–Senate Republicans Block Reid Debt Hike Plan on Procedural Vote
–Sen. Reid: ‘Hopeful and Confident’ Debt Hike Deal ‘Can Be Done’
–Sen. Reid: Senators Should Stay Close To Capitol, No Baseball Games

By John Shaw

WASHINGTON (MNI) – Senate Republicans voted Sunday to continue
their filibuster of Senate Majority Leader Harry Reid’s debt hike plan,
but this vote appeared to be a formality because intense bipartisan
discussions are continuing on debt limit and deficit reduction
legislation.

The Senate vote to end debate on Reid’s debt hike plan was 51 to
49, but the motion failed because 60 votes were needed.

In comments after the Senate vote, Reid said the bill could still
serve as the vehicle to carry any final debt ceiling package first
through the Senate and then through the House.

Speaking after the vote, Reid said he is “hopeful and confident”
that a final agreement can be reached today. If an agreement is
reached, it is very unlikely the Senate would vote on it before Monday.

But Reid urged senators to stay close to the Capitol Sunday.

“I wouldn’t suggest a ball game,” Reid quipped.

Reid said intense talks continue “downtown,” a reference to the
White House.

Top administration officials are in talks with Democratic and
Republican leaders.

Senate Minority Leader Mitch McConnell is taking a lead role in
representing Republicans.

McConnell said earlier Sunday that Congress and President Obama are
“very, very close” to an agreement to increase the statutory debt
ceiling and cut spending.

McConnell said there is a “potential agreement within our reach.”

McConnell indicated the agreement would increase the debt ceiling
until the end of 2012, cut spending by $1 trillion now and then cut
spending by about $2 trillion later in the year based on the work of
special congressional panel.

This panel would seek its cuts from both entitlement reforms and
tax reforms, McConnell said.

If a debt ceiling agreement is reached, it would be placed on the
Reid bill which is still pending in the Senate and voted on by the upper
chamber, possibly on Monday. It would then be sent to the House for a
final vote.

Moving a controversial bill through both chambers in a few days
will be difficult, especially since it will require a tenuous coalition
of Democratic and Republican lawmakers to support it.

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, this coming
Tuesday.

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

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