NYT:
Under the plan as described by officials briefed on its outline, the debt limit would be increased by $900 billion in the first installment, subject to a Congressional vote of disapproval that President Obama would be able to veto. To prevent a default, $400 billion would be added immediately.
A second increase of $1.2 trillion to $1.5 trillion would be available subject to a second vote of disapproval by Congress. At the same time, a new joint Congressional committee would be created to find a like amount of cuts.
If the evenly divided committee failed to agree on a plan, Congress would either have to approve a balanced budget agreement or accept an across-the-board cut in spending in line with the committee’s goal, with 50 percent of the savings coming from the Pentagon beginning in 2013. Medicare would also sustain cuts, though the reductions would be capped.
Talking points from the White House (email, no link):
The debt deal announced today is a victory for bipartisan compromise, for the economy and for the American people. The agreement:
· Removes the cloud of uncertainty over our economy at this critical time, by ensuring that no one will be able to use the threat of the nation’s first default now, or in only a few months, for political gain;
· Locks in a down payment on significant deficit reduction, with savings from both domestic and Pentagon spending, and is designed to protect crucial investments like aid for college students;
· Establishes a bipartisan process to seek a balanced approach to larger deficit reduction through entitlement and tax reform;
· Deploys an enforcement mechanism that gives all sides an incentive to reach bipartisan compromise on historic deficit reduction, while protecting Social Security, Medicare beneficiaries and low-income programs;
· Stays true to the President’s commitment to shared sacrifice by preventing the middle class, seniors and those who are most vulnerable from shouldering the burden of deficit reduction. The President did not agree to any entitlement reforms outside of the context of a bipartisan committee process where tax reform will be on the table and the President will insist on shared sacrifice from the most well-off and those with the most indefensible tax breaks.
So, we’ll see how this shakes out. (Also, we’ll see if John Boehner can get any Repulicans to vote for it.) I guess I can stop stocking up on canned goods and hold off on converting my assets to gold bullion. For now.
Christopher says
…of these votes of disapproval? If there is a deal to raise the debt ceiling then shouldn’t Congress just, you know, vote for this deal to raise the debt ceiling? Especially if POTUS is going to veto it anyway again I ask, what’s the point. Is this really Obama saying, “I’ll let you have this vote if you let me veto it” or am I missing a step here?
David says
They know the limit has to be raised, they just don’t want to do it. So they think they can fool their lunatic fringe by saying, hey, we didn’t want to do it, it’s all Obama’s fault. Doubt it’ll work, especially since Michele Bachmann is already on the rampage about the deal and says she’ll vote no.
petr says
… the Republicans want out of this mess without having to actually man up and say they created this mess, and so they kick the can down the road. That’s fine by me. If we can take back the House in 2012 we can still undo much of this crap.
Bob Neer says
GOP Begins Hard Work of Creating Next Crisis
Seems like the most honest analysis so far.
stomv says
… for the economy not spiraling into the fire. Maybe its not that extreme, but its dang close. Don’t forget that there are plenty of GOPers (and Teabaggers) who support reducing the military too.
Awesome.
SomervilleTom says
I’m disgusted with Barack Obama and I’m disgusted with the Democrats.
The entire charade reminds me of old-time pro wrestling. The “hero” in one corner, the “villain” in the other, doing lots of theatrical tumbling moves while talking all sorts of trash towards each other and the referee.
All sides make money for the promoter. When the match is over, hero and villain go out on the town with each other and enjoy themselves while working out the stunts for the next night.
I knew, even at age 11, that pro wrestling was faked. I thought, at age 59, that governing the most powerful nation in the world was not. I was wrong.
SomervilleTom says
I am lobbying my Representative (Mike Capuano) to vote against this deal. It’s a bad deal, worse than a default would have been.
kbusch says