US Debt Ceiling Agreement Reached – or Has It?

Aug 01, 2011 7 Comments by

Finally! Great news with the announcement Sunday night of a deal to raise the US Debt Ceiling. That sounds good on the face of it but let’s hope the Democrats and Republicans who need to reach agreement together are good hurdlers – they will need to be to get over the obstacles to put the “framework” into legislative language and pass it through both chambers of Congress. And they have roughly 2 and half days to do just that. Let’s just say on their track record of getting legislation passed a snail could go faster. So it will be historic when this happens in more ways than one!

 Here are a few of the hurdles that need to be overcome:

In the House, Speaker John A Boehner told members he would bring legislation to the House floor ‘as soon as possible’ – that’s a bit like saying ‘I’ll do my best, but don’t blame me if we don’t get it done’, or’ I will use my best endeavors to get the job done’.

Not to be outdone, Senator Harry Reid said although the Senate would reconvene at 11am he was unclear if the chamber could vote on the final package that quickly as usually the only way for the Senate to move is if there are no objections from any senators. And pigs fly backwards from Dubbo – or Washington in this case!

And of course President Obama has to sign any legislation finally  passed by both chambers. One thing IS clear – he WOULD do that immediately!

But I can hear you asking “What actually is the ‘Deal’?

President Barack Obama says a deal has been reached to raise the government’s debt ceiling and avoid a default. He said the deal includes more than $2 trillion in gradual spending cuts and no initial cuts to Social Security and Medicare.

The deal reached by Democratic and Republican leaders in Congress, would first cut nearly $1 trillion in spending over the next 10 years while raising the debt ceiling by the same amount.

Congress must approve the deal and Obama must sign it by 11:59 p.m. Tuesday to stop the U.S. government from defaulting on its debts. Failure to do so would trigger a drop in the nation’s AAA credit rating and force interest rates up for all types of consumer loans. Bad news for everyone and not just in the US.

Here’s president Obama announcing the ‘Deal’.

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Just remember the devil is in the detail…


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Lover of friends, family, fun and frivolity but has a serious side too - is a workaholic - yet still goes by the saying 'you have to live life to its fullest'.

7 Responses to “US Debt Ceiling Agreement Reached – or Has It?”

  1. Alfred Aranas says:

    So seniors get paid social security this time but there is a “super comittee” that will look into slashing medicare and social security. Makes sense.

  2. Catherine Merseal says:

    why I have quit voting – not one leader in either party – in fact most are completely crazy – no ideas and dumba$$ voters who keep sending the same losers to DC year after year.

  3. suzie@brain smart says:

    I have been really shocked at how our elected so called representatives have behaved over this debt ceiling agreement ..Leaving it to the last minute and holding our future to ransom ,for the sake of political point scoring and one upmanship .From here on in i dont vote.

    Suzie in NYC

  4. Bill Kruse says:

    What I find most disconcerting is the speed and willingness with which S&P has downgraded the States compared to the way they looked the other way for years leading up to and during the credit crunch. It suggests they were on one agenda then and a different one now – but what? Is this evidence of the ‘banker wars’ rumours that are floating around?

  5. Carlos Catino says:

    I think that the notion the US will default on its financial debt is insane. How did it arrive to this?

  6. Cash today says:

    This thing they ony know that what they are doing is weather they are doing it right

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