Graham: Obama won 'hollow victory,' debt ceiling is real test

Sen. Lindsey Graham (R-S.C.) on Monday conceded to President Obama in the “fiscal cliff” fight on taxes, but said the real test will come next year when Congress is asked to raise the debt ceiling. 

Speaking on the Senate floor, Graham said the emerging compromise to avoid a slew of tax increases and spending cuts would do little to cut the debt.

“[Obama] won round one, but we’ve done nothing to lower the deficit in any real way,” Graham said. “This is a hollow victory. ... In about two months round two begins, and we’ll be asked to raise the debt ceiling.”

Treasury Secretary Timothy Geithner last week said the government would exhaust its $16.4 trillion borrowing limit on Monday, forcing him to buy time with “extraordinary measures” that prevent default. 

“I’m not going to vote to raise the debt ceiling unless we agree to reducing spending,” Graham said. “So round two is coming, and we’re going to have one hell of a contest about what this country needs.”

Graham criticized Obama for holding a press conference Monday where he chided Republicans while supporters cheered onstage behind him. 

The senator said he hopes the next time the president appears in public, it is with a bipartisan group of lawmakers standing behind him, applauding a deal to reduce spending.