Obama, Congress Reach A Debt Deal

WASHINGTON (AP/WCCO) — Ending a perilous stalemate, President Barack Obama announced agreement Sunday night with Republican congressional leaders on a compromise to avoid the nation’s first-ever financial default. The deal would cut more than $2 trillion from federal spending over a decade.

Default “would have had a devastating effect on our economy,” Obama said at the White House, relaying the news to the American people and financial markets around the world. He thanked the leaders of both parties.

House Speaker John Boehner telephoned Obama at mid-evening to say the agreement had been struck, officials said.

No votes were expected in either house of Congress until Monday at the earliest, to give rank-and-file lawmakers time to review the package.

But leaders in both parties were already beginning the work of rounding up votes.

On WCCO Sunday Morning, Sen. Al Franken, Rep. Erik Paulsen and Rep. Keith Ellison gave us their take on the latest in Washington. Watch the video clips below, in order of appearance.

Sen. Al Franken

Rep. Erik Paulsen

Rep. Keith Ellison

(TM and © Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved.This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

  • Funky Munkey

    I hope it fails in the House because it’s all smoke and mirrors. Enron accounting isn’t working anymore. Time to layoff government workers today, stop giving money to dictators overseas and bring ALL the troops home or we’re finished.

    What they aren’t telling you is that we are experiencing a Keynesian paper dollar crash. They are fueling this crash by continuing to print money. Every paper currency has always eventually gone to zero and we are about %50 of the way there.

    • Ordinary Guy

      Consider once, that when they print more money, they are diluting the value of all of the currency in circulation, or in effect, placing a tax on all of the dollar-holders in the world at large. More than half is held overseas.

      On the other hand, the alternative is to make up the shortfall by depriving our citizens only, or as bad, tax that full amount from them alone.

      Unless you’re sitting on a pile of cash or a foreigner, you’d favor the first. I know my home value could stand a little inflation about now. A little inflation spurs exports too.

  • Dave

    A deal? Like a deal with the Devil?

  • Joi

    Why interview Frankincense, he is an idiot.
    No wonder Washington is so incompetent.

  • Waste

    Cut 2 trillion, that does not mean anything, the deficit will still go up by 7 trillion in that same time frame.

    Smoke and mirrors.

  • O-done-a

    Quick fix and the only one we need:
    1) Make all the Banks that were bailed out (and, yet, gave bonuses) remit the money owed plus 30% interest immediately. Then, invoke an independent team to investigate the perpetrators within these institutions in regard to the financial crisis they solely imposed on the American people. Assure that it leads to prosecution– of treasonous proportions, monetary penalties, huge fines, and STEEP regulation of our financial sector. Regulate, de-leverage, no more derivatives, no more credit swaps, full disclosure of speculation.
    2) Eliminate the Fed. All it is—is a backdoor entry for the Wall Street hacks to infiltrate our government for maintenance of their shadow government so to preserve the criminal behavior of the wicked. Do it now before the middle class disappears completely. Take out Timmy and the Great Bernanke today.
    3) Repeal, immediately, the Bush tax cuts. These cuts were put in place to benefit the top 1% and the Wall Street Hacks, and boy did they ever. No more tax breaks for stock incurred gains/losses, dividends, and sale of shares. Get rid of the goodies for the Wall Street Hacks! They are the ones responsible, make ‘em pay.

    • AGREE

      You have stated what a lot of people feel about this!!! It gets it right on all levels. If we were to do what Wall Street did do you think we would walk the streets a free person?? Hell No we would be in jail faster than they cover things up.

    • Citizen

      @O-done-a. Absolutely! The Banks that Failed should have been broken up long ago. I believe Great Britain is doing that. I might add that anyone sanctioned for these shenanigans should go to JAIL. These white collar criminals need to experience real jail time–not just fines and notoriety. Hard time with hard criminals, if you get my meaning!

    • help me understand

      O-done=a, i am 55 years old and never had this happen before. My credit card was with WAMU. 7.99% interest rate. One day I received a notice my interest rate increased to 18%. JP Morgan Chase had bought them out. I called customer service and was told they did not take bailout money but were asked to buy out WAMU cause they were going to fail. I had to close the card to avoid the higher rate. I read a few articles on this but it is confusing.

      • O-done-a

        Yeah, I’m getting back to you a little late. That happened back in 2008. WAMU was caught holding a lot of “troubled assets” meaning they were granting loans at the sub-prime level (high interest rate for low qualified home buyers and HELOCS which are 2nd mortgages to home owners). When JP Morgan bought them out–they were, well, they were told by our Federal Reserve to take it over in full–there really was very little choice in the matter. That’s where TARP comes in. Troubled Asset Relief Program. JP Morgan did get some of that money. Something under 30 billion if I remember correctly. I’m not sure if that was the answer you were looking for or if your asking about your card. The card–when JP Morgan took it over, they honestly can hold your account to their standard rathe than the WAMU standard so even though you got jobbed, they had that right.

  • Mark from Minnesota Tax Waste

    We live within our means! Our government must do the same! Dont pass this bill! Last year Greece, in 5 years it will be the USA

  • Citizen

    Here are statements coming out of China–our biggest creditor. And it is just as I predicted, our enemies (the Red Chinese are certainly not friends!), will use this disgusting display of stupidity and political posturing by BOTH PARTIES to propaganda advantage. And it proves what I have said many times–these shenanigans by politicians are TRAITOROUS acts in violation of the oath of office these bozos take to the United States of America. Chinese reaction follows:
    “Chinese officials are trying to get some political mileage out of the U.S. debt debacle. They’ve publicly criticized Washington’s growing financial problems, though few believe the Chinese government was ever truly worried its U.S. debt holdings would go belly-up.

    “All they really care about is will the U.S. eventually pay all its debt,” says Pettis. “I don’t think anyone doubts the U.S. will, so again I think this is really for domestic political reasons more than for real concerns about the value of their portfolio.”

    China’s state-controlled media is also highlighting the supposed dangers of the U.S. democratic system – painting a picture that shows the high-stakes political infighting in Washington holding the global economy hostage.”

    • Ordinary Guy

      I think I read that China holds 8% of our treasury securities, being the largest single bondholder. I heard as well, that they’ve been around the world trading U.S. securities for future mineral rights. Oil and raw materials may be hard to get at any price, if we can’t correct the system. They seem very smart and able to act decisively and quickly. Just recently, one of their generals criticized ours at their meeting for our practice of spending too much on our military. I think our money is building theirs too.

      • O-done-a

        What they (China) won’t confess is that America has a cold. I’m sure you’ve heard the saying: “When America sneezes, the world catches a cold.” The people of China aren’t, obviously, told the truth by their government—like we are?—so they are experiencing a housing bubble, inflation, and unemployment. We aren’t buying their junk. We have fewer products required for them to assemble. So, the people of China blame the Americans, not their own government. China is not innocent (like I had to reveal that), they were the ones eager to assist in the financial crisis by consuming our debt at crazy levels, buying it up, and asking for more and more. Then the bill came due (and continues to come due) and they are left with their pants down-kind of. They’ve been trading out of our treasuries for euros and commodities for some time now. They are smart and you’re right—they are aiming to devalue our dollar so their cash is king. Predictions say this could/will happen within the next 10 years.

  • Citizen

    @Ordinary Guy. Yes, the CBS article stated that China is using our money to fund its economic boom. Our money is making them into the #1 growing economy in the world. Just think if our corporations had kept the investments and jobs here at home how well the U.S. would be doing!

  • Ordinary Guy

    Let’s win it back! But just bear in mind that multi-national corporations can’t hardly show a loyalty for one country over another and still expect loyalty from their employees in those countries. And if one business learns how to exploit the laws of our country, who’s to blame the others for following suit?

    I mean, if they don’t import/outsource like the first business, they’ll be priced out of the market. It comes back to the government that didn’t react to the changing business realities. The more military-structured countries can easily do that between business and law. We hope to be more just and deliberative, but no doubt, we’ve got to be able to react too, without sacrificing our rights as they do in China.

  • anitanewprez

    Obama’s Report Card:

    Increased America’s debt by 35%.

    Increased unemployment by 18%.

    Falsified Hawaiian birth certificate after illegally holding the office of President of the United States.

    Violated the 10th Amendment to the US Constitution by exerting federal government over state’s rights.

    Largest increase in federal government in history.

    Created a national health care system, modeled after the failing systems in Canada and Great Britain, and which creates nearly 100 new government agencies and programs.

    Made the federal government the monopoly agency for student loans.

    Made the federal government co-owner of various industries.

    Alienated one of the US closest allies –Israel.

    Weakened the military by allowing gays to openly serve.

    Refuse to defend US borders against illegal aliens.

    Violated the US Constitution by requiring every American to purchase health insurance.

    Openly embrace Muslims who have vowed to destroy America while at the same time pushing to remove more Christian rights from Americans.

    Established more socialist policies than any President in history.

    Removed more citizen’s rights than any President in history.

    Striving to make 15 million illegal aliens US citizens in time to vote in

    • O-done-a

      Ya know, I support the fact that you understand that Obama needs to go. I want everyone to understand that this dude needs to go. But this right wing propaganda, you have here, freaks me out a little. Reminds me of something my Mom once said to me when I was in my teens and I asked her about a faith healer on T.V. I said, “Why do people believe that’s real” and her response was “If only one person believes it’s real, it made a believer.” Needless to say, that very day, I became Agnostic.

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