"U.S. Debt Limit Increase Likely"






FIRST LADY MICHELLE OBAMA

White House
Photography by Samantha Appleton, July 21, 2011.

First Lady Michelle Obama greets children during her visit to the Naval Air Station Oceana Summer Camp in Virginia Beach, Va., July 21, 2011. Mrs. Obama toured the camp and later welcomed local military families to a special screening of Harry Potter and the Deathly Hallows – Part 2, as part of the Joining Forces Movie Series.
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THEWHITEHOUSESPIN.COM
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WASHINGTON




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"U.S. Debt Limit IncreasedLikely"
Posted by Karen Ann Carr
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WASHINGTON- The US House of Representatives passed the debt deal legislation 269-161. The legislation is described by Rep. Nancy Pelosi as a Satan sandwich. The US economic deficit issue was not significantly dealt with.

 

     Jeff Sessions (R-Alabama) said it is a step forward, but the deficit will increase. Senator Sessions said he will not vote on the debt-reducing deal passed by the House of Representatives. Sessions said the legislation targets the Defense Department for extraordinary cuts and offers the Senate no opportunities to present amendments.

 

     Vice President Joe Biden slammed some Congressional members of the U.S. Representatives for not being supportive of debt limit increases.  Congressional Representatives were referred to as “terrorist” for not agreeing with the premise of increasing the debt limit during the debates.

     Vice President Biden made unkind comments about Representatives such as Tim Scott who rejected increasing the debt limit.

     Open ridicule and personal attacks were the tools used to gain votes to affirm increasing the debt limit, without reducing spending.

     Apparently, Vice President Biden was the Obama administration’s means to marginalize those aligned with the Tea Party rhetoric.

     In the end, the US House of Representatives endorsed spending without reforming entitlements or increasing revenues.

     The Tea Party philosophy did not prevail. The U.S.  spending binge continues  and there is no indication that the US deficit will be reduced. No increase in revenue collection was agreed to. Oil companies will continue to receive subsidies. Corporate farms will continue to receive cash from the US government.

     The sad news is that the real estate market is filled with abandoned homes and commercial property; which does not produce revenue. Unemployment is sustaining the lack of government revenue that might be collected from working tax payers. The real impact of increasing the debt limit cannot be good.

     New concerns of a US recession and a US depression and a US double-dip of unemployment are real; as the economy continues to bleed borrowed cash. US manufacturing is depressed. Reports about the joblessness rate of growth are exceeding predictions. The likelihood of an emergent US economy is poor. GDP development reports and jobs development reports present more uncertainty.  And consumer spending slows every time the US borrows more money.

     The one bright light in the debt limit increase process is the vote.  Rep. Gabriel Gifford returned to Washington for the vote. She received a standing ovation & cheers.

     Mark Warner (D-Virginia) said he will reluctantly vote yes on debt limit increase deal. He said the US budget will continue to be out of balance. “There was no action taken to reduce entitlement spending” he said.

    The credit rating agencies such as S&P, Moody and others have not commented about the Congressional decision to borrow more money. The credit agencies may down-grade US credit stature despite the increases of the debt limit. 1.5 trillion in cuts over the next few months must still happen.

    Well over sixty votes are anticipated in the Senate, despite unhappiness about the bills weaknesses. The Senate affirmative vote is expected.  

     Eric Cantor (R-Virginia) said the bill was a win because it does not demand for tax increases.

     Vice President Biden belittled the Tea Party affiliates for standing up for their beliefs during the debates.

 

BREAKING NEWS

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