Hollister, CA: Social Security Spigot May Remain On Despite Budget Impasse: View From A Private Duty

Hollister, CA: Social Security Spigot May Remain On Despite Budget Impasse: View From A Private Duty Caregiver Serving, Carmel, Carmel Valley, Carmel-by-the-Sea, Gilroy, Gonzalez, Greenfield, Hollister, King City, Marina, Monterey, Pacific Grove, Pebble Beach, Salinas, San Juan Bautista, Seaside & Soledad CaliforniaIn yet another sign that there is little chance Republicans and Democrats can reach a budget agreement by next Friday, Senator Mitch McConnell of Kentucky, the Republican Senate minority leader announced on 7/12 what his "unspecified contingency plan" was if budget talks failed. He said that a bipartisan budget plan was probably out of reach, and to avoid default on the national debt he proposed that Congress empower President Obama to raise the government's borrowing limit. He could do this without prior approval of Congress as long as it is accompanied by proposed spending cuts in the same amount as he is increasing the debt limit. The New York Times said that many conservatives called this a panicky sell out. House Speaker John Boehner, however, said he might be open to the McConnell proposal. "I think everyone believes there needs to be a backup plan if we are unable to come to an agreement, and frankly I think Mitch has done good work," Boehner told Fox News. He gave the caveat to his comments of, "I don't think such a proposal could pass the House in any way, shape or form. You have a number of members who will never vote to raise the debt ceiling and a large block of members who believe this really is the moment to put our fiscal house in order," he said. "Senator McConnell's proposal today reaffirmed what leaders of both parties have stated clearly, that defaulting on America's past-due bills is not an option," responded the White House press secretary Jay Carney. If the bill passes, which is definitely not a shoe-in, President Obama would still be faced with tough choices. McConnell has proposed that the President be given the authority to raise the budget in three increments, up to $2.4 trillion (enough to carry us through just one year), with it taking a two-thirds majority of Congress to block it. But passing the bill would be a big defeat for Republicans, because Congress would not have to approve the proposed spending cuts prior to increasing the debt limit. They would effectively be giving up their leverage. In the meantime, many business leaders who have heretofore been silent on the matter expressed their concern with the political stalemate. 470 executives released a letter urging the President and Congress to raise the debt ceiling, warning that the financial markets would be thrown into disarray if we go into default on the national debt. Although the conclusion was no surprise, President Obama had said last week that many in the business community had not wanted to come out publicly for raising the debt ceiling given that the majority of the public doesn't want it raised (according to a recent survey). However, with the clock ticking, Republicans may have figured it's now or never to put political pressure on Republicans and Democrats to come to an agreement. If Treasuries are downgraded from Triple A to Double A(they would likely be downgraded much further than this if we went into default), it would take 1% off of GDP and cost at least one million jobs, according to the U.S. Chamber of Commerce, the National Association of Manufacturers and the Financial Services Forum. What a mess! Let's hope this is resolved soon, we can't afford to see the country go into another recession so soon.http://www.nytimes.com/2011/07/13/us/politics/13fiscal.html?_r=1&nl=todaysheadlines&emc=tha2&pagewanted=printhttp://www.familyinhomecaregiving.com/blog/index.html?entry=monterey-ca-social-security-cutshttp://online.wsj.com/article/SB10001424052702303678704576441833014116822.html