–Obama Still Pushing For ‘Biggest Possible Deal’
–‘Progress Has Been Made’ In Talks Over Raising Debt Ceiling
–Remain Hopeful Can Achieve Something Significant
By Brai Odion-Esene
WASHINGTON (MNI) – While President Barack Obama continues to push
for the “biggest possible deal” in his talks with Congressional leaders
over raising the debt ceiling, both sides are also exploring “fallback”
options to ensure the nation does not default no matter what, White
House spokesman Jay Carney said Monday.
Every leader on Capitol Hill agrees with the administration that
the U.S. cannot be allowed to default on its obligations for the first
time in its history, Carney told reporters during a regular press
briefing.
Conversations about possible alternatives are ongoing, Carney said,
including about the proposal put forward by Senate Minority Leader Mitch
McConnell.
“We must pursue a fallback or last ditch option,” he said.
Last week, McConnell proposed that if no agreement on the debt
ceiling is reached soon he will back a plan that would allow the debt
ceiling to be increased in three tranches of $700 billion, $900 billion
and $900 billion over the next year.
The complex format would mean that to get these increases in the
debt ceiling, the president would have to introduce spending cut
packages of the same size — and Democrats would have to defeat
Republican motions to disapprove of the debt hike.
These conversations about the variety of options available are
taking place “because we don’t have luxury anymore of pursuing one only,
we have to make sure that there is a mechanism in place to be sure that
no matter what happens, the United States does not default,” Carney
said.
And most importantly, Carney emphasized that any deal agreed to
must be equally acceptable to both lawmakers and the administration. “We
need to make sure that whatever we do here can pass Congress and is
acceptable to the president to sign.”
Still, since Thursday’s meeting with between Obama and leaders from
both parties, “progress has been made,” he said.
“The President is pushing for the biggest deal possible, and
continues to believe there is an opportunity here to achieve that, if
only all sides were willing to compromise,” he said.
Carney acknowledged that there is also the option for something
short of the biggest deal possible, one that provides some
significant deficit reduction but would still require balance.
There have been meetings between the administration and members of
Congress — as well as their staff — Sunday and Monday, Carney said,
and those meetings will continue until a deal is done.
Separate from talks over raising the debt limit, “We continue to
push for biggest possible deficit reduction package … we continue to
think there is time to achieve that,” Carney repeated.
** Market News International Washington Bureau: 202-371-2121 **
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