The CBO has scored Sen. Harry Reid’s debt plan — the one he hasn’t shown his caucus yet — and found that it falls short in its budget cuts by $500 billion. So like Speaker Boehner, Reid is “tweaking” his plan today. I’m sure he’ll find more DoD cuts to make, and more entitlements to protect.
Meanwhile, President Obama still has no plan at all.
By the way, all that talk about defaulting on August 2nd? Let’s adjust our end of the world calendars by about a week.
Thanks to an inflow of tax payments and maneuvering by the Treasury Department, the government can probably continue to pay all of its bills for several days after Aug. 2, providing potentially critical breathing room for Congress to raise the debt ceiling, according to estimates by several Wall Street banks and a Washington research organization.
The consensus is that the government will not run short of money until Aug. 10, when it would be unable to cut millions of Social Security checks without borrowing more money.
President Obama has described Aug. 2 as a “hard deadline” for Congress to increase the maximum amount that the government is allowed to borrow.
“We have to do it by next Tuesday, Aug. 2, or else we won’t be able to pay all of our bills,” Mr. Obama told the nation in his speech on Monday night.
Jay Carney, the White House spokesman, restated that position on Tuesday.
Since the MSM won’t but the bow on the comments, allow me: The White House is lying to stoke fear.