The Hill says the Senate is reviewing a request to raise the debt ceiling above $12.1 trillion. Officials warned failure to do so would result in a default by mid-October. The Senate must vote on the measure openly, without recourse to technicalities like the “Gephardt rule”, making it politically dangerous for the senators.
Now Obama is asking Congress to raise the debt ceiling, something lawmakers are almost certain to do despite misgivings about the federal debt. The ceiling already has been hiked three times in the past two years, and the House took action earlier this year to raise the ceiling to $13 trillion.
Congress has little choice. Failing to raise the cap could lead the nation to default in mid-October, when the debt is expected to exceed its limit, Treasury Secretary Timothy Geithner has said. In August, Geithner asked Senate Majority Leader Harry Reid (D-Nev.) to increase the debt limit as soon as possible.
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One hazard facing the Senate is the lack of the rule which would cloak voting on this measure in anonymity, leading some observers to fear the measure would be criticized by “partisan” political oppositionists.
When the House raised the debt limit to $13 trillion as part of a budget resolution approved in April, Democratic leaders used a maneuver known as the “Gephardt rule,” named after former House Democratic Leader Dick Gephardt (Mo.), to avoid taking a roll call vote on the debt limit increase.
The Senate isn’t so lucky. It lacks a similar mechanism, meaning each senator must cast a politically perilous vote on raising the debt ceiling.
Despite these political perils, Sen. Max Baucus (D-Montana) appealed to his Republican colleagues to do their patriotic duty and raise the debt limit.
“Sen. Baucus understands the critical importance of signaling to the world that the U.S. maintains the confidence and security to continue to lead the global economy out of recession,” the Baucus aide said. “The request to raise the debt limit is serious and must be addressed thoroughly and in a nonpartisan manner.”
This statesman knew all about responsible debt.
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At this point I would rather default on the debt that fuel our ability to create more debt.
Seems like a great opportunity for Congress to lay down a fiscally responsible marker. Say, postpone all discussion of Obamacare for a week and have extensive discussion on the permissible level of debt, and on how to dig out of the current debt while the Social Security & Medicare Ponzi schemes are still waiting to explode.
Then agree to a limited, 12 month, expansion of the debt limit.
Seems like an opportunity for a real, old time filibuster. The donks don’t have the votes for cloture and they could be made to blush and sweat until the trunks relented. But it would be great theater, good politics, and good for the nation.
Well, #2 Kinuachdrach, yes it would be a great opportunity for responsibility. Now that we’ve floated that absurdity, lets get back to reality. Raise, raise, raise. Tax, tax, tax. Tomorrow will never come. We must survive the next election. The great one is our leader. We do not need to reason these things out ourselves.
Posturing on the matter would only be for the know-nothings, whose supposed influence the media promotes.
A costly posturing as well.
Wouldn’t it be more efficient to simply revoke debt ceilings? Because whats the point of having them if you’re going to revise them each quarter?
I love the way the donks demonize Republicans whenever they possibly can and then expect “bipartisan” cooperation during crises.
PA Cat,
That’s because they used to have Spector as a Republican who’d crawl to them begging. They done screwed up bringing him into their fold.
Again, They have the votes! Vote on it, you buffoons.
I do not know which is worse: Their arrogance or their cowardice.
We have to have the worse politicians in our history in office today, and that is no small “accomplishment”.
What nonsense. The GOP should not give them one vote.
(oh, and 1) the USA ia not going to lead the world out recession, in fact some of the EU is headed out already, and 2) We are going to default sooner or later anyway the rate the Democrats are going, and probably for a lot more cash down the road.)
The GOP should vote it down and tell them to repeal the stimulus bill NOW!
That would be smart politics and also great for the country. For the very fact that it is smart politics, reason, we can depend that the GOP will not do it.
Can they still blame Bush?
I betcha they can. Wait for it……..
I like the idea of holding this up by demanding that the remaining stimulus money be used to reduce the debt. To hell with that marsh mouse and the acorn funding. Let the dems try to justify all the crap in that bill again.
I noticed the dollar dropped against the euro some more today……I wonder why?
It’s a bust out!
When you’re not getting your Social Security, and you’re not getting your Medicare, and the Chinese are not getting any of there money, people will understand what happened.
Can anyone recall the day
When debt was fairly low
When a hundred billion was the limit for
All that they would have to pay
To run the whole damn show
Not excluding the expensive bill for war
And now we’re up to thirteen trill
And counting more to come
So why not write a check and leave it blank
Amount be left for pols to fill
Why not, they think we’re dumb
To keep on filling up their piggy bank
You wonder why this country has
A debt ceiling at all
No one has ever paid for their misdeeds
They chuckle in the corner as
The tax man comes to call
They treat the money like so many beads
I say we take the ceiling down
Be open to the sky
Just let the money flow into their hands
We follow every tootlin’ clown
Who pied’s the piper by
And march on down the street behind their bands
A couple of questions that no reporter will ever ask:
Why has gold been one of the best performing asset classes since Obama took office? Is that a wingnut conspiracy?
Why are there now 33 “czars” who have no accountablity to Congress working for the administration? How does that square with transparency and accountability?
For what it’s worth, the Orly Taitz case in California challenging Obama’s eligibility to be Prez, survived a day in court today, the Judge, a former Marine last name of Carter, ordering a hearing in early October on a discovery motion by Taitz, and a motion to dismiss by the Government, with a tentative trial date in January. Judge Carter so far seems open to hearing the case.
‘The judge did comment that if there are legitimate constitutional questions regarding Obama’s eligibility, they need to be addressed and resolved.’
http://thehill.com/homenews/senate/57493-senate-must-raise-debt-ceiling-above-12t (Linked on Drudge):
“Democrats in control of Congress, including then-Sen. Obama (Ill.), blasted President George W. Bush for failing to contain spending when he oversaw increased deficits and raised the debt ceiling.
“Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren,” Obama said in a 2006 floor speech that preceded a Senate vote to extend the debt limit. “America has a debt problem and a failure of leadership.”
Obama later joined his Democratic colleagues in voting en bloc against raising the debt increase.”
Mongoose:
I do not know which is worse: Their arrogance or their cowardice.
Agreed and what is sad is this: If they vote this through, and I think they will, it will saddle my kids and who knows how many more generations of Americans with huge burdens of debt. The worst politicians on record, FOR SURE! Another year of hope and change and we will all be in Europe’s soup lines.
Too bad Arnold was not as clever as The One wrt to Terminology concerning “paying” people with funny money.
Arnold calls them IOU’s which comes off pretty funky, and I imagine are not too long termed.
BHO, otoh, suggests helping all of us without any discipline, impulse control, or responsibility, to save by having part of our paychecks going directly into US Govt Bonds.
What a magnanimous gesture, don’t you think?
None would dare call them 20 year IOU’s would they?
—
Obama unveils new retirement-savings tools
“We have to revive this economy and rebuild it stronger than before. And making sure that folks have the opportunity and incentive to save — for a home or college, for retirement or a rainy day — is essential to that effort,” Obama said.
“If you work hard and meet your responsibilities, this country is going to honor our collective responsibility to you: to ensure that you can save and secure your retirement. That is why we are announcing several common-sense changes that will help families put away money for the future,” he said.
For example, by the upcoming 2010 tax season, taxpayers will be able to choose to buy savings bonds with their tax refund simply by checking a box on their tax return, the administration said. Taxpayers wouldn’t have to open a Treasury account or even have a bank account — the bonds will be mailed to those who check the box. The move is aimed at encouraging people who don’t have retirement plans to start saving.
“Today, if you have a retirement account, you can have your refund deposited directly into your account. With this change, we’ll make it easier for those without retirement plans to save their refunds as well. You’ll be able to check a box on your tax return to receive your refund as a savings bond,”
Obama said.
Obama to seal US-UN relationship;
First American president to chair Security Council…
UN wants new global currency to replace dollar…
Hewitt had a 1 hour interview with John Burns today.
Not to be missed.
…should be on his website sometime.
We are really screwed. Dollar is going down. Change your money now in gold or silver.
Technically I don’t think this is a choice between raising the debt limit and default. (and correct me if I am mistaken)
The choice is whether to cut spending, or default, or create another fantasized debt limit. Or we can print money and pay off our debts with green paper.
We know our pols will temporize by raising the debt limit. They should also change our national anthem to “Tomorrow” from the musical Annie. Re-title it “The Congress Song”.
Let us also adopt a second national anthem at the same time. “It’s the Hard Knock Life” also from Annie. We will need that very soon.
#15. I recall distinctly when the newpapers said Ike proposed a $100B budget. The nervous fainted in the streets.
But it seems Kennedy actually was first over $100B (although that is a little cloudy because of entitlements and off-budget monies.)
And I seem to remember my father saying he was against Cleveland’s $1b budget. But Wilson had the first $1b budget.
Clearly men in my family live a long time and remember imperfectly.
The bulk of the expenditures that the government assumed the Stimulus debt for are not scheduled until next year. The idea seems to be that Obama wants to use it for walking around $Billions for Acorn etc. before the election. Why can’t Congress just rescind the unspent money, sell the improperly seized auto companies, cut government pay by 20% and watch the deficit shrink? This is another manufactured crisis. If the Republicans filibuster then the Democrats will have to cut spending and once the plug is lifter then the tub will begin to empty. A sounder policy isn’t even very radical. Europe of all places has followed a more prudent policy then the US has and is seeing better results.
I’ve been thinking about de facto vs. de jure. Shortly before 9/11 there was a recall petition going around in Arizona for McCain. IIRC he said at that time that while the petition would not be legally binding according to the law he would honor the intent if it went against him. Then 9/11 happened and the petition was dropped….Looks like that was a mistake for the long run. I wonder what would happen if people started doing recall movements all over the US for senators and reps? The recall in the majority of instance would not be legal but could have enough weight and consequences to encourage compliance de facto.
#25 Toad
If I remember correctly [and I well may not], Arizona is an anomaly. I believe their election law requires a candidate to sign a statement that they will comply with a recall as a condition of getting on the ballot. That is why McCain was willing. However, I was given to understand by our Secretary of State some years ago that otherwise, Federal elected officials are immune from recall.
#2. Kinuachdrach
The concept of what to do is apparent, if not your exact formulation, at least the general path. However, to take that path requires that more than a statistically insignificant percentage of the 535 member of our Houses of Lords have to give an obese rodent’s gluts about the welfare of the nation. That condition does not obtain, nor is it a possibility that such will obtain. I offer the word ‘kakistocracy’ for everyone’s consideration.
Expect the Republicans to decide that the deficit is the issue where they can be “bipartisan”, thinking that the base will not mind. They are not on the same planet as the rest of us.
Subotai Bahadur
Instead of an emergency measure to increase the debt limit, why not an emergency spending cut of the same amount? Good lord, why is this so hard for them to do? STOP SPENDING MONEY THAT YOU DON’T HAVE AND THAT ISN’T YOURS!
Sorry to shout, just getting frustrated as hell about this situation.
LI Kiquang was sworn in today as the new President of the USA as part of a debt restructuring and financial aid agreement between the Peoples Republic of China and the US. He has stated that he feels he will have no problems getting a consensus from the two major political parties in the US. As a member of the CPC since 1976 he feels he knows how to deal with the dominant left wing of the Democrat party. A number of Democrats were stopped from boarding departing airliners after the Presidents statement. Since it became known that he has post graduate education in economics a number of centrists Republicans were stopped from boarding airliners after the President inauguration.
Due to the number of expected vacancies in the House and Senate their will be a special election to make sure the Legislature has enough members to fill committee assignments and ensure speedy completion or required legislation.
Limit?
The thing they ‘raised’ three time is two years? Not much of a ‘limit’, is it?
Actually, it isn’t a limit at all.
Destruction of industries by taxes, warping of economy by spending, crypto serfdom by debt.
Yeah, I’ll have more of that. (/sarc off)