The U.S. Debt Ceiling debate

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The U.S. Debt Ceiling debate by Mind Map: The U.S. Debt Ceiling debate

1. Nov. 2, 2010

1.1. The Republican party assumes the majority control of the House of Representatives

1.1.1. Promise to scale back government spending and tackle budget deficits

1.1.2. Debts hover at their highest levels (relative to the economy) since World War II

2. Dec. 1, 2010

2.1. A bipartisan deficit reduction panel presents their findings and recommend $3 trillion in spending cuts and $1 trillion in revenue increases

2.1.1. revenue increases are primarily driven by closing U.S. Tax law loopholes

2.1.2. Recommendations to be spread over 10 years

3. January 2011

3.1. The current "Gang of Six" begin talks on a long-term deficit-reduction deal that would appeal to both parties

3.1.1. Republicans

3.1.1.1. Saxby Chambliss

3.1.1.1.1. Georgia

3.1.1.2. Mike Crapo

3.1.1.2.1. Idaho

3.1.1.3. Tom Coburn

3.1.1.3.1. Oklahoma

3.1.2. Democrats

3.1.2.1. Mark Warner

3.1.2.1.1. Virginia

3.1.2.2. Dick Durbin

3.1.2.2.1. Illinois

3.1.2.3. Kent Conrad

3.1.2.3.1. North Dakota

4. Feb. 19, 2011

4.1. The House of Representatives pass a budget for the current fiscal year

4.1.1. The budget would cut $61 billion from the previous year's levels

4.2. One month later, the budget is defeated by the Democrat led Senate

5. April 9, 2011

5.1. The U.S. government teeters on a full shutdown

5.2. President Obama and congressional leaders agree on a budget that will cut $38 billion from last year's levels

5.3. This spending reduction actually causes $3.2 billion more to be spent in the short term.

6. April 13, 2011

6.1. After initial critique, President Obama rolls out an additional spending cut program that would save $4 trillion over 12 years

6.2. President Obama appoints Vice President Joe Biden to lead deficit reduction discussions

7. April 15, 2011

7.1. The House of Representatives pass a budget that will cut spending by $6 trillion over 10 years

7.2. Savings are driven in part on cutbacks to programs for the elderly and poor

7.2.1. Social Security

7.2.2. Welfare

8. May 5, 2011

8.1. Vice President Biden and representatives from both political parties hold their first meeting to discuss deficit reduction

8.2. Republican leaders indicate that there will most probably be no agreement on tax reform and healthcare

9. May 9, 2011

9.1. Speaker of the House, John Boehner stats that any increase in the debt ceiling must be matched by an equal amount of spending cuts

9.2. The U.S. Department of the Treasury estimates that it will need $2 trillion to cover borrowing through the November 2012 elections

10. May 11, 2011

10.1. House Republicans present their spending outline for the coming year that sees cuts to programs in:

10.1.1. education

10.1.2. labor

10.1.3. health

11. May 16, 2011

11.1. The Government of The United States reaches it's $14.3 trillion debt limit

11.2. The U.S. Department of the Treasury begins accessing "other" resources to cover it's debts

12. May 17, 2011

12.1. Republican Senator Tom Coburn departs the "Gang of Six" over an impasse regarding healthcare

13. May 31, 2011

13.1. The House of Representatives refuse to raise the debt ceiling

13.2. Republicans stage the vote to pressure President Obama to agree to further spending cuts

13.3. Democrats point to the vote as nothing more than a political stunt

13.3.1. however

13.3.1.1. 82 Democratic lawmakers join Republicans in defeating the bill

14. June 9, 2011

14.1. Sixth meeting of the "Biden Group"

14.2. Treasury Secretary Timothy Geithner states that tax increases must be part of the overall solution

14.3. Republicans appear unmoved

15. June 14, 2011

15.1. 34 Senate Republicans repeal tax breaks on Ethanol

15.2. This move provides hope to Democrats, indicating that Republicans are willing to budge on their "No Tax Increase" stance

16. June 23, 2011

16.1. Republicans call an impasse at the Biden talks

16.2. Republicans point to Democrats insistance of approx. $400 billion in new revenue by closing tax breaks for the wealthy and businesses

17. June 29, 2011

17.1. The IMF makes a statement that the U.S. Government must lift it's debt ceiling in order to avoid a "severe shock" to global markets, as well as the fragile U.S. economy

17.2. President Obama calls for increased efforts to spur job growth, as well as increasing taxes for wealthy Americans

17.3. Republicans remains focused on deficit reduction

18. June 30, 2011

18.1. Democrats introduce a scaled-back deal that would avoid default

18.2. This deal would also force Congress to revisit the debt ceiling issue before the 2012 elections

18.3. The White House rejects this proposal

19. July 3, 2011

19.1. Obama and Boehner secretly meet to discuss the "grand bargain"

19.1.1. the deal would save $4 trillion over 10 years

19.1.2. through changes to the current tax code

19.1.3. as well as changes to popular benefits programs

20. July 5, 2011

20.1. Obama brings top leaders to the table to reopen negotiations

20.2. Obama seeks to have a deal in place by July 22nd

21. July 6, 2011

21.1. Reuters reports that a small group of U.S. Treasury Department officials are meeting to discuss options to hold off defaulting, should Congress fail to agree on a raising of the debt ceiling

21.2. The White House continues to state that there is no "Plan B" in place

22. July 7, 2011

22.1. Obama says that Republicans and Democrats are still far deeply divided on a number of issues

22.1.1. but that all agreed to raise the debt ceiling

23. July 8, 2011

23.1. A scathing jobs report refocuses attention on the U.S. economy

23.2. Obama says that debt ceiling talks contribute to uncertainty in the market

24. July 9 , 2011

24.1. Boehner calls the "grand bargain" dead

24.1.1. Republicans will not agree to tax increases demanded by Democrats

24.1.2. calls for a $2 trillion package that would rely mostly on spending cuts

25. July 10, 2011

25.1. Obama and congressional leaders go head to head in a "heated" debate

25.1.1. No progress other than both parties agreeing that they need to meet again the next day

26. July 11, 2011

26.1. Obama pressures both Republicans and Democrats to make concessions and come to a deal

27. July 12, 2011

27.1. Senate Republican leader Mitch McConnell introduces a bill to avoid default should congress fail to agree on a debt reduction plan

27.2. Obama warns that if an agreement is not reached soon, the American public could stop receiving benefits on August 2nd

28. July 13, 2011

28.1. Moody's investor services puts the United States on review to be downgraded based on the lack of a debt ceiling increase

28.2. Obama meets with lawmakers for over 2 hours

28.2.1. No agreement is reached

29. July 14, 2011

29.1. Standard & Poor says that there's a 1-in-2 chance that they will downgrade the U.S.'s AAA rating if a stalemate continues

29.2. Obama calls "time", and gives lawmakers 24-36 hours to propose a solution to the deadlock

30. July 17, 2011

30.1. Senator McConnell and Senate Democratic leader Harry Reid work on McConnell's original proposal to allow the President to raise the debt ceiling

30.2. Obama meets with Boehner and his deputy Eric Cantor

30.2.1. no progress is made

31. July 18, 2011

31.1. Republicans introduce a measure that would cut and cap government spending

31.1.1. and require an amendment to the U.S. Constitution requiring a balanced budget

31.2. Obama states that he will veto any such measure

32. July 19, 2011

32.1. The "Gang of Six" proposes a new deficit reduction plan

32.1.1. $3.75 trillion in savings over 10 years

32.1.2. $1.2 trillion in new revenues

32.2. Obama urges Congress to start "Talking Turkey"

32.3. House Republicans pass a $5.8 trillion deficit-reduction plan with a balanced budget amendment

33. July 20, 2011

33.1. The White House indicates that Obama would be willing to approve a very short-term debt limit extension beyond Aug. 2

33.2. Obama holds two separate meetings with top lawmakers

33.2.1. Democrats

33.2.2. Republicans

34. July 21, 2011

34.1. Reports surface that Obama and Boehner discuss a $3 trillion deficit-cutting deal

34.2. Obama holds his ground on revenue increases via taxation

34.2.1. meets with Democratic Congressional leaders