GOP Senators Expect More "Hopeless" Policies From Jobs Speech

A group of Republican senators blasted President Obama’s economic policies Thursday previewing his highly anticipated jobs speech.

Sen. John Thune (R-S.D.) told reporters that he expects more of the same “hopeless” measures from Obama’s speech, but acknowledged that the GOP stands ready to work with him.

“I think tonight you’re going to see, probably, some of the same plays from the same old playbook,” Thune said. “There’s a gap between what [Obama] says and what he does. He says some of the right things but his policies tell an entirely different story.”

Thune was joined by Sen. Jeff Sessions (R-Ala.) who previously opposed Obama’s proposal to spend as much as $300 billion to boost job growth and spur the economy. Sessions argued that spending more would only increase the nation’s debt, something the Alabama Republican said is stalling economic growth.

“The debt is the jobs crisis,” Sessions said. “There’s no doubt about it that the debt of the United States is causing great concern through our entire economy.”

Sessions said he wants to hear the president lay out specifics regarding how Obama plans on paying for his proposals to extend payroll tax cuts and extending jobless benefits that will soon expire. These two measures combined amount to nearly $170 billion in spending.

“I’ll be looking tonight to see if this proposal is, indeed, paid for, or is it just another attempt to gain a sugar high by immediate spending that will increase our debt and will weaken our economy.”

Republicans Blast President For Igniting Social Security Scare

Vanessa Remmers and Alex Harris

Republicans from both chambers banded together Thursday to argue something out of the ordinary in light of recent debt negotiations: there is plenty of money.

At least for social security.

Republican Senators and Representatives both condemned President Barack Obama for implying that seniors may not receive their social security checks if lawmakers fail to raise the debt ceiling.

“ I think the President should apologize for politicizing Social Security,” Sen. Rand Paul (R-Ky.) said during a briefing with fellow GOP Senators. “It’s objectively false to say there wouldn’t be enough money.”

Paul noted that the government receives $200 billion monthly, while social security expenses are in the range of $60-80 billion.

“There’s plenty of revenue to pay all of the social security checks, to pay all of the interest,” Paul said.

During a separate briefing, Rep. Phil Roe (R-Tenn.) blasted the President’s stance on social security as a scare tactic.

“There is no reason for Obama to be scaring our senior citizens,” Roe said.

Cornyn: Growing Debt Giving Rise To China

By Philip Bunnell

Sen. John Cornyn (R-Texas) made the case for passing a Balanced Budget Amendment to the Constitution today by highlighting the link between the growing U.S. debt and China’s military rise.

Cornyn highlighted the potential danger of China’s holdings of American debt, currently estimated to be around $1.1 trillion. “Some folks say there’s no cause for alarm,” Cornyn said. Yet he then noted how a former Chinese general said that “dumping U.S. bonds,” would be an appropriate response to antagonizing U.S. policy.

China, aside from its holdings of U.S. debt, has also become a belligerent security force in the Asian region  and is “unsettling its neighbors,” through the conducting of military excercises, Cornyn said. China has claimed the South China Sea, is increasing tensions on its disputed border with India, and is “an enabler of North Korea,” Cornyn warned.

Cornyn criticized President Obama for not accepting Taiwan’s letter of request to buy F16 fighter jets from the U.S. This reflects, Cornyn said, the fact that “China has intimidated US foreign policy.”

A number of Senate Republicans are launching a push this week to pass a Balanced Budget Amendment. Senate Minority Leader Mitch McConnell (R-Ky.) has said that he would like a vote to occur by the middle of July. With all 47 Republicans on board, the effort carries some weight, though actually amending the Constitution would require subsequent ratification by two-thirds of the states.

Cornyn pounced on a quote from then-Senator Barack Obama, who warned in 2006 of the consequences of a growing national debt. The quote, Cornyn explained, was meant to “point out the hypocrisy… and lack of leadership,” coming from Obama on the debate to raise the debt limit again later this summer.

Biden, Boehner Quarrel Over Economic Status

Vice President Joe Biden blasted House Minority Leader John Boehner’s morning economic address after the Ohio Republican urged President Barack Obama to fire the remaining members his economic team, including Treasury Secretary Timothy Geithner.

Biden jokingly thanked Boehner for his suggestion saying it was “very constructive advice.”

In his statement, Boehner pushed for the extension of Bush tax cuts and the termination of Larry Summers and Geithner, a measure that Biden said will only result in a repeated debt crisis created by the last administration.

“After all this build up and hype, all we know is what John Boehner and his Republican colleagues are against,” he said. “I don’t know, other than a tax cut for [the wealthy], I don’t know what they are for.”

Biden conceded to the notion that the economy has not made the full recovery the administration is looking for, but said “there’s not any doubt we’re moving in the right direction.”

U.S. May Soon Resemble Greece Economically, Says House Republican

By Linn Grubbstrom
Talk Radio News Service

Rep. Paul Ryan (R-Wis.) is afraid that the U.S.'s mounting debt could match Greece's in a number of years.

"Our debt levels right now are above Spain, Ireland and Portugal," Ryan said Thursday. "That's the most important statistic. In five years, our debt level, on our current trajectory, is going to be up there with Greece and Italy," said Ryan.

One possible solution, said Ryan, would be modified the tax system.

"I would replace the current tax system with a modified flat tax. It's a boon to progressivity, meaning 10% on the first 100,000 dollars for couples 25% above that. No other tax on capital or saving. Meaning no dividends, capital gains or death tax. Those are taxes that are double taxes on capital, they retard economic growth and innovation," he said.

Ryan, the ranking Republican on the House Budget Committee, also suggested changes in health care, social security and job training programs.