Source: Obama says he'll risk job for debt deal

WASHINGTON - Amid new warnings and fresh signs of strain, President Obama and congressional leaders are entering a perilous debt-limit endgame. The president, declaring "enough is enough," is demanding that budget negotiators find common ground by week's end even as the Senate's top Republican gained followers for his own last-ditch scheme to avoid a government default.

The continuing impasse was unsettling Wall Street, which up to now had performed as if an increase in the debt ceiling was not in doubt. And the looming Aug. 2 cutoff for action was creating new tensions between the president and Republican leaders.

Moody's Investors Service said Wednesday it will review the government's credit rating, noting there is a small but rising risk that the government will default on its debt. If Moody's were to lower the ratings, the consequences would ripple through the economy, pushing up rates for mortgages, car loans and other debts. A Chinese rating agency, Dagong Global Credit Rating Co., also warned of a possible downgrade.

Federal Reserve Chairman Ben Bernanke, addressing lawmakers, warned Wednesday that not increasing the nation's debt ceiling and allowing the nation default on its debt would send "shock waves through the entire financial system."

And in the cauldron of the White House Cabinet Room, Obama and top lawmakers bargained for nearly two hours Wednesday on spending cuts. Obama curtly ended the session when House Majority Leader Eric Cantor, R-Va., urged Obama to accept a short, monthslong increase in debt instead of one that would last through next year's presidential election.

"Enough is enough. ... I'll see you all tomorrow," Obama said, rising from the negotiating table and leaving the room, according to several officials familiar with the session.

Was it a blow up? Obama, GOP get tense in talks

CBS News senior White House correspondent Bill Plante reports President Obama later warned Republicans he was willing to risk his presidency to stick by his insistence for a long-term agreement.

"I've reached my limit. This may bring my presidency down, but I will not yield on this," said Mr. Obama, according to a Republican source.

The United States hit its current $14.3 trillion debt ceiling in May and the Obama administration says the government will default on its obligations if the debt limit is not increased by Aug. 2. For a new debt ceiling to last to the end of 2012 would require raising it by about $2.4 trillion.

Republicans, in control of the House of Representatives in part because of the support of tea party activists, say they will not vote to raise the limit if Obama doesn't agree to at least an equal amount of deficit reductions over 10 years.

"Our problem is, we made a big deal about this for three months," Sen. Lindsey Graham of South Carolina told The New York Times, illustrating the difficult position in which senior Republicans find themselves.

"How many Republicans have been on TV saying, 'I am not going to raise the debt limit,'" Graham told the newspaper, including himself among the GOP members dealing with the seemingly no-win situation. "We have no one to blame but ourselves."

"Let's stop the posturing and positioning, stop catering to the political base and let's start compromising," Mr. Obama told the lawmakers at the White House, according to people who were in the room.

Obama and the top eight House and Senate leaders met for the fourth time in as many days Wednesday, and, despite the tense ending, agreed to meet again Thursday. Cantor, speaking to reporters after the meeting broke up, said the White House had been lowering the amount of spending cuts it would put on the table, offering less than $1.4 trillion over 10 years, mostly in domestic and defense spending outside of the major benefits programs like Medicare, Medicaid and Social Security.

The White House argued that the total was closer to $1.7 trillion over 10 years when counting about $240 billion in reduced interest payments from the lowered debt.

Bloomberg news reports that Mr. Obama may ask senior leaders from both parties to join him for continued discussions over the weekend at the Camp David presidential retreat in Maryland, but the White House had not confirmed those plans.

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[andacar]

It's a poker game, and the President has at last called the Republicans to show or fold. Thanks at last for realizing that there's no compromising with these guys, President Obama. I just wish you'd learned that a long time ago.

[blern]

As hairynews so graciously supplied:
Debt Ceiling Increases in ($Billions)
Admin Date New Limit Increase
Clinton April 6, 1993 4,370 225
Clinton August 10, 1993 4,900 530
Clinton March 29, 1996 5,500 600
Clinton August 5, 1997 5,950 450
Bush June 11, 2002 6,400 450
Bush May 27, 2003 7,384 984
Bush November 16, 2004 8,184 800
Bush March 20, 2006 8,965 781
Bush September 29, 2007 9,815 850
Bush June 5, 2008 10,615 800
Bush October 3, 2008 11,315 700
Obama February 17, 2009 12,104 789
Obama December 24, 2009 12,394 290
Obama February 12, 2010 14,294 1,900

BUSH AND GOP GOT US INTO THIS MESS

It's simple numbers, and until we accept the fact that corporations and very wealthy people are scamming the country out of all its assets and taking them elsewhere, there will be no recovery. Since they really do not care because they have the means to live anywhere in the world, or in the case of corporations, set up shop anywhere in the world, and leave behind a country that more and more resembles Mexico, complete with the rampant political corruption, they aren't going to voluntarily pay their share of taxes, so it has to be imposed on them. I really don't understand why so many working class people are stupid enough to think there's any kind of payback in allowing their deeds to go unpunished.

And yes, Obama has been the biggest disappointment I could possibly imagine. Weakness and capitulation are not the same thing as reasonable compromise.

As for your self-righteous suggestion that people who accrue wealth should not have to pay taxes, because oh my they have worked so much harder than everybody else: people who have actually worked all their lives and now are seeing their Social Security, which they funded and Medicare which they also paid into all their lives threatened because the ultra-rich have bought off all the politicians are the ones who are being cheated.

[irish1919]

dEBT LIMIT DOES NOT AND SHOULD NOT BE RAISED. oNLY THE LIFE LONG POLITICIANS SAY SO BECAUSE THEY WILL HAVE 3 TRILLION MORE OF OUR DOLLARS TO SPEND ON POPPYCOCK.

[irish1919]

As an American citizen everyone should pay taxes. 10 percent on every American is what should happen. The only tax revenue should be from those who do not pay any taxes. I am sick and tired paying for my family and part of the 45% of dead weight in this country. Get some skin in the game and then we will see who wants tax hikes.

[blern]

Yes.

[irish1919]

GOP plan makes most fiscal sense. Actually reduces the debt. Obama actually taxes all Americans and does not cut any real spending. He is an elected dictator who could not run a candy stand let alone the U.S. economy. What a moron

[blern]

"Obama actually taxes all Americans"-sadly he did not agree to raise taxes on the wealthiest Americans, they are not paying their fair share and in the case of many large corporations not paying any taxes at all. So in fact he taxes all middle and working class Americans, yes, but not ALL Americans, just the ones the Republicans want to tax. That is the real reason his job is now in jeopardy, but one has to wonder why the Republicans are not running any realistic opposition for 2012. My guess is cowardice, combined with the fact that they are all on the take and are leaving the country with their bags of gold to go someplace where the people will not be rioting and looting as the result of the currency collapse.

A flat tax would make sense, along with very high import taxes that would discourage trade and force American businesses to employ Americans, or no longer be American businesses.

[noloyalisti]

The real tragedy of America actually started in 1866 when the Supreme Court gave corporations human rights. This debacle was finalized recently the current Supreme Court who passed Citizens United and ended the American experiment in democracy and freedom.

[cosmotopper]

This crisis is not about taxes. It is about parasites and poseurs who prefer entitlement to enterprise. Over four decades, this country has been spending money we did not earn, and cannot pay back in any of our lifetimes. The well has run dry. If we continue, even for two more years, we risk total economic collapse.

As a Citizen, I am willing to allow the Congress to decide how much to tax, and how to spend the tax-revenues it collects. I will no longer agree to see the credit and currency of this nation looted (by either party), and funneled into the pockets of their personally favored constituents. Allowing this practice to continue has all but destroyed the democratic foundations of this country. Those of you who do not see it, need to look again. Those who know it, and have quietly allowed it to continue, must speak out against it or watch this democratic republic fail.

These are truths which should be self-evident. We are standing at the precipice of the greatest peril this nation has faced since April of 1861, when the secessionist states attacked Fort Sumter. If you allow President Obama and his party to continue to dissipate the last shreds of this nation's good credit, and debase the currency that has, for nearly a century, provided the foundation for the global economy, the mayhem and misery that will descend upon this country (and this planet) will be unlike anything in the history of our civilization.

[noloyalisti]

You are right, there are a few billionaires who prefer entitlement to America.

[blern]

Hey, honey, don't forget who drove us into this deficit. Republicans are irresponsible and cannot manage credit. They also give a lot of welfare to corporations and the rich, who by the way are not capable of achieving the "mayhem" you threaten because they are soft and stupid from privilege and unmerited wealth. Why you want to kiss their ungrateful heinies is beyond me but it seems to be a common syndrome.

[noloyalisti]

The government is now a wholly owned subsidiary of American big business. How else would you explain this level of corruption and lack of caring for the citizens of the country?

There are only a few Democrats, and only a handful that are resisting this awful situation. In most fascist countries like America, where a few greedy rich call all the shots, we have no power through voting and protest. Unless millions unite to general strike and shut it down. I'm ready.

[cosmotopper]

Are you aware that one of the first things Barrack Obama did upon taking office was arrange to have the Federal Reserve "print up" $1.2-Trillion dollars, and use it to buy up the near worthless mortgage-backed securities that the "Too Big To Fail" banks had fraudulently sold to investors over a period of 8 years? Did you ever wonder how they paid off their phony TARP loans so quickly, and resume paying themselves 7, 8 & 9-figure bonuses? If you think that Obama is somehow defending you from the "greedy rich", think again.

The government is not owned by "American big business". It is owned by a handful of thoroughly corrupt corporate cronies of the Democratic and Republican party leadership, who rely upon the ignorance of people like yourself to maintain their stranglehold over public policy and the fungible assets of the federal government.

As long as you are willing to blindly accept the lies and propaganda which Obama, Reid, Pelosi, McConnell and Boehner package up and feed you via the mainstream media, they will remain in power and continue to feed off the last remaining assets of this country until there is nothing left to steal.

[blern]

I'm with you.

[ACHERONLOVE]

Obama has made it clear by trying to frighten the older americans that he could careless about them how many will die of the stress alone of worrying whether they get their checks in August 2011.

This whole government is cowardly. Senators,Congressmen, etc have voted themselves raises almost every year. As tax payers guess what these yahoos can serve 1 term and we are stuck paying that large salary for their whole lifetime. To me they should cut the fat right in their own backyard. Take a 20% pay cut for a few months but no that will never happen.

We all know our country is in debt there are so many ways they could cut out a lot of this starting with what they call Pork spending. Nothing against our troops they are heroes but the defense budget does nothing for them no extra pay etc. So cut a piece of that off.

And not to sound Nasty but the President & First Lady and their children of course do not require custom made designer clothes to do a good job with the office.

My dad made a point today that stayed with me he said most but not all of these people in the House of Representatives congress, or senate are wealthy either they were successful lawyers, or other businesses. Yet they contintue to accept a salary when they don't need it.

Another point and I know this sounds crazy but It seemed like a true argument. Instead of these piddling checks to try and move the economy along. Give every family 1 million dollars with the stipulation they buy themselves a home (nothing extravagant) a car to get to work and of course the taxes you'd have to pay that would stimulate the economy. I know some would take advantage but right now our goverment is giving us the finger and trying to scare us to death not sure the current population but even if it were 1 billion dollars and that money went back into the economy it would be well worth it.

We all have ideas and they don't listen to one anyone see the movie Brewster's millions, I think everyone on every ballots no matter what it is for should put NONE OF THE ABOVE. Thank you for reading my rambling.

I have a heart condition that gave me about 6 months d0 any of them care NO because it's one less person on their books to worry about..

[hairynews]

Debt Ceiling Increases in ($Billions)
Admin Date New Limit Increase
Clinton April 6, 1993 4,370 225
Clinton August 10, 1993 4,900 530
Clinton March 29, 1996 5,500 600
Clinton August 5, 1997 5,950 450
Bush June 11, 2002 6,400 450
Bush May 27, 2003 7,384 984
Bush November 16, 2004 8,184 800
Bush March 20, 2006 8,965 781
Bush September 29, 2007 9,815 850
Bush June 5, 2008 10,615 800
Bush October 3, 2008 11,315 700
Obama February 17, 2009 12,104 789
Obama December 24, 2009 12,394 290
Obama February 12, 2010 14,294 1,900

BUSH AND GOP GOT US INTO THIS MESS