http://finance.yahoo.com/news/GOP-leader-says-give-Obama-apf-725560.html?x=0
GOP leader says give Obama new debt limit powers
GOP Senate leader McConnell suddenly proposes giving Obama new powers to raise debt limit
Senate Minority Leader Mitch McConnell of Ky., left, and Senate Minority Whip Jon Kyl of Ariz., leave after a news conference on Capitol Hill in Washington, Tuesday, July 12, 2011. (AP Photo/Susan Walsh), On Tuesday July 12, 2011, 7:06 pm
WASHINGTON (AP) -- With compromise talks at a vituperative standstill, Senate Republicans unexpectedly offered Tuesday to hand President Barack Obama new powers to avert a first-ever government default threatened for Aug. 2.Under a proposal outlined by Sen. Mitch McConnell of Kentucky, Obama could request -- and likely secure -- increases of up to $2.5 trillion in the government's borrowing authority in three separate installments over the next year, as long as he simultaneously proposed spending cuts of greater size.
The debt limit increases would take effect unless blocked by Congress under special rules that would require speedy action -- and even then Obama could exercise his authority to veto such legislation. Significantly, the president's spending cuts would be debated under normal procedures, with no guarantee they ever come to a final vote. end quote.
So, if I understand this correctly this allows President Obama to have the opportunity to increase the national debt by $2.5 trillion as long as he increases spending cuts an equal amount. It is possible that we might wind up with this, if for no other reason but that the president can still write the 70 million government checks, especially to seniors come August 3rd. However, there might be another catch to all this that no one has thought of yet. But look for creative ways to keep the government running from all practical members of Congress and the Executive branch as this thing comes down to the wire during the next week or so.
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