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Wednesday, June 22, 2011

The Entire Fate Of The Debt Ceiling Could Come Down To The Next Three Days




Eric Cantor

It's crunch time for the debt ceiling fight, even as the GOP begins to show says of fracturing, according to  David Rogers's latest at POLITICO.


The split within the GOP looks like this: Some in the party, like Senator Mitch McConnell are open to a temporary debt ceiling hike, just to make sure we don't get into any dangerous territory, while also continuing budget talks.


Part of their concern is that any broadbased deficit reduction package will inevitably involve tax hikes -- a strategy of debt reduction without any revenue increases is totally implausible according to just about everyone who's not a partisan.


On the other side, the more ideological House members -- lead by Majority Leader Eric Cantor -- want to do it one-shot, one-kill style: Get a big spending reduction now. All or nothing. Of course, that leaves open the real possibility that no deal gets done, and then it's conceivable that the US gets into default/crisis mode.


What's key is that, according to the report, talks are getting hot, and it could come down to the next three days.


If we had to guess: Nothing good will come in the next few days. They're just too far apart on some gigantic issues.


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Full story at http://feedproxy.google.com/~r/businessinsider/~3/og--QQpPd-Y/debt-ceiling-discussion-could-come-down-to-next-three-days-2011-6

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