Debt Standoff Heats Up

Tuesday, July 12, 2011 - 4:00pm

Angry rhetoric surrounds debt ceiling talks.

Republicans have proposed a short-term deal that will raise the debt ceiling and keep the U.S. from falling into default.

Both sides met again at the White House Tuesday.

As republicans turned up the heat, President Obama warned if there's no deal to raise the debt limit $20 billion in Social Security benefits, payments to veterans and other checks might not get mailed.

"I can not guarantee those checks go out on August 3rd if we haven't resolved this issue," Mr. Obama told CBS' Scott Pelley.

Top Senate Republican Mitch McConnell fired back, saying the problem is President Barack Obama.

"As this president is in the Oval Office, a real solution is probably unattainable," McConnell said.

The man in the middle is House Speaker John Boehner, but Boehner has a rival.

House Majority Leader Eric Cantor is leading the anti-Obama charge.

"Our President thinks he needs to condition any prescription to fix these programs on tax increases," Cantor complained Wednesday. "Again, if that's what he's looking for, we're not going there."

Democrats say they'll stand firm as well.

"We must protect Medicare and Social Security. We will not support cuts," vowed House Minority Leader Nancy Pelosi.

Both sides are digging in.

"With Republicans pulling any new revenue off the table, Democrats are going to pull entitlements off the table and we're going to end up with a very, very small deal," predicts political analyst Charlie Cook.

As proof of that, Senator McConnell floated an 18 month plan to hike the debt limit.

That plan would expire at the end of President Obama's first term.

Republicans plan to defeat him and then, they say, pass a long term deficit reduction plan.

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