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House of Representatives passes debt bill

Enough Democrats and Republicans reluctantly joined forces to see the proposed legislation through by 269 to 161 The weeks-long confrontation over the US debt has finally ended after the House of Representatives voted overwhelmingly in favour of a deal to prevent the economic catastrophe of America defaulting for the first time in its history. The vote came only hours before the Treasury deadline that potentially would have seen the US run out of cash and no longer able to pay its bills. Enough Democrats and Republicans reluctantly joined forces to see the proposed legislation through, 269 votes to 161. But there were significant revolts by both Democrats and Republicans. If the House had failed to vote in favour, markets would likely have gone into freefall. With so much at stake, the Democrats and Republicans called in all members. In an emotional moment, even the Democrat Gabrielle Giffords returned to vote for the first time since being shot in the head in Tucson, Arizona, in January. She received a standing ovation from both sides of the House. The Senate is scheduled to vote on the bill at noon but that is largely a formality, because the Democrats have a majority and the Republican leadership has promised support. The Republican leader in the Senate, Mitch McConnell, said there were enough votes in the Senate to pass the bill. The House of Representatives, with a large number of Republicans aligned to the Tea Party movement, had been the main obstacle. The deal looks mainly like a victory for the Republicans, with the Democrats emerging with little to show for all the weeks of strife. Barack Obama, who negotiated the deal with Republican and Democratic leaders at the weekend, hopes to sign the bill into law after the Senate vote and before midnight on Tuesday. Many Democrats expressed unhappiness with the legislation, rushed through at the last minute without the normal scrutiny in order to meet the deadline, because it contains more than $2tn in spending cuts over the next decade. They fear the poor will be the main casualties and feel that Obama caved in to the Tea Party Republicans. Just before the vote, the Democratic leader Nancy Pelosi, though she herself had serious misgivings about the bill, urged her colleagues to vote in favour. “Please think of what could happen if we defaulted,” she said. “Please, please, please come down in favour of preventing the collateral damage.” The Democrats divided evenly in the vote, with 95 voting in favour and 95 against. It is a sizeable Democratic vote on a compromise that Obama had been desperately seeking and who had, on Sunday night, hailed it in a television statement. There was also a revolt by Republicans aligned to the Tea Party movement who argued the cuts are not deep enough. About 66 Republicans voted no. The bill will raise the US debt ceiling by $900bn over the next few months and by another $1.5tn early next year. Without the rise, Obama would have had to divert money from other federal spending to pay the interest on American loans and, as a consequence, he had warned that 80 million people in receipt of federal cheques, mainly benefits, might have ended up as the casualties. Obama sent vice-president Joe Biden to Congress to try to sway disgruntled Democrats. In a closed meeting, Biden heard concern from his party colleagues that too much ground had been conceded to the Republicans in order to prevent the default. In a sign of the polarisation of politics in Washington, Biden agreed with a Democratic colleague who objected to what he felt were extortion tactics by Tea Party Republicans. Biden, in words that will enrage many in the Tea Party, described hardline conservatives as having “acted like terrorists”. In comments typical of the Democratic mood, Congressman Eliot Engel told the Politico website: “If you had told me that this was the package a month ago, I would’ve asked you what you had been smoking.” The Congressional Budget Office, a non-partisan body, reported that the deal would cut federal spending by $2.1tn over 10 years. The Republicans had demanded the cuts in return for raising the debt ceiling. The White House spokesman, Jay Carney, called the deal “a victory for the American people”, and denied Obama and the Democrats had got nothing from it. The Democratic leader in the Senate, Harry Reid, after a meeting of the Democratic caucus in the Senate attended by Biden, acknowledged the unhappiness of at least some of his Democratic colleagues. He said: “There was some enthusiasm for the legislation. Some others had no such enthusiasm,” Reid said. Although some people were unhappy, he said it was a typical piece of compromise legislation. Left-leaning Democrats fear that the spending cuts, to be looked at in detail by a bipartisan committee that will report in November, will hit the most vulnerable in society. Others questioned the value of spending cuts at a time when the economy is struggling to get out of recession. In the House, the Republican Speaker, John Boehner, received a standing ovation at a gathering of House Republicans, before the vote. US politics Obama administration US economic growth and recession United States Barack Obama US economy Ewen MacAskill guardian.co.uk

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Raw Video: Giffords Appears on House Floor

As House lawmakers voted to pass a debt ceiling deal, Rep. Gabrielle Giffords made her first appearance in the Capitol since being shot in her Arizona district earlier this year. (Aug. 1)

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Indian parliamentary chaos puts anti-corruption laws in doubt

Embattled Congress party further weakened as upper house forced to shut on opening day of new parliamentary session Long-awaited laws in India to fight corruption, protect farmers from unscrupulous developers and boost economic growth look less likely to be passed after tumultuous scenes in the national parliament on Monday. Within minutes of the start of a new parliamentary term, opposition politicians forced a shutdown of the upper house, an indication that the bitter partisan politics of recent months are set to continue. The lower house was adjourned after the death of a member of parliament during the recess. The prime minister, Manmohan Singh, and other senior figures in the ruling coalition government, which is led by the Congress party, had appealed for calm and co-operation. Singh, 78, said he hoped the five-week session would be “constructive and productive”. However the opposition has smelled blood in recent months, with an already fragile government weakened by a series of corruption scandals, runaway inflation and the recent terrorist blasts in the commercial capital, Mumbai. “The government is on the back foot,” said Sushma Swaraj, a senior politician with the rightwing Bharatiya Janata party (BJP). Vinod Mehta, editor of the news magazine Outlook India, said the coming weeks would see “a lively parliamentary ding-dong”. “The opposition has a great deal of ammunition. Every day there is more trouble for the government. But it still has a comfortable majority and so will limp on,” Mehta said. Parliamentary work has ground to a virtual standstill this year amid acrimonious battles over graft and other issues. Many of the 32 laws to be debated in the coming term are deeply controversial, including allowing foreign investment in supermarkets, cutting subsidies and restructuring loss-making state-run utilities. One crucial measure tackles land rights, the source of often violent protests. Congress party strategists see other proposed laws – such as proposals to share mining royalties with local communities and to expand a scheme to give cheap food grains to the poor – as critical to their chances of consolidating traditional support among hundreds of millions of rural voters before national polls in 2014. Also the subject of bitter argument is a proposed anti-graft bill that would establish a new watchdog independent of the government. Campaigners cite polls apparently showing that the government’s version of the bill is seen by most voters as watered down. In recent days, a senior Indian economic advisory panel has warned of slowing growth and cut the annual growth forecast to 8.2% from 9%. India Jason Burke guardian.co.uk

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BBC journalists strike for second time over World Service job cuts

Newsnight and World at One off air as NUJ labels claims that ‘six out of seven staff’ were working as ‘absolutely ludicrous’ Newsnight and The World at One were among the programmes forced off air yesterday as journalists at the BBC walked out for the second time in three weeks – and management and unions argued about how well the action was supported. Radio 4′s Today programme ran but was an hour shorter than usual, while a string of unknowns led by a former ITV regional news presenter led the news bulletins. Gavin Grey, who used to work for ITV Meridian, fronted the 1pm bulletin, while the Six O’Clock bulletin was presented by Chris Rogers, a BBC News stand-in. Lucy Adams, the BBC’s director of business operations Lucy Adams said “six out of seven staff” were working with “all our services on air” and “limited changes to planned programming” with the BBC’s 24 hour news channel remaining on air. Michelle Stanistreet, the general secretary of the National Union of Journalists, said it was “absolutely ludicrous” to suggest such a high level of staffing, which she said was “completely untrue”. “The NUJ has several thousand members at the BBC and there have been only a handful of reports of people crossing the picket lines,” said Stanistreet, who suggested BBC management was living in “fantasy land”. The strike followed an earlier 24-hour walkout on 15 July in protest at compulsory redundancies at the BBC World Service and BBC Monitoring, where the corporation is looking to axe 387 posts because of cuts in government funding. Explaining his decision to come in, Radio 5 Live’s Nicky Campbell said he had consulted widely with colleagues but could not find anyone who supported the strike, and felt a responsibility to licence fee payers to come into work. “I supported the pension strike and I supported this strike last time round [on 15 July] but ultimately we have a responsibility to the people who pay us,” said Campbell. Picket lines were lightly staffed, with six people outside White City, the home of BBC Television, at lunchtime, and three at Broadcasting House, where the radio stations transmit from. However, the mood outside the World Service’s Bush House HQ – where the dispute is centred – was more defiant. A 20-strong picket line held a giant sheet with the words, “BBC kills World Service”. Martin Plaut, Africa editor at the World Service, said: “I’m furious to be on strike today. I’m really not happy at all. In all my time at the BBC – I joined in 1984 – I’ve never seen the BBC in this state.” The strike was due to end at midnight on Monday, and will immediately be followed by an “indefinite” work to rule by NUJ members. All broadcasting unions are due to meet BBC management on 11 August to discuss the corporation’s stance on redundancies in the light of further impending cuts as a result of director general Mark Thompson’s Delivering Quality First initiative, which is aimed to make cost savings of 20%, as the corporation contends with a flat licence fee settlement. BBC BBC World Service Radio industry Television industry Radio 4 Radio 5 Live Nicky Campbell BBC1 BBC2 Trade unions John Plunkett Josh Halliday guardian.co.uk

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Media Reality Check: During Debt Talks, Liberal Media Savaged Tea Party as Ignorant, Irrational Terrorists

For the past month, as the debt talks slogged on in Washington, the so-called mainstream media unleashed increasingly hysterical attacks on the Tea Party and anti-tax hike conservatives — epitomizing the liberal elite’s supreme annoyance at the push to curb federal spending and contain the size of government. The media’s disdainful language has ranged from the merely condescending (wondering whether the Tea Partiers in Congress actually knew how things worked, or referring to them as children), to outright hostile (likening the Tea Party to al Qaeda or other terrorist groups). Here are some of the choicer examples MRC has collected over the past 30 days: Just a Bunch of Ignorant Boobs

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NBC Hosts Fret Obama Had to ‘Give In’ to GOP With ‘Not Balanced’ Debt Deal

In an interview with White House advisor David Plouffe on Monday's NBC Today, co-host Matt Lauer worried about liberals being unhappy with the proposal deal on the debt ceiling: “So did the President compromise here, David, or did he give in simply so that he wouldn't be labeled as the president who was on duty as the nation defaulted on its financial obligations?” Plouffe defended the plan: “Now, listen, you're obviously seeing some criticism from my party, you're seeing some criticism from the Republican Party. But what this does is first of all we get significant deficit reduction…” Lauer continued to hit from the Left: “The President clearly wanted more revenues, he wanted to raise taxes on wealthiest Americans, he wanted to get rid of some tax cuts for corporations. Those are not in there. Is the fight over taxes over and did the President lose it?” Lauer lamenting the lack of tax hikes in the initial debt deal mimicked Meet the Press host David Gregory, who interviewed Plouffe on Sunday and declared: “But it's not going to be balanced. There's no tax increases in this….You – the President said it had to have tax increases, it must – had to be balanced….That's not what's in this deal.” Plouffe explained to Gregory: “Well, listen, this committee's going to be charged with coming up with additional deficit reduction. There's no way to do it without smart entitlement reform and tax reform.” Gregory replied: “So you only get to do potential tax increases as part of a second stage of spending cuts that a committee has to agree to?” Here is a full transcript of Lauer's August 1 interview with Plouffe: 7:05AM ET MATT LAUER: David Plouffe is senior White House adviser to President Obama. David, good to see you, good morning. DAVID PLOUFFE: Good morning, Matt. [ON-SCREEN HEADLINE: Compromise or Compromised? Debt Debate Reached With Key Decisions Delayed] LAUER: Hearing a lot of people this morning talking about a done deal, and yet it is really not a done deal until Congress votes on this. There are some unpredictable caucuses in the House, for example. What's your level of confidence? PLOUFFE: Well obviously, that's going to be up to each member of Congress, to decide how they're going to vote on this. I think the Congressional leaders in both parties ended up moving forward here based on both comfort with the substance of this, which was a compromise obviously, where both parties did not get everything they wanted, but also with some sense that it's going to be passed. But obviously, each member's going to have to evaluate this. But we think at the end of the day this is an agreement that will pass the Senate and the House, and the President will sign into law. LAUER: You're hearing a lot about compromise. I think everybody wants to be able to stand up and say, 'Hey, we got some of what we wanted and we compromised for the good of the nation.' But I want to play you something that Emanuel Cleaver, the Democratic Congressman from Missouri, had to say about the nuts and bolts of this. Listen to this. EMANUEL CLEAVER: If I were a Republican, I would be dancing in the streets. I don't have any idea what the Republicans wanted that they didn't get. LAUER: So did the President compromise here, David, or did he give in simply so that he wouldn't be labeled as the president who was on duty as the nation defaulted on its financial obligations? PLOUFFE: Now, listen, you're obviously seeing some criticism from my party, you're seeing some criticism from the Republican Party. But what this does is first of all we get significant deficit reduction, about $1 trillion on the front end. As the President said last night, those spending cuts are phased in carefully over time to not affect the economy too adversely. Secondly, we have an opportunity this fall, Congress does, to do a next stage of deficit reduction. And in that stage, things like entitlement reform, tax reform are going to be looked at. And as has been reported, there's a enforcement mechanism, so that if Congress doesn't act, there's additional spending reductions, but those are done carefully. 50% of those savings would come from defense and programs like Medicaid, college loans, children's health care would be protected. LAUER: One of the things you left off that laundry list though is taxes. And the President clearly wanted more revenues, he wanted to raise taxes on wealthiest Americans, he wanted to get rid of some tax cuts for corporations. Those are not in there. Is the fight over taxes over and did the President lose it? PLOUFFE: Absolutely not. This congressional committee is going to look at tax reform, entitlement form. So this first stage of deficit reduction is deficit cuts, largely identified through a process the President and the Vice President led. And our point was things like Social Security, cuts to Medicare beneficiaries, Medicaid, we did not think those should be part of the deficit

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Cape Cod

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Pelosi ‘Clearly’ Backs 14th Amendment Option In Debt Standoff, Congressman Reports

WASHINGTON — House Minority Leader Nancy Pelosi (D-Calif.) may not be pushing the issue publicly, but in private she “clearly” supports President Barack Obama using the Constitution to raise the debt ceiling as a last resort, according to one Democratic member of Congress. “Nancy clearly wants it,” said the lawmaker, who requested anonymity. “Publicly? No. Privately? She thinks the president should do it. Period.” Several top Democrats have endorsed the idea in recent days as an eleventh hour solution: House Minority Whip Steny Hoyer (D-Md.) backed the option on Wednesday, and House Democratic Caucus chairman John Larson (D-Conn.) and Assistant Minority Leader James Clyburn (D-S.C.) emerged from a Monday Caucus meeting announcing their support for the idea as well. But Pelosi, the highest-ranking House Democrat, has been mum. One possible reason is that she has to preserve the image that Congress will reach a deal before the situation even gets to that point. The provision at the heart of the constitutional debate, Section 4 of the 14th Amendment, states: “The validity of the public debt of the United States, authorized by law, including debts incurred for payments of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.” Essentially, Democrats are arguing that since the “public debt” cannot be questioned, then the debt ceiling itself is unconstitutional. A Pelosi aide said he hasn’t heard the Minority Leader endorse the constitutional option to any lawmakers. “But who knows,” said the aide. “Our official line is her energy is focused on getting a balanced deal.” That “deal,” of course, remains nonexistent. Pelosi and Senate Majority Leader Harry Reid (D-Nev.) met with Obama for nearly two hours on Saturday afternoon, shortly after the House voted down Reid’s debt ceiling proposal. Reid took to the Senate floor afterward to knock Republicans for refusing to negotiate and said “the process has not been moved forward during this day.” The crumbling state of discussions over how to raise the debt ceiling by August 2, when the government is expected to run out of money to pay its bills, is causing a growing number of Democrats to nervously turn their attention to the constitutional option as a possible way of averting default. Meanwhile, the White House insists the option remains off the table, citing concerns with Obama’s legal authority to unilaterally raise the debt ceiling without congressional approval. The issue “came up” during a Democratic Caucus meeting on Saturday, Del. Donna Christensen (D-Virgin Islands) told The Huffington Post, but was not considered a viable option “for today.” “It’s one I don’t like, and I know the president has said he doesn’t like,” said Rep. Gerry Connolly (D-Va.). “But if that’s what it takes to prevent the country from catastrophic default, I think at the very last minute, I think that’s something the president’s going to have to consider.” When asked if he is optimistic that Congress can reach a deal by August 2, Connolly replied with a resounding “no.” “I think we’re coming down the wire and the other side is essentially enthralled to a very narrow orthodoxy that doesn’t allow them, ultimately, to recognize their obligations to the United States,” he said. “I’m very concerned about that.” Rep. Jerrold Nadler (D-N.Y.), the former chairman of the Judiciary Subcommittee on the Constitution, Civil Rights and Civil Liberties, charged forward on Saturday, filing a resolution with a group of progressive Democrats calling on Obama to take the constitutional route as a last resort. “I think it’s essential” that Obama be prepared to invoke the 14th Amendment, Nadler told The Huffington Post. “I’m dubious that anybody can come to any agreement that can pass both houses.” Asked if such action would only give ammunition to critics ready to call for Obama’s impeachment — this time for potentially violating the Constitution — Nadler replied, “Let them try. Let them try.” The New York Democrat wondered aloud how much of the president’s insistence that the option is off the table is for show, given that he needs to convey that the situation won’t come to that point. “It’s something he should say,” Nadler said of Obama’s rejection of the 14th Amendment option. “But the fact is, legally, I think it’s doable.” The increasing anxiety about an endgame was evident during Saturday’s House debate. In the minutes before the House rejected Reid’s debt proposal, some Democrats used their floor time to urge Obama to step in. “The president needs to pull the 14th Amendment,” Rep. Eliot Engel (D-N.Y.) said. “I think he should, because the Republicans have shown no sign of compromise.”

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Pelosi ‘Clearly’ Backs 14th Amendment Option In Debt Standoff, Congressman Reports

WASHINGTON — House Minority Leader Nancy Pelosi (D-Calif.) may not be pushing the issue publicly, but in private she “clearly” supports President Barack Obama using the Constitution to raise the debt ceiling as a last resort, according to one Democratic member of Congress. “Nancy clearly wants it,” said the lawmaker, who requested anonymity. “Publicly? No. Privately? She thinks the president should do it. Period.” Several top Democrats have endorsed the idea in recent days as an eleventh hour solution: House Minority Whip Steny Hoyer (D-Md.) backed the option on Wednesday, and House Democratic Caucus chairman John Larson (D-Conn.) and Assistant Minority Leader James Clyburn (D-S.C.) emerged from a Monday Caucus meeting announcing their support for the idea as well. But Pelosi, the highest-ranking House Democrat, has been mum. One possible reason is that she has to preserve the image that Congress will reach a deal before the situation even gets to that point. The provision at the heart of the constitutional debate, Section 4 of the 14th Amendment, states: “The validity of the public debt of the United States, authorized by law, including debts incurred for payments of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.” Essentially, Democrats are arguing that since the “public debt” cannot be questioned, then the debt ceiling itself is unconstitutional. A Pelosi aide said he hasn’t heard the Minority Leader endorse the constitutional option to any lawmakers. “But who knows,” said the aide. “Our official line is her energy is focused on getting a balanced deal.” That “deal,” of course, remains nonexistent. Pelosi and Senate Majority Leader Harry Reid (D-Nev.) met with Obama for nearly two hours on Saturday afternoon, shortly after the House voted down Reid’s debt ceiling proposal. Reid took to the Senate floor afterward to knock Republicans for refusing to negotiate and said “the process has not been moved forward during this day.” The crumbling state of discussions over how to raise the debt ceiling by August 2, when the government is expected to run out of money to pay its bills, is causing a growing number of Democrats to nervously turn their attention to the constitutional option as a possible way of averting default. Meanwhile, the White House insists the option remains off the table, citing concerns with Obama’s legal authority to unilaterally raise the debt ceiling without congressional approval. The issue “came up” during a Democratic Caucus meeting on Saturday, Del. Donna Christensen (D-Virgin Islands) told The Huffington Post, but was not considered a viable option “for today.” “It’s one I don’t like, and I know the president has said he doesn’t like,” said Rep. Gerry Connolly (D-Va.). “But if that’s what it takes to prevent the country from catastrophic default, I think at the very last minute, I think that’s something the president’s going to have to consider.” When asked if he is optimistic that Congress can reach a deal by August 2, Connolly replied with a resounding “no.” “I think we’re coming down the wire and the other side is essentially enthralled to a very narrow orthodoxy that doesn’t allow them, ultimately, to recognize their obligations to the United States,” he said. “I’m very concerned about that.” Rep. Jerrold Nadler (D-N.Y.), the former chairman of the Judiciary Subcommittee on the Constitution, Civil Rights and Civil Liberties, charged forward on Saturday, filing a resolution with a group of progressive Democrats calling on Obama to take the constitutional route as a last resort. “I think it’s essential” that Obama be prepared to invoke the 14th Amendment, Nadler told The Huffington Post. “I’m dubious that anybody can come to any agreement that can pass both houses.” Asked if such action would only give ammunition to critics ready to call for Obama’s impeachment — this time for potentially violating the Constitution — Nadler replied, “Let them try. Let them try.” The New York Democrat wondered aloud how much of the president’s insistence that the option is off the table is for show, given that he needs to convey that the situation won’t come to that point. “It’s something he should say,” Nadler said of Obama’s rejection of the 14th Amendment option. “But the fact is, legally, I think it’s doable.” The increasing anxiety about an endgame was evident during Saturday’s House debate. In the minutes before the House rejected Reid’s debt proposal, some Democrats used their floor time to urge Obama to step in. “The president needs to pull the 14th Amendment,” Rep. Eliot Engel (D-N.Y.) said. “I think he should, because the Republicans have shown no sign of compromise.”

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