GOP official: House to vote to lift debt limit

Discussion in 'Politics' started by AK Forty Seven, Jan 18, 2013.


    GOP official: House to vote to lift debt limit

    WASHINGTON (AP) — The Republican-controlled House will vote next week to permit the government to borrow more money to meet its obligations, a move aimed at heading off a market-rattling confrontation with President Barack Obama over the so-called debt limit.

    Full details aren't settled yet, but the measure would give the government about three more months of borrowing authority beyond a deadline expected to hit as early as mid-February, No. 2 House Republican Eric Cantor of Virginia said Friday.

    The legislation wouldn't require immediate spending cuts as earlier promised by GOP leaders like Speaker John Boehner of Ohio. Instead, it's aimed at forcing the Democratic-controlled Senate to join the House in debating the federal budget. It would try to do so by conditioning pay for members of Congress on passing a congressional budget measure.

    "We are going to pursue strategies that will obligate the Senate to finally join the House in confronting the government's spending problem," Boehner told GOP lawmakers at a retreat in Williamburg, Va. "The principle is simple: 'no budget, no pay.'"

    The Senate hasn't passed a budget since 2009, which has drawn lots of criticism from Republicans but protected Democrats controlling the chamber from politically difficult votes.

    Senate Majority Leader Harry Reid welcomed the House GOP move.

    "It is reassuring to see Republicans beginning to back off their threat to hold our economy hostage," said Reid spokesman Adam Jentleson. "If the House can pass a clean debt-ceiling increase to avoid default and allow the United States to meet its existing obligations, we will be happy to consider it."

    GOP leaders have been grappling with how to gain leverage in their battles with Obama over the budget. Boehner successfully won about $2 trillion in spending cuts as a condition of increasing the government's borrowing cap in 2011.

    Obama, however, was dealt a stronger hand by his re-election in November and successfully pressed through a 10-year, $600 billion increase on upper-bracket tax payers earlier this month.

    Other choke points remain, including sharp across-the-board spending cuts that would start to strike the Pentagon and domestic programs alike on March 1 and the possibility of a partial government shutdown with the expiration of a temporary budget measure on March 27.

    Failing to meet those deadlines would have far less serious consequences than defaulting on U.S. obligations like payments to bondholders, Social Security recipients and myriad other commitments when the government confronts a cash crisis and can no longer borrow to make payments. That could cause a meltdown in financial markets and would inflame voters already disgusted with Congress.

    Boehner has previously invoked a promise that any increase in the government's borrowing cap would be matched, dollar for dollar, by spending cuts or "reforms" that could include curbs on the long-term growth in retirement programs such as Medicare. Friday's announcement did not repeat that specific promise.

    "Before there is any long-term debt limit increase, a budget should be passed that cuts spending," Boehner said. "The Democratic-controlled Senate has failed to pass a budget for four years. That is a shameful run that needs to end, this year."

    The measure picked up support from key GOP conservatives, including the current and former chairmen of the Republican Study Committee, a powerful group inside the House GOP.

    "In order to allow time for the Senate to act, next week's bill will extend the debt limit for three months," the Study Committee said Friday in a statement. "This is a necessary first step as we work to halt the decline of America and puts the focus where it belongs: on the Senate who has failed to do their jobs to pass a budget for more than three years." The statement was issued by RSC Chairman Steve Scalise, R-La., and former chairmen, Jim Jordan, R-Ohio, Tom Price, R-Ga., and Jeb Hensarling, R-Texas.

    Obama's budget is due early next month but is expected to be released several weeks later.
  2. wildchild


    I thought they gave in on the fiscal cliff and the debt ceiling was where they were going to make their stand. Cowards.
  3. Anyone got a new can (for kicking)? this one's getting all rusted and old.
  4. Ricter


    Yeah, they should be brave and hurt the economy because they can't get their ideological way.
  5. Austerity is not going to work... also, Democrats are not EVER going to shrink government. All the budgets of all the public sector entities in the US total to half, maybe more than half nowadays, of the GNP and they 1) don't have enough money 2) are in debt 3) want to borrow more money. You tell me where this is going to end up. I think that the handwriting is on the wall[I just put it there actually.. well, maybe it's more like I drew a circle around it] and it's every man for himself. I officially declare myself an innocent bystander. I don't vote, I don't give a rat's ass about all the plights of all the hundred million people getting money from the public sector. Not my problem now, not my problem ever, understood? [Truth be known I never had any respect for anything public or concern for anybody's plight but that's just me] I'll raise my glass with anybody that wants to toast freedom but the rest of the shit, keep it off my lawn..
  6. So suppose you are standing at the bottom of a hill... I run down from nowhere and say "hey - I just saved your life... the car up there didn't have its emergency brake set... it was going to roll down here and kill you! I set it and saved your life."

    This isn't how politicians work.

    The car kills you and the politician runs down the hill and says "let's find the bastards responsible!"

    So the debt ceiling will continue to be raised until something "bad" happens... then they will blame the wealthy for not paying their fair share of the taxes... they will blame foreign nations for "stealing" jobs.. whatever party is in power at the time will blame the other party in the usual way (GOP blames welfare... Demos blame bush war... etc.)

    Of course that is all bullcrap... but it's just how they operate.

    IMO... the "bad thing" is going to be the threat of war or economic sanctions from China and other bondholders. The response will be to bolster the dollar to appease bondholders and "avoid war" - but how? Executive order... you give your gold to the fed... and they pay you spot. Sounds fair, right? The genius trick is that they pay you in treasuries :)
  7. wildchild


    No you idiot, its called being fiscally responsible. The country can't afford Obama and his policies.

    Your solution is to have a welfare state and run huge deficits. It's working so well for Greece.
  8. Lucrum


    The economy is ALREADY hurting, because you guys are having your ideological way; dumb ass.
  9. Ricter


    How are we going to become like Greece when we have our own currency which we can create (and destroy)?
    #10     Jan 19, 2013