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July 24, 2011

Still No Deal

House Speaker John Boehner (R-OH) and the Senate Majority Leader Harry Reid (D-NV) "were preparing separate backup plans to raise the nation's debt ceiling on Sunday, after the leaders were unable to end an increasingly grim standoff over the federal budget," the New York Times reports.

"The contours of Mr. Boehner's backup plan were far from clear, but it seemed likely to take the form of a two-step process, with a short-term increase in the debt limit along with about $1 trillion in cuts, an amount the Republicans said was sufficient to clear the way for a debt limit increase through year's end."

Washington Post: "The Senate plan would add to the dizzying proliferation of debt-limit ideas, with just 10 days before the Treasury is due to run short of cash to pay the nation's bills. But it is the simplest, by far: According to a Senate Democratic leadership aide, Reid will offer to cut spending by $2.5 trillion in exchange for an equal increase in the debt limit, meeting the dollar-for-dollar test Boehner laid down in early May."

Mark Halperin: "It seems impossible for Democrats to give up on their insistence that any debt limit increase go through 2013. If they surrender on that -- and (it is safe to assume at this point) they get no additional revenue to go with spending cuts -- they will have allowed Republicans, who control only the House, to pretty much roll them on most everything."


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