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Negotiators seemed to be shifting more towards an offer by Senate Minority Leader Mitch McConnell to leave matters in the hands of the White House, at least for shorter-term debt hikes, with Congress exercising limited veto authority.
"I think there'll be a be a more sizable disruption [than some debt opponents predict]," said Tony Fratto, a former George W. Bush Administration official who worked on six debt hikes.
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"He's also been clear that a 'clean' debt hike cannot pass the House.
"The speaker has made clear many times that Republicans will insist on spending cuts and reforms that exceed any upcoming debt hike," he said.
The narrower package negotiated by Mr. Biden in a series of meetings with House and Senate Democrats was still considered large enough to allow for a debt hike through most of 2012.
"CBO's analysis confirms that the spending cuts are greater than the debt hike – affirming that the House G.O.P. bill meets the critical test House Republicans have said they will insist upon for any bill to raise the nation's debt ceiling," said Kevin Smith, communications director for Mr. Boehner.
Under it, rather than have a separate vote to authorize the debt hike, the ceiling is deemed to be raised when the House passes the budget resolution.
In terms of the mechanics of the three-stage debt hike, it looks like another major compromise by the Democrats, and adopts a plan first proposed by McConnell.
Thanks to Congress heeding that call today, millions of American students will avoid a $1,000 debt hike while millions of construction workers will be able to stay on the job," the statement reads.
Student anger over the proposals is fed by concerns that handing over our student debt to private companies will lead to an increase in the financial burdens placed on students and graduates, as the new owners of the debts hike up interest rates in a bid to make more profit.
The biggest bears of the financial markets are concerned about different things: inflation, deflation, government debt, tax hikes, insufficient government stimulus, government intervention or lack of regulation.
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