Obama to Reveal Debt Reduction Plan
FEYERICK: Some developing news out of Libya. According to South African president Jacob Zuma, leader Moammar Gadhafi has accepted terms of a roadmap aimed at ending the conflict in his nation as part of negotiations with the African Union. We're going to have a live report for you at the top of the hour -- that on Libya. Expect the president to step forward this week and offer his plan for cutting the deficit. Insiders say the president's expected to come forward with a plan on Wednesday. Let's bring in CNN's Sandra Endo. Sandra, what is the president expected to say, and why now? Is it in response to what we saw last week with the budget cuts?</s>SANDRA ENDO, CNN CORRESPONDENT: Oh, yes. This is a big headache coming up, and it's a big hurdle Congress and the president do have to get over. That big sigh of relief you heard Friday night? Well, that was pretty short-lived here in Washington because there are budget battles ahead, but most pressing is the national debt limit. Congress must come to an agreement before the United States reaches its legal borrowing limit of nearly $14.3 trillion, which is expected to happen in the second half of May. Well, today the president's senior adviser said the president will lay out a long-term deficit reduction plan on Wednesday.</s>ENDO: And lawmakers on both sides of the aisle say they recognize the fight to cut the national debt will be tough, but very necessary.</s>SEN. RICHARD DURBIN (D), ILLINOIS: Now instead of risking government shutdown, we are risking a second recession.</s>REP. JEB HENSARLING (R), TEXAS: The president is going to have to cut up the credit cards. He's going to have to work with us to cut up the credit cards and put the nation on a fiscally sustainable path.</s>ENDO: Now, besides the debt ceiling debate, hammering out a 2012 budget is also on the to-do list, Deb. The Republican-led House is planning to debate the GOP proposal this week. So the political posturing is already in full swing for the fiscal year ahead, which begins on October 1st -- Deb.</s>FEYERICK: And Sandra, you know, what's so interesting is that the U.S. is now maxed out, almost, its limit at $14.3 trillion. President Obama says he's looking perhaps to cut in the area of the military. But the -- the Republicans, especially the Tea Party folks, they're looking to cut Medicare and Medicaid. So is this the president's way of sort of balancing what one side is willing to cut and what he's willing to cut?</s>ENDO: Well, look, Deb, he really wants to lay out his priorities and ensure his constituents and voters out there that he's going to protect the programs that he values and Democrats value, as well as say that he understands the pain that's out there, the problems that lie ahead for the country, as well as address some of these conservative concerns, as you mentioned. Keep in mind, of course, this is an election year. He wants to get ahead of this whole debate coming up. But Republicans are already saying that, Look, if you want to raise the debt ceiling, you're going to have to give up something. And that means concessions. Well, Democrats are saying, We need to raise the debt ceiling because otherwise, the economy will really falter, and the nation can't be in that position any longer. So certainly, two sides of the coin here. And obviously, that debate is going to be played out here for a while in Washington.</s>FEYERICK: What's pretty amazing is that everything we were covering at the end of last week seems to be the first step on what is going to be a very long road. Sandra Endo in Washington, D.C., thanks so much for bringing us up to date on that. Time for a "CNN Equals Politics" update. We're keeping an eye on all the latest headlines at the CNNPolitics.com desk. Here's what's crossing right now. A conservative political action committee has launched a new TV ad campaign declaring that President Obama has established a legacy of failure. That's their words. The ad blames Mr. Obama for high unemployment and the federal deficit. Despite evidence to the contrary, Donald Trump won't back off his claim that President Obama may have been born in a foreign country. Trump, a possible Republican presidential candidate, appeared today on CNN's "STATE OF THE UNION" with Candy Crowley. He once again called on the president to produce his birth certificate. And for the latest political news, you know where to go, CNNPolitics.com. Watch those spam e-mails. Security breaches may have your personal information in the wrong hands.