Obama, GOP back to where they started: The debt ceiling

It started with a simple objective: Raise the $14.3 trillion debt ceiling.
Then the Republicans began demanding big budget cuts in exchange for increasing the debt ceiling.
Then the Democrats began demanding higher taxes for wealthy in order to close the debt down the line.
Now -- given bleak prospects for a big deal involving all those elements, the so-called "grand bargain" -- President Obama and the Republicans are back to where the started, trying to put together a new deal to raise the debt ceiling.
Except that now they're even closer to a government default on its existing debts.
Obama and congressional leaders try again this afternoon at the White House, just hours after Obama conducts a news conference to make his case for a "balanced plan" that includes both budget cuts and ending certain tax breaks and loopholes. The president is advocating a package to cut the debt by $4 trillion over the next 10 years.
Treasury Secretary Timothy Geithner went on the Sunday shows to remind people that the government will have trouble paying its bills after Aug. 2 without a debt ceiling increase.
"The longer we go into July, the more risk there will be in financial markets, more concern there is that America cannot get its act together to figure out how to solve this problem," Geithner said on NBC's Meet The Press. "And you'll see that reflected in higher interest rates and more concerned loss of confidence."Geithner added:
Let me explain what happens on August 2nd. On August 2nd, at that point, we run out of the ability to borrow to meet our obligations. Remember, we have to borrow now 40 cents for every dollar we spend.

Now, on August 2nd, if Congress hasn't acted, we're left with the cash we have and the cash we're going to take in. And every week, starting the week of August 2nd, we have to go out and finance roughly $100 billion in maturing obligations of the government.
We make 80 million checks a month to Americans, 55 million people on Social Security benefits and millions more Americans of veteran's benefits, Medicare/Medicaid, people who supply our troops in combat, 80 million checks a month.
So, on August 2nd, we're left with cash on hand and the cash we take in. And we have to convince people to come and refinance $500 billion in maturing principal payments that come due in August.

Republicans say they are willing to raise the debt ceiling, but only in exchange for corresponding budget cuts -- and no tax increases, saying they would hurt job growth.
House Speaker John Boehner told Obama over the weekend that his caucus would not support a $4 trillion package that includes higher taxes. Boehner proposed going back to a smaller deal, some $2 trillion or so in cuts, developed during meetings led by Vice President Joe Biden.
After last night's White House meeting, Boehner's office sent over the following the statement:

"The Speaker told the group that he believes a package based on the work of the Biden group is the most viable option at this time for moving forward.
The Speaker restated the fundamental principles that must be met for any increase in the debt limit: spending cuts and reforms that are greater than the amount of the increase, restraints on future spending, and no tax hikes.
The President agreed with the Speaker that their previous talks did not produce any agreement. The group agreed to continue talks in the coming week."