Daily Political Wire

George Wenschhof

Obama Scheduled for 10:20 AM Press Conference - update on debt ceiling talks expected along with agreement with auto industry on emissions and mileage requirements.

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House Speaker John Boehner to Address Republican Caucus This Morning - after failing to get the required votes from Republicans to pass his budget bill. The House Rules Committee voted 8-4 to allow Boehner to make changes with out their review and to present to full House for vote. The procedural issue was a problem as the clock continues to click down on a default. You can read more here.

A vote is expected today and unless significant changes have been made, including the lifting of the debt ceiling through 2012, the Democratic controlled Senate will not pass the bill. Prolonging the exercise of getting to a compromise bill which will pass both chambers.

Boehner's choice to back out of the grand deal he had with President Obama has been devastating to him personally, as it has highlighted his inability to lead his own Republican caucus.

However, before Democrats cheer his demise, it is unlikely there is a better choice among Republicans to be House Speaker. His replacement could easily come from the "tea party" wing which would only make governing more difficult in Washington.

First in line to replace Boehner, would be House Majority Leader Eric Cantor (R-Va.).

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Compromise Underway By Democrats on Budget - first reported several days ago, a hybrid of Senate Minority Leader Mitch McConnell (R-Ky.), the House Speaker John Boehner (R-Oh.) and Senate Majority Leader Harry Reid (D-Nev.) is being worked on by some Democrats.

The two step process of raising the debt ceiling would remain. However, as written in the McConnell plan, President Obama would be able to lift the debt ceiling, with a two-thirds vote in the House and the Senate needed to oppose. The lifting of the debt ceiling and corresponding cuts would also be determined by agreed upon "triggers". Stay tuned... Politico.com has more here.

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Hoyer Endorses 14th Amendment - House Minority Whip Steny Hoyer (D-Md.) said yesterday if all else fails, President Obama should invoke the 14th Amendment to prevent a default.

President Obama has said after consulting with White House legal staff, he does not believe this is a viable action for him to take. TheHill.com has more here.

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U.S. Economic Growth Weak - the Commerce Department reported orders for durable goods fell 2.1% in June, when forecasters had predicted a 0.3% gain. The gross domestic product only grew at a 1.8% annual rate. Coupled with lower than expected job growth, the reports will highlight a weak economy. The Washington Post has more here.

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Libyan Rebel Leader Killed - the circumstances as to how military leader Abdel FattahYounes died are unknown at the moment. Some suspect assassination from within the rebel ranks. Regardless, the loss of the rebel military leader, who was once part of Gaddafi's inner circle, is a big blow to the Rebels. Reuters.com has more here.

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