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veterans group there at pennsylvania avenue being briefed on what could happen to their ranks if the debt ceiling is not raised. also cnn is learning some states making contingency plans. california specifically taking out a temporary $5 billion loan just to help pay its bills in case congress fails to act and turmoil in the credit market makes it difficult to borrow money after august 2nd. take a walk with me. i want to look at what exactly is proposed here. we have two different plans, two different bills on the table. one from democratic leader, senate majority leader harry reid, speaker of the house boehner there. here we go. first up, as we mentioned before, look, they definitely have similarities. first of all, both of them would cut spending. also neither plan would raise taxes. but there is one really huge difference we need to highlight. the reid plan would raise the debt ceiling beyond next year s presidential election, but the boehner plan here would raise the debt
for post august 2nd if no plan is agreed to. if the treasury couldn t meet its obligations, a bill being circulated would prioritize payments, social security checks and paychecks for troops. everything else would be covered if possible with cash on hand or put off until we can take on more debt. two main default avoidance plans remain on the table right now. speaker boehner s plan would raise the debt ceiling twice, this year and next, with spending cuts now and an election year overhaul of the tax code and entitlements. in the senate, majority leader reid is pushing $2.7 trillion in spending cuts with a $2.4 trillion hike in the debt ceiling. reid s plan would not include tax increases, nor touch entitlements, nor require any follow-up votes in 2012. all right. i m going to stop talking right now because we want to hear from you today. you have heard the speeches, the pitches, the accusations, denials and doomsday predictions. what do you make of it all? we sent cameras to
i m christine romans. house speaker john boehner says no way to the president s plan. he has another solution and it s simply says, spend less. i m ali velshi. congressional websites crash. what president obama said that had a number of websites going off-line. details coming up on this american morning. thanks for being with us. tuesday, july 26th. welcome to american morning. we all stayed up later than usual last night to get a chance to hear from the president about this debt ceiling showdown as well as from the house speaker. and still divided this morning. they are still divided with different plans, different ideas how to get us out of the mess. didn t you both think maybe they got something, something happened. i didn t think there was a deal. i m always the optimist. lots of ideas, plans, but no agreement. start there with the debt crisis looming, president obama, house speaker john boehner took their cases for getting a deal done directly to the
the country will not have enough money to pay all of its bills. tough decision also have to be made. the stakes right now are enormous. the president will lay out his case within a minute or so. two minutes after the president features finishes what s expected to be about a 15-minute speech to the nation, two minutes after that, we ll hear a separate speech from the house speakeren. boehner. he s up on capitol hill. he ll make his case why the president right now is wrong. why the republicans are right. both of them presumably will say the stakes for the united states are enormous right now and the country must do everything possible. everything possible to avoid default. they ve been negotiating publicly and privately now for weeks and weeks and weeks. and unfortunately, for the country and indeed, for much of the world, unfortunately, the negotiations collapsed over the past few days. still possible, they might be able to work out a deal. the stakes are enormous and you