Political shennigans

Senate stalls bi-partisan debt ceiling deal to end government shutdown

With only five days left to a possible default, there is yet no unity in the US senate with Republicans and Democrats rejecting each other’s proposal to end the 12-day-old government shutdown.

RT,

12 October, 2013

On Saturday the focus of efforts to end the shutdown shifted to the Senate, where the two sides held negotiations in a bid to resolve the stalemate. However, the talks yielded no agreement.

The US Senate Republicans rejected a Democratic plan to raise the debt ceiling through 2014 without making any cuts or changes to Obamacare. Voting 53 against and 45 in favor, Republicans, who want the extension to be accompanied by spending cuts, blocked the bill, which needed at least 60 votes to overcome the objections.

The move was followed by Senate Democratic leaders’ opposition to Republican proposal to end the fiscal stalemate.

Rejecting an offer by Sen. Susan Collins, R-Maine, to end the budget impasse, Democrats argued that her offer asks for too much in return for too little, the POLITICO cited senators and aides.

The so-called Collins plan, which has bipartisan support, offered a six-month extension of government funding and an increase in the government's borrowing limit through January. It was also calling for a two-year delay on Obamacare's medical device tax as well requiring income verification for Americans seeking subsidies for President Barack Obama’s Affordable Care Act.

Democrats say a new medical device tax that would raise $30 billion over 10 years for the President's healthcare law.

After discussing the plan with the President Friday, Collins said Obama called the proposal "constructive”, but she, at the same time, did not “want to give the impression that he endorsed it."

Speaking to reporters after the vote, US Senate Democrat leader Harry Reid said he would like negotiations with Republican leaders to result in a deal by Monday. He will meet with President Barack Obama later on Saturday, White House officials said.

The White House said the Senate rejection of the debt plan was unfortunate and urged Congress to find a solution to reopen the government and raise the debt ceiling.

"Congress must do its job and raise the debt limit to pay the bills we have incurred and avoid default," said White House press secretary Jay Carney.

Without action by Congress, the United States could default on its bond payments by Thursday, for the first time in country’s history.

Follow RT's LIVE UPDATES on the US budget crisis

GOP Warns "Definitely A Chance We're Going To Go Past The Deadline"

Zero Hedge,

12 October, 2013

The rhetoric from today's political maneuvering is eerily reminiscent of the rhetoric just a week ago and absolutely in now way represents the 'progress' than an impatient to BTFATH equity market appears confident about. As AP reports, Harry Reid seemed to arrogantly explain "we haven't done anything yet" by way of compromise (as his party rejected the compromise deal on the basis of the spending and taxes issues; and the Republicans came out swinging. Boehner (behind closed doors) exclaimed "The Senate needs to hold tough; the President isn't negotiating with us;" and tea-party caucus member Fleming blasted, "It's very clear to us he does not now, and never had, any intentions of negotiating," and warned, there was "definitely a chance that we're going to go past the deadline."

Via AP,

Republicans and Democrats in Congress lumbered through a day of political maneuvering Saturday while a threatened default by the Treasury crept uncomfortably closer and a partial government shutdown neared the end of its second week.

 

"We haven't done anything yet" by way of compromise, Majority Leader Harry Reid, D-Nev.,

...

Across the Capitol, tea party caucus Republican Rep. John Fleming of Louisiana said there was "definitely a chance that we're going to go past the deadline" that Treasury Secretary Jack Lew has set 

...

"The Senate needs to hold tough," Rep. Greg Walden, R-Ore., quoted Speaker John Boehner, R-Ohio, as telling the GOP rank and file in a private meeting. "The president now isn't negotiating with us." 

...

The president's party rejected a stab at compromise led by GOP Maine Sen. Susan Collins, while Republicans blocked the advance of a no-strings attached measure the Democrats drafted to let the Treasury resume normal borrowing.The party line vote was 53-45, seven short of the 60 required.

 

In disagreement was a pair of issues, both important and also emblematic of a broader, unyielding dispute between the political parties over spending, taxes and deficits.

 ...

"Perhaps he sees this as the best opportunity for him to win the House in 2014," Fleming said of the president. "It's very clear to us he does not now, and never had, any intentions of negotiating."

Reid was savage.

Republicans had begun seeking concessions on health care, he said, and now their No. 1 issue is "to divert attention from the fools they've made of themselves on Obamacare." 

...

In his Saturday address, Obama said, "Politics is a battle of ideas, but you advance those ideas through elections and legislation - not extortion."

Doesn't exactly sound like the "deal is close" bullshit that drove the Dow up 500 points in 36 hours we saw last week?

In the meantime, we wonder what "sweet nothings" these two were discussing in the past...