McConnell sets agencies straight

[ugonow]

"Despite Potential Downgrade, McConnell Claims ‘Absolutely No Economic Justification’ For Long-Term Debt Ceiling Deal
By Alex Seitz-Wald on Jul 26, 2011 at 1:40 pm

Countering President Obama’s call for a long-term increase in the nation’s debt ceiling, Senate Minority Leader Mitch McConnell (R-KY) said yesterday that “there’s absolutely no economic justification” for an extended increase:

There’s absolutely no economic justification for insisting on a debt limit increase that brings us through the next election. It’s not the beginning of a fiscal year, it’s not the beginning of a calendar year, based on his own words its hard to conclude that this request has anything to do with anything other than the president’s re-election.

Overshadowing all of the debt ceiling negotiations has the been the possibility of a downgrade in U.S. debt, something the IMF warned today could have a “universally large and negative” impact on the global economy. Investors and the credit rating agencies have made it clear that they prefer a long-term deal, and a source at Standard & Poor’s told CNN that Speaker John Boehner’s (R-OH) debt ceiling plan would probably lead to a downgrade because it would force a second vote on the debt limit several months from now. Bank of America-Merrill Lynch warned in a memo that a “stopgap deal” could have “negative impact on stocks.” The CEO Of PIMCO, meanwhile, said a “short term stop gap compromise” could hurt stock markets and leave the U.S. “extremely exposed” to a credit downgrade.

Even leading Republicans understood this — including McConnell — as their new position is a reversal from just weeks ago when they wanted a long-term deal. Rep. Dave Camp (R-CA), chairman of the tax-writing House Ways and Means Committee, said a shot-term deal “doesn’t give you certainty,” while House Majority Leader Eric Cantor (R-VA) said a stopgap measure would just be “putting off tough decisions.” McConnell himself called for a “very large package that will impress the ratings agencies, impress foreign countries and astonish the American people that we’re actually going to come together.” But that was so last month."

Update
The CEO of the NASDAQ stock exchange told a Senate hearing today that markets would greatly prefer a longer term deal.

[ugonow]

I thought they were against a short term deal.

[henryclay]

McConnell nailed it. What is the point of increasing the debt limit with no effort on stopping the financial spiral downwards?

If the politicians have not learned a lesson, don't we have enough evidence that the American taxpayers are fed up? And along those lines, I wonder, if a poll was done just among the 50 percent of Americans who don't pay federal income taxes, how many of them would be Republican voters and how many would be party line Democrat voters?

[tbop77]

Now that is just funny, Henry, considering Mitch has voted to raise the debt limit 19 times......

[cme1201]

If none of you are aware, this is all political pandering. Obama wants it to allow enough money so that he doesn't have to deal with it during an election year, some Repubs are for short term so that they can force Obama to campaign and deal with imminent default.

Boys and girls, it is both sides doing nothing but playing politics, short and sweet.

[BeenThere...DoneThat...]

Jul 26, 2011 17:24:31 GMT -5 cme1201 said:

If none of you are aware, this is all political pandering. Obama wants it to allow enough money so that he doesn't have to deal with it during an election year, some Repubs are for short term so that they can force Obama to campaign and deal with imminent default.

Boys and girls, it is both sides doing nothing but playing politics, short and sweet.

...if we do a coup and install a dictator, I could volunteer... I've got some ideas about the budget...

[handyman2]

Most if not all debt increases have been for one year or less. This is how it has been since there was a debt ceiling issue. it has been supported by Dems many times. Why change now. There would be no incentive to control the budget other wise. I agree with bonnier, Obama just wants a blank check.

[henryclay]

McConnell has voted to raise the debt limit 19 times.

Have any of those times been included in Continuing Resolutions to avoid government shutdowns because the Senate won't pass a budget? Has the Senate passed a single budget since Obama took office, or has the government been run entirely on Continuing Resulotions since Obama took office?

[handyman2]

Maybe it is my imagination but it seems that the Senate is Obama's silent enemy. They won't pass anything. they won't pass a Republican plan and say they will not pass Reids plan now. So what is going on there? Strange

[jkapp]

Jul 26, 2011 16:54:05 GMT -5 tbop77 said:

Now that is just funny, Henry, considering Mitch has voted to raise the debt limit 19 times......

And Obama voted against raising it a few years ago stating that doing so shows a failure of leadership...

[tbop77]

So the whole thing is a big game to both sides? Whatever will get me reelected.

[Deleted]

It’s not the beginning of a fiscal year, it’s not the beginning of a calendar year, based on his own words its hard to conclude that this request has anything to do with anything other than the president’s re-election.

Just what I have been saying. The President (who is HEAD of the democratic party) & the democratic party are playing political games to get elected. They are basically trying to buy votes with the American people paying for it.

For the Republicans out there going: It's those damn democrats, I've got news for you. If the republicans thought that nailing you to a cross would improve their chance of gaining control just 1% come election time, you would be found tomorrow nailed to a cross.

The truth is that the number 1 & 2 priorities of both parties are exactly the same: 1. get control 2. stay in control. Doing what's best for the country is WAY down the list.

[tbop77]

Thank you oldtex......now if the rest of the country would wake up and throw those bums (both sides) out, maybe, just maybe the US could be great again.....but I won't hold my breath.