Obama to offer debt ceiling update as deadline nears
July 15th, 2011
09:00 AM ET
3 years ago

Obama to offer debt ceiling update as deadline nears

Washington (CNN) - President Barack Obama is scheduled to hold a news conference at 11 a.m. ET Friday to provide an update on the status of marathon negotiations to raise the federal debt ceiling - a subject which has brought partisan tempers to a boil over the past week.

Obama told congressional leaders Thursday he expected them to consult with their respective caucuses and find agreement over the next 24 to 36 hours on how to proceed.

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Filed under: Congress • Debt • Deficit • President Obama
soundoff (26 Responses)
  1. ConservaFASCISTS

    I hope the President calls out Cantor's childish behavior in these meetings.

    July 15, 2011 08:04 am at 8:04 am |
  2. DA

    LOL....The GOP don't get it, the more the President has to inform the American people that this issue is not closed, the more they look bad, and voter start to see who really is the problem in regards to solving this issue and moving on to "JOBS" we all do remember that pledge from the GOP? LOL I mean at some point the GOP will realize the President is quite clever; he did the same thing to these idiots regarding Health care. LOL!! I don't know who is leading that Party, but they really need to educate them on this real quick!!! But then again I could careless about that Party!! Obama 2012!!!

    July 15, 2011 08:11 am at 8:11 am |
  3. Tax Larceny Plea Bargins

    The American dream is about fairness for the "common" everyday citizen regardless of race, religion, gender, age, income, etc. The American dream IS NOT about WEALTH. It is about happiness and to the extent that wealth makes you happy, you should be freed to persue it. Life may not be "fair" but America is suppose to be.

    There is nothing "fair" about cutting one thin dime from money received by the middle class while a HEDGE FUND Manager – - a person that add NO VALUE to America's Industrial Output - has [for years] paid and will continue to pay 15% on the income they EXTRACT, while the cleaning lady at his office, or the driver of his limo, or the seamstress at his tailor pay as much as 35%.

    The politicians in Washington, can not let this go on a day longer. They can not give BILLIONS in Tax breaks to oil & gas companies Year-after-Year. They can't let scam artists like Donald Trump register personal jets oversea [while keeping them in the US] to avoid paying taxes. All of these are forms of LARCENY – tax larceny plea bargins.

    The Republicans say they won't raise the debt limit unless the increse is match by an equal decrease in spending. I say the Democrats can not give one inch on spending cuts until the Repubicans agree to these changes in revenue. Democrats can not give up this leverage otherwise these tax larceny plea bargins will never end. Don't want to do that GOP? Then send the President a clean bill with no conditions that raises the debt ceiling.

    Then man up and negotiate the spending cuts and increased revenue questions on their own merits.

    July 15, 2011 08:15 am at 8:15 am |
  4. Rudy NYC

    I'm gettin' sick and tired of all of the Cantor Banter. His positions are completely untenable. He objects to revenue increases of any kind.

    He appeared on TV this morning and was asked if he would accept $4T in cuts, including cuts in all entitlements, in exchange for closing loopholes. Just closing loopholes without any rate changes, up or down, was completely unacceptable to him. Any closing of loopholes had to accompanied by significant cuts in rates. Not even closing the corporate jet loophole and nothing else.

    The man is behaving as if he were an incompetent amateur who does not understand the first thing about politics, economics, and simple professional manners.

    July 15, 2011 08:37 am at 8:37 am |
  5. Rudy NYC

    Remember this! This entire debt ceiling battle began when the Republicans didn't want a clean vote, which is what the President had initially asked for. Republicans wanted to renege on the FY2011 budget. They wanted to add additional cuts, and while they were at it add commitments for additional cuts for future budgets. The added future tax cuts (Ryan's plan. Remember?) and declared *any* increase in revenue was "off the table."

    That is how we arrived at where we are today. Some GOTP leaders are signaling they are willing to find some compromise (bad word) that allows them to at least save face. They wish to renew this same battle every few months until at least 2013. Continuing this fight, with the uncertainty it brings, is a guaranteed to cause a stalled economic recovery to falter until it backslides into recession.

    The Republicans have no interest in what is best for the country. Sen. Mitch McConnell said it best the other day; let me paraphrase. "We cannot let a default occur that is blamed on Republicans." But, one that is blamed on Democrats and Obama is okay?

    July 15, 2011 08:49 am at 8:49 am |
  6. GI Joe

    Be careful how you vote folks. The next batch (2012) will not only stick to the same "compromise is a dirty word" policy, they will add in that we ALL have to adopt their religions and cow-tow to the "bedroom police", be it gays, straights, women, poor. They won't have a "big government" but they WILL have a big morals police force.

    I thought we left English rule for freedom of/from religious rulers.

    July 15, 2011 08:50 am at 8:50 am |
  7. Dominican mama 4 Obama

    Good deal Mr. President. I hope you show NO compunction in telling Americans what the GOP's plans are for the middle class, and how entrenched, and adamant they are being about insuring that the wealthy maintain their current status quo.

    July 15, 2011 09:00 am at 9:00 am |
  8. JOE

    So Eric Cantor is playing tough guy with the president. And so far he and the GOP just can't come up with a compromise to lower the national dept. I must say that I'm totally impressed by the GOP's tough stance on the issue. And if I had the chance I'd reward the GOP by taking them all out for a historic night on the town. That is "Italian Style."

    July 15, 2011 09:12 am at 9:12 am |
  9. diridi

    I hate this idiot, Eric Cantor....VA, just get him out in next election....o.k, do not vote this bastard, Eric Cantor....I hate this idiot....trouble maker....o.k, Entire nation collapses because of him....idiot...

    July 15, 2011 09:15 am at 9:15 am |
  10. diridi

    Just do not feel bad of GOP rich thugs....I am installing a party called "American Labor Party". It works for poor, elderly, and needy all....regardless of color.....just don't vote to these rich GOP, Tea Party thugs of this nation, The USA! Amen, god bless Obama2012, and the USA!!!!

    July 15, 2011 09:38 am at 9:38 am |
  11. Sniffit

    "I hope the President calls out Cantor's childish behavior in these meetings."

    No need. Cantor didn't pipe up even once during yesterday's meetings. He's already been thoroughly spanked like an ornery stepchild by the GOP's party elite.

    July 15, 2011 09:43 am at 9:43 am |
  12. Dominican mama 4 Obama

    Sniffit

    "2012 cannot come soon enough to get him out of the White House and bring some sanity back into our great country."

    Blah blah blah...our "graet country" freekin SUCKS right now because the GOP took a dump in the national cereal bowl. Failing at education. Failing at the economy. Failing at creating jobs. Failing at recognizing that you don't give tax cuts out BEFORE cutting spending and then crazily blame your expenses for the deficit problem. Failing to end two wars. Failing to reduce military spending. Failing to treat different people equally. Failing to respect the rights of labor. Failing to rein in financial industry abuses and excessive risk taking. Failing to make sure that voters have more control and influence over our elections processes than non-voting corporate entities. Failing to keep our politicians honest and our electorate adequately informed and not misinformed. Failing to raise average middle-class salaries while the ultra-wealthy who supposedly create jobs enjoy tax breaks that have increased their income tenfold over the past couple decades. Failing to grow the middle-class and shrink the poor. Failing to provide health care to everyone. Failing to rid ourselves of the remnants of racism and institutionalized bigotry. Failing to adhere to the founding fathers' wish for a separation of church and state. Etc etc etc. Don't call this country "great." We lost that right and haven't earned it back yet.
    -------------------------------------------------–
    Sniffit this was one of your shining moments, absolutely brilliantly worded. Thank you.

    July 15, 2011 09:49 am at 9:49 am |
  13. ABM

    If the GOP is unwilling to budge then the first people who should be affected are their constituents for voted them into office. People who have Dems as their representative should not be affected. Cantor and the GOP will be forced to recant and relent on their pledge to Grover b/c their voters will hold THEM accountable. Yes this is partisan (and I am a registered Republican) but these guy are unwilling to listen to country as a whole and want to hold everyone hostage there should be a countermove to this craziness in Washington. The only other option I see is locking them up in jail for contempt of the American people.

    July 15, 2011 09:53 am at 9:53 am |
  14. SuperD

    All you liberals and your class warfare. That's your only defense against going broke. Face it, your're a junkie, hooked on govt money (that does not belong to you in the first place) and all you can do is demand that people who work hard and are successful owe you more money.

    Republicans, do not negotiate with the Democrats. Let it fail, let it crash. Then and only then will we able to move forward.

    The real problem here is if we have to reduce the size of govt. Then that effectively over time reduces the Democrat partys influence, and they know that. So then it gets harder for them to fool the poor, the stupid, the lazy, the homo's in supporting them.

    July 15, 2011 09:58 am at 9:58 am |
  15. Tim

    The press sucks. As unserious as the politicians. Is there a way we can get rid of both of them?

    July 15, 2011 10:01 am at 10:01 am |
  16. Fair is Fair

    "There is nothing "fair" about cutting one thin dime from money received by the middle class while a HEDGE FUND Manager – – a person that add NO VALUE to America's Industrial Output – has [for years] paid and will continue to pay 15% on the income they EXTRACT, while the cleaning lady at his office, or the driver of his limo, or the seamstress at his tailor pay as much as 35%."
    _______________________

    First things first. The "cleaning lady", "limo driver", and "seamstress" are almost CERTAINLY in the 47% – 51% of the workforce which pay 0% on their income in federal income tax. So that part of your statement is moot.

    Now, for your comment on "15%"... assuming you mean the capital gains tax, you are treading into dangerous territory. The so-called wealthy can only really spend just so much on largess, and they tend to invest a vast majority. Contrary to popular belief, they don't have a big swimming pool full of money that they go swimming in, a la Scrooge McDuck. The capital gains tax is only levied when an asset is SOLD (when the gain is actually realized as opposed to being "on paper"). If the capital gains tax is increased, it will, as it always has, cause investors to hold onto assets longer. This has the consequence to "freezing" wealth – on paper. Therefore, the tax is levied less, again because the "gain" is on paper, as opposed to being realized. Further, in a weak economy, it is most beneficial to have money moving around rather than stagnating as paper gains.

    EVERY time the capital gains tax has increased, revenue to the federal government has decreased, and vice versa. You don't have to take my word for it. Just look it up. The facts are irrefutable.

    July 15, 2011 10:03 am at 10:03 am |
  17. Rudy NYC

    I think I have figured out what the Republicans are doing to country. Last year, on Sept. 23, Republicans announced their 20 point "Pledge To America", which included the policies and strategies that we have seen from them in 2011. Not many people paid attention to it because most of their talking points were about jobs, jobs, jobs.

    If you go back on review what was in the pledge, which was criticized by Libertarians as "distorted", you will see the roots of their current stances and policies on various issues.

    They seem to think that the majority of people paid attention to that pledge, when their overarching message the entire year had jobs, jobs, jobs, and "repeal and replace" the Affordable Care Act.

    Rep. Cantor was the champion of the pledge during its' rollout, which found a lot of support within the TEA party base.

    History is repeating itself. The Republicans are sticking to that pledge, just as they did with Gingrich's "Contract with America" in the mid 1990s. The result then was two shutdowns, Republicans being voted out of Congress, and Bill Clinton being re-elected.

    July 15, 2011 10:03 am at 10:03 am |
  18. Tim

    10 months ago Obama presented his vision of a budget (vision, nothing in writing) that added over 10 trillion dollars to the deficit before 2020. 6 months ago he presented another vision that added 7 trillion to the deficit over 10 years. A few days later, he had a do-over news conference that proposed a spending freeze. Now he's talking (but don't hold him to any specifics) about cutting 1.4 trillion from the budget over 10 years. He's added well over 2 trillion to the budget in less than 3 years. You all know a loser when you see one, don't you?

    July 15, 2011 10:04 am at 10:04 am |
  19. Four and the Door

    Rudy NYC
    Remember this! This entire debt ceiling battle began when the Republicans didn't want a clean vote, which is what the President had initially asked for.
    _______________________________________________________________________________________________
    There is nothing "clean" about raising the debt limit without doing something about the reason it was exceeded. Even Obama now admits that the spending needs to be addressed. The problem is, for political reasons ( rather than economic reasons ) he feels he needs to hold out for a tax increase as well. I wish the best of luck to those who depend on Social Security payments. Obama has decided to use you as a pawn in this political game.

    July 15, 2011 10:09 am at 10:09 am |
  20. Rudy NYC

    Fair wrote:
    First things first. The "cleaning lady", "limo driver", and "seamstress" are almost CERTAINLY in the 47% – 51% of the workforce which pay 0% on their income in federal income tax. So that part of your statement is moot.
    --------------
    Wrong. Those are the exact people who pay their taxes with few if any deductions. The live day to day, have little disposable income, and nothing left over to invest for retirement much less invest to make a profit.

    BTW, your description of captial gains is accurate. You painted a very accurate picture of why large, personal tax cuts to the wealthy does not create jobs. They simply re-invest it. Why go through the headache of hiring people when there is a bigger profit in sitting on your re-investments. Thanks for the economics lesson.

    July 15, 2011 10:23 am at 10:23 am |
  21. Lynda/Minnesota

    "History is repeating itself. The Republicans are sticking to that pledge, just as they did with Gingrich's "Contract with America" in the mid 1990s. The result then was two shutdowns, Republicans being voted out of Congress, and Bill Clinton being re-elected."

    Speaking from the view of a 45 year [ex] Republican, I agree. Your comment is spot on. There is nothing left from within the GOP leadership - having itself become a party filled with nothing but foolish ideologues embracing a set of nonsensical ideals and actions going nowhere - of which I could never again support.

    July 15, 2011 10:27 am at 10:27 am |
  22. Rudy NYC

    Tim wrote:
    10 months ago Obama presented his vision of a budget (vision, nothing in writing) that added over 10 trillion dollars to the deficit before 2020. 6 months ago he presented another vision that added 7 trillion to the deficit over 10 years. A few days later, he had a do-over news conference that proposed a spending freeze. Now he's talking (but don't hold him to any specifics) about cutting 1.4 trillion from the budget over 10 years. He's added well over 2 trillion to the budget in less than 3 years. You all know a loser when you see one, don't you?
    --------------
    All of your figures are exaggerated. BTW, how can Obama submit a budget that adds trillions when conservatives always accuse him of never having submitted one?

    His budget added $5T over the next decade, and balanced the annual budget in 10 years. The Ryan Plan added $6T over the next decade and doesn't balance the annual budget for 30-40 years. One of the most differences between the two plans is the estimate for future unemployment rates a decade from now, which as you know generates revenue.

    The Democratic plan projects rates around 5-6%, or where they were throught most of the Bush years. The Republican plan put forth by Ryan projects the rate to be near 4%. Ryan predicts unprecedented jobs growth.

    GWB made the same prediction. So did George H.W. Bush. So did Ronald Reagan. Twice. They each implemented some aggressive form of "Supply Side" economics (a term and policy which was invented by Reagan's advisors) with the usual result. A short period of prosperity and fast growth (a feeding frenzy) followed by an longer period of economic slowdown resulting in a recession.

    July 15, 2011 10:36 am at 10:36 am |
  23. Sniffit

    "If the capital gains tax is increased, it will, as it always has, cause investors to hold onto assets longer. "

    Not really. That's just ideological nonsense. If it's shifted to 20% or 25% they'll continue to shift their assets around, play Wall Street gambling games, etc. etc., just like they're doing now. The only people that might be deterred from selling assets will be those who really aren't in the ultra-wealthy category and have low- to moderate investment holdings they view as nest eggs and long-term strategies in the first place...so it wasn't really going to change their behavior. As for millionaires who have the liquidity and "expendable" income to really get into the stocks/investment game...they are often playing things short-term in the first place and the fact that every dollar of capital gains profit nets then $0.05 to $0.10 less isn't going to convince them to hold onto stocks or bonds or other assets that much longer when their instincts and advisors are telling them "sell that now and buy the other thing." There would likely be a very short dip in trading as people adjust and it would rapidly build back up to the useless level it is at right now, which magically isn't creating any jobs anyway because the financial industry has been redeisigned over the past 4 decades to facilitate the consolidation and hoarding of wealth, one of the biggest reasons the "trickle down" nonsense we hear from conservatives on a daily bais is daydream unicorn farts.

    July 15, 2011 10:43 am at 10:43 am |
  24. JOE

    Remember our sacred and farmilar phrase "One Nation Under God"? There's another one and that is "United We Stand, Divided We Fall." And yes, there's also my favorite which is "You're only as strong as your weakest link." And that brings me to my main point which is in a time of national crisis or in this case, an economic crisis that is affecting every American, if you believe in the concept of country, I believe that it is essential for the rich to make some concessions and sacrifice for the sake of country. Subsequently, taxing the rich to help stabilize and re-grow the American economy is not a means of punishing them or a means of getting even with them but rather a means of asking them to help the country that they claimed to have loved.

    Everyday we ask our brave men and women in uniform to put their lives on the line and sometimes to make the ultimate sacrifice to protect and preserve our freedom and our democracy and they don't complain, even when we send them in unjust and illegal missions such as in Iraq. But I find it disheartening and outrageous that the GOP and the wealthy are complaining over the president's suggestion that the wealthy should make a little financial sacrifice for the sake of country. let's face it, the GOP and the wealthy 3% who are complaining about a tax hike for the wealthy are simply un-American and a bunch of no good communists.

    July 15, 2011 10:59 am at 10:59 am |
  25. kat

    Tim, you are absolutely right. We can't afford 4 more.

    July 15, 2011 11:00 am at 11:00 am |
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