Cantor Raises Debt Deal Demands

April 21st, 2011 at 4:55 am | 9 Comments |

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Politico reports:

One day after being named to a presidential task force to negotiate deficit reduction, unhealthy House Majority Leader Eric Cantor fired off a stark warning to Democrats that the GOP “will not grant their request for a debt limit increase” without major spending cuts or budget process reforms.

The Virginia Republican’s missive is a clear escalation in the long-running Washington spending war, health with no less than the full faith and credit of the United States hanging in the balance.

In the most recent budget battle — over a six-month spending bill — Republican leaders carefully avoided threatening to shut down the government. Now, pilule Cantor says he’s ready to plunge the nation into default if the GOP’s demands are not met. People close to Cantor say that he hopes to make clear that small concessions from Democrats, including President Barack Obama, will not be enough to deliver the GOP on a debt increase.

Democrats were quick to punch back.

“Congress will not permit the nation to default on its obligations because it would be beyond irresponsible to do so,” said Brian Fallon, a spokesman for Sen. Charles E. Schumer (D-N.Y.), in a statement to POLITICO. “Leader Cantor knows this, and should heed the many business leaders who are telling Republicans to stop playing games with the debt ceiling to gain political leverage.”

Republicans are floating a wide range of major structural reforms that could be attached to the debt limit vote, including statutory spending caps, a balanced budget amendment and a two-thirds vote requirement for tax increases and debt limit increases. Liberals want a “clean” vote to raise the $14.3 trillion borrowing limit.

Those in the center simply hope to find an accord that will prevent the nation from defaulting on its obligations and sending global markets into a tailspin.

The Treasury Department estimates the country will hit the debt ceiling between mid-May and July 8, and Democrats say it’s no time to play chicken with the standing of the nation’s credit — which has taken a hit already this week with Standard and Poor changing its outlook on U.S. debt from “stable” to “negative.”

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9 Comments so far ↓

  • medinnus

    Now… tell me again how the GOP is going to make this a winning issue? Silly GOP.

  • Nanotek

    get rid of the Bush ‘Paris Hilton tax cuts’ first off … but here are some social programs that could be more cost efficient — raise the BLM grazing leases in the West to ‘free market values,’ start requiring corporations that don’t pay American taxes to pay real-time costs when they run to federal court to have contract and IP disputes decided, raise the royalty rates the US gets for its oil and gas, quit subsidizing banks with the Fed.

    when Republicans quit trying to selfishly limit the public conversation to only gutting those social programs they don’t like, I’ll listen to what they say about that


    Here’s a deal for you Eric. You raise the debt ceiling compliantly, and the American people will consider allowing you to keep your job next year. How’s that sound?

  • Justafort

    I dont know when the “good name and credit” of the U.S. government became a bargaining chip of the Republican Party. Or when it was left to the Democrat Party alone to defend the honor of the country. However I do know this; treason will reap it’s just reward.

    • Nanotek

      “I dont know when the “good name and credit” of the U.S. government became a bargaining chip of the Republican Party.”

      perhaps it is the opening volley of the GOP’s 2012 prez campaign mottos — “Party First”

  • TerryF98

    Dear America.

    Nice economic recovery you have going there, it would be a pity if it got hurt in some way. We can protect it for you for a few goodies for our wingnut base.


    GOP (inc) AKA Eric the hood.

  • ram6968

    mr. cantor’s mouth is writing checks his butt can’t cash

  • dmnolan

    Wasn’t Cantor warning that “regulatory uncertainty” would “spook investors” just a few months ago? What’s changed?

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