May 16, 2011, was the day the Democrats screamed the debt ceiling must be raised before the US would default. Well, the time had pass and America is still on its feet. Now, the Democrats called August 2, 2011, as the day the debt ceiling must be raised before America witness a cataclysmic event. As in the boy who cried wolf, the American people understands that the debt ceiling is a joke. There are steps in place to avoid a major disaster. It is a temporary fix, but the solution is obvious. The answer is cut spending. It is easy to revert everything back to the time before Obama came into office. The stimulus bill and Obamacare added to the national debt causing this mess. Obama policies had not improve the economy. The stimulus money was spent to pay back lobbyists and organizations that put Obama into the White House. Since the Democrats screwed up, they want the tax payers to bail them out by increasing taxes. Yes, the Democrats wants to raise taxes. The modern-day Democrats are synonymous to raising taxes. Do not be so surprised!
(Reuters) - Republicans walked out of budget talks on Thursday, setting up a showdown between President Barack Obama and House Speaker John Boehner over how to extend U.S. borrowing and avoid a looming debt default.
Vice President Joe Biden and a handful of lawmakers had been working on a budget-cutting deal that would allow Congress to sign off on continued borrowing, but Republicans quit unexpectedly after saying the group had reached an impasse over tax increases sought by Democrats.
"It is time for the president to speak clearly and resolve the tax issue," said House Majority Leader Eric Cantor, who had represented House Republicans in the talks. Republican Senator Jon Kyl also pulled out.
An agreement would give lawmakers political cover to raise the $14.3 trillion debt ceiling before August 2, when the Treasury Department has said it will run out of money to pay the country's bills.
Boehner said talks could resume if Democrats took tax hikes off the table, but they showed no sign of backing off.
So far, the possibility of default has not affected bond markets as investors focus on other news and assume Washington will ultimately strike a deal -- probably at the last minute.
Negotiators had reached tentative agreement on more than $2 trillion in cuts covering wide swaths of the federal budget, according to an aide familiar with the talks, affecting health programs, annual spending, benefits like farm subsidies and tuition aid, and automatic limits on future spending.
But Democrats would not relent on taxes, the aide said.