Photo: AP Photo/Charles Dharapak
Talks between congressional leaders to raise the debt limit are going nowhere fast, as the time to reach an agreement ticks away.Hopes for a deal on Sunday night quickly faded, but lawmakers continue to meet at the Capitol.
Read below for what happened yesterday, and click here for the latest.
11:30pm | President Barack Obama has apparently cancelled two DNC fundraisers Monday as talks to raise the debt limit continue. First reported by CNN, the events in Washington were listed on Obama’s schedule on Friday, but were removed by Sunday night. House Minority Leader Nancy Pelosi was criticised by some Sunday afternoon for a fundraising trip to Connecticut for Rep. Rosa DeLauro (D-CT).
10:22pm | In a statement House Minority Leader Nancy Pelosi praised the Reid plan, adding “The major features of Senator Reid’s proposal have already been supported by Republicans in the past months”.
8:43pm | Reid’s full statement: “Tonight, talks broke down over Republicans’ continued insistence on a short-term raise of the debt ceiling, which is something that President Obama, Leader Pelosi and I have been clear we would not support. A short-term extension would not provide the certainty the markets are looking for, and risks many of the same dire economic consequences that would be triggered by default itself. Speaker Boehner’s plan, no matter how he tries to dress it up, is simply a short-term plan, and is therefore a non-starter in the Senate and with the President.
“In an effort to reach a bipartisan compromise, we are putting together a $2.7 trillion deficit reduction package that meets Republicans’ two major criteria: it will include enough spending cuts to meet or exceed the amount of a debt ceiling raise through the end of 2012, and it will not include revenues. We hope Speaker Boehner will abandon his ‘my way or the highway’ approach, and join us in forging a bipartisan compromise along these lines.”
8:33pm | Senate Majority Leader Harry Reid said in a statement: “Tonight, talks broke down over Republicans’ continued insistence on a short-term raise of the debt ceiling which is something that President Obama, Leader Pelosi and I have been clear we would not support.”
8:23pm | As the global markets begin to open, and a deal to raise the debt limit remains nowhere in sight, it is going to be a long week. White House Chief of Staff Bill Daley warned today that “We may have a few stressful days coming up — stressful for the markets of the world and the American people.” Hang in there folks.
8:06pm | President Obama and congressional Democrats reportedly agreed not to proceed with any deal that does not raise the debt limit through the end of 2012. Republicans believe Obama/Reid/Pelosi will blink first.
8:05pm | National Journal reports Speaker Boehner is prepared to offer a deal to raise the debt limit for six months, with a second increase contingent on additional spending cuts as proposed by a fiscal commission.
8:04pm | The Nikkei is off just 0.4 per cent.
7:47pm | From a White House official: “In the meeting the President received an update on the state of negotiations on the Hill from Leader Pelosi and Leader Reid, and the Leaders and the President reiterated our opposition to a short-term debt limit increase.”
7:03pm | Gold is surging.
6:07pm | The White House meeting began at 5:58, according to the pool report. Attendees are Obama, Vice President Joe Biden, Senate Majority Leader Harry Reid, and House Minority Leader Nancy Pelosi. GOP lawmakers were reportedly not invited.
5:53pm | Sen. Bernie Sanders (I-VT) told a radio host today that Obama has moved to far to the centre in the debt limit negotiations. The liberal firebrand added that “I think it would be a good idea if President Obama faced some primary opposition.” [via ThinkProgress]
5:38pm | On the call, House Majority Leader Eric Cantor reportedly said: “The President’s position of forcing us to give him a debt limit increase thru the election is purely political and indefensible.”
5:27pm | The Washington Post adds that Boehner told his caucus he continues to push for a $1 trillion short-term deal now, forcing another vote to increase the debt ceiling before the next election. Obama has threatened to veto such a proposal.
5:20pm | Boehner signaling that the GOP’s balanced budget amendment plan is dead may seem to be stating the obvious, by many House Republicans were undoubtedly unhappy to hear that news from their Speaker. As late as Friday, Boehner said “Cut, Cap, and Balance” is the GOP’s only plan to raise the debt limit.
5:16pm | Roll Call’s John Stanton reports Boehner acknowledged that the GOP plan “Cup, Cap, and Balance” is dead in the Senate on his call with House Republicans. He said the House must now focus on “what can we pass to protect the country” from POTUS plans.
5:05pm | It’s worth noting that Democrats and Republicans have different ways of counting deficit cuts. Democrats include savings from the wars in Iraq and Afghanistan, while Republicans do not. It is not clear how Reid will arrive at his $2.5 trillion in cuts.
4:41pm | Aides tell NBC News’ Kelly O’Donnell that Senate Majority Leader Harry Reid is preparing to move forward with his own plan to raise the debt limit through the end of 2012 and cut the deficit by $2.5 trillion, without new taxes.
Business Insider Emails & Alerts
Site highlights each day to your inbox.