[lbo-talk] budget drama: Reps "checkmated"?

Doug Henwood dhenwood at panix.com
Thu Jul 14 05:56:59 PDT 2011


[from Mike Allen]

Good Thursday morning. BEHIND THE CURTAIN - The office of House Majority Leader Eric Cantor (R-Va.) provides its account of yesterday afternoon's testy meeting in the White House Cabinet Room, which ran from 4:24 p.m. to 6:16 p.m.: "Over the last several days, the White House has been walking back the savings on the Biden number. Thursday it was $2 trillion, Monday it was $1.7-1.8 trillion, Tuesday it was $1.6-1.7-1.8 trillion. This morning, our staff met with White House folks and the wrap-up from that meeting said that the WH is now at $1.5 trillion. Given those figures, Eric pointed out that wherever we are, it's a long way from the $2.4 trillion needed to meet House GOP goals of dollar-for-dollar, so he suggested a possible short-term goal in order to avoid default. He then said to the President that since we can only reach so much in savings and you (President) keep moving the goalposts, I will move off my position of only doing one vote in order to avoid default.

"The President then got heated. He said he was willing to explain and defend his position. Said he could get well above the numbers the GOP is talking about with revenue increases. Said he wouldn't be afraid to veto and he will take that message and defend it to the American people. Said if we default it will be a tax increase on every American. Said it is his responsibility is to the American people. Said, I have reached the point where I say, 'Enough.' Would Ronald Reagan be sitting here like this? I've reached my limit. This may bring my presidency down, but I will not yield on this. Then stormed out of the room and said we'll see you tomorrow.

"I asked Eric about the Dem aide charge that he interrupted the meeting and asked three times about short term. This was his response: 'I never interrupted the president, and in fact was deferential, seeking his permission to speak to him, [budget director] Jack Lew or whomever. I made the point in my opening that they were walking back the spending cut number -- that we were nowhere close. At the end, I said because we were nowhere close, I would walk back our position of no short-term in order to reach agreement if the President would agree not to veto it.'"

--A top Democrat responded: "Almost nothing that Cantor has said, in or out of the room, has been true. His main goal seems to be scoring political points -- not against Democrats, but against the Speaker of his own party. It's pretty amazing, and kind of scary."

--Everyone's getting, as our Mom would say, a little hot under the collar. USA Today's lead story: "Time, tempers short on debt talk: Nation's bond rating could be downgraded." ... HuffPost banner: "GLOVES COME OFF" ... Sam Stein: "'Eric, don't call my bluff. I'm going to the American people on this,' the president said, according to both Cantor and another attendee." ... Drudge banner: "OBAMA WALKS."

--A Senate Democratic aide emails: "While no one can predict how this drama will end, one thing seems apparent: the President has just about checkmated the Republicans. At this point, the GOP seems to have only four possible moves: (1) force a default, which both Mitch McConnell and the Wall Street Journal editorial page are openly warning would be a political disaster for Republicans that would ensure Obama's reelection; (2) accept revenues in a final deal, as even Bill O'Reilly is now saying they should do; (3) accept a smaller package of cuts that doesn't meet Speaker Boehner's 'dollar-for-dollar' requirement; or (4) settle for a version of McConnell's 'punt' plan, which, after all this, would not mandate any spending cuts whatsoever. Needless to say, none of these are winning scenarios for Republicans."



More information about the lbo-talk mailing list