ABC Reports Tentative Debt Ceiling Deal Reached Between GOP And Obama (some details & links)

[stockholmer]

http://www.zerohedge.com/news/abc-reports-tentative-debt-ceiling-deal-reached-between-gop-and-obama


This could very well be another red herring like the NYT article from two weeks ago that proved to be a dud, but for what it's worth according to ABC's Jonathan Karl, http://blogs.abcnews.com/thenote/2011/07/white-house-republicans-strike-tenative-deal-to-raise-debt-ceiling-.html the White House and the GOP have just reached a tentative deal as follows...

Debt ceiling increase of up to $2.8 trillion
Spending cuts of roughly $1 trillion
Special committee to recommend cuts of $1.8 trillion (or whatever it takes to add up to the total of the debt ceiling increase)
Committee must make recommendations before Thanksgiving recess
If Congress does not approve those cuts by late December, automatic across-the-board cuts go into effect, including cuts to Defense and Medicare.
In other words, virtually the same as the Boehner deal in the actual cuts, which will likely be back-end loaded (we expect about $10-20 billion in 2012 cuts), but the Democrats get what they want in that it will not require a second debt ceiling hike before Obama's re-elecetion as $2.8 trillion should last well into 2013. As for "future cuts", well, that's easily what Congress is so very good at. Indefinite future cuts that is.



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Some more recent details from the National Journal: http://nationaljournal.com/budget/outlines-of-debt-compromise-emerge-20110730


snip


Among the newest wrinkles, according to informed sources, is an agreement to extend the current $14.3 trillion debt ceiling very briefly to give the legislative process time to work without resorting to emergency, hurry-up measures.

President Obama has said he would only sign a short-term extension (days, not weeks) if it were linked to an extension of borrowing authority that lasts beyond the 2012 election.

According to sources, the Senate would use the military construction appropriations bill, one currently available for action, as the vehicle for the short-term extension. This element of the arrangement, like everything else, is subject to modification. But those close to the negotiations expect Congress to slow things down without jeopardizing the nation's full faith and credit. A debt extension of days would achieve that goal.

[Tx4obama]

1. thinkprogress RT @samyoungman: Dem familiar with situation disputes ABC report

thinkprogress
RT @samyoungman: Dem familiar with situation disputes ABC report

http://twitter.com/thinkprogress/status/97502157829447680

----

p.s.
IMO, the ABC article is going to turn out to be a dud like the NYTs one a few weeks ago.

[DCBob]

11. AP is now reporting something similar..

http://news.yahoo.com/white-house-gop-discuss-potential-debt-limit-pact-090505933.html

also CNN...

http://www.cnn.com/2011/POLITICS/07/31/debt.talks/index.html?hpt=hp_t1

[liberalmuse]

2. I heart a Tea Bagger fed them this report...is this true?

My Twitter went nuts, and I see Daily Kos has a short, scathing OP at the top of their page - AND...it's a good idea to click on the links rather than take the article at face value. I'm not going to jump The President's shit until the facts are completely out on this, and they aren't. But of course the right wing doesn't even need an excuse. Let's not kid ourselves - they've been slowly forming a lynch mob since 1/20/2008. I'm getting so tired of all of this I'm ready to charge at a batshit crazy, gun-owning wingnut just to end this nonsense (or my being part of it, that is). I'm too old for a revolution, and it looks like that's where we're headed.

Edited because my irony meter is dead.

[dkf]

3. So if we cut $2.8 trillion we still increase spending $2.8 trillion and reach the debt limit

After 2012?

[McCamy Taylor]

4. Misleading title. Article says "Democrats" and "Republicans". Your title makes it sound like

Obama is in a smoke filled room with the GOP and the Dems have been left outside.

You also leave out the fact that Medicare cuts---if they kick in---will come from providers which is not the same as cutting Medicare benefits.

Please be careful at DU. It is too easy to help the GOP when we are sloppy. Like the orginal WaPo story whose headline claimed Obama had already offered cuts to the GOP when the text actually said that "sources" claimed he would offer cuts. The GOP is desperate to undo the damage they have done to themselves with the Ryan plan. They are now trying to convince voters that Obama is the one who wants the drastic cuts.

[stockholmer]

13. That is the title of the ZH article, I changed nothing

[PDittie]

5. Grover Norquist is Tweeting

"Sounds like a budget deal with real savings and no tax hikes is a go. We'll see"

[vi5]

6. Explain to me again why it's GOP negotiating with Obama?

Shouldn't it be GOP negotiating with Democrats, particularly in the Senate?

I mean aren't we told on here again and again and again "Obama can't do anything. He can't draft legislation. He can't pass legislation." Yet whenever we find ourselves in these situations it always winds up with "GOP negotiating with Obama".

And it also always winds up with us getting fucked.

[DCBob]

8. it isnt just Obama.. headline is misleading.

read both articles.

[DCBob]

7. I like this part..

"Two sources briefed on the framework say the automatic cuts would hit Defense spending harder than Medicare. A Republican briefed on the framework says this will be unacceptable to many Republicans because it could force them to face a choice between accepting tax increases (if that is what the committee recommends) or automatic cuts that would gut the Pentagon's budget."

[divvy]

9. This is the report of the deal I got .... mostly verbal.

There have been reports of a tentative deal (this is 6 hours ago) which will be announced tomorrow. Here are the highlights:

$2.8 trillion in deficit reduction with $1 trillion locked in through discretionary spending caps over 10 years and the remainder determined by a so-called super committee.

The Super Committee must report precise deficit-reduction proposals by Thanksgiving.

The Super Committee would have to propose $1.8 trillion spending cuts to achieve that amount of deficit reduction over 10 years.

If the Super Committee fails, Congress must send a balanced-budget amendment to the states for ratification. If that doesn't happen, across-the-board spending cuts would go into effect and could touch Medicare and defense spending.

No net new tax revenue would be part of the special committee's deliberations.

[sendero]

12. "No net new tax revenue would be part of the special committee's deliberations."

.. making this deal an AUTOMATIC FAIL. Way to go Obama, at least you are predictable.

[DCBob]

10. These automatic cuts across the board are a bit scary..

but the fact they are also tied to defense will keep the Rethugs "honest".. I hope.

[GoCubsGo]

14. Is this the same ABC that keeps changing their story?

We should trust what they say why???