We all know that there is a huge spending problem in the States,everyone wants everything now and unfortunately have to borrow from China to pay for it. This cannot continue, I fear that the U.S. is nearing the tipping point of being able to handle the debt repayments.
Had Obama(and Bush) cut taxes on corporations in the beginning to spur on the private sector it probably would have created a much different outcome. By spending on union friendly projects he has not created employment, nor been able to keep the debt ceiling from going up. Reagan did it right, he cut taxes first to spur on the economy and once it started rolling again he was then able to raise taxes to help wring in the debt. The unfortunate thing is I don't see the political will in Washington from either side to do things this way. Problem being the Repubs are listening to the Tea Party who will fight taxes to the death and the Dems are listening to the far left who think government program should continue to expand at a rapid pace. In the middle is where we need someone to come from to stand up to both sides and say enough is enough, let's do what is best for the taxpayers. Obama is not capable of standing up to the far left and as of yet I have not seen anyone on the Right willing to stand up to the power of the Tea Party.
Don't get me wrong, I do not like tax increases and will fight them most all of the time, but the U.S. is in a perilous place right now and if the right fix is not in place it could spell a world wide economic catastrophe, the likes that has never been seen before. So we must implore both sides to get their act together and fix this now once and forever, before it is too late.
Obama, Cantor Clash in Heated Deficit Talks
Published July 14, 2011
| FoxNews.com
President Obama meets with congressional leaders regarding the debt ceiling, Wednesday, July 13, 2011. in the Cabinet Room of the White House in Washington.
Tensions are flaring as lawmakers return to the negotiating table Thursday, after President Obama ended the last session by dressing down House Republican Leader Eric Cantor.
"Don't call my bluff. I'm going to the American people on this," the president told Cantor, according to the GOP leader.
Democratic and Republican sources have offered several versions of the final moments of Wednesday's meeting -- by most accounts it ended on a low note, raising questions about whether negotiators can make any progress under increasing pressure to strike a deficit-reduction deal and raise the debt ceiling. A startling warning came Wednesday when credit rating agency Moody's said the U.S. government's impeccable credit rating was under review for a potential downgrade. The agency said the ongoing stalemate increased the risk of a first-ever default on the government's debt.
Leaders from each side cited the announcement from Moody's, calling on the other to give ground for the sake of avoiding fiscal calamity. But the area of agreement between the two sides seems only to have gotten smaller in the past few days.
One Republican aide told Fox News that negotiators are "walking back" the value of proposed spending cuts -- from $2 trillion to $1.5 trillion. Cantor apparently tried to suggest negotiators strike a short-term deal considering the distance between the two sides, but Obama shut that idea down.
According to sources, Obama said "enough is enough," arguing forcefully for revenue increases to achieve the deficit reduction sought by the GOP.
"I've reached my limit. This may bring my presidency down, but I will not yield on this," Obama said, before walking out.
"He became very agitated," Cantor said. He called the president's exit from the talks "abrupt," and added that the two sides are "very far apart right now."
But one House Democrat called Cantor's account "completely overblown," saying the Virginia Republican "rudely interrupted the president three times" while Obama was concluding the meeting.
Cantor disputed that claim.
Meanwhile, one Democratic aide called the meeting "tense but constructive."
As negotiators clash, some are talking about the possibility of an extra round of talks this weekend at Camp David, the presidential retreat in Maryland.
Lawmakers are no doubt concerned about the latest warning from Moody's, which cited "the possibility that the debt limit will not be raised in time to prevent a missed payment of interest or principal" and, in turn, "a small but rising risk of a short-lived default."
Moody's said such a turn of events would make the United States' AAA rating "no longer" appropriate.
A downgrade means the Treasury likely would have to pay higher interest rates to borrow -- higher rates that could ripple over into interest rates for mortgages, car loans and business loans.
The Treasury Department, which has set Aug. 2 as the deadline for raising the nation's $14.3 trillion debt ceiling to avoid a possible default, said, "Moody's assessment is a timely reminder of the need for Congress to move quickly to avoid defaulting on the country's obligations and agree upon a substantial deficit-reduction package."
Despite several weeks of negotiations, the White House and Republicans leaders have not been able to strike a deal to rein in government spending while increasing the nation's borrowing limit.
Democrats have insisted on raising new revenues in any deal that would include deep spending cuts. But Republicans are adamantly opposed to any tax increases, even if it is limited to closing tax loopholes for the wealthiest Americans.
Republicans are now debating whether to get behind Senate Republican Leader Mitch McConnell's backup plan which would make it easier for Obama to obtain a debt ceiling increase -- but also risk the possibility of failing to enact spending cuts.
Read more: http://www.foxnews.com/politics/2011/07/14/obama-debt-enough-is-enough/#ixzz1S60KZcqT
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