Partisan battle lines drawn over debt ceiling

(CBS News) WASHINGTON - Washington barely had time to catch its breath after reaching a deal on raising taxes -- and battle lines are already emerging for the next showdown.

This week, Treasury Secretary Timothy Geitner reported that the U.S. government has reached its borrowing limit: $16.4 trillion. This means that Congress and the president have roughly two months to work out a deal to raise that limit. Republicans are saying no deal without spending cuts.

President Obama returns from Hawaii to a capital city in full inaugural regalia. Republicans have their demands on spending cuts, but Mr. Obama has an inflexible demand of his own: no negotiations over raising the debt ceiling

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Obama faces fiscal hurdles, likely without Geithner
"Fiscal cliff" averted -- now what?

The grand stage at the Capitol is nearly complete. So, too, is the presidential reviewing stand just outside the White House gate.

The first family's Hawaiian vacation, carved up by fiscal cliff drama, ends Saturday. The president used his weekly address to tell the nation that raising the debt ceiling to avoid a government default is a problem for Congress.

"One thing I will not compromise over," said the president in his address, "is whether or not Congress should pay the tab for a bill they've already racked up. If Congress refuses to give the United States the ability to pay its bills on time, the consequences for the entire global economy could be catastrophic."

Top advisers say the president will never again -- as he did in 2011 -- get pulled into that debate. But Republicans want a fight, tying the debt ceiling to the spending cuts required by the fiscal cliff.

"We're crushing today's small businesses and the next generation of Americans under a mountain of debt," said GOP Rep. Dave Camp of Michigan.

They see an opening at the end of February when the debt limit -- now $16.4 trillion -- comes up, as do mandatory spending cuts in the tens of billions.

"It's time to face up to the fact that our nation is in grave fiscal danger -- grave fiscal danger-- and that it has everything to do with spending," said GOP Sen. Mitch McConnell.

With income taxes raised now, Republicans contend they own the spending debate. To complicate matters, the government runs out of funds for day-to-day operations at the end of March, meaning all three of these deadlines will soon converge. That means the president can tell himself he's not trading spending cuts for an increase in the debt ceiling, but he probably will be -- at least indirectly.

[blau2102]

Spending must be cut in a 'fair' way, which means all programs take cuts or restructured to reduce spending.

[westerly1]

Well, every four years I offer my solution to reduce government spending. These supposed political leaders can't agree on what to cut so impose a 5-10% across the board reduction in government spending each year until we see a reduction in our deficit. Across the board means just that; cut government employees; cut spending on military, entitlements & discretionary; etc. My experience tells me that almost any department in government can withstand a a 5-10% haircut.

[crankyoleman]

Your comment says you are vastly inexperienced.

[skyk801]

Can someone.. ANYONE tell me ONE thing the Republican Party has told us in the past about their ideas on the economy that has actually worked? When you look at what these clowns, the Deficits don't matter crowd, has told us about Trickle Down Economics, there isn't ONE thing that has happened. All we have seen from their ideas is a falling standard of living and giving up MORE of our Social Safety Net. When we started the stupidity we had a deficit of 50 MILLION Dollars.. That's MILLION with an "M". This party and it's leaders are in the pockets of the Rich, can't get out and will do whatever their pimps tell them. The health of the nation's economy isn't important. The Complete collapse of the Middle Class doesn't matter. The FACT that Trickle Down is a complete and absolute FAILURE for 98% of the nation doesn't matter. What matters is the deep pockets of the Corporate Pimps... that's it.

[seabass6251]

You're entire post is completely wrong. Where do you want to begin?

[seabass6251]

Spelling.

Your

[kevcl6750]

Obama is the CEO ! I can't believe the gutless wonder still blames someone else for the state of the budget, deficit, and debt ! The last time he submitted a budget it was rejected in the Senate 99 to ZERO ! For all his education someone forgot to tell him the US is a system of checks and balances although I doubt he could even balance his own check book ! The House holds the purse strings, period, end of story !
btw, The last budget under Bush with a GOP House had s a deficit of 161 billion $ , including spending on 2 wars ! Government revenue hit an all time high and it all blew up because Bubba Clinton repealed Glass Steagal, deregulated derivatives, and Democrat policies that required banks to lend to people who could pay back the loans they were given !

[kevcl6750]

Obama is the CEO ! I can't believe the gutless wonder still blames someone else for the state of the budget, deficit, and debt ! The last time he submitted a budget it was rejected in the Senate 99 to ZERO ! For all his education someone forgot to tell him the US is a system of checks and balances although I doubt he could even balance his own check book ! The House holds the purse strings, period, end of story !
btw, The last budget under Bush with a GOP House had s a deficit of 161 billion $ , including spending on 2 wars ! Government revenue hit an all time high and it all blew up because Bubba Clinton repealed Glass Steagal, deregulated derivatives, and Democrat policies that required banks to lend to people who could pay back the loans they were given !

[OnTheCrown]

"The fact that we are here today to debate raising America's debt limit is a sign of leadership failure." ~Sen. Obama.

[skyk801]

"Deficits don't matter", Dick Cheney!

[indie-voter]

This is just more political drama and posturing, with plenty of mudslinging back and forth, while the media each plays out their own playwriting.

Even politicians know the stakes are too high to miss any key finance dates.

[dricekrice]

Republicans trying to use the debt ceiling as leverage is like someone putting a gun to his own head threatening to pull the trigger unless his demands are met. If they refuse to raise it, once we get to the point where we can't pay our bills, Obama, like many poor people do, will have to decide what gets paid with the money we do have and what doesn't. I bet Republicans would dislike his choices more than they dislike raising the debt ceiling. And they couldn't even direct him as to how to spend it as he could veto any legislation he didn't like and they wouldn't have the 2/3 majority to override. As far as I know, there are no laws directing the President how to spend money when our nation can't pay all of its bills. It would be giving him free reign to cut whatever he wants to cut without even consulting Republicans. In the end they would have to raise it so everything would start getting paid again. Including their own paychecks perhaps. Hey, that's a thought. Maybe not raising the debt ceiling would be a good idea. :-)

[tellnolies]

Why do we call it debt ceiling. Instead of rather or not to pay Americas debts. Just to politicize every little thing.

[waygone]

If you're entitled to it then you deserve it. You conservalaxitives should use another word.