Daily Political Wire

George Wenschhof

Can Congress Allow Default? - an interesting question which is being examined closely as the August 2 deadline looms on the nation's debt limit. Some constitutional scholars are saying Congress can not allow a default to take place as the 14th amendment forbids Congress from defaulting. TPM.com has more here.

This argument, if true, makes the current debate over budget cuts, moot. However, Democrats have yet to latch onto this argument. However, Senator Chuck Schumer (D-NY) did bring it up recently in a conference call with reporters. Stay Tuned...

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Clinton Tells Obama To Stand Firm on Budget - when talking about President Obama's call to increase the federal debt ceiling by August 2, Clinton said "This is the political equivalent of the government shutdown when I was president," Clinton said. "The White House could blink. I hope not."

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Trade Agreements Stalled in Congress - in what is now a very familiar refrain pertaining to any legislation. After, what seemed to be agreement, the White House sent long negotiated trade deals with Korea, Panama and Colombia to Capitol Hill. Only, to be rebuffed by Republican lawmakers who were upset over the inclusion of Trade Adjustment Assistance (TAA) for workers displaced as a result of the trade agreements. TheHill.com has more here.

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Thaddeus McCotter Announces Run for President - Who is he? is the question most are asking. The Republican Michigan Representative is a long shot in the campaign to receive the Republican Party nomination. From the suburbs of Detroit, he backed the auto bail-out, but is in favor of government restructuring. Reuters.com has more here.

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Small Plane Intercepted Near Camp David - in an apparent mistake, a small plane ventured into the air space near Camp David, where the president and family are staying, and was intercepted by NORAD. The plane was escorted to an air field in Hagerstown, Maryland, where it was forced to land. The Washington Post has more here.

For those of us who live in nearby Frederick, Maryland, the sound of jet planes and the subsequent whirling noise generated by the helicopters carrying the president and guests, is a familiar one.

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Republican Weekly Address

George Wenschhof

Senator Dan Coats (R-Ind.) delivers the Republican weekly address. He continues with the less government and less spending GOP theme, using his state of Indiana as an example. Coats also called for passage of a balanced budget amendment to the constitution.

What is omitted in the Republican rhetoric is the federal deficit more than doubled under the Republican George W. Bush administration and it was the Republican laissez faire approach to business, and in particular the financial markets, which contributed to the current economic morass enveloping the country today.



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Obama Weekly Address

George Wenschhof

President Obama stays on the need to end tax breaks for millionaires. He correctly pointed out if tax cuts for millionaires, corporate jet owners, oil and gas companies are kept, than deeper cuts will need to be made elsewhere.

"That isn’t right, and it isn’t smart," he said. "We’ve got to cut the deficit, but we can do that while making investments in education, research, and technology that actually create jobs."



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Daily Political Wire

George Wenschhof

Obama To Hold Twitter-Town Hall - first ever by an American President. It will be held on July 6 and moderated by Twitter co-founder Jack Dorsey. It will be streamed live from the White House beginning at 2:00 PM ET. You can ask your questions and follow here.

This weekend the president and family will return to Camp David for a little R&R.

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Minnesota State Government Shutdown a Harbinger for Federal Government? - talks between DFL Governor Mark Dayton and Republican leaders broke down last night as last minute efforts to avoid a shutdown failed. 22,000 unessential government workers will be without work as a result with state parks and rest areas closed for the July 4th weekend. The Minnesota StarTribune has more here.

Sounding eerily familiar to the ongoing budget argument in D.C., the Governor proposed increasing taxes to the wealthiest (those earning more than one million) and Republicans refused.

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Two-Step Solution to Budget Deal? - as I reported earlier, the solution to the budget cut and debt ceiling increase by Congress may be to agree on a two step solution. The first part of the agreement would be to fund government for seven months with a one trillion reduction and raise in the nation's debt ceiling.

This would require Congress to reach agreement on a longer term solution in the middle of the presidential campaign next year. This idea is attracting some support. Reuters.com has more here.

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Will White House Economic Team Shuffle Continue? - the latest reports indicate Treasury Secretary Timothy Geithner will be the next to step down. The rumors say it would come after congress agrees on a debt ceiling increase. Geithner's departure would make him the latest in a string of economic advisers to leave the Obama administration. Austan Goolsbee leaves in August, joining Lawrence Summers, Christine Romer and Peter Orzag who have already departed top economic posts in the White House. Bloomberg.com has more here.

If true, this gives Republican presidential candidates a major area in which to criticize Obama as the economy remains fragile.

Geithner, in an interview with former president bill Clinton last night said "I will be at the Treasury Department for the foreseeable future".

If a replacement becomes necessary, an important requirement will be to select one who communicates well with media. All of the former economic advisers were stiff and appeared poorly on "Talking Heads" shows as a result.

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Dominique Strauss-Kahn Case Falling Apart - it appears the sexual assault case against the former IMF Director is breaking down as prosecutors have raised questions pertaining to the credibility of the Hotel chambermaid. The Washington Post has more here.

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Justice Department Opens Case on Two Jail Deaths - Attorney General Eric Holder announced he is opening investigations into two deaths of terrorists held in C.I.A. prisons overseas as well as the treatment of over 100 detainees. The NY Times has more here.

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