Closer To A Deal

News
Monday, August 1, 2011 - 6:43am

Congress works to take deal "framework" and make it law.

The White House and top Democrats and Republicans agreed on over two trillion in budget cuts
allowing the U.S. to borrow that much more.

"It will allow us to avoid default. It will allow us to pay our bills. It will allow us to start reducing our deficit in a responsible way," said President Obama.

Here's the deal: almost a trillion in cuts now, much of it from the military, another trillion and a half decided by a panel of Democrats and Republicans in the fall, including tax reform and Medicare.

If they don't agree, or if the government overspends, automatic cuts kick in.

Senate Minority Leader Mitch McConnell said, "The United States of America will not for the first time in our history default on its obligations."

Senate Majority Leader Harry Reid said, "This agreement won't make every Republican happy. It certainly won't make every Democrat happy, either."

This morning, leaders on both sides meet with their members to convince them to vote "yes." Some are reluctant.

House Minority Leader Nancy Pelosi said, "All may not be able to support it or none of us may be able to support it."

Missouri Representative Emanuel Cleaver said, "On the surface it looks like a Satan sandwich."

But the markets are happy. Asian markets opened up this morning on news that it looks like the u-s will be able to pay its bills after tomorrow.

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