The United States avoided a doomsday scenario for the economy this week, when both chambers of Congress approved a deal to prevent a default on the country’s debts in exchange for future spending cuts. Iowa’s entire Congressional delegation supported the legislation, marking the first time in decades that every member of the U.S. House and Senate from this state had voted to raise or suspend the debt ceiling.

The vote was also noteworthy for Senators Chuck Grassley and Joni Ernst, who were part of the 63-36 majority that sent the bill to President Joe Biden. Bleeding Heartland’s review of 45 years of Congressional records showed Grassley had backed a debt ceiling bill under a Democratic president only once, and Ernst had never done so.

Bruce Lear lives in Sioux City and has been connected to Iowa’s public schools for 38 years. He taught for eleven years and represented educators as an Iowa State Education Association regional director for 27 years until retiring.

Where I grew up there were multiple sources of news. To hear the news, men gathered at the post office and Standard station, while women preferred the Clover Farm Store or Rebekah Lodge. 

It wasn’t broadcast news. It was secret, local news that an impolite observer might call gossip.

There was typical gossip including who bought a new combine, whose car was parked too long at the lower tavern, and who had the worst dye job in town. 

But there were special categories delivered only in whispers. Things like a cancer diagnosis, a church lady with a fresh shiner, or a recent bankruptcy. These whispers were met with silence, and the few Catholics crossing themselves.

Al Charlson is a North Central Iowa farm kid, lifelong Iowan, and retired bank trust officer.

Financial panics are not rational. The federal debt ceiling is an arbitrary artificial limit. The U.S. economy would not fundamentally change on the day the Treasury could not send Social Security checks or military payroll because it was barred from borrowing to pay the bills Congress has already approved. But world financial markets would freak out.

The international financial market system is an extremely complex and intricate web of interrelated understandings, agreements, contracts, checks and balances, guarantees, regulations and laws. The system is normally resilient and redundant enough to handle losses which regularly can and do occur. For many decades, the U.S. dollar has been the linchpin of the system, and U.S. Treasury notes and bonds have been considered the basic risk-free asset class. Essentially, the full faith and credit of the U.S. Government has been and remains the cornerstone of the worldwide financial system.

All four Iowans in the U.S. House voted on April 26 for a plan to raise the debt ceiling by $1.5 trillion for the coming year, in exchange for “aggressive caps on federal spending” over the next decade.

The House approved the Limit, Save, Grow Act of 2023 by 217 votes to 215, meaning House Speaker Kevin McCarthy had no votes to spare.

The speaker secured passage of his bill by making concessions on biofuels subsidies on the eve of the vote. McCarthy had previously indicated he was not open to altering the bill, but a group of Republicans from the Midwest—including Iowa’s Representatives Mariannette Miller-Meeks (IA-01), Ashley Hinson (IA-02), Zach Nunn (IA-03), and Randy Feenstra (IA-04)—insisted on changes.

Kay Pence is vice president of the Iowa Alliance for Retired Americans.

Refusing to raise the debt ceiling is like running up your credit card and punishing yourself by refusing to pay the bill.  It ruins your credit score and costs more in the long run. Raising the debt ceiling does not authorize new spending, it authorizes borrowing to pay bills already incurred. Paying bills are obligations not negotiations.

MAGA Republicans want to use the debt ceiling fight to force cuts in future unnamed programs. What they want to cut isn’t exactly secret; we have seen and rejected, most of their proposals before.

Kay Pence highlights Senator Grassley’s double standards on the federal deficit, depending on which party controls the presidency.

I was 4 years old when Senator Grassley first entered elected office. I grew up, got married, raised a family, went to college, had a career and now I’m retired. Who knows, I may have even voted for Senator Grassley at one time. A lot has changed in the last 62 years though: namely, Chuck Grassley. 

Normally I would support a healthy senior continuing to work as long as they want. However, I’ve always believed we send Representatives to Congress to represent our interests. The Alliance for Retired Americans has been tracking Representatives’ voting records since it was formed in 2001 and Senator Grassley has only voted correctly on senior issues 11 percent of the time.

The deal to keep the federal government open until March 23 revealed unusual fissures among Republicans who represent Iowa in Congress.

The U.S. House easily approved legislation on Friday to keep the Federal Emergency Management Agency from running out of Hurricane Harvey disaster relief money over the weekend. The same bill included a short-term debt ceiling hike and language to fund the federal government through December 8.

I was surprised to see all four of Iowa’s House members in the yes column (roll call). Both of our senators had voted against the Harvey aid package in the upper chamber. I expected Representative Steve King (IA-04) and possibly Representative Rod Blum (IA-01) to follow suit.

With only a few days left before the Federal Emergency Management Agency runs out of disaster relief funds, the U.S. Senate approved $15.25 billion in funding for those affected by Hurricane Harvey today. Eighty senators voted for the legislation, even though GOP lawmakers were said to be “furious” when President Donald Trump agreed yesterday to a Democratic proposal linking Harvey aid to a short-term debt ceiling hike and language to fund the federal government through December 8.

Iowa’s Senators Chuck Grassley and Joni Ernst were among the seventeen Republican senators who voted against today’s bill (roll call). In a statement enclosed in full below, Ernst said she supported a “clean” Hurricane Harvey relief bill, like the one U.S. House members approved on September 6 by 419 votes to 3. All four Iowans supported that bill: Republicans Rod Blum (IA-01), David Young (IA-03), and Steve King (IA-04), and Democrat Dave Loebsack (IA-02).

Carefully avoiding direct criticism of Trump, Ernst added in her statement, “Unfortunately a final deal was cut and while it includes initial relief funding, it also raises the debt limit and kicks the can down the road once again on our overall government spending levels. This is not the right way to legislate, and quite frankly, it is exactly what the American people are sick and tired of.”

I assume Grassley opposed the Harvey aid bill for similar reasons. At this writing, his office has not released a statement; I will update this post as needed with any public comment.

The Senate bill goes back to the House, where Democratic support is assured but a large number of Republicans will bolt over the debt ceiling hike and short-term spending resolution. I’ll be surprised if King or Blum votes for the bill; Young could go either way. UPDATE: All four Iowans voted for the revised bill in the U.S. House. I posted statements from King and Blum here.

Former Maryland Governor Martin O’Malley’s presidential campaign is pushing a new line of attack against Senator Bernie Sanders: in 2011, Sanders said President Barack Obama was “weak” and perhaps should face a challenger in the 2012 Democratic primary. O’Malley’s communications staff have also pushed out reports suggesting Sanders himself was considering a primary challenge to Obama and failed to campaign vigorously for the president’s re-election later in 2012 (not that Vermont was ever in play for Mitt Romney).

Those talking points may fire up Democrats who already resent the fact that the self-proclaimed democratic socialist Sanders has always campaigned as an independent. But I doubt they are a promising line of attack for moving caucus-goers and primary voters away from Sanders and toward O’Malley. The inconvenient truth is that Obama’s record hasn’t always lined up with progressive principles or with his own campaign promises. I suspect those who “feel the Bern” are more likely to agree with than be offended by Sanders’ critique of the president.

I don’t know yet for whom I will caucus, the first time I’ve ever been undecided so late in the election cycle. But I count myself among those “millions of Americans” Sanders described as “deeply disappointed in the president” during the interview O’Malley’s campaign portrays as harmful. I caucused uncommitted in 2012 to send the message that the president “hasn’t stood up for core principles of the Democratic Party.” Moreover, O’Malley’s own stump speech hints at some valid reasons for Democrats to be disaffected by Obama’s rightward drift.

In a few minutes, Bruce Braley and Joni Ernst will hold their third and final debate. KCAU in Sioux City and ABC-5 in Des Moines are televising the debate locally, and C-SPAN is showing it nationwide. I’ll be liveblogging after the jump.

Before the first debate, I was concerned that Braley might lose his cool, but he did well both that night as well as in last Saturday’s debate.

UPDATE: C-SPAN has the debate video archived here, for those who missed it.

Four-term Democratic incumbent Dave Loebsack and his three-time Republican challenger Mariannette Miller-Meeks are debating in Iowa City tonight, starting at 7 pm. Iowa Public TV is live-streaming the event here. I’ll post updates after the jump.

Any comments about the race in Iowa’s second Congressional district are welcome in this thread.

UPDATE: The archived video is now available at IPTV’s site. My comments are below.  

Of the four leading Republican candidates for Iowa’s open U.S. Senate seat, three have denounced this week’s vote to suspend the federal government’s debt ceiling.

The odd man out is trying to avoid the subject.

This afternoon the U.S. Senate overwhelmingly approved legislation to reverse a planned change in cost of living adjustments for some military pensions. Senate Majority Leader Harry Reid decided to bring up the bill that passed the U.S. House yesterday, rather than a Democratic alternative that fixed the military pension policy without any spending cuts to offset the $6 billion cost over ten years. Senators approved the House bill by 95 votes to 3, with Iowa’s Tom Harkin and Chuck Grassley both supporting the measure.

Also today, senators approved a bill “to temporarily extend the public debt limit” with no strings attached. That bill also cleared the House yesterday. A dozen Republicans including Minority Leader Mitch McConnell crossed party lines to approve the cloture motion on the debt ceiling hike, but the procedural vote was a nail-biter that took more than an hour. Grassley was one of the 31 Republicans who opposed cloture. The debt ceiling increase then passed on a a straight party-line vote of 55 to 43, with Harkin voting yes and Grassley voting no.

Possible 2016 presidential candidates Ted Cruz, Rand Paul, and Marco Rubio all voted against cloture on the debt ceiling increase as well as against the bill on final passage.

UPDATE: Erik Wasson, Ramsey Cox and Peter Schroeder wrote a fascinating piece on the battle to advance the debt ceiling bill: “McConnell and top lieutenant Sen. John Cornyn (Texas) reluctantly backed ending debate after it became clear that no one in their conference wanted to cast the deciding 60th vote.”

This post covers reaction to the debt ceiling vote from Republican candidates for Iowa’s open U.S. Senate seat.

I didn’t see this coming: House Republican leaders brought a bill to the floor that raised the debt ceiling without attaching strings such as domestic discretionary spending cuts or entitlement reforms. Speaker John Boehner broke the news to fellow House Republicans yesterday morning; later he explained to reporters that whip counts showed leaders could not get 218 GOP votes behind plans to tie a debt ceiling hike to a bill on reversing a military pension cut by extending the “sequester” to certain Medicare payments.

Republicans wrangled big concessions out of the 2011 showdown over raising the debt ceiling. That deal led to the “sequester” spending cuts that went into effect in early 2013; some of them will stay in place for years. However, the foot-dragging over raising the debt ceiling during last October’s partial shutdown of the federal government didn’t advance the GOP policy agenda and hurt the party in Congressional polling, at least temporarily. President Barack Obama had vowed not to negotiate over future debt ceiling increases.

Yesterday afternoon, House leaders attached language raising the country’s debt ceiling to an unrelated bill, which passed by 221 votes to 201. Iowans Bruce Braley (IA-01) and Dave Loebsack (IA-02) were among the 193 Democrats who joined just 28 Republicans to pass the bill. Steve King (IA-04) was among the 199 GOP House members who opposed it. His official comment is after the jump.

The roll call shows that Iowa Republican Tom Latham (IA-03) was not present for the debt ceiling vote. He also missed earlier votes yesterday. I have not seen any explanation for his absence but will update this post with details, as available. UPDATE: Latham’s Congressional office sent out a press release on February 11 about a Medicare bill he supports. I’ve posted it after the jump. The statement was datelined “Des Moines,” but it’s not clear whether Latham himself was in Iowa rather than Washington.

Conservative groups are already calling for Boehner to be replaced. It will be interesting to see whether he can remain speaker throughout this election year.  

Roughly 800 people came to Altoona on Saturday night to celebrate Governor Terry Branstad’s birthday and raise money for his re-election campaign. The featured speaker was House Budget Committee Chair and 2012 Vice Presidential nominee Paul Ryan. Listening to his remarks at Radio Iowa’s website, I didn’t hear a serious contender for the presidency in 2016.

Three big things were missing from Ryan’s speech.

Little-known fact: the deal that ended the government shutdown in mid-October did not technically involve a Congressional vote to raise the country’s debt ceiling. Rather, it allowed President Barack Obama to suspend the debt ceiling until February 7, unless both chambers of Congress passed motions disapproving of the action. The compromise enabled Republicans to put themselves on record opposing any further increase in the debt limit without pushing the U.S. into default. As Susan Davis explained in USA Today, even if a disapproval motion cleared the House and Senate, the president “would presumably veto it, putting the burden on Congress to find veto-proof majorities to override it – a near-impossible outcome […].”

Last week both chambers considered identical disapproval resolutions, drafted by Republicans. Supporters of the resolution asserted that they were not voting for default, just trying to send a message that “We have to get our debt under control.” When the Senate considered the resolution on October 29, all 45 Republicans present voted yes, including Iowa’s Chuck Grassley. But it failed to pass as all 54 members of the Democratic caucus voted no, including Iowa’s Tom Harkin.

The House took up the resolution the following day and passed it by 222 votes to 191 (roll call). Only a few representatives crossed party lines on the vote. Iowa’s House members split as one would expect: Republicans Tom Latham (IA-03) and Steve King (IA-04) went on record against “the President’s exercise of authority to suspend the debt limit,” while Bruce Braley (IA-01) and Dave Loebsack (IA-02) opposed the resolution. I have to laugh at Latham’s faux-statesmanship, voting for the deal that averted default before turning around and voting against the presidential action that averted default.

I’m with those who would make this phony “disapproval” exercise a permanent replacement for Congressional votes to raise the debt ceiling. A symbolic gesture is a small price to pay to avoid future hostage-taking scenarios.  

Most Americans are relieved the federal government will be fully operational again this week, but the short-term deal on the 2014 budget and debt ceiling isn’t popular on the right wing of the Republican base. I got a kick out of this “Tea Party Insult Generator” based on real comments posted to House Speaker John Boehner’s Facebook page.

Of the members of Congress who may run for president in 2016, only Representative Peter King of New York voted yes on the deal to reopen the government (the House roll call is here, and the Senate roll call is here). King isn’t a real contender for the GOP nomination anyway; he would be running for president to send a message.

House Budget Committee Chairman and former Vice Presidential nominee Paul Ryan voted no last night, as did Senators Rand Paul, Marco Rubio, and Ted Cruz. After the jump I’ve posted statements from all of those politicians about the deal. Their talking points will make a good impression on likely Iowa Republican caucus-goers, even if the events of the last few weeks have hurt the GOP on the generic Congressional ballot.

Any comments about the federal budget, debt ceiling, or next presidential campaign are welcome in this thread.  

The U.S. Senate and House voted tonight to fund the federal government through mid-January 2014 and raise the debt ceiling by enough to last until early February. Here’s the bullet-point version of the deal Senate Majority Leader Harry Reid negotiated with Minority Leader Mitch McConnell. In classic Congressional fashion, senators loaded this must-pass bill with a bunch of goodies. A new House and Senate conference committee will negotiate over the federal budget for fiscal year 2014, and that committee must reach some agreement by December 13. The big sticking point will be whether to fund the government at levels approved for fiscal year 2013 before the “sequester” cuts went into effect in January.

Tonight the Senate approved the deal first by 81 votes to 18. All the Democrats, including Iowa’s Tom Harkin, and most Senate Republicans supported the deal to reopen the government. Our state’s senior Senator Chuck Grassley was one of the 18 no votes.

House Speaker John Boehner reluctantly agreed to put the bipartisan Senate agreement up for a vote on the House floor. He had wanted to bring up a different bill, but a “stunning rebuke” from GOP colleagues forced him to abandon a House vote yesterday on his latest plan.

The House approved the deal by 285 votes to 144. Every Democrat present voted yes, including Bruce Braley (IA-01) and Dave Loebsack (IA-02). Tom Latham (IA-03) was among 87 Republicans who also voted yes. Steve King (IA-04) was one of the 144 House Republicans who voted no. He has long demanded that “Obamacare” be defunded as a condition of funding the federal government, and he does not believe that the U.S. faced a real risk of default if Congress failed to raise the debt ceiling by October 17.

I enclose below some Iowa reaction to today’s events. I will update this post as needed.  

Two weeks into the partial federal government shutdown, U.S. Senate leaders appear close to a deal to reopen the government and raise the debt ceiling while a new joint budget committee negotiates “a replacement for the automatic spending cuts known as sequestration.” After the jump I’ve posted details on last week’s Congressional votes related to funding the federal government and preventing a possible default.

Although Iowa is reportedly the state least affected by the shutdown, because we lack national parks and have few military facilities, thousands of Iowans in the National Guard are still without paychecks. Thousands more who receive benefits through the Women, Infants and Children nutrition program will suffer if the shutdown extends into next month, because WIC is only funded through October.

The lack of a new farm bill arguably affects more Iowans directly than the shutdown does. The latest temporary extension of federal farm programs expired on September 30. At the end of this post, I’ve included some news and comments on efforts to pass a comprehensive farm bill.

It’s time for a new post on how Iowa’s representatives in the U.S. House and Senate are handling the ongoing shutdown of non-essential federal government operations. (Click here for details on Congressional votes and Iowa political reaction up to October 1.)

Thousands of Iowans who work for the federal government or serve in the National Guard still have no idea when they’ll receive their next paycheck. The best news I’ve heard all week is that an estimated 66,000 Iowa women and children who receive benefits through the WIC program will get their checks for October, at least.  

Although there has been no progress toward an agreement on a continuing spending resolution, I’ve noticed one big change in Iowa Congressional voting during the last few days. Whereas Representatives Bruce Braley (IA-01) and Dave Loebsack (IA-02) were sticking with most of their fellow Democrats in earlier votes on federal spending, this week both Braley and Loebsack have joined House Republican attempts to fund the federal government in bits and pieces. Follow me after the jump for more details.

Nine days from now, approximately 85 billion in federal spending cuts will go into effect unless Congress and President Barack Obama can agree on an alternative to the so-called “sequester.” After the jump I’ve posted details on how the spending cuts might affect Iowa, as well as recent comments and actions by some of the Iowans in Congress.

Yesterday the U.S. Senate approved by 64 votes to 34 a bill that would suspend the country’s debt ceiling until mid-May and withhold the salaries of senators unless the Senate approves a budget by April 15. Iowa’s Senator Tom Harkin supported the bill, as did all but one Democrat. Senator Chuck Grassley opposed the bill, like most other Senate Republicans. Details on the bill and on the amendments considered yesterday are after the jump.

The House approved this bill last week, with three of Iowa’s four representatives voting yes.

The U.S. House voted today to suspend the country’s debt ceiling until May 18 and withhold pay from U.S. senators if the upper chamber does not approve a budget by April 15. House Republican leaders didn’t have enough votes in the GOP caucus to pass the bill, but dozens of Democrats crossed over to delay a potential default by several months. Three of Iowa’s four House members supported the “No Budget, No Pay” act; details and comments are below.

President Barack Obama and Republicans in the U.S. House are still on a collision course over the debt ceiling, which needs to be raised sometime in the next month or two.

What’s on your mind this weekend, Bleeding Heartland readers? This is an open thread.

After the jump I’ve posted a bunch of links about finances and spending, large and small.

As the next showdown over raising the debt ceiling approaches, a new scenario has emerged as a possible way to avoid both default and budget concessions to Congressional Republicans. Some analysts believe the government could mint one platinum coin, assigning a denomination of a trillion dollars, and deposit that coin in the treasury to “pay down” a trillion dollars of our national debt. Not everyone agrees that minting the coin is a realistic option, though. I’ve posted some links and analysis after the jump.

For the record, I don’t believe President Barack Obama would seriously consider minting a trillion-dollar coin. In fact, the only past presidents I could imagine pulling a stunt like that would be FDR, LBJ, and Richard Nixon. What do you think, Bleeding Heartland readers? Incidentally, today would have been Tricky Dick’s 100th birthday.

This is an open thread, so all topics are welcome.

It’s time to catch up on news from the first Congressional district campaign between three-term Democratic Representative Bruce Braley and his two-time Republican challenger Ben Lange. After the jump I’ve posted my take on yesterday’s debate on Iowa Public Radio, along with videos and transcripts of the latest television commercials by the campaigns and outside groups. (Bleeding Heartland covered earlier tv ads in the IA-01 race here, here, and here.)  

One of Republican Mitt Romney’s latest television commercials in Iowa asserts that cutting government spending and eliminating the federal deficit will create 130,000 jobs in Iowa. Meanwhile, in states with more military bases and defense sector industry, Romney campaign advertising promises to create hundreds of thousands of jobs by reversing planned cuts in defense spending.

Last week, the U.S. House passed a resolution to disapprove President Barack Obama’s latest request to raise the debt limit. The mostly party-line vote was also mostly symbolic and consequently received little media attention. However, Republican challengers in Iowa’s first and second Congressional districts are likely to highlight this vote in their campaigns against Representatives Bruce Braley and Dave Loebsack.

Both of Iowa’s senators voted against the deal to raise the debt ceiling in early August, but only one of them voted last night to block a $500 billion debt ceiling increase, which was part of that agreement.

Earlier on September 8, Senators Tom Harkin and Chuck Grassley helped send a patent reform bill to President Barack Obama. The president and Senate Majority Leader Harry Reid have characterized patent reform as a job creation measure. Follow me after the jump for more on yesterday’s Senate votes.

The big story of the weekend is Standard & Poor’s downgrading U.S. sovereign debt. Political reaction to that news and other headlines that caught my eye are after the jump.

The Iowa legislature barely kept hope alive for future funding to support a passenger rail link connecting Iowa City to Chicago, via the Quad Cities. However, most Iowa Transportation Commission members back the Amtrak project and would consider moving funds from other areas to make it happen.

The U.S. Senate approved the last-minute deal to raise the debt ceiling today by a vote of 74 to 26 (roll call). Iowa’s senators voted no for very different reasons. Democrat Tom Harkin reject the deal he called “a clear and present danger to the fragile, indeed faltering, economic recovery.” Republican Chuck Grassley said the plan “delays meaningful spending reductions, fails to address entitlement spending in a way that will save the programs for future generations of retirees, and leaves open the possibility of tax increases.” The complete statements from by Harkin and Grassley are after the jump.

Yesterday all five Iowans in the U.S. House voted against the debt deal as well. To my knowledge, no other state’s entire Congressional delegation rejected this national embarrassment.

After hailing passage of an austerity plan that will deeply cut domestic spending, President Barack Obama said today, “We’ve got to do everything in our power to grow this economy and put America back to work.” He missed that chance.

LATE UPDATE: Richard Kogan posted a helpful summary on “How the Potential Across-the-Board Cuts in the Debt Limit Deal Would Occur.”

The House of Representatives passed the bill on raising the debt ceiling today by a surprisingly large margin of 269 to 161 (roll call). About three quarters of the Republicans recognized what a great deal they wrangled out of a weak president. However, Tom Latham (IA-04) and Steve King (IA-05) were among the 66 House Republicans who voted no.

Vice President Joe Biden spent part of Monday selling this raw deal to Democrats on the hill, and half the Democratic caucus ended up voting yes, including Gabrielle Giffords, making her first return to the capitol since she was shot in January. Bruce Braley (IA-01), Dave Loebsack (IA-02) and Leonard Boswell (IA-03) were all among the 95 Democrats who voted no.

Memo to Minority Leader Nancy Pelosi and all other stupid Democrats who voted for today’s deal: This is why no one powerful ever cares what House Democrats say. Republicans got President Barack Obama to meet almost 100 percent of their demands. They should have been forced to provide 100 percent of the votes to approve this bill. Pelosi claimed the deal protected Medicare, Medicaid and Social Security from cuts, but the “super-Congress” deficit-cutting commission will have other ideas. Some other Democrats pointed to large potential cuts in defense spending over the next decade. I have a bridge in Windsor Heights to sell anyone who believes those cuts will materialize.

After the jump I’ve posted statements on today’s vote from Braley, Loebsack, Boswell and Latham. I will add King’s when it appears. I have requested a comment from King’s Democratic challenger, Christie Vilsack, and if I receive a reply I will post it below. Click here for details about how Iowans voted on the debt ceiling bills that reached the House floor Friday and Saturday.

UPDATE: Added King’s statement slamming the debt limit deal below. Like Latham, he said the agreement didn’t do enough to limit future government spending. In their comments, Braley, Loebsack and Boswell all emphasized that the deal puts too much of the deficit-cutting burden on the middle class while protecting wealthy individuals and special interests.

President Barack Obama and Congressional leaders announced a deal on raising the debt ceiling in exchange for at least $2 trillion in domestic spending cuts. The agreement is complicated in many respects, but the gist is that Republicans will get almost everything they have demanded throughout this process (if they are smart enough to accept total victory).

After the jump I’ve posted the ludicrous White House talking points on why this deal is “a win for the economy and budget discipline.” They brag about putting the U.S. “on track to reduce non-defense discretionary spending to its lowest level since Dwight Eisenhower was President,” as if that’s a good thing. No economist would endorse big domestic spending cuts, given the current state of the economy. The deal calls for many of those cuts to happen in 2013 or later, but unemployment is not going down in any significant way before 2013–more likely, it will increase. Some Democrats claim the president will hold the line on extending the Bush tax cuts in late 2012, but that is a sick joke. Obama has no credibility on these issues. Only two weeks ago he said he would reject a $2.4 trillion spending cut plan that did not include any tax increases. Look where he is now, serving up a “sugar-coated Satan sandwich” and thanking Republican leaders for doing their part.

House Speaker John Boehner is trying to sell the deal to the House Republican caucus with this slide show (pdf file). House Minority Leader Nancy Pelosi hasn’t committed to supporting the deal, but I assume a significant number of House Democrats will be stupid enough to go along. Any Democrat who votes for this deal deserves to lose.

I will update this post with comments from the Iowans in Congress as those become available. Recent statements from most of the Iowa delegation are here, along with details on how our representatives in the U.S. House and Senate voted on the debt ceiling proposals offered since Friday.

UPDATE: The deal passed the House easily on August 1, but all of Iowa’s representatives voted against it.

The U.S. House on Friday evening approved Speaker John Boehner’s latest bill to sharply cut federal spending as a condition for raising the debt ceiling. The bill barely passed by a 218 to 210 vote (roll call). Every House Democrat present voted no, including Bruce Braley (IA-01), Dave Loebsack (IA-02), and Leonard Boswell (IA-03). The big surprise for me was that both Tom Latham (IA-04) and Steve King (IA-05) were among the 22 Republicans who voted against the bill. I expected King to oppose the measure, because many of his Tea Party Caucus colleagues believe Boehner isn’t cutting enough spending. But Latham is one of the speaker’s closest friends, and I thought he would be one of the votes putting the bill over the top. It was a tremendous struggle for Boehner to line up enough support for this bill; he had to delay Thursday’s scheduled vote in order to rewrite some provisions today.

Sometimes in situations like these, the House speaker gives some members in the majority caucus permission to vote no, if they are in tough districts. Latham will face Boswell in the new third Congressional district next year, and some of the spending cuts in this bill would affect popular programs. It’s possible Latham voted no with Boehner’s consent, once the speaker knew he had 218 yes votes lined up. That insulates Latham against some potential attack ads. However, Latham was on WHO radio this afternoon saying something must be done to ensure that the government pays its bills. If he acknowledges the need to raise the debt ceiling, when does he think a better deal will come around than Boehner’s bill?

Incidentally, House leaders don’t seem inclined to move on Latham’s bill to prioritize certain types of spending in case no debt ceiling deal is reached.

The U.S. Senate is expected to table the latest House bill on the debt ceiling later Friday evening. Senate Majority Leader Harry Reid has been working on a new “compromise” that is depressingly similar to what Boehner proposed, so Congress is probably headed toward a total Republican victory–big spending cuts, no revenue increases. Notably, if the U.S. ever does pull out of Iraq and Afghanistan, all the savings would go toward deficit reduction, rather than investing in our own infrastructure or social programs. Never mind that the U.S. economy is sputtering and will probably go back into recession under fiscal austerity. That serves Republican political interests as well, because President Barack Obama will be blamed for the downward spiral. Obama’s approval rating on the economy is already low, and most Americans think job creation is more important than deficit reduction right now.

For some reason, Obama prefers this outcome to Senator Tom Harkin’s advice: raise the debt ceiling by invoking the 14th Amendment to the U.S. Constitution.

UPDATE: On Friday night six Senate Republicans voted with all 53 members of the Democratic caucus to table the motion on concurring with Boehner’s bill (roll call). Grassley was among the 41 Republicans who opposed the motion to table.

Statements released by Latham, King, Loebsack and Braley are now after the jump.

SATURDAY UPDATE: The House rejected Senate Majority Leader Harry Reid’s bill on July 30; it was a symbolic vote because Reid is still revising the proposal, which so far doesn’t have enough support to overcome a Republican filibuster in the Senate.

Most House Democrats voted for the Reid bill, including Boswell. However, Braley and Loebsack were among the 11 Democrats who voted with all Republicans present against that bill (roll call). I am seeking comment from Braley and Loebsack offices on why they voted against the Reid proposal. It’s worth noting that like Boehner’s bill, Reid’s plan would cut more than $2 trillion in spending over the next decade, with no revenue increases. A total disgrace.

UPDATE: Loebsack released this statement about Saturday’s vote: “We must get Iowa’s economy moving forward.  Today’s vote was not about a solution, it was about political leverage in Washington.”

FURTHER UPDATE: Here’s Harkin speaking on July 30:

“I’m talking about that there’s precedents for presidents to do things where the Constitution doesn’t give the president explicit authority but it doesn’t prohibit the president from doing it, and I believe there’s a basis in the 14th amendment as decided in Perry v. United States,” Sen Tom Harkin (D-IA) said on the Senate floor. “I think the president – barring action from the Congress – not only has the authority to do so, he has the responsibility to not let this country default.”

SUNDAY UPDATE: Senate Majority Leader Reid called a cloture motion on his horrendous compromise proposal Sunday afternoon. It needed 60 votes to pass but only received 50, mostly from Democrats (roll call). I don’t understand Harkin voting for cloture here, when the bill has none of the balance he has advocated. Maybe he planned to vote against the bill itself later–who knows? Grassley voted against cloture, as did every Republican present besides Scott Brown. I’ve added Grassley’s statement below.

The Democratic Congressional Campaign Committee is paying for robocalls attacking 60 House Republicans, including Iowa’s Tom Latham, for their intransigence in debt ceiling negotiations. Latham currently represents the fourth district but will run against Democrat Leonard Boswell in the new third district in 2012. Boswell can use the help, because Latham is building up a much bigger campaign war chest. I’ve posted the DCCC call script after the jump. Excerpt:

“Congressman Tom Latham and Speaker Boehner would rather our economy default just to protect tax breaks for Big Oil companies and billionaire jet-owners. Republicans quit negotiating with President Obama on raising the debt ceiling.

“This is serious. Latham’s billionaire buddies will be ok. But we will pay the price if government can’t pay its bills. Our Social Security and Medicare benefits are at risk. Interest rates would spike for our credit cards, car loans, and mortgages. Our 401(k) retirement accounts would drop. And, gas and food prices would skyrocket.”

That message might be persuasive if Obama weren’t begging Republicans to join him in cutting Americans’ Social Security and Medicare benefits. On a related note, Senate Democratic leaders just spent the weekend working on a deal to massively cut government spending without increasing tax revenues at all–not even from (gasp) “Big Oil companies and billionaire jet-owners.” No matter how the debt ceiling drama ends, the Democrats’ incompetence this summer will cause problems for the party’s Congressional candidates in 2012.

Meanwhile, Latham is pushing a plan B in case no deal comes through by August 2:

Under [Latham’s] bill, H.R. 2605, the federal government would prioritize payments to seniors, veterans, military personnel and “core public-safety functions” if the debt ceiling is reached and federal spending must be curtailed.

Latham said his bill is partly a response to what he called “scare tactics” that these critical payments would not be made.

“The White House and irresponsible special-interest groups have begun employing scare tactics as a means of achieving their political ends in the debt-limit debate,” he said Friday. “My legislation removes the use of these priority groups as political pawns and shields them from these contentious debates.”

No one knows exactly what would happen if Congress failed to raise the debt ceiling in the next week, but even if Latham’s bill became law, financial markets would see the federal government unable to pay all its bills. That would likely result in a downgrade of all U.S. debt.

After the jump I’ve posted Latham’s press release on what he called “safety net legislation.” It’s notable that he acknowledges the need to raise the debt ceiling, provided a “long-term plan” is in place to reduce government spending. Some House Republicans, like Ron Paul and Michele Bachmann, oppose increasing the debt limit under any circumstances.

Latham’s bill is much broader than a fallback plan introduced by Bachmann and Representative Steve King (IA-05) earlier this month. That dead-on-arrival proposal would have “set payment of military salaries and payment of principal and interest on publicly-held debt as the top priorities if the debt limit is reached.” The DCCC immediately accused King of “putting China before Iowa’s seniors,” saying his bill “would require the U.S. government to pay debts to China before ensuring seniors receive the Social Security they count on every month.” Latham may not be the brightest bulb in Congress, but he wasn’t about to walk into that trap.

Yesterday’s heartbreaking attacks in Norway are the big global news story this weekend. This man, Anders Behring Breivik, is suspected of setting off a bomb in downtown Oslo on July 22. The explosion killed seven people and destroyed the prime minister’s office building. The suspect then reportedly dressed in a policeman’s uniform and shot to death at least 85 people at a youth camp run by Norway’s governing Labor Party. Breivik has “confessed to the factual circumstances,” according to his attorney, who said his client planned the crimes long in advance. Police are trying to determine the motive for the attacks. The suspect reportedly had right-wing and anti-Muslim views, but why would anyone attack teenagers at a summer camp?

The big U.S. news story is that House Speaker John Boehner was too stupid to take the deficit reduction deal President Barack Obama offered:

Obama said he had demanded $1.2 trillion in additional revenues over 10 years, in exchange for spending cuts, including cuts to Medicare and Social Security. He said the revenues had been structured in a way that marginal tax rates would not be increased, and no Republicans would be forced to cast a vote that would violate the Taxpayer Protection Pledge, which most Republicans in Congress have signed.

You read that right. While agreeing to cuts in programs that tens of millions of Americans rely on, Obama was ready to guarantee no increases in any tax rates, even at the highest income levels, for the next decade. Not only that, he bent over backwards to give Republicans political cover, so they could accept his offer without facing blowback from Grover Norquist. The same Grover Norquist who now wants Congress to stop playing chicken with the debt ceiling. And Obama was angry Boehner walked out on negotiations, saying he felt “left at the altar”! I don’t see how this so-called Democrat could be handling the budget negotiations any worse. For the first time, I am seriously thinking about writing in a candidate for president in November 2012.

The Iowa Policy Project analyzed the latest state jobs numbers here. Iowa has more than a billion dollars in various state reserves, but Governor Terry Branstad and Iowa House Republicans insisted on an extremely tight budget for fiscal year 2012. The predictable result was a “sharp drop in government jobs” in June, which “fully accounted for the first net drop in Iowa nonfarm jobs in the last six months.” Shrinking government does not help the private economy create more jobs. On the contrary, government job losses contribute to our unemployment problem. Iowa’s unemployment rate is 6 percent, still well below the national average, but that’s no excuse for unwarranted austerity policies.

Here’s one good thing that happened this week: Obama, Defense Secretary Leon Panetta and Admiral Mike Mullen of the Joint Chiefs of Staff all certified “that the U.S. military is prepared to accept openly gay and lesbian service members, and that doing so will not harm military readiness.” As a result, the military’s Don’t Ask, Don’t Tell policy will officially end 60 days from July 22.

This is an open thread. What’s on your mind this weekend, Bleeding Heartland readers?

UPDATE: Iowa native Chuck Manatt passed away this week at age 75. He chaired the Democratic National Committee from 1981 to 1985 and co-chair Bill Clinton’s presidential campaign in 1992. The Los Angeles Times published a good obituary of Manatt. He will be buried this week in Audubon, near the farm where he grew up.

The U.S. Senate voted down the Cut, Cap, and Balance Act of 2011 today, three days after the House approved that Republican budget-cutting plan. All members of the Democratic caucus present, including Iowa’s Tom Harkin, voted for a motion to table the motion to proceed with considering the bill (roll call). All Senate Republicans present, including Iowa’s Chuck Grassley, voted against the motion to table. Tabling the bill in effect kills it for this session of Congress.

After the jump I’ve posted the floor statement Grassley submitted yesterday in support of the Cut, Cap, and Balance Act. He argued that raising taxes would neither increase federal government revenues nor reduce the federal deficit. He described Cut, Cap, and Balance as “the only plan that has been put forth to address our deficit and debt problem” and claimed it would “impose budget caps to get our spending down to a manageable level compared to our gross domestic product.” This piece by Michael Linden and Michael Ettlinger points out that the “last time federal spending dipped below 18 percent of GDP was 1966.” Click through for a chart showing how severe spending cuts would have to be to bring fiscal year 2016 spending down to 18 percent of GDP. Robert Greenstein of the Center on Budget and Policy Priorities described this bill as “one of the most ideologically extreme pieces of major budget legislation to come before Congress in years, if not decades.”

I’ve also posted below Harkin’s floor statement opposing Cut, Cap, and Balance. He reminded colleagues that President Ronald Reagan warned Congress against refusing to raise the debt ceiling, and that Reagan supported “corrective income tax increases in 1982 and 1984” when he realized that “his 1981 tax cuts were resulting in large deficits.” Harkin also claimed the Republican bill would defund Medicare by putting “the federal government in a fiscal straightjacket, allowed to spend no more than in the mid-1960s, before Medicare.”

The U.S. House passed the so-called “Cut, Cap and Balance Act” yesterday on a mostly party-line 234 to 190 vote (roll call). Robert Greenstein of the Center on Budget and Policy Priorities summarized the key features of the proposal:

The plan would lock in cuts over the next ten years at least as severe as those in the [House Budget Committee Chairman Paul] Ryan budget plan that the House passed in April, by writing spending caps into law at the year-by-year levels of spending (as a share of GDP) the Ryan budget contains.

It also would hold the increase in the debt limit needed by August 2 hostage to approval by two-thirds of the House and the Senate of a constitutional amendment to require a balanced budget every year while effectively barring any increases in revenues.  The constitutional amendment would make all revenue-raising measures unconstitutional unless they secured a two-thirds supermajority in both the House and the Senate.

The “Cut, Cap & Balance” measure cites three constitutional balanced-budget amendments (H.J. Res 1, S.J. Res 10, and H.J. Res 56) and states that Congress must approve one of them or a similar measure before the debt limit can be raised.  All three of the cited proposals would require cuts deeper than those in the Ryan budget.  All three measures would establish a constitutional requirement that total federal expenditures may not exceed 18 percent of GDP, and all three would essentially require that the budget be balanced within the coming decade.

The Ryan plan, by contrast, does not reach balance until the 2030s, and its federal spending level is just below or modestly above 20 percent of GDP for most of the next two decades, equaling 20¾ percent of GDP in 2030 for example, according to the Congressional Budget Office.  The only budget that comes close to meeting the requirements of these constitutional amendments is the Republican Study Committee budget, which eliminates 70 percent of non-defense discretionary funding by 2021, contains deeper Medicare cuts than the Ryan budget, cuts Medicaid, food stamps, and Supplemental Security Income for the elderly and disabled poor in half by the end of the decade, and raises the Social Security retirement age to 70.

Iowa’s Republicans Tom Latham (IA-04) and Steve King (IA-05) both voted for “cut, cap and balance,” while Democrats Bruce Braley (IA-01), Dave Loebsack (IA-02) and Leonard Boswell (IA-03) voted against it. I recommend reading Greenstein’s whole analysis or this piece by Michael Linden and Michael Ettlinger to get a sense of how ludicrous this plan is. Severe spending cuts would not only hurt the most vulnerable Americans, they would drag down the whole economy. I doubt Republicans believe in this fiscal policy. When the U.S. economy was hurting in late 2001 and 2002, the GOP-controlled House passed big deficit spending to stimulate demand, with the support of a Republican president.

But I digress. Yesterday’s House vote was designed to give Republicans cover. Everyone knows “cut, cap and balance” could never clear the Senate. Even if it did, President Barack Obama would veto the bill.

This vote isn’t just about short-term political battles over the debt ceiling. It will be cited by both parties during next year’s campaigns in Iowa’s new third and fourth Congressional districts. As a preview of campaign rhetoric to come, I’ve posted comments from both sides after the jump. First, Latham makes the case for the bill and pledges not to vote for any debt ceiling increase “without passage of the major features outlined in the Cut, Cap and Balance Act.” Latham voted many times for unbalanced budgets and to raise the debt ceiling while Republicans controlled the House during George W. Bush’s presidency. He’s hoping those votes will slip down the memory hole.

Next, I posted a Democratic Congressional Campaign Committee press release charging that Latham just voted to “cut, cap and end Medicare.” An almost identical statement went out targeting King.

King didn’t send out a press release on yesterday’s vote, but he has stood with Republicans who demand huge spending cuts and no revenue increases as the price for raising the debt ceiling. After the jump, I posted a DCCC statement highlighting King’s previous votes to increase the debt ceiling. Both King and Latham stopped voting for debt ceiling hikes when Democrats had a House majority from 2007 through 2010.

Final note: two House Republicans who are running for president, Michele Bachmann and Ron Paul, voted against “cut, cap and balance” yesterday. Bachmann “said the bill does not go far enough to fundamentally restructure the way Washington spends money, and in particular does not go after ‘ObamaCare.'” Paul said “this Act cannot balance the budget under any plausible scenario,” because it’s “impossible” to do that without cutting defense spending, Medicare and Social Security.

The battle of the incumbents in Iowa’s third Congressional district will be one of the most closely-watched House races in the country in 2012. Yesterday Karl Rove’s 501(c)4 group Crossroads Grassroots Policy Strategies launched a television commercial targeting eight-term Democrat Leonard Boswell. Similar spots went up against nine other Democratic incumbents, part of a $20 million summer advertising campaign by Crossroads.

Meanwhile, local media have devoted heavy coverage to the reported break-in attempt at Boswell’s southern Iowa farm on Saturday night. The latest comments from Boswell, his wife Dody Boswell, and law enforcement officers are after the jump, along with the Crossroads ad and annotated transcript.

UPDATE: Law enforcement officers have arrested two suspects in the break-in. Details are at the end of this post, along with statements from Leonard and Dody Boswell.

If Barack Obama doesn’t want to be a one-term president, he has a funny way of showing it. I can’t imagine how the president could come out of the debt ceiling negotiations in a worse political position.  

Conventional wisdom says President Barack Obama would love to run against an “extreme” Republican candidate, such as Representative Michele Bachmann. With unemployment up again and likely to rise further as Obama tries to outdo Republicans on government spending cuts, I’m not convinced that a big campaign war chest will be enough to get the president re-elected.

Watching Bachmann’s solid introductory television commercial and highlights from her recent Iowa tour, I challenge those who write her off as “unelectable,” especially in this economy. Ad video, transcipt, analysis and more Bachmann campaign news are after the jump.

The U.S. House of Representatives failed to approve a presidential request to increase the debt ceiling yesterday. Members rejected a motion to suspend the rules and proceed with that bill by a 318 to 97 vote (roll call). Every House Republican present voted against raising the debt ceiling, including Tom Latham (IA-04) and Steve King (IA-05). Nearly half the Democratic caucus also voted against yesterday’s motion, including Dave Loebsack (IA-02) and Leonard Boswell (IA-03). House Minority Whip Steny Hoyer advised Democratic colleagues to reject what he described as a “political charade” aimed at producing fodder for campaign attack ads. Bruce Braley (IA-01) missed yesterday’s vote to attend a family funeral but released a statement saying he would have opposed raising the debt ceiling. I’ve posted his comments after the jump. Since last November’s election, Braley has consistently been talking like a deficit hawk.

The U.S. hit its current debt ceiling in mid-May. If Congress does not raise the limit by August 2, the federal government will not be able to pay all of its bills. Republican leaders are pushing for major domestic spending cuts as a condition for raising the borrowing limit. Naturally, austerity won’t apply to the military budget, and that’s fine with Boswell, Loebsack, Latham and King.

I believe Democrats are making a mistake by accepting Republican demands for strings attached to the debt ceiling hike. President Bill Clinton refused to make such negotiations part of a deal on raising the borrowing limit in 1995, saying he would not let Congressional Republicans use the occasion to “backdoor their budget proposals.”

King asserted yesterday that repealing the federal health insurance reform law would “save the taxpayers $2.6 trillion” and would be a good start toward finding spending cuts to offset the president’s debt request. I’ve posted his full statement after the jump. At this writing I have not seen official comments on the debt ceiling from Loebsack, Boswell or Latham. If those become available, I will update this post.

UPDATE: Latham’s statements on the debt ceiling are now after the jump.

A Republican-led filibuster blocked Senate consideration today of a bill that would end “tax breaks for the five largest oil companies: Exxon Mobil, Shell, BP, ConocoPhillips and Chevron.” Click here for more detail on tax breaks that would be eliminated. The 52 to 48 vote in favor of proceeding with the “Close Big Oil Tax Loopholes Act” failed because 60 votes are needed to overcome a filibuster. The roll call shows that Iowa’s Chuck Grassley voted against the motion to proceed, as did all but two Senate Republicans. Tom Harkin voted for considering the bill, as did all but three Democrats.

I’m all for ending oil company subsidies, but this bill was about optics rather than good energy policy. Andrew Restuccia wrote in The Hill,

Democrats’ pledge to continue pushing the bill signals that they view the effort as a winning political issue amid $4-a-gallon gas, soaring oil company profits and growing concern about the deficit. […]

Democrats say the bill would save $21 billion over the course of 10 years, savings that can be used to reduce the deficit at a time of increased belt-tightening.

Those talking points would be more convincing if party leaders had genuinely tried to end oil subsidies when Democrats controlled the U.S. House and had close to 60 votes in the Senate. It also makes no sense to focus this bill on the biggest oil companies, rather than the sector as a whole. Democrats apparently wrote the bill that way because of those companies’ large profits in the first quarter of this year.

Senate Majority Leader Harry Reid told journalists today that he will press for ending oil companies’ tax breaks as part of legislation on raising the debt ceiling. The U.S. hit its current debt ceiling yesterday and won’t be able to pay all its bills if Congress does not act to raise the ceiling by August 2. I believe President Barack Obama and Congressional Democrats are playing a losing game by making budget negotiations part of a deal on raising the debt ceiling. When it was time to raise the government’s borrowing limit in 1995, President Bill Clinton wisely refused to let Republicans use the occasion to “backdoor their budget proposals.”

Share any relevant thoughts in this thread.

UPDATE: After the jump I’ve added a statement Grassley released on May 17, calling on Secretary of State Hillary Clinton to approve the proposed Keystone XL Canadian pipeline project. Grassley depicts that project as a way for the Obama administration to help reduce the cost of gasoline. But an analysis commissioned by the U.S. Department of Energy earlier this year suggested that building this pipeline might cause oil and therefore gasoline prices to rise in the Midwest. Environmental groups have raised many objections to the Keystone XL project as well.

SECOND UPDATE: I’ve also added below excerpts from a report by the Congressional Research Service on “the extent to which proposed tax changes on the oil industry are likely to affect domestic gasoline prices.” The report briefly explains the five tax breaks that would be repealed under the bill senators filibustered.

Iowa Senators Tom Harkin and Chuck Grassley voted no on Tuesday as the Senate rejected an amendment to “establish a Bipartisan Task Force for Responsible Fiscal Action, to assure the long-term fiscal stability and economic security of the Federal Government of the United States, and to expand future prosperity and growth for all Americans.”

President Barack Obama supported creating that commission, which is the brainchild of Senate Budget Committee Chairman Kent Conrad. The goal is to find some way to get big Social Security and Medicare cuts through Congress. Don’t get me started on why a Democratic president and a bunch of Democratic senators are so keen on cutting the most successful programs Democrats have ever enacted.

Anyway, Conrad’s idea was for the commission to work out a comprehensive deficit reduction strategy, which Congress would be not be empowered to amend before voting on it. Two decades ago, a similar procedure was developed for recommending military base closings to Congress.

Conrad’s amendment, offered to a bill that raises the U.S. debt ceiling, failed on a bipartisan 53-46 vote. 36 Democrats, 16 Republicans and Joe Lieberman voted for creating the deficit reduction commission, while 22 Democrats, 23 Republicans and Bernie Sanders voted no (roll call here). Bloomberg News reported,

Conrad’s idea was attacked from the left and right, with groups such as the Washington-based anti-tax Americans for Tax Reform saying it would mean higher taxes while the AFL-CIO and NAACP said it would lead to cuts in federal benefits.

It was also opposed by lawmakers who lead congressional committees with authority over tax and spending programs. Among them are Senate Finance Committee Chairman Max Baucus of Montana, Appropriations Chairman Daniel Inouye of Hawaii, Commerce Committee Chairman Jay Rockefeller of West Virginia and Tom Harkin of Iowa, head of the health-care panel.

Senate Republican Conference Chair Lamar Alexander told Politico that Obama needs to “produce a Democratic majority in favor of” this idea if he wants more Republicans to vote for it.

During tonight’s State of the Union address, Obama is expected to announce plans to create his own deficit reduction commission. Bloomberg noted yesterday that “Such a panel’s recommendations ordinarily could be ignored by lawmakers, although Conrad, North Dakota Democrat, is trying to negotiate an agreement to guarantee a vote.”

Too bad the wrong North Dakota Democrat is retiring from the Senate.

Any relevant comments are welcome in this thread.