Republican bill passes, opening path to debt deal | Reuters

Republican bill passes, opening path to debt deal | Reuters: "With time running short ahead of a Tuesday deadline to raise the debt ceiling, the Republican-controlled House pushed the deficit-cutting plan through by a vote of 218-to-210 after the party's leaders reworked the bill to appease anti-tax conservatives in their ranks.

The legislation, denounced earlier by President Barack Obama who had admonished lawmakers to stop wasting time and find a way 'out of this mess,' was doomed to defeat in the Democratic-led Senate where all of Obama's Democrats have vowed to vote against it later on Friday.

But the House vote broke weeks of political inertia and opened the door to talks on a compromise that could pass Congress before Tuesday. That is the deadline to lift the $14.3 trillion U.S. debt limit or else render the world's largest economy unable to pay all of its bills.

Delays and procedural hurdles will now make it all but impossible for Congress to strike a deal and send it to Obama's desk until the 11th hour, injecting a dangerous level of uncertainty into already rattled global financial markets. A late deal also raises the prospect of the United States losing its top-notch AAA credit rating."

Debt Ceiling Talks Collapse (LATEST UPDATES)

Debt Ceiling Talks Collapse (LATEST UPDATES): "Precariously short of time, congressional leaders struggled in urgent, weekend-long talks to avert an unprecedented government default, desperate to show enough progress to head off a plunge in stock prices when Asian markets open ahead of the U.S. workweek.

President Barack Obama met Saturday with Republican and Democratic leaders — but only briefly— the day after House Speaker John Boehner abruptly broke off his own once-promising compromise talks with the White House.

[Read HuffPost's inside report on the collapse.]

But congressional aides labored to produce at least a framework agreement to raise the nation's debt limit by Monday, congressional officials said. Even that would allow scarcely enough time for the House and Senate to clear legislation in time for Obama's signature by the Aug. 2 deadline, a week from Tuesday.

Check back here for the latest developments."

Tea Party To Republicans: 'Hold The Line' Against Debt Ceiling Deal, Bring Back 'Cut, Cap And Balance' (PHOTOS)

Tea Party To Republicans: 'Hold The Line' Against Debt Ceiling Deal, Bring Back 'Cut, Cap And Balance' (PHOTOS): "WASHINGTON -- In the midst of tense negotiations over the nation's debt ceiling, an all-star cast of Republican lawmakers addressed a Tea Party rally held adjacent to the Capitol on Wednesday afternoon, calling for GOP leaders to 'hold the line' against plans without a balanced budget amendment.

The rally, organized by the Tea Party Express and American Grassroots Coalition and attended by roughly 75 supports and press, featured GOP Reps. Louie Gohmert (R-Texas) and Joe Walsh (R-Ill.), as well as Sens. Jim DeMint (R-S.C.), Rand Paul (R-Ky.) and Mike Lee (R-Utah).

Their message to the Republican leadership: bring back Cut, Cap and Balance, a House-passed bill to raise the debt ceiling that failed in the Senate earlier this month. As lawmakers struggle to find a deal to increase the debt limit before the Aug. 2 deadline, Tea Partiers have stuck to Cut, Cap and Balance, which has major spending cuts and a balanced budget amendment, as the ideal path forward."

John McCain unloads on the tea party | The Ticket - Yahoo! News

John McCain unloads on the tea party | The Ticket - Yahoo! News: "'The idea seems to be that if the House GOP refuses to raise the debt ceiling, a default crisis or gradual government shutdown will ensue, and the public will turn en masse against . . . . Barack Obama,' McCain said, quoting the Journal article. 'The Republican House that failed to raise the debt ceiling would somehow escape all blame. Then Democrats would have no choice but to pass a balanced-budget amendment and reform entitlements, and the tea-party Hobbits could return to Middle Earth having defeated Mordor.'
'This is the kind of crack political thinking that turned Sharron Angle and Christine O'Donnell into GOP Senate nominees,' McCain added, still reading from the article."

Tea Party Coalition Rejects Boehner's Debt Proposal (UPDATE)

Tea Party Coalition Rejects Boehner's Debt Proposal (UPDATE): "UPDATE: 4:10 p.m. -- A coalition of Tea Party chapters and conservative lawmakers on Monday rejected the debt proposal put forward by Speaker John Boehner (R-Ohio), despite his efforts to sweeten the deal with provisions favored by his conservative base.

The Cut, Cap, Balance Coalition, which boasts hundreds of Tea Party groups and more than 100 GOP lawmakers in its membership, is citing two provisions in Boehner's proposal that amount to deal-breakers: its call for creating a Congressional Commission and its inclusion of a balanced budget amendment that, according to the group, is only for show.

'A symbolic vote on a balanced budget amendment at some later time minimizes its importance, as it will not be tied to an increase in the debt ceiling,' reads a statement from the coalition. 'A BBA that allows a tax increase with anything less than a 2/3 supermajority is not a serious measure.'"

Rep. David Wu accused of unwanted sexual encounter | The Ticket - Yahoo! News

Rep. David Wu accused of unwanted sexual encounter | The Ticket - Yahoo! News: "A young woman this spring accused Rep. David Wu (D-Ore.) of an aggressive and unwanted sexual encounter, the Oregonian reported Friday. House leadership this weekend called for an ethics investigation into the embattled congressman's latest scandal.
The married congressman, who admitted in February to receiving mental health treatment after reports of bizarre behavior, confirmed to staff that he had a sexual encounter with the daughter of a friend who is a longtime donor. Wu insisted, however, that the encounter was consensual."

David Wu Likely To Speak With Congressional Leaders About Sexual Allegation Report

David Wu Likely To Speak With Congressional Leaders About Sexual Allegation Report: "PORTLAND, Ore. — Congressman David Wu, who earlier this year apologized for bizarre behavior during his most recent re-election campaign, was facing calls for his resignation on Saturday over yet another crisis – a young woman's reported accusation that she had an 'unwanted sexual encounter' with the Democrat three weeks after his election victory in November.

Wu's spokesman, Erik Dorey, said the seven-term Democrat had a telephone conversation on Saturday with House Democratic Leader Nancy Pelosi about the allegation, which was first reported by The Oregonian newspaper. Dorey would not comment on the substance of the conversation

An aide to Pelosi declined Saturday to comment on Wu."

Debt Ceiling Crisis Threatens State Budgets, Credit Ratings, Governors Furious

Debt Ceiling Crisis Threatens State Budgets, Credit Ratings, Governors Furious: "ANNAPOLIS, Md. -- Virginia's governor is livid that his famously tight-fisted state could face higher borrowing costs to build roads and schools. Maryland has put off a $718 million bond sale for three days because of the current financial uncertainty. And California plans to borrow about $5 billion from private investors next week to ensure it can cover day-to-day operating expenses should the federal government default on its debt.

As President Barack Obama and congressional leaders struggle to reach a debt-limit deal, state government leaders are bracing for the impact on their budgets and economies of a threatened Aug. 2 federal government default"