Obama Backs Down in Debt Battle

Thursday, 21 Jul 2011 12:26 PM

By Jim Meyers

  Comment  |
   Contact Us  |
|  A   A  
  Copy Shortlink
President Barack Obama has backed down from his previous refusal to consider a short-term deal to raise the debt limit and now says he would agree to such a move under certain conditions.

Obama had threatened to veto any stopgap expansion of the nation’s debt limit in the belief it would merely delay agreement on a deficit-reduction package, and last week even warned House Majority Leader Eric Cantor not to call his bluff on the issue.

But White House press secretary Jay Carney said on Wednesday that Obama would accept a “very short extension” of the debt limit if a major deficit-cutting agreement is in place.

“We need to meet, talk, consult, narrow down what our options are and figure out in fairly short order which train we’re riding into the station,” Carney said.

The federal government will exhaust its ability to borrow money and pay its bills if the $14.3 trillion debt ceiling is not raised by August 2.

Obama met at the White House on Wednesday with Democratic leaders of the House and Senate, then with House Speaker John Boehner and Cantor in an effort to reach agreement on the debt limit and a deficit-reduction package.

Obama seeks to convince Democrats to accept changes in Medicare and Social Security, and Republicans to agree to tax increases.

Opponents of a short-term deal on the debt limit fear that once the limit is raised, it will reduce pressure to reach an agreement on reducing the $1.5 trillion annual deficit.

“If they don’t come up with a significant and credible long-term deficit reduction program now, the chances of them doing so between now and the next presidential and congressional elections are not very high,” Steven Hess, senior credit officer at Moody’s Investors Service, told USA Today.

Obama told congressional leaders earlier this month that he would veto a short-term deal after Senate Republicans had floated the option of extending the debt limit for several months.

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact Us  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Retype Email:
Zip Code:
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Report: Emails Show Justice Dept. Involved in IRS Tea Party Probe

Wednesday, 16 Apr 2014 19:01 PM

Embattled former IRS official Lois Lerner last year discussed working with the Justice Department to prosecute nonprofit . . .

White House Census Changes Mask Obamacare Impact

Tuesday, 15 Apr 2014 13:55 PM

The Census Bureau, the authoritative source of health insurance data for more than 30 years, is revising its annual surv . . .

Tributes Planned to Mark Boston Marathon Bombing

Tuesday, 15 Apr 2014 06:17 AM

The anniversary of the Boston Marathon bombings promises to be a day of tributes to the three people who died, the more  . . .

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved