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Tuesday, July 05, 2011

Obama Blinks, GOP Pounces

Why aren't the Democrats rebelling?

The debt ceiling negotiations have amounted to a succession of retreats and concessions by President Obama.

At this point, the president confronts two possible outcomes in the coming weeks:

Outcome 1: The president and congressional Republicans reach agreement on a budget package weighted overwhelmingly in favor of the GOP. The president opened negotiations by offering $3 of spending cuts for every $1 of tax increases. His current offer tilts even further to the GOP: $6 of spending cuts to $1 of tax increases.

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