Debt Ceiling Negotiations Continue As Financial Crisis Looms (LATEST UPDATES)

The LA Times finds a nut and recognizes that, no matter what deal ultimately emerges from the debt limit talks, it’s going to be a Republican victory:

Even as the political battle mounts over federal spending, the end result for federal policy is already visible — and clearly favors Republican goals of deep spending cuts and drasticall­y fewer government services.


President Obama entered the fray last week to insist that federal deficits can’t be reduced through spending reductions alone. Federal tax revenue also must rise as part of whatever deficit reduction package Congress approves this summer, he said. Obama has been pushing to end a series of what he calls tax loopholes and tax breaks for the rich.


But even if Obama were to gain all the tax-law changes he wants, new revenue would make up only about 15 cents of each dollar in deficit reduction in the package. An agreement by the Republican­s to accept new revenue would be a political victory for Obama because “no new taxes” has been such an article of faith for the GOP.

In a perverse way, I’ll bet that the White House LIKES this article being out there, because it shows how Republican­s won’t even accept a deal massively tilted to their ends, or something. But the article is really an indictment­. And it reflects what I’ve been saying for months. The entire concept of trading an increase in the debt limit, a routine bill that usually passes with grumbling but little else, for a transforma­tion of government­, is Grover Norquist’s most long-hoped dream realized.

Read the rest here.
Read the Article at HuffingtonPost