Fallback Moving to Fore as Talks on Budget Stall

Source: The New York Times

WASHINGTON — With talks on a big budget deal at a stalemate, Congressional leaders turned Friday to negotiating a fallback plan for raising the debt limit as President Obama and House Republicans intensified their efforts to win over public opinion for the long battle ahead.

Given the impasse, House Republicans scheduled a vote for Tuesday on a measure that would cut deeply into the federal budget, cap government spending for the years ahead and approve a constitutional amendment requiring a balanced budget. The Democratic-controlled Senate may vote Wednesday on a balanced budget amendment.

While neither measure will become law, given Democrats’ opposition, Republicans are eager to show their conservative base that they are not retreating, and that they will press their case for vastly shrinking the government through the 2012 elections.

Mr. Obama signaled that he would support the fallback plan, proposed by Senator Mitch McConnell of Kentucky, the Republican minority leader, which would allow for the debt limit to be raised and defer the bigger budget fight.

Read more: http://www.nytimes.com/2011/07/16/us/politics/16fiscal.html?hp

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Great back-up plan. Not.