Deal reached to avert default

“Congressional leaders of both parties and President Obama said they have agreed to a framework for a fiscal deal that they will present to their caucuses Monday morning, moving Congress closer to taking up a measure that could pass both the House and Senate with bipartisan support and be signed by President Obama, averting a fiscal calamity,” according to the New York Times.

“The two Senate leaders, Harry Reid of Nevada and Mitch McConnell on Kentucky, announced the agreement on the Senate floor and President Obama a few moments later. He indicated he would support it, although it was not his preferred approach.

‘“It will allow us to avoid default,’ he said.

“All afternoon, after Senate Republicans, as expected, blocked progress on a Democratic plan, Senate Democrats and House Republicans had worked feverishly with White House officials Sunday to iron out the final components of a deal to avoid imminent default, negotiating the design of a mechanism that, after an initial round of spending cuts and debt relief this year, would help force the hand of Congress when the time comes for a second round next year.”

The rest of the article is here.

Author: jeffpelline

Jeff Pelline is a veteran editor and award-winning journalist - in print and online. He is publisher of Sierra FoodWineArt magazine and its website SierraCulture.com. Jeff covered business and technology for The San Francisco Chronicle for 12 years, and he was a founding editor and Editor of CNET News for eight years, among other positions. Jeff has a bachelor's degree from UC Berkeley and a master's from Northwestern University. His hobbies include sailing, swimming, and trout fishing in the Sierra.

10 thoughts on “Deal reached to avert default”

  1. As much as I wanted to avoid Default, I wanted more to cut all un-necessary funding including foreign aid to pretty much everyone, and it’s time for the SSI tax to go way above the current maximum of @100K.

    I also wanted additional revenue “generation” as we’ve all had a really nice party, and it’s time that we pay for it!

    I can’t figure out this crapola that the right keeps pushing? How do they think this will work? Is the Easter Bunny going to be bringing in big bags of money?

  2. This country and this president have weathered many storms. I believe in them both. God Bless the U.S.A.
    Kate

    1. Gary North says: “The biggest sinkholes of spending – Medicare, Medicaid, Social Security, and the military – are the big problems.”

      Social Security has no relationship whatsoever to the current deficit, since it is fully funded for the next 25 years, and could easily be 100% fiscally sound forever by raising or removing the current income cap. In fact, most recent administrations have borrowed from its surplus to mask their otherwise profligate spending.

  3. My headline would be “GOP and President Hoover Agree on Deal to Make Economy Worse:”

    Professor Krugman nails it as usual:

    “The President Surrenders”

    Excerpt:

    “The worst thing you can do in these circumstances is slash government spending, since that will depress the economy even further. Pay no attention to those who invoke the confidence fairy, claiming that tough action on the budget will reassure businesses and consumers, leading them to spend more. It doesn’t work that way, a fact confirmed by many studies of the historical record.

    “Indeed, slashing spending while the economy is depressed won’t even help the budget situation much, and might well make it worse. On one side, interest rates on federal borrowing are currently very low, so spending cuts now will do little to reduce future interest costs. On the other side, making the economy weaker now will also hurt its long-run prospects, which will in turn reduce future revenue. So those demanding spending cuts now are like medieval doctors who treated the sick by bleeding them, and thereby made them even sicker.”

  4. As we await the senate vote at noon (eastern time), here’s Tex Ritter with his classic “High Noon,” as performed on the Dick Cavett Show in 1970.

    Tex pleads, “Do not forsake me.” Let’s hope the senate doesn’t forsake all of us.

  5. Yeah, the Republican presidential “nominees”: What a bunch of PU…COWARDS. I wouldn’t hire em for beauty pageant judge, they couldn’t handle the “pressure”…
    Gifford puts em all to shame. Kate

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