Boehner Unsure If Plan Can Prevent Credit Downgrade

By Philip Bunnell

Speaker of the House John Boehner (R-OH) told reporters Thursday that he was unsure if his debt plan, set to be voted on later in the day, could prevent a credit downgrade.

“That is beyond my control,” Boehner said. “All I know is this bipartisan bill is as large a step as we’re able to take at this time that is doable and signable.”

 The credit rating agency Moody’s said Wednesday that it could still downgrade the United States’ credit if the Boehner plan passed.  

Boehner acknowledged that the bill is not exactly what some of the more conservative Republicans had in mind saying, “the bill’s not perfect, I never said it was perfect, no one in my caucus thinks it is perfect.”

The Speaker did not seem to believe that the bill would have trouble passing the House, and added that once it does, “the Senate will have no excuses.”

Reid, Schumer Tout GOP-Friendly Debt Ceiling Plan

By Philip Bunnell

Senate Majority Leader Harry Reid (D-Nev.) and Sen. Charles Schumer (D-N.Y.) on Monday touted a new plan to raise the debt ceiling that they claim meets the standards laid out by both parties.

The proposal will cut $2.7 trillion in spending, $1 trillion of which is drawn from winding down the wars in Iraq and Afghanistan, while sparing entitlement programs such as Medicare and Medicaid. The plan also features no increase in revenue, which had been the center of heated debate between Democrats and Republicans.

“It’s a tough choice,” Schumer said of not including revenue increases, “but for Democrats we get an increase in the debt ceiling through 2012 and we succeed in preventing any benefit cuts to Medicare, Medicaid, and Social Security.”

Both Schumer and Reid stressed that revenue increases are necessary and that they will pursue them.  However, in the interest of avoiding default, no tax increases were included. 

“All the Republicans have to do is say ‘yes’,” Reid told reporters.

The plan will include another key GOP interest, Reid noted.

“The amount of the cuts meets the amount of debt ceiling increases,” said Reid. “They wanted a one for one, that’s what we give them.”

Both Senators were highly critical of the “extremists” in the Republican party who they accused of hijacking the debate.  The Republicans, Reid said, are being “driven by the radical, right-wing that is so in tune with the Tea Party.”

The two Democrats also rejected the notion that Speaker of the House John Boehner’s (R-OH) short term plan was a viable option. 

“A short term extension would not provide the certainty the markets are looking for, and risks the same dire economic consequences that would be triggered by default itself,” warned Reid.

Schumer accused the GOP of waffling on the issue. 

“Even Republicans rejected a short term increase in the debt ceiling as recently as last month,” observed Schumer, “… now Republicans have apparently flip-flopped on this point, but a short term deal is still an non-starter in the Senate.”

Cantor Assails Obama On Debt Negotiations

By Philip Bunnell

House Majority Leader Eric Cantor (R-Va.) pointed his finger at the Obama administration Tuesday, saying an outlandish Democratic budget is the reason the country is in its current fiscal situation.

“We wouldn’t even be having these discussions if we had not brought forward that budget,” Cantor said. “Now we’ve got a situation where the president continues to say that he wants the big deal [and] that he’s the one that wants to go and tackle the entitlement programs in this country.”  

The White House and congressional leadership continue to spin their wheels as current negotiations have stalled after Democrats and Republicans dug their heels in the sand, refusing to budge on entitlements and taxes, respectively. 

“Yesterday’s discussions were not very fruitful,” Cantor bluntly told the audience. “For the president to say that he wants the big deal,” “I question that and what I would like to know is where are the details?”

Cantor and other GOP leaders were scheduled to meet with the President and Democratic leaders at the White House today, as they continued to try and find common ground on the debt ceiling.