Republicans: Raise the Stakes and Call the Bluff on the Debt Limit

The Federal Debt Ceiling discussions become more and more interesting every day. Since yesterday, the participants in the so-called negotiations have held dueling press conferences, issued statements and huddled with supporters. The happy group will meet again today which is likely to be a daily occurrence. The impasse continues, no need to review positions here except to say, it appears that Republicans and Democrats are raising the barricades.

The President continues to say he is for a “grand bargain”, however that is defined.  He wants the big deal, all the peas in the pod. This is an interesting and barely defensible tact as the President had ample opportunity to put this issue aside when his party controlled both Houses of Congress last year, when he received his Debt Commission Report, when he submitted his budget, when he gave a major economic speech in April. He advocated passing a clean, almost blank check, increase in the debt limit by $ 3 trillion not all that long ago.

Not sure what has changed. Where did all the ole time religion come from?

With about 2 plus weeks before the economic jig is up, the President is out there saying,” Let’s step up. Let's do it," At a White House news conference between negotiating sessions with congressional leaders he stated,  "I'm prepared to take on significant heat from my party to get something done, and I expect the other side should be willing to do the same thing if they mean what they say."

I am not sure the President means what he says because his record and action show otherwise. Certainly his party colleagues in the House and Senate do not want to vote for any spending cuts even coupled with tax increases.  The support for any type of entitlement shaving has been underwhelming if not hostile. If Obama calls a gathering of the Liberal Clan, he may be drinking alone

There is only one-way to find out the truth and that is calling the bluff. Republicans should put together a very tough and large package of spending cuts. I mean a real one. The ones they always talk about. Include in the proposal, revenue increase of some modest amount. Make it $6 trillion in deficit reduction. Make it a conservative dream package. As long as the tax increases are present, then it can be portrayed as a compromise.  Make it bold. Perhaps, 6 to 1 in cuts over tax. Add a few riders on EPA to boot.

 Let’s see if the President says what he means and if he can deliver any of his fellow Democrats on the House and Senate floor.

 I am not the only one who questions the intentions of the President. Senator Mitch McConnell (R-KY), who has opposed the Administration on most policy issues, is a participant in the debt extension negotiations. He recently stated on the Senate Floor about the current state of affairs ”after years of discussions and months of negotiations, I have little question that as long as this President is in the Oval Office a real solution is probably unattainable." Maybe a bit harsh but hardly a ringing endorsement.

One the other side of the Hill, Speaker of The House of Representatives John Boehner said yesterday, "Finding an agreement certainly has been elusive." "The President talks a good game ... but can't quite pull the trigger."

 I doubt the Republicans have the moxie to call the bluff. So far, they have folded the hand that gave them a chance to make some dent in the size of government. Looks like a short-term mentality to me since Obama controls for the time being the fate of the Bush tax cuts. Anyway, it would be a sight to see the President worm out of a real deal and back down once again. Or shock us all and do what he says.