Friday, July 22, 2011

Boehner Walks From Debt Ceiling Talks After Obama Demands Higher Taxes; Obama Whines; Geithner Says 8/10, Not 8/2 Is "Drop Dead Date"

The big news in America this evening is that House Speaker John Boehner walked out of talks with Richard Milhous Obama on raising the debt ceiling, after Obama insisted on tax increases (Politico).
“Let me just say that White House moved the goal post,” Boehner said. “Discussion we’ve had at the White House have broken down for two reasons: first they insisted on raising taxes …” Boehner said. Secondly, he added, “they refused to get serious” about making “tough choices” on spending cuts.

The White House asked for $400 billion in additional revenue at the last minute, which was “disappointing,” Boehner said.

“Dealing with the White House is like dealing with a bowl of jello” Boehner said, adding that he’s not going to get into “partisan sniping.”

“If the White House won’t get serious, we will,” Boehner said.

The speaker also wrote the following letter to the GOP caucus.

President Thin-Skinned came out late this afternoon and whined, saying Boehner "didn't return my phone call." (Breitbart TV).

And did you hear the latest? Treasury Secretary Tim "Tax Cheat" Geithner is now moving the goal posts (Huffington Toast, via Weasel Zippers).

For months, markets have been girding themselves against the possibility that the U.S. will reach the limits of its borrowing ability on August 2 and default on its debts. But researchers at Barclays Capital think the real deadline may not be until a week later.

In a note published Friday, the Barclays Interest Rates Research team wrote that “the date on which the Treasury will run out of cash to pay its obligations might not be August 2; it might be around August 10 instead.”

Why the change? The note explains that previous projections showed the Treasury running out of money on the morning of Wednesday, August 3. On that day, it was predicted, the Treasury would need to spend $32 billion, including $22 billion in Social Security payments — and it was only projected to have $30 billion at its disposal.

That projection was made on July 13. But since then, the researchers say, the Treasury has taken in about $14 billion more than expected, and paid out about $1 billion less than expected. Hence, the deadline date might actually be August 10, a week later than previously believed.

The August 2 deadline has never been set in stone. When Treasury Secretary Timothy Geithner announced in May that the federal debt limit had been reached, he said that the government could use “extraordinary measures” to extend borrowing authority until August 2 — and that this date could change “based on government receipts and other factors.”

What is apparent, along with the fact that Obama is not serious about balancing the budget, is this is all a farce being perpetrated by the White House in order to raise taxes and not question the process. They did it during the phony stimulus, Obamacare, and now.

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