McConnell Intros Three-Step Safety Net To Avoid Debt Default

With debt limit negotiations between Congress and the White House at an apparent impasse, Senate Minority Leader Mitch McConnell (R-Ky.) introduced a three-stage backup plan Tuesday that would prove to markets that avoiding a default is a priority for the United States. 

“If we’re unable to come together, we think it’s extremely important to this country to reassure the markets that default is not an option,” McConnell said. “If the White House talks lead not to a conclusion we can go forward together to reduce spending… then what is the alternative?”

The safety net would allow the debt limit to increase three time before the 2012 election, however, each increment would require the approval of Congress. 

McConnell’s plan would have Congress vote this month for a $700 billion increase in the nation’s debt limit, assuring the country steer clear of a default. An additional vote in the fall would raise the limit once again, this time by $900 billion, and the third would take place in the summer of 2012, raising the debt limit by another $900 billion. 

The contingency plan will not likely garner the approval of President Barack Obama, considering that Obama has already publicly expressed his displeasure with any kind of temporary solution to the country’s deficit problem. 

Former House Speaker and Republican Presidential candidate Newt Gingrich tweeted against McConnell’s plan, calling it a “surrender” to big government.

“McConnell’s plan is an irresponsible surrender to big government, big deficits and continued overspending,” Gingrich wrote on his Twitter feed. “I oppose it.”

“This is again not my first choice,” McConnell said about his plan, but made it known that all 47 Senate GOP’ers were behind him should talks fumble in the coming weeks.