White House Says Voting on Debt Increase Again Next Year Is as Bad as Default

15 July 2011

Here is the background, via The Hill, in case you’re not aware that Rep. Cantor actually did offer the President an option other than default on 2 August (or not), or whenever Geithner says it will happen:

…Cantor said Obama became “agitated” when the majority leader said Republicans were open to holding two votes to increase the debt ceiling between now and the 2012 elections, an idea the president has rejected.

Obama said he wanted congressional leaders to decide by Friday what approach to take on the debt limit. The Treasury Department has set an Aug. 2 deadline for lifting the ceiling, and ratings agencies are warning that they will downgrade U.S. credit if Congress doesn’t act — an action that could send markets tumbling.

“We are very far apart right now,” Cantor said he told the president. “I don’t know if we can get there.”

Cantor said he asked Obama if he would consider allowing two votes on the debt ceiling to give leaders more time to negotiate additional budget savings while avoiding a calamitous default.

“That’s when he got very agitated, seemingly, and said that he had sat there long enough, and that no other president — Ronald Reagan wouldn’t sit here like this — and that he’s reached the point where something’s got to give,” Cantor said, describing the president’s reaction.

“He said to me, ‘Eric, don’t call my bluff. I’m going to the American people with this,’” Cantor said….

Why not hold another discussion and vote in 2012, in a more timely manner? Everything we are reading suggests the Republicans may possibly pay a heavy price for this compromise with Obama, so shouldn’t the President accept this offer, save the day, and get on with his birthday fund-raiser scheduled for 3 August? Well, the problem may be that President Obama will be campaigning all year and this process might prove inconvenient during a run-up to the election…

Then, this happened:
Obama White House Says Voting on Debt Increase Again Next Year Is as Bad as Default

Jim Hoft
GatewayPundit
7/14/2011

Wow!… Just Wow!
The Obama Administration says it is just as bad for government to discuss and vote on a debt increase next year as it would be to default on the debt…

…ABC reporter Jake Tapper grilled White House Press Secretary Jay Carney today during the White House Press Briefing.
You won’t believe this.

Jake Tapper: Which Is Worse? Default or Voting to Raise the Debt Ceiling Again in 2012?… The worst-case scenario here is a default, right?

CARNEY: That is a bad scenario. I’m not sure — I mean –

TAPPER: Is it worse –

CARNEY: You know, there are things you could anticipate. But I — yes.

TAPPER: Is it worse than voting on the debt ceiling again next year?

CARNEY: The uncertainty created by regular votes on whether or not, for the first time — you know, and if you think it’s — there’s — there are political –

CARNEY: So — but Jake, let me answer the question. We do not think that that is the way that this country should operate. The president’s made it very clear.

TAPPER: What the president made clear in the meeting was that he will not –

CARNEY: Both are bad; I can’t choose which is worse for you.

TAPPER: Really? They — it — you can’t. Default might not be as bad as voting on this next year?

CARNEY: Jake, I’ve answered the question.

TAPPER: No, you guys are painting a very cataclysmic picture…

The entire article and the video of the exchange is at GatewayPundit.

Update: Advice for both sides:

Robert Reich: Barack Obama Should Should Forget Budget Balancing and Binge Like a Drunken Sailor

Krauthammer: Call Obama’s Bluff

President Obama is demanding a big long-term budget deal. He won’t sign anything less, he warns, asking, “If not now, when?”

How about last December, when he ignored his own debt commission’s recommendations? How about February, when he presented a budget that increases debt by $10 trillion over the next decade? How about April, when he sought a debt-ceiling increase with zero debt reduction attached?…

…As part of the pose as the forward-looking grown-up rising above all the others who play politics, Obama insists upon a long-term deal. And what is Obama’s definition of long-term? Surprise: An agreement that gets him past Nov. 6, 2012.

Nothing could be more political…

Off-topic, but also by Krauthammer, For White House to Think Level-Headed Brett Baier Is a Lunatic Tells You a Little About the Psychology of the People in the White House (Video)

Update 2: Do we really have a revenue problem?

…The Heritage Foundation provides this chart of federal revenue over the last 50 years in inflation-adjusted 2010 dollars, and the data is pretty clear that we have a recession problem, not a revenue problem…

Update 3:  President Obama Claims 80% of Americans Support Tax Increases in a Debt Limit Deal; New Poll Shows Only 34% Support Tax Hikes  Video 7/15/11

This Ought to Leave a Mark… Sarah Palin Tweets On Obama’s Big Presser Lie

Obama Presser: Blaming Bush, Offering no specifics

CHANGE: Consumer Confidence Falls To Lowest Level In Over 2 Years….

From iOwnTheWorld:

…You might think that putting constitutional limits on Congress’s ability to borrow and spend beyond its means is an idea whose time has come. If so, you’d be in good company. In 1798, Thomas Jefferson, the great author of America, wrote that he longed for such a constraint:

“I wish it were possible to obtain a single amendment to our Constitution. I would be willing to depend on that alone for the reduction of the administration of our government; I mean an additional article taking from the Federal Government the power of borrowing.”

Read the whole thing.

Gingrich Advises GOP on ‘Bully’ Obama: Stop Negotiating and Start Legislating

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