Debt deal looks unlikely

Despite last ditch efforts by the president to broker a deal on the debt ceiling, a bipartisan agreement now looks hopeless.

Each side is now working on its own plan to reduce the deficit and to temporarily extend the debt ceiling. Pres. Obama wants to extend the debt ceiling until at least 2013.

If the two sides fail to at least temporarily raise the debt ceiling, the country could default on its payments. Many experts predict that this could lead to a meltdown of US treasury investments.

Obama addresses debt and deficit

President Barack Obama kept the heat up on the Republicans during his weekend video address.

Obama has still said that he does not want to sign a short term extension of the debt ceiling. In an earlier press conference, he said that he would reform Medicare by implementing a means test to determine how much people should pay for medical bills.

The president insists that wealthy American and corporations should pay their fair share of taxes.

Obama rope a dope?

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MSNBC's Lawrence O'Donnell has a rather complex "rope a dope" theory on President Barack Obama's negotiating stance in the debt ceiling-deficit talks.

Currently, Obama's deficit reduction plan goes further than even that suggested by House Speaker John Boehner!  We will have to see whether O'Donnell is right about this being Obama luring the GOP into his trap.


It does seem that the tax hikes came out of nowhere sort of like Ali coming off the ropes in his epic fight with Foreman.  According to this theory, Obama just has to take a certain position and the GOP will automatically rally against the position.

The fact that Obama is not willing to sign another extension shows that he is ready to call the Republicans bluff.  The battle is coming to a head.

Republicans are not any more eager than Democrats to see budget funding dry up.  They know that their own patrons will be some of the first to sound off when the subsidy checks don't arrive on time.