President Obama not giving up on big debt deal - Atlanta Journal Constitution

By LAURIE KELLMAN

The Associated Press

WASHINGTON — President Barack Obama hasn't given up on getting congressional leaders to accept a $4 trillion debt reduction deal that Republicans have rejected for its tax increases and Democrats dislike for its cuts to programs for seniors and the poor, administration officials said hours before talks resumed Sunday.

President Barack Obama crosses the South Lawn of the White House in Washington to board Marine One Saturday, July 9, 2011. Obama is headed to Camp David, the Presidential retreat in Catoctin Mountains. (AP Photo/Carolyn Kaster)
In this photo provided by CBS News, U.S. Treasury Secretary Timothy Geithner talks about the debt crisis on CBS's "Face the Nation" in Washington Sunday, July 10, 2011. Geithner said Sunday that the Obama administration wants to seek "the biggest deal possible" on debt reduction. His comments followed word from GOP congressional leaders Sunday that the White House's $4 trillion package was off the table. (AP Photo/CBS News, Chris Usher)
FILE - In this July 7, 2011, file photo President Barack Obama and House Speaker John Boehner of Ohio meet with Congressional leadership in the Cabinet Room of the White House in Washington to discuss the debt. A debt-busting deal on the scale that Obama and Boehner are seeking all but guarantees Medicare beneficiaries would feel part of the pain. Some working-age people and their families could also be on the hook, if the deal ultimately curtails the tax break for employer-provided health insurance. (AP Photo/Pablo Martinez Monsivais, File)
In this photo provided by CBS News, U.S. Treasury Secretary Timothy Geithner talks about the debt crisis on CBS's "Face the Nation" in Washington Sunday, July 10, 2011. Geithner said Sunday that the Obama administration wants to seek "the biggest deal possible" on debt reduction. His comments followed word from GOP congressional leaders Sunday that the White House's $4 trillion package was off the table. (AP Photo/CBS News, Chris Usher)

"He's not someone to walk away from a tough fight," presidential chief of staff William Daley said. "Everyone agrees that a number around $4 trillion is the number that will ... make a serious dent in our deficit."

But House and Senate Republican leaders now say the largest of three proposals under consideration would not pass the GOP-led House because of its tax increases, an abrupt shift in negotiation over the terms of raising the nation's debt ceiling before an Aug. 2 deadline.

House Speaker John Boehner, R-Ohio, announced late Saturday that he was rejecting that proposal. Heading into the talks at 6 p.m. EDT, the top Senate Republican, Mitch McConnell of Kentucky, suggested the deal was dead.

"I think it is," McConnell said. Raising taxes amid 9.2 percent unemployment, he added, "is a terrible idea. It's a job killer."

The back-and-forth on the Sunday morning talk shows came hours before Obama and eight lawmakers of both parties were to convene at the White House over a plan to raise the nation's borrowing capacity from $14.3 trillion before next month's deadline, when administration officials say the nation would default on its debts.

Republicans have demanded that any plan to raise the borrowing limit be coupled with massive spending cuts to lighten the burden of government on the struggling economy. Higher taxes, Republicans have said from the start, are deal-killers if not offset elsewhere.

But Obama has a long way to go to satisfy lawmakers in his own party, too. Many Democrats are unnerved by the president's $4 trillion proposal because of its changes to Medicare and Medicaid.

Political pain is part of the deal, too, and should be worth bearing, Daley said, adding that Obama was calling on lawmakers to "step up and be leaders."

He cast Obama as uninterested, for now, in two more modest proposals to raise the debt limit for a shorter time, in exchange for smaller spending cuts. But Daley and Treasury Secretary Timothy Geithner used rhetoric that appeared to acknowledge the prospects for the $4 trillion deal could be in doubt.

"We're going to try to get the biggest deal possible," Geithner said.

He cautioned that a package about half the size of the one Obama prefers would be equally tough to negotiate because it, too, could require hundreds of billions in new tax revenue.

Expectations for Sunday's meeting took an abrupt turn after Boehner informed Obama that a package of about $2 trillion identified but not agreed to by bipartisan negotiators was more realistic.

In a statement, Boehner said: "Despite good-faith efforts to find common ground, the White House will not pursue a bigger debt reduction agreement without tax hikes."

A bipartisan group of lawmakers led by Vice President Joe Biden had already identified, but not signed off on, about $2 trillion in deficit reductions, most accomplished through spending cuts.

"I believe the best approach may be to focus on producing a smaller measure, based on the cuts identified in the Biden-led negotiations, that still meets our call for spending reforms and cuts greater than the amount of any debt limit increase," Boehner said.

After holding a secret meeting with Boehner last weekend, Obama and aides said they believed an even bigger figure was attainable if both parties made politically painful, but potentially historic, choices.

A Republican official familiar with the discussions said taxes and the major health and retirement entitlement programs continued to be sticking points.

Obama wanted Republicans to accept closing some corporate tax loopholes and subsidies to corporations, ending a tax friendly inventory accounting system for businesses, as well as reducing the value of tax deductions for wealthy taxpayers.

A senior administration official said the discussion on taxes broke down over the administration's desire to have the wealthy pick up a bigger share of the tax revenue load than Republicans were willing to accept.

The official, speaking on the condition of anonymity because of the sensitivity of the negotiations, said the $2 trillion to $2.4 trillion in deficit reduction identified by the Biden-led negotiations remains under negotiation and will also require some new tax revenue of up to $400 billion.

Daley was on ABC's "This Week," McConnell appeared on "Fox News Sunday" and Geithner was interviewed on NBC's "Meet the Press" and CBS' "Face the Nation."

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Associated Press writer Jim Kuhnhenn contributed to this report.

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July 10, 2011 12:11 PM EDT

Copyright 2011, The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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'World News' Political Insights: President Obama Faces Democratic Angst - ABC News

In a lame-duck session that will be anything but lame, the ties that bind the Democratic Party will be tested anew.

The week's big focus will be on the bipartisan summit to be held Tuesday at the White House -- a key indicator of how the president plans to govern under the new reality imposed by voters in the midterm elections.

But it's President Obama's relationship with his own party in its waning weeks of total control of Washington that still will determine a range of policy outcomes. Moves to the right in the coming weeks will be viewed with skepticism on the left, as Democrats still must guard against a revolt inside their ranks in their final weeks in control of the House.

Before a new House majority takes power, Congress convenes for a final burst of legislating with a crowded agenda that includes expiring tax cuts and unemployment benefits; a push to repeal the military's "don't ask, don't tell" policy; and attempted ratification of a key nuclear weapons treaty with Russia.

In the middle lands the report of the president's deficit commission, the recommendations of which appear likely to provide a stark choice for a president who's seeking new footing.

The co-chairmen's initial recommendations were denounced by those on both sides of the aisle. Particular vitriol emanated by leading Democrats, with House Speaker Nancy Pelosi pronouncing the draft proposal "simply unacceptable."

The president has stayed mostly mum so far on the commission report. While he'll come under pressure to embrace its broad principles, Democrats will balk if he's seen as backing cuts to favored programs such as Social Security.

"Simply unacceptable" is also an apt summation of many leading Democrats' stance toward the likeliest emerging compromises on the expiring Bush tax cuts.

Top House Democrats continue to insist that the tax cuts for upper-income earners be allowed to expire. Republicans and some moderate Democrats want all the tax cuts extended; Obama has vowed repeatedly to allow them to lapse for couples making more than $250,000 a year.

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After mine rescue, Chilean president heads to England - CNN International

Chilean President Sebastian Pinera -- speaking on October 13 after the miner's release -- is due to arrive in the UK on Saturday.Sebastian Pinera will meet with British Prime Minister CameronThe trip comes after Pinera led efforts to rescue 33 trapped minersPinera and Cameron spokes earlier in the week

London, England (CNN) -- Sporting a burnished image after the rescue of 33 trapped miners, Chilean President Sebastian Pinera is arriving in England on Saturday.

He is scheduled to meet with British Prime Minister David Cameron on Monday.

Cameron spoke with Pinera earlier in the week after all 33 miners were successfully hoisted to safety, a spokesman for the prime minister said. He told Pinera that the rescue effort had demonstrated tremendous skill.

Pinera had vowed to be at the San Jose mine in northern Chile until all of the miners were out. True to his word, he greeted each miner with a hug as they stepped out from the rescue capsules to fresh air for the first time.

Pinera called the rescue a "magical day" for Chile, one that fueled patriotic fervor as the entire world cast its eyes on the South American nation.

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President Obama Shares His Hopes And Fears After MTV Town Hall - MTV.com

During "A Conversation With President Obama" on Thursday (October 14), the nation's leader addressed a range of concerns, directly from the country's young people. He elaborated on his administration's plans to curb illegal immigration while streamlining the process of entering the country legally. He discussed plans to improve resources for teachers and keep guns out the hands of kids. And while he addressed viewers' apprehensions about the future of the United States during the broadcast — thanks to their #mygreatesthope and #mygreatestfear tweets — he also divulged his personal hopes and fears after the show.

For a politician saddled with responsibilities of unparalleled gravity, President Obama told forum attendees he is concerned about the level of political engagement of America's youth. After personally greeting audience members, Obama took the mic one last time before heading out and urged everyone in the room to vote, maintaining that the efforts of enthusiastic citizens will drive change.

"Regardless of who you vote for, regardless if you found anything I said persuasive, I need you to vote on November 2," he insisted. "One of the things that happened in the last election is that young people got involved in ways that they had never gotten involved in before and that has to sustain itself, that has to maintain itself. Because the only way we're gonna solve these problems is if everyone is seriously engaged."

Then Obama, who won his historic 2008 presidential campaign on the tenets of hope and change, quipped, "Nobody [today] asked me what gave me hope," and explained what still inspires him.

"What gives me hope is all of you," he said. "What makes me afraid is the possibility that because these problems are hard, because it takes time to solve energy or education or build a good infrastructure or deal with immigration, because these are big complicated issues, that people get discouraged when they don't get solved right away."

The president reminded the attendees that change is often realized through long-term commitment to reaching a specific goal.

"This is a process. It's always been that way, and that's how we've overcome challenges in the past," he continued. "I have no doubt that America will remain the best, greatest country on earth as long as all of you are a part of building it. As long as you keep your eye on the prize and recognize that a change doesn't happen just because of one election, it doesn't happen just because you wish it, it happens because of hard work and sustained persistence and involvement."

The leader of the free world added that, ultimately, making a difference is not just in the hands of politicians, but also the work of dedicated citizens.

"I hope that all of you stay inspired," he said. "Don't just look to some elected official for that inspiration. Look to each other, look to yourselves."

What do you think about President Obama's hopes and fears? Let us know your thoughts in the comments below.

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Vargas Llosa: The Power of the Man Who Didn't Become Peru's President - TIME

Peruvian writer Mario Vargas Llosa, winner of the 2010 Nobel prize for literature.

The love-hate relationship between Peruvian President Alan Garcia and Mario Vargas Llosa, the newly minted winner of the Nobel Prize for literature, is definitely in the love column right now. Garcia gushed with joy early today, when news of Vargas Llosa's win began spreading through Peru. "It is a great day for Peru and an enormous act of justice for Mario Vargas Llosa," he said.

But just a month ago, the president probably had different words for Vargas Llosa. The novelist had resigned as head of a special committee to build a Memory Museum that would recall the horrors of the state's 20-year war against two brutal, Marxist insurgencies, the Shining Path and Tupac Amaru Revolutionary Movement (MRTA). Vargas Llosa abruptly quit after Garcia's government passed legislation redefining how crimes against humanity would be tried in Peru. The law would have basically closed the books on the most heinous crimes committed by members of the security forces in the 1980s and 1990s. Among those benefiting would have been Garcia and his Vice President Luis Giampietri. Garcia was President in 1986 when he ordered Giampietri, then in charge of naval special operations, to put down a prison riot, resulting in the deaths of more than 300 Shining Path inmates. (In 2000, the Inter-American Court ruled that the prison action by Garcia's government had violated the American Convention on Human Rights.) (See Radhika Jones on Vargas Llosa's Nobel victory.)

In his resignation letter, Vargas Llosa called the law a thinly veiled amnesty and said it was unacceptable in a modern democracy. The author's move embarrassed the government, which then asked Congress to repeal the law, which occured on Sept. 14, with only Giampetri voting against the repeal. The defense minister who wrote the law also resigned. It was not the first time Vargas Llosa was put in charge of a politically charged human rights effort. He headed the government commission that investigated in the 1983 murders of eight journalists in Uchuraccay, Ayacucho.

It was also not the first time Vargas Llosa knocked heads with Garcia. In the 1980s (during Garcia's term as head of state from 1985 to 1990), the author took to a break from literature to fight against the President's decision to nationalize the country's banks. After forming a political party, Fredemo, Vargas Llosa was widely expected to win the presidency in 1990. He lost, instead, to an unknown math teacher, Alberto Fujimori, who went on to infamy, first, because of his brutal battle with the Shining Path and, later, as he unsuccessfully fled Peruvian justice and ended in prison. (See the top 10 failed celebrity political campaigns.)

The author went on to become a fierce critic of the Fujimori regime, which ruled Peru for a decade, especially after the govenrment decided in 1992 to shut down Congress. He was a lone voice for years, but his opposition was vindicated when Fujimori's regime collapsed under a massive corruption scandal. Many other illegal activities were also revealed, including the organization of the Grupo Colina, a paramilitary death squad. Fujimori is serving a 25-year prison sentence for being the "intellectual author" of the squad.

Peruvians have long believed that Vargas Llosa was passed over annually by the Nobel committee because of his political views. "Mario would have won years ago if he kept his political opinions quiet. His outspokenness was difficult for some to accept," says Genaro Delgado Parker, a prominent local journalist. (See how Nobel Prize winners spend their prize money.)

In 2006, Vargas Llosa and Garcia publicly reconciled their differences after Garcia returned to the presidency, this time as a free-market, economic liberal. Since the author's resignation, the Peruvian President has downplayed the rift over the museum, saying that he picked Vargas Llosa because of his "universal objectivity." Garcia announced earlier this week that a friend of Vargas Llosa friend, the painter Fernando de Syzlo, would head the Memory Museum. He has asked Vargas Llosa to reconsider his resignation from the committee.

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Obama's new chief of staff helped make him president - USA Today

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Ecuador attempted coup: president vows to punish rebels - The Guardian

President Rafael Correa was trapped inside a hospital during a police revolt over austerity measures. South American leaders met to condemn the rebellion Link to this video

The Ecuadorean president, Rafael Correa, has vowed to punish protesters who rebelled against his leadership, saying there would be "no forgiving nor forgetting" for those who plunged the country into anarchy.

Addressing cheering crowds from the balcony of the Carondelet Palace after being rescued from a besieged hospital in the capital, Correa said the uprising was not a simple police insurrection over pay-related grievances but an attempt to overthrow him.

"Those people made the institution look so bad that they attacked their co-citizens, that they abused the weapons given to them by the society to which they belong, that they dishonoured the police uniform. Of course, all the people who can be identified will have the corresponding sanction. There will be no forgiving nor forgetting."

Earlier today soldiers stormed the hospital with automatic gunfire and stun grenades in a battle which left at least two dead and dozens injured, and enabled Correa's swift and triumphant return to the presidential palace.

Emotional and euphoric, Correa told supporters he would make an example of those responsible.

"What loyalty, what support," he shouted to loud applause. "This will serve as an example for those who want to stop the revolution not through the ballot box but with weapons."

The rescue was the climax to a dramatic day in which a police revolt over austerity measures spiralled out of control, leaving airports and motorways blocked, borders sealed, the president assaulted and businesses looted.

The Ecuadorean police chief, Freddy Martinez, resigned this afternoon after failing to stop the rebellion, a spokesman for the force told Reuters.

The protests were triggered by a law passed by Congress on Wednesday that would end the practice of giving medals and bonuses with each promotion, part of Correa's effort to save costs and slim bureaucracy.

Ecuador is one of South America's most volatile countries, with a tradition of protests, but nobody expected to see scores of uniformed men overrunning the main airport of the capital, Quito, forcing its closure and the declaration of a state of emergency.

It was just the beginning. Hundreds of rank and file soldiers and police took over barracks in Quito, Guayaquil and other cities. They also set up roadblocks of burning tyres and occupied Congress, shouting "respect our rights!" and "long civil war!".

Smoke wafted over Quito and sporadic looting left several banks and supermarkets ransacked. A state TV channel showed police trying to enter its studio. The channel said the police shattered windows and tried to cut the power supply.

Correa, a 47-year-old economist with a firebrand style, went to a regimental barracks to try to negotiate with protesters but was surrounded, punched, doused with hot water and almost blinded with teargas.

A government helicopter tried to evacuate him but was unable to land. The president was spirited to a hospital but police rebels laid siege.

"This is a coup attempt," Correa told state-run TV. "They're trying to get into my room, maybe to attack me. I don't know. But, forget it. I won't relent. They are a bunch of ungrateful bandits. No one has supported the police as much as this government."

Civilian crowds loyal to the president confronted police, prompting Correa to address the throng from his hospital window: "If they want me, here I am," he shouted and ripped his tie loose. "I leave here as president or they take me out as a corpse."

The foreign minister, Ricardo Patino, led another pro-government crowd to the Carondelet Palace, the president's home.

Latin American leaders from across the political spectrum united in support of Correa, as did the US and the UN secretary general, Ban Ki-moon. Colombia and Peru sealed their borders in solidarity with the embattled president. The Opec nation's turmoil pushed global oil prices to nearly $80 (£50) a barrel.

Loyalist army units broke the siege in a 35-minute gun battle that left at least two police dead, according to the Red Cross. One report said the president was smuggled out of the hospital in a wheelchair under cover of darkness as gunfire blazed. A four-wheel-drive vehicle rushed him to the palace. At least 74 people were reported injured during the day's clashes.

Venezuela's president, Hugo Chávez, backed his ally's contention that the unrest was a coup attempt. Doris Solis, an Ecuadorean cabinet minister, disagreed. "This is not a coup," she told CNN.

The head of the armed forces, Ernesto Gonzalez, said troops remained loyal to Correa. "We are in a state of law. We are loyal to the maximum authority, which is the president."

Even before the protests, the government's proposed austerity measures had triggered a political crisis and revolt by the president's own party, the Country Alliance. Correa threatened to dissolve parliament and rule by decree until elections.

Correa, who has a Belgian wife, was elected in 2006 promising a "citizens' revolution" to spread the benefits of oil, gas and other revenues to the poor in the Andean mountains, Amazon forests and Pacific coast slums. He defaulted on a $2.8bn debt, calling it illegitimate, and boosted spending on education and health.

He was re-elected under the new constitution last year but since then public sector workers and indigenous groups, among others, have accused him of breaking promises.

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Ecuador's president, claiming coup attempt, 'won't relent' - CNN International

NEW: The government declares a state of emergencyThe president was led away in a gas mask after police lobbed tear gas at him"This is treason to the country," says President Rafael CorreaProtesting police say the government canceled bonuses and promotions
(CNN) -- Ecuador teetered on the verge of a government collapse Thursday, as national police took to the streets of Quito, the capital, and attacked the president over what police say was the cancellation of bonuses and promotions.
The government declared a one-week state of emergency Thursday afternoon and put the military in charge of security.
"This is a coup attempt," President Rafael Correa said in a TV interview a couple of hours after police lobbed tear gas at him.
Correa, who was forced to flee to a nearby hospital, said police were trying to get at him.
"They're trying to get into my room, maybe to attack me. I don't know," he said in a telephone interview with state-run Ecuador TV. "But, forget it. I won't relent. If something happens to me, remember my infinite love for my country, and to my family I say that I will love them anywhere I end up."
A video by CNN affiliate Ecuavisa later showed a defiant Correa standing at an upper floor window, shouting to a crowd of supporters, "If they want me, here I am," and then rapidly ripping his necktie loose
A broadcast by Ecuador TV showed mobs on the streets and clouds of black smoke coming from burning tires and garbage. Sporadic looting was reported.
Correa had taken to the streets to try to negotiate with police but was soon surrounded and jostled by a crowd and forced to flee after someone fired a tear gas canister at him. Some of those shoving him were police officers in full gear.
Video from CNN affiliate Teleamazonas shows a man in a tan suit punching Correa and trying to yank a gas mask off the president's face.
The broadcast then shows a hunched-over Correa being led away, his face still covered by the gas mask. Correa, who recently underwent knee surgery, leaned on a crutch with his left arm.
A news photograph later showed him lying on a stretcher.
A government helicopter had tried to evacuate him but was unable to land.
He went on the air from a hospital a couple of hours later to denounce what he called a cowardly attack.
"They fired gas on us -- on the president of the republic," Correa said in a telephone interview with Ecuador TV. "This is treason to the country, treason to their president."
Foreign Minister Ricardo Patino led a large and boisterous pro-government rally at the Carondelet Palace, the president's home. He urged the crowd to take to the streets to peacefully "reject this coup" and "to rescue our president."
Said Patino, "We are not afraid of anyone."
Analysts pointed to the government's precariousness.
"This is the most serious protest that the government of Rafael Correa has faced," analyst Eduardo Gamarra told CNN en Espa?ol.
Rank-and-file police took over their agency's headquarters, Ecuador TV said.
There also were reports that the military had taken control of their bases and the airport.
Most of the military remained neutral, though there were reports that some rebellious units seemed to side with the police uprising.
Ecuador has nearly 58,000 members in its military and 33,000 in the national police force, according to Jane's Intelligence Review.
The military, Jane's said, is undergoing a professionalism transformation designed to give it greater flexibility.
The National Civil Police, meanwhile, is the nation's major law enforcement organization.
Government officials tried to quell the rebellion, insisting that the security forces had been misinformed and warning that the nation's democracy was in danger.
"I want to tell the country there has been an attempt at a coup," said Gabriel Rivera of the Country Accord Party.
"This is a Machiavellian plan organized by sectors of the right," Rivera said on Ecuador TV.
Miguel Carvajal, the minister for interior security, said there was no threat to salaries or benefits. He blamed the reports of the benefit cuts on a massive disinformation campaign.
"He who says that is lying," Carvajal said.
"We call on the citizens. We call on the armed forces. We call on other governments to defend our democratic institutions," he said.
A police spokesman went on the air on Teleamazonas to dispute the government's allegations, saying that the security forces were in fact supporting Correa.
"Fellow officers who hear me nationally, stop this action," said the spokesman, identified only as Sgt. Mejia. "Don't close the streets. Return to the streets to work."
The disturbances occurred as Correa threatened to dissolve the national assembly over a dispute about several laws, including public service and education.
Angry police said they were overworked and underpaid.
"We work 14 hours a day," a uniformed officer said on Ecuador TV. "We are the ones who never protest."
Said another: "One hour without police. Let's see what happens."
Diego Borja, director of the central bank, went on the air to urge calm and for people to take care.
"The police are not protecting the people. They are protesting," he said. "There could be problems."
He also sought to prevent a run on deposits.
"The money is safe," he said. "But be careful if making large withdrawals."
Peru closed its border with Ecuador, and messages of support for Correa came from the governments of Argentina and Venezuela.CNN's Rafael Romo contributed to this report.
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