Due to an ongoing health crisis in the family, blogging will be 'on and off' as time and circumstances permit for the foreseeable future. I also beg your indulgence if I am slow in responding to emails. New posts will appear below this notice.

Wednesday, July 13, 2011

Obama-GOP debt talks get tense at White House

WASHINGTON — Tensions rose to the boiling point at a White House summit on the debt ceiling and budget talks on Wednesday, with House Republicans accusing President Barack Obama of abruptly walking out and Democrats painting GOP leaders as incalcitrant and irresponsible.

Republican and Democratic officials offered contrasting versions of an exchange between Obama and House Majority Leader Eric Cantor at the end of the meeting.

By Cantor's account, the president said that he "had sat there long enough and no other president, Ronald Reagan wouldn't sit here like this, and that he's reached the point that something's gotta give."

"And he said to me, 'Eric, don't call my bluff,'" Cantor said. "He said, 'I'm going to the American people with this.'"

Cantor and GOP aides said the president left the room abruptly.
Read the rest here.

3 comments:

The Anti-Gnostic said...

There is a frustrating lack of depth in reporting on the debt reduction package. The rare substantive analysis I've seen shows that the cuts are way back-loaded. I agree the tax increases are needed but only as an issue of fairness. In terms of actual debt reduction they are a drop in the bucket, and the government already takes in too much money.

The other thing that strikes me is if the US must go into more debt in order to service existing debt, then the jig is actually up. We are broke, just like the schlep rolling over balances on his credit cards. "Repayment" will consist of printing ever more dollars. Yields don't yet reflect this reality because shell-shocked banks and investors are buying up T-bills and keeping yields low: they assume they will always be able to sell at least even. This is just 'greater fool' strategy and classic symptom of a bubble market: the sovereign debt bubble. Everybody knows it can't last but everybody is betting they won't be the one holding the hot potato when the game ends.

Interesting times, and the debt talks are just political theater.

Anastasia Theodoridis said...

"Just political theater" is exactly right. Political theater is what mostly goes on all the time on every topic, in fact.

Anonymous said...

"He said, 'I'm going to the American people with this.'"

Sounds like "I'm telling Mommmy on you!"

Nikolaus