With eight days left to raise the nation's $14.2 trillion debt
ceiling, The Democratic and Republican congressional leaders
are working on separate plans to raise the debt ceiling by
$2.4 trillion and avoid default. Both sides believe that
a compromise is still possible - - it has to be!!!!
Moody's is giving the country 8 months but S&P seems to be
quicker to act. If there is no deal reached by August 2nd,
Treasury Secretary Timothy Geithner says the US government
will be forced to choose between paying its creditors or
recipients of federal entitlement programs, such as Medicare,
Social Security or veterans benefits. Interest rates for all
consumers will rise and the nation's top-flight bond rating
will fall.
The House (Boehner's) plan is to push forward with a "cut,
cap and balance" proposal. Reid's plan would raise the debt
ceiling by $2.4 trillion while also cutting $2.7 trillion in
future spending.
Boehner said Sunday morning on Fox News Sunday that it was not
possible for Congress to finish a complicated deal by August 2
and suggested a two-stage process that would raise the ceiling
and cut $1 trillion in spending over 10 years. That would
be followed by a new committee tasked with finding another
$3 trilllion in debt reduction.
President Obama wants to raise the debt ceiling by enough to
avoid asking for another increase until after next year's
presidential election.
Sheila McKinney
