Posted on 01/03/2011 4:10:50 AM PST by tobyhill
A fight over the budget loomed on Sunday as a top aide to President Barack Obama warned of catastrophic consequences if Republicans follow through on threats to reject an increase in the nation's borrowing limit.
Republicans, who will take control of the House of Representatives this week, are demanding spending cuts to curb the $1.3 trillion budget deficit and several have said they would oppose a higher debt ceiling if Obama does not agree to a range of painful cuts.
White House economic adviser Austan Goolsbee accused Republicans of "playing chicken" with the nation's financial credibility.
"This is not a game. You know, the debt ceiling ... is not something to toy with," Goolsbee told the ABC News program "This Week." "If we hit the debt ceiling, that's ... essentially defaulting on our obligations, which is totally unprecedented in American history."
(Excerpt) Read more at reuters.com ...
I predict that it will be catastrophic to the Republicans if they DON”T reject raising the limit.
>I predict that it will be catastrophic to the Republicans if they DON”T reject raising the limit.
Exactly.
Debt limit fight could be “catastrophic” (BS!)
Catastrophic for whom?
The democrats ?
One world government?
Redistribution of the wealth?
Well then just stop spending money all over the place for no result.
If he is so worried about the middle class, he sure don’t show it with gas prices reaching above $4 very soon.
Entire departments should be defunded. The Energy Department has failed, with gasoline rising from $.40/gal at its inception to over $3/gal today. The Education Department has failed, with scores going down and dropout rates going up throughout its history. The EPA has been a burden to our economy and has passed bone-headed regulations, such as mandating the MBTE additive to gasoline which poisoned our ground water. There are thousands of agencies that need to be defunded throughout this bloated, inefficient federal government.
If we could do without an agency in the 1950s, when we were recovering from WWII, we certainly can do without it now when we are broke.
We already have a mountain of debt. Look - us ordinary folks can’t borrow more on our credit card when we’re broke. But the government can always live beyond its means by raising the debt limit. They live in a different world in Washington.
We already have a mountain of debt. Look - us ordinary folks can’t borrow more on our credit card when we’re broke. But the government can always live beyond its means by raising the debt limit. They live in a different world in Washington.
If Republicans raise the debt ceiling they will lose a huge chunk of their credibility.
Look, when the GOP "shut down" the government in 1995, no one was happier than I was. "At last", said I, "the People will see what a fraud the whole FedGov is, and how much better the country runs with them out of business".
Boy, was I stupid.
The People will not tolerate a reduction of 0.5% in the printing of FRNs, not for five seconds. The Republicans will be herded into RFK stadium and shot if they even try it.
It's too late. Perhaps it's not too late to prepare.
We sure are trying.
Duuhhh! Simple, cut spending, that solves the problem. It is TIME to DownSize DC! Close entire Departments. (EPA, Education, etc) NOW! Clearly 1/2 of Federal Government activity is Un-Constitutional, counter productive, or unnessary.
check reuters “painful cuts”
To whom? The Chinese?
And what will they do if we stiff them? Shut down Walmart?
God help us if this does NOT happen!
this is another turning point. Is the train too far down the track? Maybe, that’s why I prepare.
The point is: the debt ceiling is not related to a default. The debt ceiling is to limit Federal Government's ability to borrow (add to debt). If as I suggested 1/2 of the Federal Expenditure is either Un-Constitutional or counter productive, what is the consequences if it is eliminated entirely? The taxpayers are relieved of a burden.
We’re broke. We’re borrowing from the Chinese and you keep having the pleasant daydream we’re being taxed.
Wait and see what happens when Beijing calls in its markers.
To whom? The Chinese?
And what will they do if we stiff them? Shut down Walmart?
Wouldn’t be the worst thing to happen. Stop the importing, cause shortages, force US manufacturing, make people start opening businesses, creating, innovating...
and
true conservatives in congress removing obstacles...
sounds good to me. /sarc
I liked this comment to the article.
Because I’ve been spending more than I’ve been making, I’ve been borrowing from anyone who would lend me money. My children have finally noticed that, if my current spending behavior continues, they will have to pay off my debts. Using what power and influence they have, they want me to make a budget where, not only will I not spend more than I make, I may actually begin to pay off some of the debt. I’m considering this, but my banker, the shopkeeper, the folks at the country club, even my lawn boy all say that for me to reduce my spending would be catastrophic. (Of course it would be- to THEM).
I’ve run out of wiggle room. Now I need to decide now who means more to me, my debtors and the purveyors of the goods and services I consume, or my children. If I say the choice is very difficult, does that make me a bad parent?
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