congressional leaders reach debt deal

[Kylebiddle]

Looks like a deal was struck just in time the story

Washington – The United States managed to reach a bipartisan deal to raise the debt ceiling and avoid the country defaulting on its bills on Aug. 2, after weeks of fruitless negotiations in Congress.

"The leaders of both parties, in both chambers, have reached an agreement that will reduce the deficit and avoid default - a default that would have had a devastating effect on our economy," President Barack Obama said Sunday night.

The private negotiations that the White House started Saturday with the leader of the Republican Senate minority, Mitch McConnell, became the key for reviving a process marked by partisan obstructionism.

The accord, announced Monday by McConnell, will raise the debt ceiling enough so that it will not need to be raised again until the end of 2012 after the presidential elections.

According to the Republican leader, the plan calls for a deficit reduction of $3 billion over the next 10 years, in two phases and with the guarantee that no taxes will be raised, at least in the first stage.

"The first part of this agreement will cut about $1 trillion in spending over the next 10 years - cuts that both parties had agreed to early on in this process," Obama said.

The second part of the deal "establishes a bipartisan committee of Congress to report back by November with a proposal to further reduce the deficit, which will then be put before the entire Congress for an up or down vote. In this stage, everything will be on the table," the president said.

The full session of the Senate ended Sunday still with no decision on the debt plan proposed by the Democratic majority leader of that chamber, Harry Reid, who was unable to put an end to the eternal wrangling over his measure and put to a vote.

However, that did not keep Reid from announcing soon afterwards that he will support the plan arising from the negotiations between the White House and McConnell, as long as the rest of the Senate Democrats agree to back the measure.

Sen. Reid is supporting the agreement on the debt ceiling in hopes that the Democratic caucus will approve it, the majority leader's spokesman, Adam Jentleson, said in a statement.

The new agreement, according to sources close to the negotiations, takes elements both from Reid's plan and from that of House Speaker John Boehner, and will produce savings of $917 billion over the next 10 years and will raise the debt ceiling by $900 billion in two phases before the end of the year.

After an immediate reduction of the deficit of around $1 trillion, a new bipartisan committee in Congress will guarantee at least another $1.5 trillion off the deficit, Politico reported.

"Now, is this the deal I would have preferred? No. I believe that we could have made the tough choices required - on entitlement reform and tax reform - right now, rather than through a special congressional committee process. But this compromise does make a serious down payment on the deficit reduction we need, and gives each party a strong incentive to get a balanced plan done before the end of the year," Obama said.

On Tuesday the time limit expires for raising the debt ceiling that was set by the Treasury Department, which has warned that the government will then have gone over its debt limit of $14.29 trillion and consequently would be left without sufficient funds to pay all of its obligations.

Read more: http://latino.foxnews.com/latino/mon...#ixzz1TnKdV6PG

How would you manage the Nation Debt, how effective do you think this deal will be? Share your thoughts.

[ddr_f4n]

Aww and I was so looking forward to the default and finally being able to chuckle away how being in Canada is nice with Harper for once.

[Mr. Dorbs]

Originally Posted by ddr_f4n

Aww and I was so looking forward to the default and finally being able to chuckle away how being in Canada is nice with Harper for once.

Responses like this are one of the reasons why I feel that Chit Chat needs to have some kind of filter between logical responses and +1 posting. In the same subforum, we have polls about playing competitively or not while we also have a thread like this discussing America's economy. Two very different topics and that's why I feel like this subforum is too vague.

[fido123]

Originally Posted by ddr_f4n

Aww and I was so looking forward to the default and finally being able to chuckle away how being in Canada is nice with Harper for once.

If America defaulted on it's debt our economy would badly damaged as well, as well as a lot of other countries including China. It would be bad for everybody if America defaulted.

[ddr_f4n]

It's called a joke, but Dorb and Mans0n was expected to not get the obv.

But yeah, I knew it'd be bad, since Canada's biggest trading partner is the US and etc

[~Zeta~]

Pretty bad the parties had to piss and moan for U.S. benefits. It's nice they're attempting to lower the debt since there's some breathing room in this economy, but the question that follows this agreement is what exactly are they going to cut?

Also, if the U.S. defaulted, everyone would be ****ed. Everyone.

[~kitty~]

This might belong in CT, but personally I have no idea what I would do because I'm not well informed enough to be able to give a reasonable plan that would work fine. I would need to know the consequences (or potential consequences) of my actions, and I believe that a lot of people here may be unaware of them as well, but I can't really speak for them. Oh well.

[Without A Contraceptive]

there is no debt crisis


shock doctrine in effect

[nois-or-e]

Originally Posted by ~Zeta~

Also, if the U.S. defaulted, everyone would be ****ed. Everyone.

That's a pretty bold statement. There are some countries out there that would survive quite fine if america defaulted.

[A2P]

Originally Posted by ddr_f4n

Aww and I was so looking forward to the default and finally being able to chuckle away how being in Canada is nice with Harper for once.

Oh shut the fuck up clown

EDIT:

Originally Posted by Mr. Dorbs

Responses like this are one of the reasons why I feel that Chit Chat needs to have some kind of filter between logical responses and +1 posting. In the same subforum, we have polls about playing competitively or not while we also have a thread like this discussing America's economy. Two very different topics and that's why I feel like this subforum is too vague.

I like you. (no homo)

[JuggaloShows]

Ya'll dont get too excited yet...this is not over until tomorrow when the senate actually casts their vote. And quite frankly...all they are doing is making the law say we can become more in debt. Its the same thing over and over again. Partisan politics is destroying us at the moment. This bipartisan committe will be a joke..because once again its partisan..meaning noone will agree on anything and we will just have 51981989 other pissing contests like this in the future. Yeah we reduced spending by 1trillion (over ten years) supposedly...what they dont say is that in the next ten years social security, medicare, and other social services will have a combined cost of over 80 billion dollars. How are we supposed to pay for that?? borrow money? ha i laugh at my own government..

[devonin]

Originally Posted by JuggaloShows

Ya'll dont get too excited yet...this is not over until tomorrow when the senate actually casts their vote. And quite frankly...all they are doing is making the law say we can become more in debt. Its the same thing over and over again. Partisan politics is destroying us at the moment. This bipartisan committe will be a joke..because once again its partisan..meaning noone will agree on anything and we will just have 51981989 other pissing contests like this in the future. Yeah we reduced spending by 1trillion (over ten years) supposedly...what they dont say is that in the next ten years social security, medicare, and other social services will have a combined cost of over 80 billion dollars. How are we supposed to pay for that?? borrow money? ha i laugh at my own government..

And so your alternative is what? They really only have 4 options.

1/ Raise the debt ceiling, continue borrowing
2/ Cut funding from programs, put it towards interest payments
3/ Raise taxes
4/ Default on loans

They've basically mitigated the worst consequences of 1/ and 2/ by doing each one sort of half-assed, but Obama would have been prevented by the senate from picking 3/ and picking 4/ might actually have crashed the US economy.

[Profraine]

Not surprised that they decided that the day before defaulting they decided to agree on something. It's as if they weren't serious about it until the deadline actually loomed. Still glad they agreed on something that isn't dumb.

[MarukuAntoni]

Originally Posted by Profraine

Not surprised that they decided that the day before defaulting they decided to agree on something. It's as if they weren't serious about it until the deadline actually loomed. Still glad they agreed on something that isn't dumb.

Sounds like my procrastination problem.

[bmah]

Originally Posted by Profraine

Not surprised that they decided that the day before defaulting they decided to agree on something. It's as if they weren't serious about it until the deadline actually loomed. Still glad they agreed on something that isn't dumb.

Well actually, it was very bittersweet nonetheless. The majority of the agreement was largely made in the Republican-Tea Party's favor. i.e. the crazy ones

[Calcium Deposit]

Raise taxes back to normal on the wealthy, this "trickle down effect" is obviously just bullshit they are trying to feed the proles.

[JuggaloShows]

This is for devonin
V

oh i agree he did the best he could with the congress we have.
it would be good to go for 3/4
but nothing will happen in this country anyways, what with the tea party basically shutting everything down.
as long as my stocks dont plunge im fine in the moment.

^

what i think they should really do is
1. cut tax loopholes for all corporations (unless they agree to use the money that would be taxes to create jobs in the US)
2. tax to rich
3. be gone with earmarks
4. stop spending 12million on "staplers"
5. find a way to bust these stupid ****s that scam welfare, unemployment, and medicare
6. quit giving hostile countries like pakistan, and half of africa all of "our money"
7. stop sending the major oil companies massive amounts of money, they have plenty



the list can go on and on

[bmah]

Originally Posted by JuggaloShows

as long as my stocks dont plunge im fine in the moment.

invest in gold; it's at it's all-time high today

[Oni-Paranoia]

I think we need to realize the dumb decisions the government is making/has made is probably due to a ton of factors the public doesn't know. Whatever we don't see 'fit' is probably because we don't understand the story behind it.

So on top of a bad "crisis" the American government probably put themselves in a hole that the American people don't see. Just a thought.

[virus003]

Originally Posted by JuggaloShows

This is for devonin
V

oh i agree he did the best he could with the congress we have.
it would be good to go for 3/4
but nothing will happen in this country anyways, what with the tea party basically shutting everything down.
as long as my stocks dont plunge im fine in the moment.

^

what i think they should really do is
1. cut tax loopholes for all corporations (unless they agree to use the money that would be taxes to create jobs in the US)
2. tax to rich
3. be gone with earmarks
4. stop spending 12million on "staplers"
5. find a way to bust these stupid ****s that scam welfare, unemployment, and medicare
6. quit giving hostile countries like pakistan, and half of africa all of "our money"
7. stop sending the major oil companies massive amounts of money, they have plenty



the list can go on and on

1: If by corporations, you include small businesses, I wouldn't agree with this, not every business is successful, my parents own a small business and it isn't successful, but it gets some work in, some people wouldn't want that
2: lol
3: good luck
4: the government can buy what they want because they're greedy bastards and they use the taxpayers money to buy anything, now they ain't got no money.
5: easier said than done
6: too bold
7: where else we gonna get dis shit from, they unfortunately can charge whatever they want

basically our government is full of idiots who only care about money and now they're put up with a big situation with money and they don't have shit for an idea on what to do. the republicans and the democrats are more than crazy on disagreement it's ridiculous, now they pull shit out of their asses and pass another debt ceiling, dumbasses.