The U.S. Debt Ceiling debate
by Dan Taylor
1. June 29, 2011
1.1. 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
1.2. President Obama calls for increased efforts to spur job growth, as well as increasing taxes for wealthy Americans
1.3. Republicans remains focused on deficit reduction
2. June 30, 2011
2.1. Democrats introduce a scaled-back deal that would avoid default
2.2. This deal would also force Congress to revisit the debt ceiling issue before the 2012 elections
2.3. The White House rejects this proposal
3. July 3, 2011
3.1. Obama and Boehner secretly meet to discuss the "grand bargain"
3.1.1. the deal would save $4 trillion over 10 years
3.1.2. through changes to the current tax code
3.1.3. as well as changes to popular benefits programs
4. July 5, 2011
4.1. Obama brings top leaders to the table to reopen negotiations
4.2. Obama seeks to have a deal in place by July 22nd
5. July 6, 2011
5.1. 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
5.2. The White House continues to state that there is no "Plan B" in place
6. July 7, 2011
6.1. Obama says that Republicans and Democrats are still far deeply divided on a number of issues
6.1.1. but that all agreed to raise the debt ceiling
7. July 8, 2011
7.1. A scathing jobs report refocuses attention on the U.S. economy
7.2. Obama says that debt ceiling talks contribute to uncertainty in the market
8. July 9 , 2011
8.1. Boehner calls the "grand bargain" dead
8.1.1. Republicans will not agree to tax increases demanded by Democrats
8.1.2. calls for a $2 trillion package that would rely mostly on spending cuts
9. July 10, 2011
9.1. Obama and congressional leaders go head to head in a "heated" debate
9.1.1. No progress other than both parties agreeing that they need to meet again the next day
10. July 11, 2011
10.1. Obama pressures both Republicans and Democrats to make concessions and come to a deal
11. July 12, 2011
11.1. Senate Republican leader Mitch McConnell introduces a bill to avoid default should congress fail to agree on a debt reduction plan
11.2. Obama warns that if an agreement is not reached soon, the American public could stop receiving benefits on August 2nd
12. July 13, 2011
12.1. Moody's investor services puts the United States on review to be downgraded based on the lack of a debt ceiling increase
12.2. Obama meets with lawmakers for over 2 hours
12.2.1. No agreement is reached
13. July 14, 2011
13.1. 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
13.2. Obama calls "time", and gives lawmakers 24-36 hours to propose a solution to the deadlock
14. July 17, 2011
14.1. Senator McConnell and Senate Democratic leader Harry Reid work on McConnell's original proposal to allow the President to raise the debt ceiling
14.2. Obama meets with Boehner and his deputy Eric Cantor
14.2.1. no progress is made
15. July 18, 2011
15.1. Republicans introduce a measure that would cut and cap government spending
15.1.1. and require an amendment to the U.S. Constitution requiring a balanced budget
15.2. Obama states that he will veto any such measure
16. July 19, 2011
16.1. The "Gang of Six" proposes a new deficit reduction plan
16.1.1. $3.75 trillion in savings over 10 years
16.1.2. $1.2 trillion in new revenues
16.2. Obama urges Congress to start "Talking Turkey"
16.3. House Republicans pass a $5.8 trillion deficit-reduction plan with a balanced budget amendment
17. July 20, 2011
17.1. The White House indicates that Obama would be willing to approve a very short-term debt limit extension beyond Aug. 2
17.2. Obama holds two separate meetings with top lawmakers
17.2.1. Democrats
17.2.2. Republicans
18. July 21, 2011
18.1. Reports surface that Obama and Boehner discuss a $3 trillion deficit-cutting deal
18.2. Obama holds his ground on revenue increases via taxation
18.2.1. meets with Democratic Congressional leaders
19. Nov. 2, 2010
19.1. The Republican party assumes the majority control of the House of Representatives
19.1.1. Promise to scale back government spending and tackle budget deficits
19.1.2. Debts hover at their highest levels (relative to the economy) since World War II
20. Dec. 1, 2010
20.1. A bipartisan deficit reduction panel presents their findings and recommend $3 trillion in spending cuts and $1 trillion in revenue increases
20.1.1. revenue increases are primarily driven by closing U.S. Tax law loopholes
20.1.2. Recommendations to be spread over 10 years
21. January 2011
21.1. The current "Gang of Six" begin talks on a long-term deficit-reduction deal that would appeal to both parties
21.1.1. Republicans
21.1.1.1. Saxby Chambliss
21.1.1.1.1. Georgia
21.1.1.2. Mike Crapo
21.1.1.2.1. Idaho
21.1.1.3. Tom Coburn
21.1.1.3.1. Oklahoma
21.1.2. Democrats
21.1.2.1. Mark Warner
21.1.2.1.1. Virginia
21.1.2.2. Dick Durbin
21.1.2.2.1. Illinois
21.1.2.3. Kent Conrad
21.1.2.3.1. North Dakota
22. Feb. 19, 2011
22.1. The House of Representatives pass a budget for the current fiscal year
22.1.1. The budget would cut $61 billion from the previous year's levels
22.2. One month later, the budget is defeated by the Democrat led Senate
23. April 9, 2011
23.1. The U.S. government teeters on a full shutdown
23.2. President Obama and congressional leaders agree on a budget that will cut $38 billion from last year's levels
23.3. This spending reduction actually causes $3.2 billion more to be spent in the short term.
24. April 13, 2011
24.1. After initial critique, President Obama rolls out an additional spending cut program that would save $4 trillion over 12 years
24.2. President Obama appoints Vice President Joe Biden to lead deficit reduction discussions
25. April 15, 2011
25.1. The House of Representatives pass a budget that will cut spending by $6 trillion over 10 years
25.2. Savings are driven in part on cutbacks to programs for the elderly and poor
25.2.1. Social Security
25.2.2. Welfare
26. May 5, 2011
26.1. Vice President Biden and representatives from both political parties hold their first meeting to discuss deficit reduction
26.2. Republican leaders indicate that there will most probably be no agreement on tax reform and healthcare
27. May 9, 2011
27.1. Speaker of the House, John Boehner stats that any increase in the debt ceiling must be matched by an equal amount of spending cuts
27.2. The U.S. Department of the Treasury estimates that it will need $2 trillion to cover borrowing through the November 2012 elections
28. May 11, 2011
28.1. House Republicans present their spending outline for the coming year that sees cuts to programs in:
28.1.1. education
28.1.2. labor
28.1.3. health
29. May 16, 2011
29.1. The Government of The United States reaches it's $14.3 trillion debt limit
29.2. The U.S. Department of the Treasury begins accessing "other" resources to cover it's debts
30. May 17, 2011
30.1. Republican Senator Tom Coburn departs the "Gang of Six" over an impasse regarding healthcare
31. May 31, 2011
31.1. The House of Representatives refuse to raise the debt ceiling
31.2. Republicans stage the vote to pressure President Obama to agree to further spending cuts
31.3. Democrats point to the vote as nothing more than a political stunt
31.3.1. however
31.3.1.1. 82 Democratic lawmakers join Republicans in defeating the bill