–House Speaker Boehner Ready To Add Balanced Budget Amendment
–Modified Boehner Bill Would Ease House Passage, Ensure Senate Defeat
–Senate Majority Leader Prepares To Move His Bill Later Friday

By John Shaw

WASHINGTON (MNI) – House Speaker John Boehner appears to be ready
Friday to modify his debt ceiling bill to broaden its support among
House Republicans, but the change he envisions would further ensure its
speedy rejection by the Senate.

Boehner is now meeting with House Republicans and Senate Majority
Leader Harry Reid is conferring with Democrats in the Senate.

Boehner’s decision to first delay and then cancel the House vote
Thursday was a clear indication that he did not have enough Republican
votes to pass his plan.

As of Friday morning, Boehner appeared to have two options: to
revise his bill yet again or to redouble efforts to secure the needed
216 votes to pass it.

There are 240 Republicans in the House and Boehner can only afford
to lose 23 votes. All Democrats are expected to vote against the bill.

A number of conservative Republicans don’t believe the Boehner
bill is sufficiently tough on cutting spending.

Boehner now appears poised to include a requirement that a balanced
budget amendment be considered and approved by the House and Senate and
ratified by the states.

Adding this provision may help Boehner pass the debt hike bill in
the House but further imperil its fate in the Senate.

Reid said Friday that he is ready to move his debt ceiling bill
later today, scheduling a key procedural vote in the Senate some time
Friday.

Reid said the debt limit impasse is being caused by a block of
radical Republicans in the House who are unwilling to compromise and
untroubled by the prospect of a default on America’s debt.

Reid’s plan would cut spending by $2.4 trillion over ten years and
allow for passage of a $2.4 trillion debt ceiling increase.

Boehner’s plan would raise the debt ceiling by $900 billion this
year and $1.6 trillion next year. The initial $900 billion debt ceiling
increase would require Congress to pass $1.2 trillion in spending cuts
through imposing caps on discretionary spending.

Approval of the second tranche of $1.6 trillion would require
passage of $1.8 trillion in spending cuts in entitlement programs.

The U.S. has already reached its $14.29 trillion debt ceiling.
Treasury Secretary Tim Geithner has said that Congress must pass
legislation increasing the debt ceiling by August 2.

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

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