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Thursday, July 14, 2011 | 7:25am
Obama Willing To Sacrifice Presidency For a Stand On National Credit
Storms out of negotiations to settle borrowing debate amid looming damage to Nation’s impeccable credit rating
@BarackObama #spending #debt
President Obama may be willing to sacrifice his legacy and a second term after he reportedly walked out of a high-level negotiation meeting on Wednesday about the nation’s borrowing limit. The President reportedly “stormed out” saying, “I’ve reached my limit. This may bring my presidency down, but I won’t yield on this.”
The heated debate came amid talks that Leading credit rating agency Moody might downgrade the U.S. government’s impeccable AAA credit rating as Republicans and Democrats can’t get together on what to do.
“We are very far apart right now,” House Majority Leader Eric Cantor said. “He became very agitated said ‘Ronald Reagan wouldn’t sit here. You either have to compromise on the dollar figure or the grand bargain,’” Cantor said. “He said, ‘Don’t call my bluff. I’m going to the American people on this.’”
Of course each side is saying the other is responsible and at least to this point refusing to give ground. The Republicans and Tea Party enthusiast have been calling for a decrease in Government spending while their counterparts are looking for a higher credit limit. The stalemate however threatens a first-ever default on the government’s debt.
So what does that mean?
If we do default, the Treasury likely would have to pay higher interest rates to borrow funds. This of course would trickle down to the American people creating higher interest rates for mortgages, car and business loans further damaging the fragile economy and setting up the President for an almost certain dismissal next Fall. The Treasury Department, which has set Aug. 2 as the deadline for a compromise to raise the nation’s $14.3 debt ceiling to avoid this Armageddon.
Ladies and gentlemen this is the Alamo. I know its not plastered across the headlines, hell some of you may haven’t even read about it. But this is one of those turning points in a Presidency. Obama has had to deal with a lot from the economy, to jobs, to even silly discussions about his birth certificate. Save his capture and kill of Osama Bin Laden his administration has been underwhelming but you want to see it get worse in a hurry? There is a possible back up plan in place lead by Senate Republican Leader Mitch McConnell that would let Obama raise the debt ceiling at the 11th hour by agreeing to proposed spending cuts to Congress, however not all of his party mates are behind it.
In the end, let this deadline lapse and the Nation’s credit rating be downgraded, we’ll ALL feel the effects and any talks of “recovery” will only be mentioned in terms of substance abuse and alcohol.
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This does not threaten his Presidency, it cements his legacy. Politicians have lost sight in the past 25-30 years that elected officials are put into place by the people to act on THEIR behalf. Not to make decisions based on whether or not they will be re-elected or for personal gain…i.e. Cheney and Halliburton. Obama understands that decisions made today will still be felt 10 years from now…i.e. Clinton and Fannie Mae. That is why he has pushed healthcare reform. It will be difficult for a while, but in the end…it will benefit all AMERICANS. This is another example of irresponsible/poor/greedy past gub’ment official decisions coming back to haunt us, well after the perpetrators have left office. Democrats and Republicans have become whiny, screaming brats yelling “MINE, MINE, MINE” not wanting to share. Republicans have the yellow and red lion, Democrats have the blue and red lion Obama the black lion (of course)…they are too childish to come together, form Voltron, bring out the blazing sword and start cutting up the debt, mortgages, gub’ment spending, lack of school funding, stretched out underpaid military etc…
Don’t count on either the republicans or democrats to do the right thing, or even the smart thing.
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This is starting to remind me of the time in 2008 when the congress politicized the bank bailout. When the vote failed, the Dow dropped 780 points and still didn’t fully recover when the pol’s suddenly realized that they f**ked up and passed the bill.
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Here’s the video of how it happened. http://www.youtube.com/watch?v=vxLoSRhYTvw&feature=related
excellent Voltron reference!
” Ronald Reagan wouldnt sit here” Yeah Ronald Reagan was white. I honestly think that some people’s prejudice and hatred will let calamity fall on us all rather then listen and assist the 1st black president. j/s
I understand your seeing it that way, but it’s not about race. It’s about republican vs democrat.
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The republican stragity here is to prevent Obama (and the democrats) from accomplishing ANYTHING; in order to improve their chances in 2008.
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They would have done the same thing with Hillary, or anyone else for that matter.
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His comment ‘Reagan wouldn’t sit here’ was a reaction to the republicans now saying that they won’t OK the debt increase unless it was for 1 year (just in time to politicize the issue for ’12)
Mr.Malcolm it is always about race in AmeriKKKa , always remember that. Y do u think Pres.Obezee is going through all this crap from Birth Cert 2 ppl crashing white house parties, not compromising on 1 damn idea the Demon…crats have, it wasn’t this bad a “roadblock” when Clinton was in,and RepubliKKKlans they just punKKK the shit out of Demon…crats anyway been that way 4ever.Repubs want smaller Gov so they can keep the money and keep minorities programs and if u r making less than 500k combined or solo then u r a minority regardless of ur skin tone, sex,etc. Pres.Obama will never get anything passed of any benefit 2 the ppl bcuz 1 this 1st Black Pres thing is 2 much 4 most in KKKon..gress 2 handle,even some Demon…crats have it in 4 him.Po-lie-ticians are more than pissed off about a African American well half anyway being in the White House this broke a unwritten rule in the AmeriKKKlan KKKon…stitution.I xxxpect shit 2 get real worse myself. Soc.Sec will be like 8 tracks and Jheri curls GONE!! No retirement or they will put the retirement age up 2 75 or some shit.Only ppl who can afford college will be able 2 go as in ppl making 500k no scholarships,nothing 4 minorities to further their education unless u wanna play ball.The worst is yet 2 cum trust me.This debt is nothing compared 2 what is about 2 go down. Don’t say I did not warn u .
There are other important consequences of not raising the debt limit.
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I’m seriously trying to avoid being long winded, but this is a complicated subject.
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If the debt ceiling is not raised, the US will not be able to service their debt on time. Think of it like a credit card. Not raising the ceiling will cause the US to ‘miss their payments’.
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If this happens, the credit rating agencies will be REQUIRED to downgrade the credit rating of the US.
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Mutual fund companies, which sell investment bundles based on their credit ratings, will be REQUIRED to sell off their US debt; which will cause their value to drop even further.
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Other companies, who use their US debt holdings as collateral for their business loans will then be foreclosed on, causing a collapse in the US economy similar to the 2008 credit/banking/housing crash.
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But long before that, either the Chinese or the Russians will get scared enough to dump their holdings, destroying the world economy beyond any hope of repair.
Can you elaborate on the last part?
A large amount of US debt is owned by foreign governments. They could (if they wanted) dump all of their holdings on the market at once.
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That would cause the dollar to crash, which would also crash most US companies.
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They(China/Russia) would lose a ton of money, but they could break our back in the process. It comes down to whether or not they want to destroy usmore than they care about their money.
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In the book/movie ‘too big to fail’ it was suggested that the Chinese warned us back in the Bear Sterns days that they were not beyond doing that if they didn’t like our direction.
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The collapse of communism was brought on by an economic collapse. I don’t think the russians are beyond giving us a dose of our own medicine.
OK, Thank you for explaining, I just looked some stuff up…. China top holder of US debt 1.543 trillion… That is some scary shit Malcolm…
CNN was just hinting that we’ve been warned by China in the last few days that we are not to allow a default.
Yup, this is one of those subjects that I could go on and on about but I’ll keep it short. Part of the “compromise on tax cuts” is hitting us back right now. The bottom line is we need MONEY. Whether it’s raising taxes or losing the tax cuts we need money, point blank, period. Extending the ceiling is all about buying time to get money. We don’t have a true capitalist economy even though we like to say we do, the government bailouts proved that, in a true system the companies that failed would fail and be gone. The world has tried to move away from the US dollar but the Euro has pretty much failed as a replacement and the British Pound stands on its own(never needed the US or joined the Euros) We can’t expect the the rest of the world to treat us like we’re too big to fail, only Japan has their economy tied into ours so deep that they want us to succeed. They really have to get their sh#t together, it’s impossible to ignore the upcoming election so I know it’s going to get political and ugly but both sides better wake up, or we’re all f#cked.
i’m not sure what this will do for Obama, good or bad, he was put in a tough situation. I’m not really informed on this topic, but i will say its time for the federal government to learn to live within their means, by reducing the size and scope of government. I’m not 100% on this but i believe majority of the US states have a balance budget amendment, which basically forces them to make those tough budget cuts we all hate… Washington may need to do the same… This is far fetched but we need to amend our good ol Constitution or we are DOOOOOOOOMMMMMMMMEDDDDddd
this is about the ‘haves’ and the ‘have nots’. The rich(upper class) and the poor(lower class) bc there is no more middle class. all that with undertones and sub texts and sub titles of race, religion, republican and democrat. It also cements his legacy & threatens his presidency in a negative light depending on how u wanna see it and where ur sitting! Sure a black man got the seat but we aint gonna help you keep it is whats going on and is what certain ppl are saying. its too much money involved. just bc ppl were elected to certain positions does NOT mean they will do what they said they are going to do when they got elected TO get IN that said seat. u might be an honest abe b4 u get in that seat but will become a liar as soon as ur ass hits that fabric!
I feel that I am middle class. I dont have the surplus of money the rich has, nor do I qualify for their tax cuts. And on the other hand I am not poor, because I dont qualify for the benefits alotted to the poor.
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I am, and my household, is between a rock and a hard place.
I have 2 co sign with on your commment , like I have always said AmeriKKKa is about “Pimps and Hoes” in a metaphorical sense. All Politicians spit that game 2 get elected and talk all that I’m gonna do this and that the other guy is going 2 screw u, choose me baby,”we can go 2 the top if u r not afraid” when u r that “track” aka your jobs,trying 2 raise a fam I will make things more comfortable….”Read My lips No new Taxes” circa Hitler-Bush 1 1991 .Bullshit they will always raise taxes because there is not other way .We as Hoes believe the bullshit they spit or at least want 2 believe it.I was happy that President Obama got in office but like the rest he is just talking shit,take your money,not a real care in the world 4 your well being or fam.Thats what Pimps do.It’s not Hard out here 4 a Pimp, ask a politician.
The goverment need to get their shit together or We The People need to unite and get those in power, OUT!! Salt the earth and start anew!!!
Next election please vote. Please don’t vote Republican or Democrat. Send a message.
Demon…crats and RepubliKKKlans sound like some dumb ass Gang Bangers,which seems more logical than these politicians.They are elected 2 speak on OUR behalf not 2 cut benefits 4 the elderly and sick,or 2 cut funding 4 education,not 2 give themselves a raise everytime it’s put on the table 2 vote 4 1. The days of politicians actually giving a shit r over, u don’t hear me tho so I will repeat that. The days of politicians giving a fuck about u and ur well being are OVER!!!! They r out 4 self and their immediate click,crew,posse,roaddogs,etc.We as a ppl r so fucking scared 2 speak up as a whole there is more of US than them. In a way that’s why I kind of admire the “Pee Party” say what u want but these were just some fed up ppl who were pissed and got results. They Hate the fact that a Black man is in office and how the Gov is run so they got 2gether, just imagine if WE(Meaning all ppl who r fed up with lying politicians period regardless of race) got off our lazy,scary,”hell that don’t concern me I just want the new Lil Wayne cd 2 drop” “If they pass a law 2 smoke weed then I am down 4 the cause”, ass tricks then maybe just maybe something could be done.Until then suffer in silence.
Ok, how about this. How about Washington live like everyone else. No new cars (heard they just bought a fleet of new vehicles) no raises, make some cuts in staff, live like the rest of the american people struggling. How about when a senators job ends, the pay ends. And waht about cutting supporting every other country but our own. Quit giving welfare benefits to people who can and should work. Bottom line, you cant spend money you don’t have, so quit spending. Live frugal like the rest of us. Wake up. Get Warren Buffet and Bill Gates in there to balance the budget. Dont’touch my social security that I have paid in all my life to have when I retire. Quit living high off the hog in Washington and bring the guys home from Afganastan. The war is costing tons. think, think, think. Any college student could solve this crisis.