Did Obama refuse a bipartisan deal on the debt ceiling?

posted at 10:00 am on July 25, 2011 by Ed Morrissey

If this is true, then Barack Obama just took full and complete ownership of the debt-ceiling crisis and whatever ensues:

A Republican aide e-mails me: “The Speaker, Sen. Reid and Sen. McConnell all agreed on the general framework of a two-part plan. A short-term increase (with cuts greater than the increase), combined with a committee to find long-term savings before the rest of the increase would be considered. Sen. Reid took the bipartisan plan to the White House and the President said no.”

Jen Rubin writes that “the President is playing with fire” if this report is correct, and that’s most certainly true.  This might also explain why Reid turned around and decided to offer a bill that basically meets Republican demands.  If Obama won’t accept a bipartisan compromise from Reid and McConnell, then Reid might as well just let Obama deal with Boehner instead.

I could have added this as an update to the previous post, but this really does put a much different light on what’s happening inside the Beltway and the White House.  The two-stage plan would have offered the Democrat-controlled Senate a lot of play on budget cuts and revenue increases, perhaps overwhelming the House by bringing Senate Republicans closer to Reid.  All it required was a concession from Obama on a short-term debt increase and an acceptance of real cuts, which is apparently more distasteful to Obama than the default he has been screeching about for the last two weeks.

If this is true, it looks like Reid went to the White House to split the GOP, and ended up with a split in his own party.  No wonder Reid simply wants out at this point.

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Back then we thought that
Clinton was a narcissist…
Not compared to ‘Bam.

The only thing that matters to this guy is his own prospects for re-election. He will pull the whole house down rather than take a short-term hit in the polls.

Haiku Guy on July 25, 2011 at 11:30 AM

I think so, but, I’m also beginning to think that Obama may not run again. Not sure why, but I’m getting an LBJ feeling about how embattled he is and how much the country has shifted away from him. The analogy isn’t exact – LBJ was getting it from left and right – but I think the debt crisis and the default possibility, with the Republicans standing firm so far, is having something like the effect of the Tet Offensive in turning the American people against the Vietnam War – a sense that the policies just weren’t working and here aren’t working, but that the leader has no clue.

Palin’s almost certainly right, Obama is very close to being a lame duck, if he’s not quite there yet.

CatoRenasci on July 25, 2011 at 11:04 AM

This is what I’ve been thinking especially since the midterms. With Dem control of both houses, Pelosi and Reid running the show he didn’t have to do anything, and he didn’t.

Throughout his career he has rarely encountered opposition, if ever. The Dems could have avoided this mess while they had control, but they didn’t.

Now, BO is left dealing with opposition and trying to defend a position that truly is indefensible. His attempt to “take it to the people” is futile because he can’t explain what he’s doing. He’s ignorant. All he does is point fingers, whine and complain.

He is a weak man. The slobbering MSM has been able to protect him to date, but it’s becoming very difficult at this point.

What BO has to contemplate this time around is that he may lose the Senate and the possibility of more Dems in Congress next time around. This, I think, is too much for him to deal with.

He might as well resign or decide not to run. Palin is right. He’s certainly a lame duck, but I would say his administration is finished and in its death throws.

Now, if Issa can add some pressure, we might get some good news (for a change) from the WH….. he won’t run again.

Cody1991 on July 25, 2011 at 11:17 AM

You guys are dreaming. He’s running and he’ll do whatever it takes — whatever it takes — to win. He will lie. He will cheat. He will steal. He will bring the full force of the federal government down upon his opponent via the FBI, CIA, IRS, DOJ, and any other federal agency he can further corrupt. He is fueled by a grotesque and unstoppable messianic complex, and even when he loses in 2012, he will continue to work for the total destruction of what his ideology views as the twin evils of our time: capitalism and Constitutional democracy. I have no doubt that he’ll lose in 2012 — but I also have little doubt that he will run again in 2016. He’s a young man. We will be stuck with him and his madness for many, many years.

Rational Thought on July 25, 2011 at 11:30 AM

Why do we need a committee to make decisions?

Oh yeah, that’s right. No one wants to take accountability.

Notorious GOP on July 25, 2011 at 10:02 AM

Whenever you see the word committee, think consensus.

Consensus = Absence of Leadership

No accountability, no blame, CYA.

roy_batty on July 25, 2011 at 11:31 AM

Del Dolemonte on July 25, 2011 at 11:08 AM

Nano said to say he misses hearing from you over at the forum dude

CommentGuy on July 25, 2011 at 11:33 AM

He’ll run unless it is obvious he can’t win. Courage is not part of his makeup. Before McCain, he won elections by disqualifying his opponents.

a capella on July 25, 2011 at 11:36 AM

Obama will run in 2012. His first term is just a warm-up for his second term, when he can really deliver the blows to America that he lusts for, without being burdened by a re-election issue.

GaltBlvnAtty on July 25, 2011 at 11:37 AM

When you have a corrupt, narcissistic bully who is anti-American in the White House, things like this happen. Throw in the fact he is completely incompetent into the mix and the do do just keeps getting deeper.

volsense on July 25, 2011 at 11:37 AM

Pass it and make him veto it. If he does, for the Dems to override the veto or destroy the nation. We’ll see what they value more, their president or their country.

cpaulus on July 25, 2011 at 11:43 AM

Did Obama refuse a bipartisan deal on the debt ceiling?

Even if it’s true, Beohner is certain to help him out of the jam by continuing to negotiate with himself to put together a sham deal.

FloatingRock on July 25, 2011 at 11:45 AM

Pass it and make him veto it. If he does, for the Dems to override the veto or destroy the nation. We’ll see what they value more, their president or their country.

cpaulus on July 25, 2011 at 11:43 AM

Really? You need more evidence to know the answer to this? In reality, it’ll come down to their president or their own re-election efforts. Dems worry about one thing, and one thing only: the next election. The country? Ha. Not even on their radar for a single moment.

Rational Thought on July 25, 2011 at 11:48 AM

I’d bet Reid will let Obama look the fool before taking one for the team.

John Deaux on July 25, 2011 at 10:07 AM

I can’t believe the level of naivete I’m seeing on this thread. Reid will do exactly what he’s told to do, as will obama. Reid will continue doing whatever he has to in order to make sure none of this ever lands on obama’s desk. And obama will be running for a second term.

As for the folks that think this will reflect negatively on obama, can I remind you all of Monica Lewinsky? The American press made a vast majority of people believe that having sex with an unpaid intern half his age was no big deal and lying about it was absolutely none of our business. Do you really think they can’t spin this much more convoluted story to his advantage? Really? You folks are acting just as clueless as the typical obama voter, and for the same reason (though the opposite emotion).

Before I get smacked around, I only ask that you think about it before making statements such as those outlined above. Lying to ourselves isn’t going to solve anything, and we’ve had many chances to learn this lesson. It’s time we finally did.

runawayyyy on July 25, 2011 at 11:53 AM

runaway: What, then, do you suggest?

You seem to imply that the media will ensure an Obama victory, as they can spin anything.

Scott H on July 25, 2011 at 12:00 PM

LordMaximus on July 25, 2011 at 10:54 AM

I don’t think Obama would hesitate for one second to usurp Congressional authority and barf up some preposterous legal theory to justify it. (Have you noticed how many un-confirmable leftist “czars” he has appointed to unlawfully exercise the authority granted only to appointees who have been approved by the Senate?)

The problem with this theory is that it won’t work. The ratings agencies have already said raising the debt ceiling without cuts won’t save the credit rating. Obama can claim (quite falsely, but that won’t stop him) he made sure the checks went out, but it won’t matter in comparison to the magnitude of the economic destruction that will ensue from loss of AAA credit. I don’t see it as a viable option, but not because Obama wouldn’t do it if he thought it would work.

novaculus on July 25, 2011 at 12:06 PM

runawayyyy on July 25, 2011 at 11:53 AM

While I agree with you about the unfathomable depths of media willingness to spin for Obama, I don’t want to run away from this fight, and I think that is true for a huge number of Americans. While Clinton’s stuff was bad, it was not designed to destroy our country, as are Obama’s actions. I continue to believe that most Americans, at their core, want a somewhat traditional American to survive. There is a question about whether they can become engaged.

GaltBlvnAtty on July 25, 2011 at 12:07 PM

This is fun. We are going to really enjoy watching this scumbag Obama flame out like the overhyped nitwit that he is.

Jaibones on July 25, 2011 at 12:09 PM

The ratings agencies have already said raising the debt ceiling without cuts won’t save the credit rating. novaculus on July 25, 2011 at 12:06 PM

Debt to GDP ratio is a hell f a lot more meaningful than raising borrowing limits, because it indicates, in general, an ability to ever pay more than just interest on the debt. The death spiral of interest alone eating up all available resources.

a capella on July 25, 2011 at 12:15 PM

runawayyyy on July 25, 2011 at 11:53 AM

Big difference: Clinton and his intern did not directly impact American voters, particularly in their wallets. Obama and the debt ceiling do. Voters have been fairly consistent: stop the spending, don’t raise taxes, government should live within its means. They get this debate, and they get how it affects them. Try as they are, the media simply cannot spin out-of-control spending, high unemployment, high taxes.

Rational Thought on July 25, 2011 at 12:17 PM

This is fun. We are going to really enjoy watching this scumbag Obama flame out like the overhyped nitwit that he is.

Jaibones on July 25, 2011 at 12:09 PM

Any POTUS debates in preparation for 2012 elections will be most entertaining.

“Mr. President, over the last for years you’ve used terms such as “revenue” when speaking about increasing the amount of money the government receives. Can you tell the American citizens what the difference between “revenue” and “taxes” is?”

“Uh…ummm….let me, ah…be clear……”

BobMbx on July 25, 2011 at 12:17 PM

But, but . . . I thought the debt ceiling crisis was the Republicans’ fault.

WannabeAnglican on July 25, 2011 at 12:21 PM

The ratings agencies have already said raising the debt ceiling without cuts won’t save the credit rating.

novaculus on July 25, 2011 at 12:06 PM

Compare your “credit rating” and the US government’s “credit rating” using the same factors.

My guess is your rating will be substantially higher. And yet, all the credit raters on the planet continue to give the US the highest rating possible. I wonder…..are these rating agencies somehow affected by changing the US’s rating?

Hmmmm…..

There is no way to justify the credit rating of the US Treasury. So they just make it up to keep from losing their own asses.

BobMbx on July 25, 2011 at 12:22 PM

This is not fun. This is playing with fire.

bopbottle on July 25, 2011 at 12:25 PM

If this is true, then Barack Obama just took full and complete ownership of the debt-ceiling crisis and whatever ensues

Yep.

Tim_CA on July 25, 2011 at 12:54 PM

This Credit Rating talk is ridiculous

Those are all PSYCHOLOGICAL…Why? because in the short-term, here is 0% chance of the US government not making payments on its debt…the money is there.

Even IF they downgraded US Bonds…the World creditors would just change their rules and everything would turn out relative.

All Fear-Mongering by Moody’s and S&P…This isn’t hard people.

LordMaximus on July 25, 2011 at 12:54 PM

runawayyyy on July 25, 2011 at 11:53 AM

Yes, but people on both sides of the aisle LIKED Bill Clinton, even if they knew he was a lying SOB.

NOBODY really likes Obama, and I think that extends to people in CONGRESS. He’s burned so many bridges, there will be no coming back from this.

Pelosi has no love for him, after he threw her and the Dems in the House under the bus. (You may have noticed that she hasn’t been involved in this very much)

I doubt there is much love lost between Obama and Reid, and if Reid thinks that Obama is going to cost him the Senate, he’ll be abandoning him as well.

TeresainFortWorth on July 25, 2011 at 1:04 PM

If this is true, then Barack Obama just took full and complete ownership of the debt-ceiling crisis and whatever ensues

Yep.

Tim_CA on July 25, 2011 at 12:54 PM

Right, I’m sure the liberal old media will tell the American people that.

slickwillie2001 on July 25, 2011 at 1:06 PM

Prediction: The Boehner bill will pass the House
(There’s no legislative alternative, and there’s no more time.); That bill will then pass the Senate (under pressure of the 2012 election and the potential blame for a default, the senators will vote their own self-interest vs. Obama’s); Obama will sign it (A bipartisan bill having passed both houses, he simply can’t avoid, and can’t afford, blame for a default.

Barnestormer on July 25, 2011 at 1:15 PM

Friday’s presser by the One was indicative of his clinical status. NPD is showing like never before.

The fake will some day write a definitive book. Title s/b “It’s possible to fool almost all the people. How I did it”.

Schadenfreude on July 25, 2011 at 1:18 PM

well, really this is no surprise. Obama wants taxes. For two reasons…one he wants more money, two (and even more important) he wants to humiliate the TP and Conservative and Rs…that is, he wants to rub their nose in the fact that HE HAS the POWER.

Yeah, they won the lower house..but he has the keys to the kingdom. He doesn’t need to compromise, he is all Powerful

Let’s pause a minute to reflect on the American People who fell for the highly polished con. It says that most “voters” have s*** for brains. Ok?

r keller on July 25, 2011 at 1:18 PM

Fox just reported that Obama’s friends at Goldman Sachs that the US debt rating will be cut unless there are at least $4T in credible cuts. None of the deals being discussed get anywhere close to this level, so a downgrade is inevitable.

Also, Stuart Varney mentioned that there are many organizations that are restricted in what investments they can hold and a downgraded US debt will not qualify under those guidelines.

Given that a downgrade is inevitable, a smaller two-step deal should become easier to get approved.

in_awe on July 25, 2011 at 1:34 PM

Haiku Guy on July 25, 2011 at 11:30 AM

I believe Obama is a narcissist and Clinton is a sociopath

Narcissist wolf says to everyone:

“I’m a sheep, I’m a sheep, I’m in the sheep club. The sheep are the best. Those wolves are terrible. You have to be a special sheep to be in the high-wool club like me. If you don’t believe I’m a sheep then you are calling me a liar.

I was only eating meat because my boss made me do it. I was howling at the moon because you made me angry. I have always been a sheep. You are paranoid, I don’t have canine teeth. You are imagining it. I’m a sheep.

I won best sheep of the year award. We have to be on the look out for SueTarget. She’s a wolf in sheeps’ clothing. I am the one that did all the work. SueTarget messed it all up. SueTargets’s fur looks fake.

I’m the biggest sheep so I should be the boss. I have every right to punish SueTarget and eat her. It will be good for her, and teach her a lesson. I’m not doing it for me, I’m doing it for the team.

I have to be the enforcer here and eat bad sheeps to help keep society clean. I used to be a vegetarian but because all these lazy sheep won’t do anything, I am forced into keeping order and forced into being the bad guy and have to do all the eating of sheep.”

Sociopath wolf says:

“Become the sheep. Believe you are the sheep. Keep the wolf hidden. Don’t act like a narcissist and don’t try to “talk your way”. Become the sheep. Do sheep things. Behave like sheep. No one will see the wolf.

Baa baa baa. Eat grass for a while. Give up meat for a while. Tell the sheep things that will make them feel good about themselves. Gain their trust. Be humble. Make them the center of attention. Get them to lower their defenses. Tell them you lost your teeth in a car accident and your parents could only afford wolf-teeth replacements.

Keep past a secret so they don’t research. Let them do all the talking. Then when the time is right, devour! It is worth the sacrifice and the wait. Then on a polygraph when they ask if I am a sheep, I will have all the sheep memories because I became a sheep. I have memories of eating grass and living like a sheep.

I’m telling the truth.”

Fallon on July 25, 2011 at 1:40 PM

a downgrade is inevitable

in_awe on July 25, 2011 at 1:34 PM

Please bear in mind that a downgrade of our credit rating only creates costs for the government (our grandchildren) if we keep borrowing money (new debt, subsequent to the downgrade). Our existing debt is at fixed interest rates, and is traded on a secondary market. Any downgrade of existing debt will cost current holders/sellers of the debt in the form of a reduced sales price. The subsequent interest payments received by the holders of the debt will remain as the were, contractually at issue (fixed rates).

If we don’t raise the debt limit, we can’t borrow any more money, and we also don’t really need a balanced budget ammendment (in the near term).

samuelrylander on July 25, 2011 at 1:50 PM

Been reading the comments and seeing a lot of handwringing over what “The Media” is going to say.

Who cares? They are dying. Sure, they still have some influence, but in the headlines there is an article where a lot of people (67 or 69% IIRC) don’t buy what they are selling.

The only way to win is to continue the fight and eventually the LSM will not be able to cover up for him.

I’m waiting very patiently for the day where they cannot cover, people start to realize that they’ve been lied to so blatantly and get angry.

It will come. Just be patient and keep fighting. Giving up because the LSM is spinning is what they want.

kim roy on July 25, 2011 at 2:12 PM

If this is true, then Barack Obama just took full and complete ownership of the debt-ceiling crisis and whatever ensues

Yep.

Tim_CA on July 25, 2011 at 12:54 PM

Right, I’m sure the liberal old media will tell the American people that.

slickwillie2001 on July 25, 2011 at 1:06 PM

But the rest of us will brother…..I’m a BIG blabbermouth…..so is Ed….and so are you!!

Just keep talking and remember the mid-terms. The MSM will be even less relavent in the next election.

Tim_CA on July 25, 2011 at 2:15 PM

If we don’t raise the debt limit, we can’t borrow any more money….

samuelrylander on July 25, 2011 at 1:50 PM

That’s only true in the net. While the U.S. couldn’t exceed the debt ceiling, it will continue to borrow in order to repay maturing debt. As prices decline to reflect (presumed) rate increases, yields to the Treasury on auctions will decline, making “replacement debt” more expensive than the debt it retires.

What I have not seen explained is what would be left of the AAA market in the event of a wholesale U.S. downgrade. Both the makeup (Swiss bonds?) and volume (a lot more Swiss bonds?) would seem worthy of discussion.

Barnestormer on July 25, 2011 at 2:17 PM

Well, then – they need to either override his veto or not. In the long term it doesn’t really matter, because we are screwed no matter what happens.

angelat0763 on July 25, 2011 at 2:24 PM

Please bear in mind that a downgrade of our credit rating only creates costs for the government (our grandchildren) if we keep borrowing money (new debt, subsequent to the downgrade).

The answer certainly isn’t to frantically borrow more money. The answer is to cut spending, and use the revenue that comes in daily to pay our existing debts.

Americans are apparently some of the most gullible people on the planet.

angelat0763 on July 25, 2011 at 2:28 PM

I have no idea, but I do know that you guys come up with really cool names for your fake scandals.

crr6 on July 10, 2011 at 1:24 PM

Please articulate the “fake”, dipstick.

rplat on July 25, 2011 at 11:13 AM

Check the date of crr6′s post-15 days ago. I saved it as a Keeper.

Over the past 2 weeks, this “fake scandal” has continued, despite the Democrat Media’s best attempts to bury it. It was first broken 6 months ago by C-BS “News” reporter Sharyl Atkisson, and despite her regular reports over those 6 months, C-BS took her off the story as soon as the scandal started to get too close to Holder and his Boss.

Next Congressional Hearing on this “fake scandal” is tomorrow.

Del Dolemonte on July 25, 2011 at 2:28 PM

Del Dolemonte on July 25, 2011 at 11:08 AM

Nano said to say he misses hearing from you over at the forum dude

CommentGuy on July 25, 2011 at 11:33 AM

Sorry to say I gave up on Power Line after they changed their forum comment format; I have no desire to comment thru my Facebook page, as my Facebook page has always been politics-free. Say hey to everyone for me though!

Del Dolemonte on July 25, 2011 at 2:31 PM

Let’s pause a minute to reflect on the American People who fell for the highly polished con. It says that most “voters” have s*** for brains. Ok?

r keller on July 25, 2011 at 1:18 PM

LMAO……let’s go with “a majority”….it sounds better than “most”.

great rant!

Tim_CA on July 25, 2011 at 2:32 PM

runawayyyy on July 25, 2011 at 11:53 AM

Big difference: Clinton and his intern did not directly impact American voters, particularly in their wallets. Obama and the debt ceiling do. Voters have been fairly consistent: stop the spending, don’t raise taxes, government should live within its means. They get this debate, and they get how it affects them. Try as they are, the media simply cannot spin out-of-control spending, high unemployment, high taxes.

Rational Thought on July 25, 2011 at 12:17 PM

I think the point runawayyyy was making is that the media managed to brainwash the majority of the American people about something political; the fact that they were so successful doing so in fact did impact American voters, as they were brainwashed into believing that a felony crime was not a felony crime if it was about sex. Which is a total lie; felony perjury is felony perjury no matter what the subject is; Clinton’s own Justice Department in fact successfully prosecuted a female Federal employee in his first term-for lying under oath about sex.

In other words, the Democrat Media in the Clinton scandal managed to Dumb Down American voters even more. We would see the final result of that Dumbing Down in the 2008 election.

Del Dolemonte on July 25, 2011 at 2:37 PM

That’s only true in the net. While the U.S. couldn’t exceed the debt ceiling, it will continue to borrow in order to repay maturing debt. As prices decline to reflect (presumed) rate increases, yields to the Treasury on auctions will decline, making “replacement debt” more expensive than the debt it retires.

I hadn’t considered that. Thanks.

The answer certainly isn’t to frantically borrow more money. The answer is to cut spending, and use the revenue that comes in daily to pay our existing debts.

I guess I assumed this went without saying. I shouldn’t have made that assumption.

samuelrylander on July 25, 2011 at 2:38 PM

No wonder Reid simply wants out at this point.

Good! In 2012 we’ll take back the senate and relegate him back to being the insignificant progressive traitor that he is.

csdeven on July 25, 2011 at 4:22 PM

It is extremely telling, however, that Reid’s plan contains NO tax hike. As I suspected, Obama doesn’t have enough support even in his own party (and particularly from Senate Democrats facing reelection) to pass the massive tax increases that he and his liberal base demand. And yet Obama at the last minute in negotiations with the speaker of the House last week threw in $400 billion in more taxes. There could only have been one purpose for that, since the Senate is as tax-hike-averse as the House: to create a crisis. We have finally found the president’s strong suit. [empahsis added]

http://www.washingtonpost.com/blogs/right-turn/post/obama-kills-bipartisan-deal-then-reid-resorts-to-smoke-and-mirrors/2011/03/29/gIQAF3YLYI_blog.html

Join the club, Jen. I have been saying that since he pulled that stunt. I’m not the only one, either.

novaculus on July 25, 2011 at 4:28 PM

Allen West SUPPORTS the new Boehner Deal

http://twitter.com/#!/jamiedupree/statuses/95582571794149376

LordMaximus on July 25, 2011 at 4:28 PM

But the GOP will still be blamed…

RedSoxNation on July 25, 2011 at 4:35 PM

If we can’t get Cut, Cap and Balance passed then, for the good of the nation, we need to try to stop the crooks in Washington from raising the debt ceiling at all. Hold the line.

FloatingRock on July 25, 2011 at 4:41 PM

runaway: What, then, do you suggest?

You seem to imply that the media will ensure an Obama victory, as they can spin anything.

Scott H on July 25, 2011 at 12:00 PM

I’m not just implying that, I’ll go ahead and state it up front. The media will do everything they can to ensure an obama victory, they can and do spin anything and everything.

My point was that believing Reid will even think about throwing obama under the bus, or even thinking that obama won’t run for a second term, is naive to a degree that should embarass any thinking conservative.

Therefore what we should do is completely ignore the media, right leaners excepted. Do NOT debate with leftist moderators, REFUSE to debate on leftist networks, ignore all requests for interviews from leftists. They’ll trash us for it, but they’ll trash us anyway.

Del Dolemonte on July 25, 2011 at 2:37 PM

Couldn’t have said it better myself. Nicely done.

runawayyyy on July 25, 2011 at 5:31 PM

Come the time we have an actual default consider the 14th amendment. Who is it who violated the Constitution? And what can be done about it?

{^_^}

herself on July 26, 2011 at 4:08 AM

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