

    July 1, 2011 09:37 am at 9:37 am |
  11. munchmom

    I actually cannot believe that our Congress has decided to "work over the 4th holiday week" to solve the debt limit crisis....how many times have WE had to postpone or cancel vacations over the last two years because we cannot afford to take one. And we don't even get a WEEK for the 4th without taking leave time. Must be nice, we just get ONE DAY! About time they had to work overtime (lol) to do something that should have been done a long time ago.

    July 1, 2011 09:40 am at 9:40 am |
  12. KatR

    It would be nice if we the people knew what spending cuts have been agreed to by both parties. Maybe then we could break this deadlock by telling our reps what additional action needs to be done. But our free press isn't telling us this information. Instead, they encourage further discord.

    July 1, 2011 09:44 am at 9:44 am |
  13. Lost in Texas FOREVER

    DIG IN Democrats and above all DON'T CAVE IN! The GOP is trying to tank this economy for political gains just so they can get the WH back in 2012. Somebody needs to fight for the working people and the middle class because it sure isn't coming from the right. And those that are blinded by the right just don't have the vision to see it.

    July 1, 2011 09:48 am at 9:48 am |
  14. rosaadriana

    If we default, it seems to me the GOP will get most of the blame from the public. I think they know that and won't let this happen. The other thing is that their buddies on wall street will suffer if there is a default. I'm sure they care more abut that than anything the public thinks. Bases on these two points I really don't think they will let this happen, they are just trying to con their selfish tea party voters into thinking they actually care about the debt. That is why they are taking it this far..

    July 1, 2011 09:49 am at 9:49 am |
  15. Anonymous

    The main issue should be on focusing on how to reduce the debt. Whether we raise the debt limit or not, this country is still facing an enormous debt problem. The real focus should be on finding ways to lower the debt. A balanced budget is a good start for the politicians to work on. Something that WE (the citizens of this great nation) can do to help is to make a contribution (no matter how big or small) to help reduce our national debt. Please look into the Association to Reduce the National Debt. They are a not-for-profit, registered charity that contributes money to reduce the national debt. But they need our support. If we ALL contributed something, we can help take dents out of the national debt. Please search them on Facebook (and like them) or on the web. Together, we can make a difference and help our country in its time of need (and before we have to adopt austerity measures like in Greece).

    July 1, 2011 09:51 am at 9:51 am |
  16. SuperD

    Look at all these posts on the debt cealing from these Liberals. They want the "Rich" (whoever that is) to pay more taxes so the Democrats can still spend money. Money? Yeah, that's it, it's not your money. I will repeat it, IT'S NOT YOUR MONEY!

    Any fool can realize it's the spending that got us here. Stop spending! This class warfare crap is all the Dems have got to offer, and it"s pretty pathetic. They are not, and have not, and continue to be not serious about cutting spending.

    How can you negotiate when all one side knows how to do is tax the living snot out of anything and spend? You can't.

    July 1, 2011 09:51 am at 9:51 am |
  17. Clint from Texas

    The Republicans are willing to sacrifice the USA in order to bring Obama down. This Texan has had all he can stomach of the GOP party of hate for the Middle Class.

    July 1, 2011 09:59 am at 9:59 am |
  18. Indiana Voter

    We are in between Presidents right now. China looks at us and says, "we will wait till their is an actual President in the White House that will be willing to start leading." This guy is merely just occupying the White House now. He is the worst "President" ever, behind another Democrat, Jimmy Carter.

    July 1, 2011 10:09 am at 10:09 am |
  19. rob

    Rudy NYC says:
    "Grapevines are beginning to whisper that Republicans are doing everything and anything they can to stall the recovery, if not make it worse for the sole purpose of laying blame at the President's feet. "
    These are not grapevines, these are elected Democrat leaders like Chuck Schumer who are openly stating thes hideous lies so the liberal media will pick it up wothout question and spread the Dems propaganda.

    The beautiful reality is this, the Dems have their backs against a wall. They know that it isn't just raising the debt limit which will save the credit ratings, its a long term debt reductuion package that the rating agencies are looking for. The Dems know they have to sign onto this plan and they have no other option than to demigouge thre Repubs on taxes and try to blame them for a default. The Democrat Party and President cannot defend their policies and huge increases in spending intelectually because there is no defense.....WE ARE BROKE.. Even with the support of the willing media, they will be forced to completely restructure our budgets and by doing that they are forced to admit that their policies are wrong for America.

    Nov. 2012 can;t come fast enough.

    July 1, 2011 10:10 am at 10:10 am |
  20. d

    The Republicans are just listening to the president's own words when he had the chance to vote for raising the debt ceiling before he became president. Though I don't remember the commentators on here at that time saying that Obama was "sacrificing the US for political gain" or "playing russian roulette with the US credit" when he, very vocally, voted NO to raising the debt ceiling as a Senator...

    July 1, 2011 10:10 am at 10:10 am |
  21. The Other Campaign Strategist @ 115th & Amsterdam Ave.

    @ "The Elephant"

    I agree. The Republicans have handed President Obama a clear path to re-election.

    Romney, Huntsman & Palenty`s claim will be that they, as former Governors [and/or business executives] are capable of making tough, unpopular, managerial decisions. Facing a poor economy is the President`s biggest vulnerability and being seen as using the unique powers of the Presidency to limit our financial bleeding would take away the only line of attack his opponents have.

    The public doesn`t believe that tax cuts for `job-creators` is a sound economic plan. Yet, the GOP is wedded to it and REFUSES to let it go. If Obama can checkmate Romney/Huntsman/Pawlenty on economic toughness, it is game over.

    Mr. President – uses those Executive Orders and target certain types of `spending` [Congressional salaries, oil subsidies, corporate jet loopholes, etc.] NOW.

    The Constituion gives you this power and by squeezing items that impact the GOP & their constituents, you`l force them to accept this on YOUR Terms.

    The path to 2016 is clear.

    July 1, 2011 10:14 am at 10:14 am |