Connect with us

Published

on

Democratic and Republican leaders on Capitol Hill are starting to temper expectations among their members about what a final debt ceiling deal could look like, becoming more explicit in acknowledging that neither side will get everything it wants.

When asked Monday whether any ultimate deal to cut spending as a condition of raising the debt ceiling will lose votes on both the left and right ideological edges of the parties, Speaker Kevin McCarthy (R-Calif.) indicated that it would.

“Did you ever think at the end of the day that when you get into a negotiation with both sides that only one side is gonna carry everything? No, no one thinks that,” McCarthy said.

That same day, House Minority Leader Hakeem Jeffries (D-N.Y.) said he was willing to consider a White House offer to freeze spending at current levels — a stance that is drawing ire from liberals.

Though Republicans flatly rejected that offer, it shows just how far the White House has moved in discussions with Republicans in a matter of weeks as pressure mounts to secure a deal.

“Any proposal that potentially offers to freeze spending is not a proposal that has been put into the public domain by the left flank,” Jeffries told reporters Monday. “That’s an inherently reasonable effort to find common ground in a divided government situation.”

Politics watchers had long expected the eventual deal to lift the debt ceiling to fall somewhere between what the two parties are demanding, but McCarthy’s and Jeffries’s statements are their clearest signals yet that their members should prepare for a compromise that jettisons some party priorities.

The tempering on both sides comes as negotiators say they are having productive meetings but remain apart on key issues ahead of a default that the Treasury Department says could come as soon as June 1.

Even with Democratic support, any deal that McCarthy makes will have to win support from a large majority of the House Republicans in order for him to keep the confidence of his conference — and his gavel.

“[McCarthy] knows that to get this passed out of the House, it’s gonna require a conservative work product that fundamentally changes how we spend money in this country,” Rep. Dusty Johnson (R-S.D.) said. “I believe that he’ll deliver that. I believe we’ll have the sort of overwhelming majority of the conference.”

Right-wingers lined up to support the Speaker to pass a bill that paired a $1.5 trillion debt ceiling increase with around $4.8 trillion in deficit reductions over a decade. The measure was designed to get President Biden to the negotiating table, but members of the hard-line House Freedom Caucus are pushing the Speaker to “use every leverage and tool at their disposal” to force the Senate to vote on the proposal or offer a countermeasure. 

Some members have said they see the deal as a floor, rather than a ceiling, for what they expect in a final product.

“I’ll look at anything,” Rep. Ralph Norman (R-S.C.) said about a potential deal. But he said many Republicans feel that the House GOP debt bill was “meager at best,” and that he would want “four times the cuts.”

“I don’t know why we’re negotiating. The House has done its job. The Senate needs to pass the bill,” said Rep. Bob Good (R-Va.), adding that the only position being pushed by members in a Tuesday morning conference meeting was to pass the House GOP bill.

McCarthy spoke to that stance when asked Tuesday if he is preparing his conference to accept something less than the House GOP bill, responding that the real question is “what’s the Senate willing to accept, because they didn’t do anything.” 

Yet he has laid out only a few red lines for a compromise: no tax increases, cut discretionary spending below current levels and no clean debt ceiling increase. 

The red lines are around major issues, to be sure, but fall short of the full GOP wish list.

Johnson said it is too early to worry about how Republicans are going to whip the votes for a debt limit compromise. And others are downplaying the difficulty of doing so, with Rep. Tom Cole (R-Okla.), chair of the House Rules Committee, saying leadership will be able to secure that large majority with “a great whip team, which we have, and I think the sense that we’re being successful.”

At the same time, Democratic leaders are also feeling pressure from their left flank, as liberals roundly reject negotiations with Republicans over the debt limit. 

Speaking about the White House proposal to freeze spending, Rep. Ilhan Omar (D-Minn.) said she could not in “good faith understand how that is a reasonable offer at the moment.”

“I think the offer should raise the debt ceiling. We have conversations about the budget later,” she said, adding, “If Democrats don’t get serious about the extremists that they’re dealing with, we are going to risk allowing these people to destroy our economy and the global economy.”

The warning from Omar adds to some of the growing uneasiness among progressives in recent weeks over the potential concessions the White House may end up making in order to find compromise with GOP leadership. 

“Look at what is being proposed in terms of cuts,” Rep. Rosa DeLauro (Conn.), top Democrat on the House Appropriations Committee, told reporters earlier this week. “Don’t talk about spending in the abstract. Headstart, 200,000 kids, no slots. 100,000 kids without child care.”

However, DeLauro didn’t rule out spending cuts entirely in comments to reporters, as many members on both sides have refrained from drawing red lines in debt limit negotiations. 

Others in the party also aren’t thrilled by the direction talks have gone, but there is an understanding that the final compromise between the White House and a divided Congress won’t include everything both sides have pushed for.  Arnold Schwarzenegger hired as chief action officer at Netflix 6 in 10 say spending cuts should accompany increase in debt ceiling: poll

“We have a divided government. Nothing can get done around here without votes on both sides in the Senate and the House,” Rep. Steven Horsford (D-Nev.), chair of the Congressional Black Caucus, said Tuesday. “That means neither side is getting 100 percent of what they want.”

“We recognize that we’re not going to get everything. Republicans shouldn’t get everything,” he said.

Mychael Schnell contributed to this report, which was updated on May 24 at 7:03 a.m.

Continue Reading

Entertainment

Gustav Klimt’s Portrait of Elisabeth Lederer sells for £180m at auction, a record for modern art

Published

on

By

Gustav Klimt's Portrait of Elisabeth Lederer sells for £180m at auction, a record for modern art

A painting that helped save the life of its Jewish subject during the Holocaust has become the most expensive piece of modern art and the second most expensive painting ever sold at auction.

The Portrait of Elisabeth Lederer, by Austrian artist Gustav Klimt, was bought for $236.4m (£180m) by an unnamed buyer after a 20-minute bidding war at Sotheby’s in New York on Tuesday.

Its sale price beat the previous record for 20th-century art set by Andy Warhol’s Shot Sage Blue Marilyn, a portrait of Marilyn Monroe bought for $195m (£148m) in 2022.

Shot Sage Blue Marilyn by Andy Warhol. Pic: Associated Press
Image:
Shot Sage Blue Marilyn by Andy Warhol. Pic: Associated Press

The most expensive painting ever sold at auction was Leonardo da Vinci’s Salvator Mundi, which fetched $450m (£342m) in 2017, Christie’s said on its website.

Sotheby’s said on X the price for the Klimt was “astonishing”, making the piece “the most valuable work of modern art ever sold at auction”.

The portrait, which Klimt worked on between 1914 and 1916, depicts the daughter of one of Vienna’s wealthiest families wearing an East Asian emperor’s cloak.

Evaded fire and Nazi looters

More on Austria

Measuring 1.8m (6ft), the colourful piece, which was completed in 1916, illustrates the Lederer family’s life of luxury before Nazi Germany annexed Austria in 1938.

It was kept separate from other Klimt paintings that burned in a fire at an Austrian castle.

It also escaped being looted by the Nazis, who plundered the Lederer art collection.

They left only the family portraits, which they held to be “too Jewish” to be worth stealing, according to the National Gallery of Canada, where the painting was previously on loan.

Father lie saved her life

To save her own life, Elisabeth Lederer made up a story that Klimt, who was not Jewish and died in 1918, was her father.

It helped that the artist spent years working meticulously on her portrait.

She convinced the Nazis to give her a document stating that she descended from Klimt, which allowed her to live safely in Vienna until her death from illness in 1944.

The painting, which is one of two full-length portraits by the Austrian artist that remain privately owned, was part of the collection of billionaire Leonard A Lauder, heir to the Estée Lauder cosmetics empire, who died this year.

Read more on Sky News:
Dancing sisters in ‘joint suicide’
Resale ticket prices to be capped
New suspect in ‘one punch’ killing

Five Klimt pieces from Lauder’s collection sold at the auction for a total of $392m (£298m), which also included pieces by Vincent van Gogh, Henri Matisse and Edvard Munch, Sotheby’s said.

An 18-carat-gold toilet by Maurizio Cattelan – the provocative Italian artist known for taping a banana to a wall – sold for a reported $12.1m (£9.2m).

The fully-functioning toilet, one of two he created in 2016 satirising superwealth, was stolen while on display at Blenheim Palace, the country manor where Winston Churchill was born, in 2019.

Two men were convicted of the theft, but it’s unclear what they did with the loo.

Investigators believe it was likely broken up and melted down.

Continue Reading

Politics

New Hampshire approves first-of-its-kind $100M Bitcoin-backed municipal bond

Published

on

By

New Hampshire approves first-of-its-kind 0M Bitcoin-backed municipal bond

New Hampshire has approved the issuance of a $100 million municipal bond backed by Bitcoin, in what appears to be the first structure of its kind at the US state level.

Minutes from a Nov. 17 meeting of the New Hampshire Business Finance Authority (BFA), the state’s business financing agency, show the board planned “to consider approving a resolution authorizing up to $100,000,000 bonds for a project to acquire and hold digital currency.”

Minutes from the following day record that directors voted to “approve the preliminary official intent, with no reservation, to issue a taxable conduit revenue bond for WaveRose Depositor, LLC of up to $100,000,000.”

According to a Wednesday Crypto in America report, the bond is backed by Bitcoin (BTC) and would let companies borrow against overcollateralized BTC held by a private custodian. The state or taxpayers do not back the bond; instead, BFA approves and oversees a private deal, while Bitcoin — reportedly held in custody by BitGo — covers investors.

According to the report, asset manager Wave Digital Assets and bond specialist Rosemawr Management designed the bond to utilize Bitcoin as collateral under the same rules that govern municipal and corporate bonds. Wave co-founder Les Borsai said the goal is to “bridge traditional fixed income with digital assets” for institutional investors.

New Hampshire, United States
The New Hampshire State House in Concord. Source: Wikimedia

Related: New Hampshire, North Dakota introduce bills for Strategic Bitcoin Reserve

“We believe this structure shows how public and private sectors can collaborate to responsibly unlock the value of digital assets and digital asset reserves,” he added.

The borrower is expected to post approximately 160% of the bond’s value in Bitcoin as collateral, and if the price of BTC drops below roughly 130%, a liquidation would ensure that bondholders stay whole. According to BFA Executive Director James Key-Wallace, fees from the transaction will fund the local innovation and entrepreneurship program, the Bitcoin Economic Development Fund.

New Hampshire dives headfirst into crypto

The news follows New Hampshire becoming the first US state to allow its government to invest in cryptocurrencies in May after Governor Kelly Ayotte signed a bill allowing the municipality to “invest in cryptocurrency and precious metals.”

Related: US won’t start Bitcoin reserve until other countries do: Mike Alfred

New Hampshire is also working on a bill to deregulate local cryptocurrency mining operations. In late October, a committee voted 4–2 to send the measure for further review in an interim study after it had been deadlocked in the State Senate twice.

The local administration is viewed as particularly welcoming to the cryptocurrency industry. In early February, Brendan Cochrane, an Anti-Money Laundering specialist at YK Law in New York City, argued that it could become an alternative for crypto companies relocating to the Bahamas.

The latest moves build on a longer history of crypto engagement. Back in 2015, New Hampshire was already working on a bill that would have allowed the state government to accept tax and fee payments in Bitcoin.

The bill ultimately failed in 2016, but it shows how early the local administration began to show interest in this asset class. Additionally, as early as 2016, some advocates were already arguing that New Hampshire was among the world’s most Bitcoin-friendly communities.