Tuesday, July 12, 2011

BREAKING NEWS: Debt talks stall, Republicans threaten walk, default more likely, Social Security checks NOT GUARANTEED

Remarks by Senate Minority Leader Mitch McConnell and House Speaker John Boehner today appear to indicate that Republicans are walking away from any further talks about deficit reduction and raising the debt ceiling.  If true, then U.S. Government default on its debts for the first time in history would seem to be increasingly likely, if not a near certainty.  See story here: http://www.cbsnews.com/8301-503544_162-20078766-503544.html

View McConnell and Boehner’s remarks below:

Senate Minority Leader Mitch McConnell said today that there would be NO deal on the deficit until Obama is gone, restating the goal of Republicans to deny Obama a second term regardless of the cost to the country.

View McConnell’s and Boehner's remarks here:   http://www.cbsnews.com/8301-503544_162-20078766-503544.html

John Boehner said there would be no deal unless three conditions were met: (1) the spending cuts had to be larger than the debt increase, (2) there could be no increase in taxes of any kind, and (3) there could be no deal without a Balanced Budget Amendment.  He concluded by noting that the debt limit increase was Obama’s problem, not the Republicans.


In a related development this morning, Obama said he could not guarantee that Social Security checks would be issued in case of default—Obama: "I cannot guarantee that those checks go out on August 3rd if we haven't resolved this issue. Because there may simply not be the money in the coffers to do it.”

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