Presidential News Conference - July 15, 2011

President Obama held another news conference today, Friday, July 14, 2011, to address the nation's debt ceiling. During the conference, he reiterated - again - the need to raise the debt ceiling and stressed the importance to use this same opportunity to reduce America's debt and to lower our deficit as well.

At the start of this news conference, the President said he wanted to let everyone know where the debt ceiling negotiations stand since there will be no meeting regarding the issue on this date. This news conference came following the fifth debt ceiling meeting the President held at the White House during the past week.

The President said, "We should not even be this close to a deadline on this issue." However, he also noted that all congressional leaders have reiterated desires to prevent the United States from defaulting on
its obligations as well as to preserving the U.S's. faith and credit standing. He reiterated the fact the debt ceiling problems of this sort are not abstract issues - meaning that dealing with debt ceiling issues is a normal process in governing; and that the U.S. has dealt with these types of obligations numerous times in the past.

[The problem right now is that despite the Congress running up America's bills, Republican leaders are attempting to use the debt ceiling issue as a tool for providing more tax cuts to the wealthy while at the same time, taking away entitlements, such as Social Security and Medicare, from the poor and the middle class. At the same time, the President is trying to get the Republicans to commit to adding revenues to the process in order to reduce the country's debt and deficit problems.

As the negotiations surrounding the debt ceiling, debt, deficit, and revenues continue, the deadline to raise the debt ceiling, which is August 2, 2011, creeps closer and closer in time. The debt ceiling must be raised in order for America to pay "all" of its bills. The Congress enjoyed running up its credit cards but now the bill must be paid - which means the debt ceiling must be raised.]

During the conference the President pointed out that if we do not pay our bills we could wind up with adverse consequences such as tax increases on everyone via rises in interest rates throughout the country. This type of increase could occur when Americans use their credit cards, receive student loans or vehicle loans, and that even business making payroll could be impacted via a U.S. default.

The President said that as we raise the debt ceiling we solve the underlying debt and deficit problems; and thus, he pointed out once again that U.S. leaders have a unique opportunity to stabilize the country's finances in a big way.

The American people expect our leaders to solve financial problems that go beyond raising the debt ceiling noted the President. Our leaders, he continued, have a unique opportunity to stabilize our finances for the next ten to fifteen or even twenty years using "shared sacrifice" and a "balanced approach" that lean toward decreasing domestic spending.

The President added that he is willing to take down domestic spending to the "lowest percentage of our overall economy since (the late President) Dwight Eisenhower". The President also added that defense spending should be included in the domestic spending cuts and that in addition to the $400 billion he has already cut, he is willing to look for hundreds of billions more to add to those reductions.

The President also said, once again, that a balanced approach would also require reassessing Medicare in ways that stabilizes the program to assure its availability for this generation as well as future generations.

The issue of revenues came up in the President's opening statement as well. As far as tackling revenues, the President once again noted that people like himself, including corporations,
millionaires, and billionaires, who could afford to do a little bit more for the economy should do so. Among other unfair advantages enjoyed by the rich and super well off, the President wants to include, in a balanced budget, dialogue that would close corporate loopholes so oil companies and corporate jet owners would not receive unnecessary tax breaks.

The President noted that doing a big package is difficult and that the Republicans have repeated on numerous occasions that they are unwilling to do revenues. Just the same, however, the President said he hopes Republicans are listening to the American people rather than simply going along with what their lobbyists and special interest in Washington say. Poll after poll have clearly shown that all Americans - both Democrats and Republicans - want leaders to utilize a balanced approach to solve budget problems. In furtherance, the President pointed out, a clear majority of Republican voters participating in these polls say
they think revenues should be included in any deficit reduction package and that the deal should be reached utilizing a balanced approach.

The President also added that several Republican officials from previous presidential administrations as well as a bipartisan commission agree that revenues should be included in a deficit reduction package; and that, we should not be asking the most vulnerable people in our society to make sacrifices without asking the most fortunate to do the same.

The President is still pushing for a big deal; however, would like to at least accomplish a "down payment" on solving America's financial problems. Taking a down payment route would be a second option from the main accomplishments the President wants to obtain. The President said by remaining ambitious, if unable to do the biggest deal possible, our leaders could still send a signal that they are serious about the country's finances. They could do this without huge changes in revenues or significant changes in entitlements.

As a third option, the President calls a "fallback position", he said our leaders could raise the debt ceiling without doing anything about the deficit or America's debts. Using this option is not the President's preference; however, because it only means that the country will be right back in this same position and need to tackle this same problem a short time from now. That the problem with debt and our deficits will continue to plague the U.S. for months and years to come.

Prior to opening the conference for questions, the President said that he told members of Congress that they need to submit to him a plan that unveils an idea of what they think is necessary to raise the debt ceiling; and that he also expects for them to show him their plan regarding debt and deficit issues. The President told the Congress that he expects to receive this information within the next 24 to 36 hours. He added that if the Republicans present him with a "serious" plan that he is ready to move.