House Speaker John Boehner (R.-Ohio) and Senate Minority Leader Mitch McConnell (R.-Ky.) have reportedly agreed to give President Barack Obama the authority to borrow as much as an additional $2.4 trillion—thus allowing him to get past the November 2012 election without having to seek another increase in the legal limit on the federal debt.
A pleased President Obama announced the deal in a briefing at the White House press room at 8:40 p.m. on Sunday.
“Most importantly,” Obama said of the deal, “it will allow us to avoid default and end the crisis that Washington imposed on the rest of America. It ensures also that we will not face this same kind of crisis again in six months, or eight months, or 12 months. And it will begin to lift the cloud of debt and the cloud of uncertainty that hangs over our economy.”
Neither Obama, nor Boehner, nor McConnell released the details of the deal on Sunday evening.
The New York Times reported that the money to increase the debt limit would come in an initial installment of $900 billion followed by a second installment of $1.2 to $1.5 trillion. The first $900 billion would include an immediate $400 billion to allow the government to pay its immediate bills. Both the initial and second installment, according to the Times would be subject of disapproval votes by Congress which would cancel the debt limit increases, but that these disapproval votes would be subject to a veto by President Obama—meaning that both houses of Congress would have to vote by two-thirds majorities to prevent the debt limit increases from happening.
Read More at CNSNews By Terence P. Jeffrey, CNSNews.com