–Senate Rejected Same Motion Last Week; Debt Hike To Go Forward
–House Republicans Pass Disapproval Motion, 232 to 186
–House Minority Whip Hoyer: House Vote ‘Already A Dead Letter’
–Rep. Camp: House Vote Shows GOP Committment To Cutting Spending, Debt

By John Shaw

WASHINGTON (MNI) – In a symbolic move, the House voted Wednesday to
support a Republican-drafted resolution that disapproves of President
Obama accessing the second $500 billion installment of borrowing
authority for the debt ceiling.

The House vote of disapproval was 232 to 186, with two House
members voting present.

The Senate voted on the same disapproval motion last Thursday and
it was rejected, so the House vote has no effect in preventing the debt
ceiling increase.

House Minority Leader Steny Hoyer said the House vote was “already
a dead letter” before it occurred, because the Senate rejected the same
motion last week.

“This is just a statement: I don’t like debt,” Hoyer said.

House Ways and Means Committee Chairman Dave Camp said the House
vote is a “clear signal that the House is serious about reducing
government spending, paying down debt and creating a better climate for
economic growth and job creation.”

Under the provisions of this summer’s debt ceiling agreement, the
$14.3 trillion debt ceiling was increased by $400 billion as soon as
Obama requested it in early August.

A second tranche of $500 billion in borrowing authority will be
made available unless Congress blocks it through a resolution of
disapproval.

If the resolution of disapproval had been approved by both the
House and Senate, Obama would certainly have vetoed the bill. Overriding
Obama’s veto of the bill would then require two-thirds majorities in the
House and Senate, a development that is currently inconceivable.

The disapproval procedure was developed during the debt limit talks
as a way to allow congressional Republicans to continue to vote against
the debt ceiling without actually blocking its increase.

After this $500 billion debt ceiling increase goes forward, the
president will be able to request an additional $1.5 trillion increase
when it is required.

The size of the increase approved will be determined by amount of
deficit reduction that is achieved through the deficit reduction process
involving the so-called Super Committee. This panel is trying to
assemble a $1.5 trillion deficit reduction plan by late November.

If the Super Committee recommends and the president signs into law
at least $1.5 trillion in deficit reduction, then the debt ceiling will
be increased by this same amount.

However if a deficit reduction package of $1.2 trillion or less is
approved by Congress, the second debt ceiling increase will be $1.2
trillion and across-the-board spending cuts will be triggered with some
programs exempted.

** Market News International Washington Bureau: (202) 371-2121 **

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