Each morning, Bill Scher and Terrance Heath serve up what progressives need to effect change on the kitchen-table issues families face: jobs, health care, green energy, financial reform, affordable education and retirement security.
MORNING MESSAGE: Grassroots vs. The Dream-Killers
OurFuture.org's Isaiah Poole: "Thousands of citizens fanned out to congressional offices across the country yesterday to tell their members of Congress to not pay the ransom being demanded by congressional conservatives—deep cuts in economic security programs for seniors, the sick and the economically struggling while protecting the tax breaks of millionaires and billionaires—in exchange for raising the debt ceiling. They were responding to Monday's call by MoveOn, Rebuild the Dream, Campaign for America's Future and other organizations for progressives to flood congressional offices with phone calls and emails ... and to show up in front of congressional district offices...."
Republicans Split Over Debt Strategy
MoveOn.org announces American Dream movement rally Thursday 12 noon at the U.S. Capitol "...to keep the pressure on Republicans and tell Democrats to stand strong against the GOP's call for cuts to Medicare, Medicaid, and Social Security."
Speaker delays debt bill to quell conservative revolt. Politico: "The decision to move the vote to Thursday or beyond came after the Congressional Budget Office reported late Tuesday night that the package Boehner crafted would only reduce deficits by $850 billion, $150 billion short of the speaker’s goal ... House Republican leadership aides were looking for ways to revise the bill ... either lowering the borrowing authority Congress approves, or recommending additional spending cuts ... Boehner was hauling members who are undecided or leaning 'no' into his Capitol suite ... to twist arms ... but the CBO scores threw all that progress into doubt ... some conservative interests aren’t buying it and seemed to go into overdrive trying to defeat the Boehner plan."
OMB chief sides with Boehner over CBO: "Both the House Republican budget proposal unveiled by Congressman Ryan on April 5 and the President’s fiscal framework that he introduced on April 13, set as our goal deficit reduction of $4 trillion. Since both of these plans were introduced before the agreement on appropriations for FY 2011, the baseline used for them did not reflect the spending cuts enacted this year in that legislation. Indeed, throughout our weeks of talks, all parties have worked off a January baseline because we all recognized that we needed to start from the same place. That is why it would be confusing to judge the current proposal’s savings from the 'adjusted March 2011 baseline' which CBO released in May."
WSJ edit board sides with Boehner over Tea Party: "The idea seems to be that if the House GOP refuses to raise the debt ceiling, a default crisis or gradual government shutdown will ensue, and the public will turn en masse against . . . Barack Obama. The Republican House that failed to raise the debt ceiling would somehow escape all blame. Then Democrats would have no choice but to pass a balanced-budget amendment and reform entitlements, and the tea-party Hobbits could return to Middle Earth having defeated Mordor."
TPM details the civil war inside in the GOP: "More traditional Republicans and big business types are desperate to avoid a recovery-crushing default. But their Tea Party colleagues are leading a rebellion of epic - perhaps even galactic - proportions. Cue the John Williams music..."
The Hill launches "whip count" on Boehner bill, reports 19 likely GOP "no" votes so far.
Sen. Min. Leader McConnell lowers expectations: "... McConnell warned that it is time for leaders of both parties to 'get back together' and be prepared to accept a solution to the debt crisis that’s 'less than perfect, because perfect is not achievable.'"
Dems looking to weaken Boehner's leverage, boost McConnell. The Hill: "Democratic aides think McConnell will be willing to craft a compromise with Reid after the Senate defeats Boehner’s fallback plan, assuming the House can even pass it ... But a senior GOP aide said a rumor that McConnell secretly has qualms with Boehner’s plan 'isn’t true.'"
WH Seeks Final Compromise
WSJ reports outlines of WH compromise plan: "At the White House, officials anticipate that neither the Boehner nor Reid plans can get through both houses of Congress, and they are crafting alternatives that could be finalized over the weekend and put to a vote Monday or Tuesday. They are trying to develop alternatives combining elements of the Boehner and Reid proposals and another from Sen. Mitch McConnell (R., Ky.) so each can claim a measure of victory. The blend could include caps on appropriated spending, a congressional commission to offer further deficit-reduction and a McConnell-style 'disapproval mechanism."
Reid's proposal cuts deficit more than Boehener's, according to CBO. Politico: "Part of the disparity is owed to the fact that the House bill takes a two-step approach to raising the debt ceiling and therefore postpones actions on major entitlement savings until November and December. A second factor is the Senate’s willingness to take advantage of CBO baseline rules and claim large savings from winding down US military operations in Afghanistan and Iraq."
Joint Chiefs of Staff nominee resisting proposed deep cuts. NYT: "General Dempsey, who is expected to be easily confirmed, tangled briefly at the hearing with Senator John McCain, Republican of Arizona, who demanded to know what $800 billion to $1 trillion in military cuts would do to the readiness of the armed services over the next decade. General Dempsey replied that Mr. Obama had asked the Pentagon to cut only $400 billion, but 'based on the difficulty of achieving the $400 billion cut, I believe 800 would be extraordinarily difficult and very high risk.'"
What Happens After Aug. 2?
"Wall Street scrambling" reports LAT: "Business executives stepped up appeals this week for political action, worried that the nation faced a crisis, and prepared contingency plans in case the stalemate persists. At Wall Street banks and investment firms, many traders are putting vacation plans on hold so they can be at their desks Aug. 2."
Influx of tax revenue may push back debt limit deadline. NYT: "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 ... The consensus is that the government will not run short of money until Aug. 10 ... The government will exhaust its ability to borrow more money on Aug. 2 ... But there still will be cash in the federal wallet. ... Analysts emphasize, however, that the deadline is real; it’s just the date that is inexact."
"Can Treasury just go overdrawn at the Fed?" asks Reuters' Felix Salmon: "Treasury has an account at the Fed ... We’ve all gone overdrawn at our bank at some time or another: why should Treasury be any exception? ... The Fed, for its part, would have two choices when it came to cashing Treasury’s checks: it could either simply print the money, or else it could sell some of its assets."
Credit agencies to face Congress today regarding downgrade threats. NYT: "Representative Barney Frank ... said he believed the rating agencies had made flawed assessments on ratings of state and municipal debt over the years. Now, he said, he thinks they may be misjudging Congress’s political will to rein in the deficit."
Warren Back To Bay State
Elizabeth Warren to step down from CFPB advisory role, return to Harvard. LAT: "Raj Date, who serves as the agency's associate director of research, markets, and regulations, will become a special advisor to Treasury Secretary Timothy F. Geithner and run the bureau's daily operations until a director is confirmed ... Date may be the acting director for a while ... 44 Senate Republicans have promised to block [Richard] Cordray's confirmation..."
Senate run speculation continues. The Hill: "...speculation continues to swirl that Warren could mount a campaign to replace Sen. Scott Brown (R-Mass.) as senator in 2012. Senate Democrats have courted Warren for the job, but so far she has merely said she will think about the proposition."
Top GOPers equates government bank regulators with "little dictatorships." ThinkProgress' Lee Fang: "The bank regulators Neugebauer references are charged with developing transparency in financial markets and policing predatory loans (in the mortgage markets, credit card industry, and payday loans, among others). When he says 'they dictate what they can do to you,' the 'you' in that sentence is a bank or financial conglomerate like Goldman Sachs. With that in mind, when Neugebauer complains that Dodd-Frank is a violation of “democracy” — apparently his version of democracy is composed of banks with rights equal to that of citizens."
Deal Close For Major Increase In Fuel Efficiency
Compromise close for big jump in fuel efficiency. NYT: "The Obama administration and automakers are nearing an agreement to increase fuel economy standards for vehicles to 54.5 miles per gallon by 2025 ... The administration had earlier proposed a goal of 56.2 miles per gallon ... some automakers were now willing to support a 54.5 m.p.g. rule, particularly because the ramp-up period is less aggressive for light trucks than for passenger cars. The new proposal would almost double the current fuel-efficiency standards of about 27.8 m.p.g. ... Environmentalists were concerned that a review stipulation could allow automakers to circumvent increases in fuel efficiency in the latter stages of the agreement."
