If you watched Barack Obama today during his press conference about raising the debt ceiling, you might think that he is taunting Republicans, daring them to do nothing and let the debt limit expire past the August 2 deadline. After the failed talks led by Joe Biden, who held about 10 meetings with members of Congress, five between March and May and the rest this month, Obama was forced to act himself. He met with Harry Reid and Mitch McConnell separately on Monday, with no results. So, today, Obama rallied against the GOP in between defending his policy in Libya and forgetting how old his daughters are.

obama debt talks stalled

I suppose such gaffes as giving the wrong age of your children can be explained away that he has other things on his mind. Such as two more fund raisers, bring the total to 35 since declaring his reelection campaign, or maybe whether he can get in more golf this weekend, extending his streak to 14 consecutive weekends of hitting the links. Oh, but he does want the Senators to stay in Washington during the July 4th break and deal with the debt ceiling. Actually, Republican lawmakers have already suggested that they are prepared to do just that, so long as they get a chance to actually work on the debt limit. But so far, since this all started back in March, negotiations have been restricted by the White House, leading me to think that maybe Obama wants the federal government to default?

After all, Obama was denied the glory of a government shutdown earlier this year when the GOP finally passed a spending bill for the remainder of the 2011 fiscal year budget. The Democrats, led by Nancy Pelosi and Harry Reid failed to pass a budget for 2011, despite having majorities in both the House and Senate and Obama in the White House to sign the bill. They did not want to have their fingerprints on another round of budget deficits amounting to around $1.5 Trillion dollars in the 2010 election year. They sure fooled the voters, didn’t they?

Obviously, the Democrats did not. Nancy Pelosi lost her job as Speaker of the House when an 80-plus seat swing handed control to John Boehner and the Republicans. Harry Reid lost six Democrat senate seats. While he is still the Majority Leader, the prospects are not good as 23 Democrat senate seats are up for grabs in 2012, compared to only 10 Republican seats. Given the state of the nation′s economy and unemployment rate, the Democrats will most likely lose the Senate, maybe some more House seats, and probably the White House, too!

Barack Obama spent much of today′s press conference advocating taxing the rich by way of ending subsidies to oil companies, which amount to about $2 Billion dollars a year, and credits for corporate jets, about $300 Million a year. The Republicans want to slash $1 Trillion dollars in spending, and vow to only raise the debt ceiling no more than an equal amount of that of spending cuts. Obama is spending about $4 Billion dollars a day more than federal revenues can cover. Around 43 cents of every dollar must be borrowed, which is why the debt limit of $14.29 Trillion dollars was reached, and passed weeks ago. Currently, the on-budget national debt stands at $14.445 Trillion.

The problem with the federal budget cannot be solved by taxes. If you confiscated all the annual incomes of those worth a billion dollars or more, the top 1% of earners, you would only get at best about $800 Billion in revenue. Since the Democrats took over the House and Senate after the 2006 mid-term elections, they have raised the debt ceiling six times between February 2007 through February 2010 for a total of $5.329 Trillion dollars. The last increase was the largest single ever of $1.9 Trillion. During the first 6 years of George W. Bush, from June 2002 through March 2006, the Republicans raised the debt limit $3.015 Trillion dollars.

So there is plenty of blame to go around in both parties, which is why most polls of late show a majority of Americans are against any further increases of the debt ceiling by margins of 43% to 38%. The problem is one of spending, not revenue. Republicans should either accommodate Obama and let the next debt limit deadline expire, or submit a bill that gives Obama is meager subsidy cuts along with the $1 Trillion dollars in spending cuts, including eliminating money for his unconstitutional healthcare act and other outrages. I would also include in that bill cutting any funds left over from Obama′s stimulus bill from 2009 and force Geithner to return the $700 Billion in TARP money that has been paid back. Then we′ll see what happens next.