The debate to raise the debt ceiling has been in the media Speaker Boehner says there is no debate, it has to be raised.
Not raising it would dfo this, they say: “That would be a financial disaster not only for our country, but for the worldwide economy,” Boehner responded. He added, “Remember, the American people on Election Day said we want to cut spending and we want to create jobs. You can’t create jobs if you default on the federal debt.”
Treasury Secretary Timothy Geithner has estimated that unless Congress acts to increase the debt ceiling, his agency will run out of borrowing authority sometime between March 31 and May 16.
At that point, the government could default on some loans.
If the government defaults on loans, then the credit rating goes in the tank, than all debt becomes more expensive as interest rates have to be raised to attract investors to buy that debt. In short, it will be more expensive to find someone to buy our debt until much farther in the future when we have payed off much of our debt.
Even as he pressed for cutting government spending, Boehner said of the notion of Republicans forcing a government default: “I don’t think it’s a question that is even on the table.”
The U.S. debt — the amount of accumulated government borrowing — has been rapidly rising to a level that many economists say is potentially dangerous.
The nonpartisan Congressional Budget Office noted last week that debt held by the public will most likely jump from 40 percent of GDP at the end of fiscal 2008 to nearly 70 percent at the end of this fiscal year.
The CBO last week estimated that this year’s deficit will hit nearly $1.5 trillion, further worsening the debt problem.
Boehner and fellow Republicans have urged cutting back federal spending to fiscal 2008 levels, which they say would save about $100 billion a year.
Well, let’s see, $100 Billion USD saved IF it gets through the Senate and IF Obama signs it. The GoP only holds the Congress, they get to write the budget and vote on debt ceilings.
They CAN not increase the debt ceiling, causing a train wreck and show that they are dead serious about the debt…this WILL end borrowing as the US govt knows it. We can call it a nuclear option, it closes fedgov. and makes borrowing to pay existing debt much more expensive.
So, Blogmocrats, each of you is the Speaker of the House, what do YOU do and why???
Tags: Debt Crisis, Speaker John Boehner
