Debt Crisis: President Obama Addresses Nation After Sunday Debt Talks Produce No Results

July 11, 2011

11:04 am, Central

Updated 1:27 pm, Central

Diane W. Collins


President Obama

"Debt Ceiling Talks"

President Obama addressed the American people this morning regarding progress on debt ceiling talks with top congressional leaders.


Talks concerning the "larger deal" of approximately $4T broke down prior to Sunday's meeting as Speaker Boehner found House Republicans unwilling to support tax increases required by Obama and the Left in order to move the deal forward. The push is on for a smaller deal around 2 - $2.4T increase in the debt ceiling conditioned upon the occurrence of three significant events. The events include immediate cuts; statutory caps; and a balanced budget amendment passed by congress and submitted to the states for ratification. These events have been submitted in the Senate as the Cut, Cap and Balance Act of 2011, S.1340. It is anticipated the House will put forth its own legislation this week should the debt ceiling talks break down.


The Democrats are blocking the ability to address entitlement programs demagogueing the issue without allowing the specifics to surface. Entitlements represent the largest budget item that must be addressed in order to ensure Social Security and Medicare benefits are available for future seniors. No change to benefits for current seniors has ever been in the offering. Listening to the liberal media and the Left the public would never know this... more


The President offered a quick update saying he met with leaders Sunday and will meet again today and everyday until a deal is reached. Obama stated the good news is all leaders believe it is not acceptable not to raise the debt ceiling. "We cannot threaten the full faith and credit of the United States," but said there is a lot of work to do. "All agree we should use this opportunity to do something meaningful on the debt and deficit," the President said as he expressed his desire "to do the biggest deal possible." Obama tried to continue his tie to Speaker Boehner on his $4T deal. However, what Boehner has realized is that promises to cut spending aren't enough. In order to raise the debt limit at all guarantees will be needed. That is the message that is not making it to the liberal news media.


The President continued saying yesterday he emphasized, "Now is the time to deal with these issues, If not now, when?" Obama then invoked the "moral imperative" as he beat up on Republicans for not going with the larger deal.

Speaker Boehner Responds

"Debt Ceiling Talks"

He presented his position as one of shared sacrifice, sacred cows, meaningful changes to Medicare, Social Security and Medicaid while preserving the integrity of the programs. Obama said it is possible to bring in revenues that do not impede the economy; spending cuts that are "leaner, meaner" including defense, health spending, and the "nice to have but cant afford" programs. He sees his overall approach achieving stabilized debt levels. Obama believes this will show the American people "this town can actually do something once in awhile." President Obama in his remarks today indicated no tax increases for this year or 2012 have been discussed. Those increases discussed would start in 2013, according to the President and would close some "egregious tax loopholes." Obama also indicated his willingness to address tax code reform to lower the corporate tax rate.


The President stated he will continue to push leaders for the largest possible deal recognizing the Democrats resist changes to entitlements and Republicans have "strong resistance to increases in revenues." Obama is positioning himself as the "Great Mediator" blaming ideological positions that he appears willing to compromise. He calls on congressional leaders to "bring back to me ideas that will get votes in the House and Senate." However, Obama stated he will not consider 30, 60 90, or 180 day stop-gap measures. "This is the United States of America. We don't manage our affairs in three month increments," the President stated. They will meet everyday to ensure a plan is developed that "solves the short term deficit, avoids default, stabilizes the economy and proves to the American people we can get things done."


Later in the afternoon around 1:30 pm Eastern and prior to today's debt talks at the White House, Speaker Boehner held his own press conference. Speaker Boehner stated he appreciated the President's call to come together and get it done, however, Boehner emphasized the gulf between the two parties is policy not personal. Republicans do not agree that the government needs new revenue in the form of tax hikes on job creators. He also stated that he did not agree with the President on the extent of the entitlement problem. "Adding taxes to the equation doesn't balance anything. This destroys jobs. People want to remove government barriers." The debt limit must be raised but the American people and the House cannot pass a bill that increases taxes on job creators. Boehner said we need real restraints, a balanced budget amendment and real reductions right now with guarantees it won't be undone in the future. "A bill that doesn't meet these tests can't pass the House," Speaker Boehner stated.


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