Politics and the Debt Ceiling

As the debt ceiling deadline looms, veteran Republican leaders reportedly are telling Tea Party members not to mess with America's full faith and credit. But some 40 House members say they won't vote to increase the ceiling, so Democrats will be needed, and their price is new revenues to save entitlements. Three different options have been proposed to break the deadlock. Republicans call their option "Cut, Cap and Balance." Democratic and Republican Senate leaders have a compromise that would let President Obama increase the ceiling while Congress says "no." The President is trying to split the difference, proposing cuts that will take domestic spending to historic lows and repealing tax breaks for the wealthy. On Friday, this "Grand Bargain" seemed the most likely but today, ABC News reported that it might be back on the table. We hear about an upcoming week of political theater with each side trying to avoid another recession while developing issues for next year's elections.