Skip to main content

Harry Reid and Nancy Pelosi
(Jim Young/Reuters)
The Hill:
Senate Majority Leader Harry Reid (D-Nev.) will postpone plans to move on a fallback option to raise the debt limit to give the House a chance to move first.

The delay on a fallback plan significantly increases the pressure on President Obama and House Speaker John Boehner (R-Ohio) to reach a deal by themselves to avoid a national default. [...] Reid said “circumstances have changed” in the wake of media reports that Obama and Boehner are closing in on a $3 trillion deficit-reduction deal that would raise the debt limit and establish a promise to reform the tax code at a later date. [...] “The path to avert default now runs through the House of Representatives,” he said. “We in the Senate must wait for them.”


House Minority Leader Nancy Pelosi acknowledged Friday that Democrats may reluctantly accept a last-minute compromise to raise the debt limit that involves up to $2.5 trillion in spending cuts, without any agreed-upon plan for new tax revenues.

The plan would place a firewall between entitlement spending and the threat of default, upsetting GOP plans to force deep cuts to those programs. And if, as a result, the GOP declined the offer, Democrats would agree to punt the questions of entitlement spending and tax cuts to a future, streamlined legislative process.

So the McConnell-Reid fallback option is apparently out and House Democrats are prepared to accept a revenue-free debt deal as long as it doesn't cut entitlements.

Both moves clear the way for President Obama and John Boehner to strike a deal in which Republicans get pretty much everything that they've been asking for and Democrats get just about nothing.

But Obama and Boehner both say that there is no deal, and that they aren't close to one. Either they're both lying, or we're ten days away from running smack into the debt ceiling.

12:28 PM PT: Pelosi gets to $2.5 trillion by starting with $1 trillion in cuts, $500 billion interest savings, and then adding the following:

We could go even further with non-health mandatories, could take us almost to two trillion. We could use the offshore -- the Overseas Contingency [the wars in Iraq and Afghanistan] -- could take us to two-and-a-half trillion dollars. Which is the dollar-for-dollar for the lifting the debt ceiling. I don't think we have to have dollar-for-dollar, but for those who think they do, there's a path to get there.

Originally posted to The Jed Report on Fri Jul 22, 2011 at 12:16 PM PDT.

Also republished by Daily Kos.


Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags


More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site