–Senate Majority Leader Says House Vote Could Rattle Global Markets
–Defeated Debt Ceiling Vote Would ‘Send Terrible Message’
–Senate Minority Leader McConnell: Debt Hike Vote Is ‘Opportunity’
–Sen. McConnell: Neither Ryan or Obama Budget Will Become Law

By John Shaw

WASHINGTON (MNI) – Senate Majority Leader Harry Reid said Tuesday
the decision by House Republicans to stage a vote next week on debt
ceiling legislation that is designed to fail is “irresponsible.”

In comments to reporters, Reid lashed into House Republicans for
pushing a vote next week on a “clean” debt hike bill with the
expectation that it will fail.

Such a House vote on the debt ceiling would send a “terrible
message to the international community,” Reid said.

“How does that help?” Reid asked rhetorically, adding that
productive fiscal talks are now underway under the auspices of Vice
President Biden.

Reid’s comments referred to the announcement earlier in the day by
House Ways and Means Committee Chairman Dave Camp that he is preparing
to offer a version of a debt ceiling legislation as early as next week
that he will oppose.

Camp said he will introduce a bill that would increase the debt
ceiling by $2.4 trillion without any conditions placed on it.

Camp said he will oppose this bill, adding that voting on it would
“allow the House to reject a clean increase in the debt limit proving to
the American people, the financial markets and the administration that
we are serious about tackling our debt and deficit problems.”

Camp said that any agreement to increase the debt ceiling “should
include real reforms including entitlement programs like Medicare.”

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

After Reid spoke, Senate Minority Leader Mitch McConnell was asked
about the House Republican plan to hold a vote next week on a “clean”
debt ceiling increase. He did not appear to have been briefed on the
idea and said he expected debt limit votes to take place later in the
summer.

McConnell said that congressional consideration of the debt ceiling
is “a moment of maximum opportunity” to enact a significant deficit
reduction plan.

He said that he believes the talks chaired by Biden are a “serious”
effort to develop a deficit reduction plan.

“This is where the real discussions,” are, McConnell said.

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

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