Washington (CNN) - The only issue left to be decided in negotiations between President Barack Obama and congressional leaders is "what kind of deficit reduction package will accompany a measure that will ensure that we do not for the first time default" on government obligations, White House Press Secretary Jay Carney said Thursday.
Carney denied reports that Obama and House Speaker John Boehner were close to a deal, saying the "breaking news report is incorrect."
"There is no deal," Carney said. "We are not close to a deal."
Uh, I think Moody's and Standard and Poor's both indicated that they will likely make another anouncement on the US credit rating at the end of this week, which means tomorrow. Somehow, I don't think they will have anything good to say.
The markets will go bug nuts. Now we know why so many conservative talking heads ran so many "buy gold" commercials. Poor suckers who bought it don't realize that their piece paper that says, "I own gold!", is worth less than the paper it was printed on. "Bird in hand is worth two in the bush."
Obama spends too much (with very little to show for it). Although he is trying to look like the level-headed negotiator, he, the democrat-lead Congress (from 2006 -2010) and his spend-happy administration are the main reason that we are even considering raising the debt ceiling.
And he needs to stop with the scare tactics (people will still get their SS checks–look it up). Everything is a crisis to these guys. The only reason he has is still polling in the low 40s is because liberals don't want to admit that he's been worse then how they saw Bush (come on honest liberals, compare policies and you'll see that they are the same or worse).
The new Republican idea to solve the debt issue is, first have Rep Joe Barton go on national television and apologize to all of the oil companies for the "government shakedown" of being required to pay corporate taxes.....then eliminate all of their corporate tax obligations, so they will create jobs. great idea huh??
The US would survive a default. The worst case is that a few million people don't get paychecks for a month. They won't be able to buy their fast food or pay for the cable bills or gas for their SUVs. They may have to eat vegetables (the cheapest things in the grocery store) and stop drinking alcohol and smoking cigarettes ($7 a pack in California). Big deal...people in Somalia are facing famine. This would shrink the economy of course because it is too reliant on Consumer spending. The dollar would lose value exacerbating the problem; foreign goods get more expensive. On the plus side, foreign investors would stop putting their money in Treasury bills and start investing in the the stock market, which is the true job creator.
For those who really want smaller the government consider the following:
Privatize the US Postal Service. The IPO alone would raise millions to repay our national debt.
Cut the Defense budget and the army in half. We don't need it we and have yet to be attacked by a foreign power on our soil (911 does not count and the trillions we spent on defense prior did nothing to prevent it anyway).
Abolish Medicare. Old people are like kids; their families should be responsible to pay for their health care. Without the government subsidizing it, maybe the cost of health care would actually have to come down due to market pressures.
Repay the money each citizen has paid into Social security for the last 60 years and tell them they are on their own. The lump sum would hurt in the short term but would be paid for by the other savings.
Privatize all US Scientific Institutions. We need science, but it can survive on its own like the free press.
Of course, no politicians would agree to the above because they are scared of voters and of true change, but it would be interesting to see what the country would look like after.
Isn't it about time for Obama to begin leading on this crisis? Or does he actually want there to be a crisis so that he can blame the other party?
The reason we are so divided is it is a war between Big Business and Insurance Companies (GOP) and the Hard Working Middle Class America and those under, like Seniors, Vets, Disabled, Unions, Teachers, Firemen, and Policemen...you will fined out come 2012....JUST HOW STRONG...these people are and that the Republican Party is out of the picture come 2012
It is very hard negotiating with a bunch of clueless socialists that don't know and understand how our economy works. It's like trying to negotiate with a cocaine addict to give up his drugs. In their case, the drug is taxes and spending. They'll do anything they have to to maintain the money/spending/drug addiction.
it'll be interesting to see how they try to deal with the remaining $12 TRILLION of deficit spending and debt that is projected, even with these "cuts".
This president want to take credit for everything good (whether it is real or fabricated). He's been in office with a super majority of democrats for 2 years. The fact that the economy is still failing falls on him, his administration and his party. He spent like a drunken sailer and now we are up against a wall. Spending cuts are needed much more than a higher debt ceiling.
The Good Christian Republican all of them , But everyone of the Republican have broken the OATH THEY HAVE SWEAR TO ON A BIBLE. When they sign all these Pledge ,they have Broken the OATH THEY SWEAR ON A BIBLE WHEN THEY TOOK OFFICE. A good Christian wouldn't swear on a BIBLE and Broke that OATH. So signing them pledge don't really mean anything and you don't have to go by them, Or You LIE and broke a OATH that all of you Republican have swear to on a BIBLE. A good Christian would never swear on a BIBLE AND BROKE THAT OATH. How can any christian Group back the Republican or the Tea Party. It wouldn't look to good on your churches.
So in other words: politics BEFORE country? Mr. Carney would have been better served NOT to have taken the podium. This is ridiculous. A lot of us (middle age/middle class) workers will lose a lot of our savings all in the name of politics. God help us.