Why the Fiscal Cliff Negotiations Will Fail Even If They “Succeed”

By Charles Kadlec – The false premise championed by President Barack Obama and his fellow Democrats is higher tax rates on “the rich” are the key to fiscal balance.

The false premise championed by House Speaker John Boehner is that the number one driver of future deficits is entitlement spending in the form of Social Security and Medicare.

False premises are dangerous because they lead to bad policies.

Currently, the negotiations over the budget are based on the CBO’s assumption that real economic growth will average a paltry 2.8% over the next 10-years. Just getting back to the average of 3.1% would reduce projected deficits by more than $900 billion. more> http://tinyurl.com/cdbw6xp

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Both White House and GOP debt plans put US credit rating at risk

English: President Barack Obama discusses his jobs plan, the American Jobs Act, in a speech delivered to a joint session of the 112th United States Congress on September 8, 2011. Vice President Joe Biden and House Speaker John Boehner are seated behind the President. (Photo credit: Wikipedia)

By Erik Wasson – Deficit-reduction proposals from Speaker John Boehner (R-Ohio) and President Obama fall short of clearly stabilizing the debt, according to budget experts, putting the U.S. credit rating at risk of a downgrade.

While some suggest new talks between Obama and Boehner suggest a deal is in reach, they have doubts it will be big enough to meaningfully reduce deficits — or satisfy credit rating agencies.

“More is going to have to be done. I’m actually getting a bit more optimistic that a fiscal-cliff deal will get done, but at the same time I’m less optimistic that a ‘grand bargain’ will be achieved,” Bob Bixby of the Concord Coalition said. “The real issue is where everything ends up as a percentage of GDP.” more> http://tinyurl.com/a7wek82

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Grand deficit prize glitters within reach for Obama and Boehner

English: U.S. President is greeted by Speaker of the House before delivering the . (Photo credit: Wikipedia)

By Niall Stanage – The call of history is strong. Obama, having massively reshaped American healthcare in his first term, has the opportunity to make a pact that repairs the nation’s balance sheet, which has been on a perilous path for more than a generation.

Boehner has the chance to strengthen Republican claims to fiscal responsibility and put the lie to critics’ charges that the GOP is the party of “No.”

The two leaders met Sunday (Dec 9) at the White House to seek common ground. Aides to the president and the Speaker gave the same statement when asked about the meeting, saying “the lines of communication remain open.” more> http://tinyurl.com/ba98ust

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Obama, Boehner talk; Geithner prepared to go off “cliff”

By Thomas Ferraro and Mark Felsenthal – Republicans in Congress and President Barack Obama consumed much of Wednesday talking up their positions on the “fiscal cliff” and though Obama and Republican House Speaker John Boehner spoke by phone, neither side offered any new compromises in public.

Asked in an interview with CNBC if the administration was ready to go over the so-called fiscal cliff if Republicans don’t come around on taxes, Obama’s chief negotiator, Treasury Secretary Timothy Geithner, responded: “Oh, absolutely.” more> http://tinyurl.com/cep7krk

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