Why the debt ceiling doubters are wrong
May 23rd, 2011
09:39 AM ET
3 years ago

Why the debt ceiling doubters are wrong

NEW YORK (CNNMoney) – What happens if Congress fails to raise the debt ceiling by Aug. 2?

Treasury Secretary Timothy Geithner says it would be "catastrophic." A growing number of Republicans say that's false - at worst it would be "disruptive," in the words of Sen. Pat Toomey.


Filed under: Debt • Pat Toomey
soundoff (24 Responses)
  1. bachman's a jerk (farm Subsidy Welfare Hypocrite)

    by not raising the debt ceiling, the rest of the world would greet us as liberator's. oh wait, that was another republican predicition.

    May 23, 2011 09:53 am at 9:53 am |
  2. Rudy NYC

    "It's our goal to see to it that he is a one term President."
    "It happened on Obama's watch"

    May 23, 2011 09:53 am at 9:53 am |
  3. Four and The Door

    The point is, Republicans do want to cooperate and raise the debt ceiling but at the same time, do it responsibly so that it actually has meaning. It has no meaning if spending continues out of control and the federal government just blows right by this one and raises it again. The folly has to stop. Make this action mean something. Cut spending by the same amount as how much the debt limit is raised by. Democrats need to get on board with reality that the real problem is spending. Amarica is collecting more in taxes than any country in the history of the world ever has, but yet the debt continues to increase. It is a spending problem.

    May 23, 2011 10:01 am at 10:01 am |
  4. GI Joe

    It was raised 7 times for Dubya - and it didn't even include the two wars and the tax cuts for the wealthy then (they were kept off the books until PRESIDENT OBAMA took over the clean-up effort.

    They just can't stand a HALF-WHITE PRESIDENT.

    Obama/Biden 2012 - and Democrat for 20 years thereafter to clean up the Bush mess.

    May 23, 2011 10:01 am at 10:01 am |
  5. Pat from Algonac

    I would not put much credence in Republicans saying this would only be "disruptive". After all, it was their "watch" when the wost depression in history took place while they held the senate, house and presidency.

    May 23, 2011 10:05 am at 10:05 am |
  6. Bill from GA

    It is amazing how many Americans, if you believe the polls, think it would be a good thing to default. I guess the Fox Propaganda Network is really working well.

    And then, you have repug politicians who use this attitude to hold our country hostage. "We're just doing what the American people want".

    May 23, 2011 10:05 am at 10:05 am |
  7. John

    It just go to show just how Dumb the Republican are. Someone should slap some since In the Republican be for It hurt America credit Rating , and than see If you can find a JOBS.

    May 23, 2011 10:06 am at 10:06 am |
  8. Kenny

    Republicans are thinking that if they cause the crash of our entire economy again and this time on Obama's watch we will put them in total control. Well after the way they have acted with control of the house, I wouldn't put them in charge of cleaning out the "Out House". They are making women second class citizens again by passing laws that tell women what they can and can't do with their bodies without sepcial consent and rules being followed that they put in place. In all fairness I can understand why Male Republicans are trying to make it impossible for a woman to get an abortion. When you look at the way Republican Males have been acting, they are perfect examples of why we should have abortions.

    May 23, 2011 10:08 am at 10:08 am |
  9. John

    I love how Dems are calling Republicans "irresponsible" for wanting to cut wasteful spending as part of any debt level increase. How about not spending so much of other people's money? Wouldn't that be more responsible? How about actually confronting the fact that socialist policies like medicare, medicaid, and social security need to be reformed before they bankrupt the country?

    Seriously, most Democrats are like spoiled children. They've never had real jobs, so they have no idea what it's like to work and actually provide for themselves. They think money grows on trees, and they "govern" (if you want to call it that) accordingly. Who cares what happens to the country as long as we keep as much power a possible, right? And if we can best keep power by making more and more people lazy and dependent, so be it.

    May 23, 2011 10:13 am at 10:13 am |
  10. Independent In Albany

    It was raised 7 times for Bush – and it didn't even include the two wars and the tax cuts for the wealthy then (they were kept off the books until PRESIDENT OBAMA took over the clean-up effort.

    May 23, 2011 10:15 am at 10:15 am |
  11. Bob in PA

    Yes it would alter our politicians livelihood – theft by deception.

    May 23, 2011 10:16 am at 10:16 am |
  12. Bill from GA

    If push comes to shove (whatever that means) I hope the first bill to NOT be paid is the one that funds Congress. All of it, salaries, staff, benefits, retirement; ALL OF CONGRESS!!!

    In fact, Treasury should STOP ALL FUNDING FOR CONGRESS, NOW!

    May 23, 2011 10:16 am at 10:16 am |
  13. Democrat Class Warfare - Destroying the economy, destroying the country, stop the Democrat death spiral in 2012

    Obama and Democrats simply refuse to get serious about cutting spending to reduce the deficit and future debt. They are determined to bankrupt this country, pure and simple. They have presented NO PLANS to addres this nations debt crisis. They criticize every other proposal, yet offer NONE. They talk about raising taxes, yet offer NO PLAN TO DO SO. They had total control of the House, Senate and Whitehouse YET PRODUCED NO BUDGET. Obama and the Democrats are the party of NO PLAN, NO BUDGET and NO CLUE. These clowns must be removed from office in 2012 or this country WILL DECLARE BANKRUPTCY.

    May 23, 2011 10:17 am at 10:17 am |
  14. TJeff1776

    My roots go away back with the Republican Party; BUT I swear its getting impossible to argue their position w/ a straight face. Their medicare position is simply crazy. Nobody, but nobody, is going to buy the voucher scenario. Newt should be ORDERED to disappear- this guy is plain out-in-out SICK. Romney disowns his own healthcare creation, thus
    appearing weak-aka- stumbling over his own tongue. He would have better off to embrace the whole package and said "damn right, I did, and its best for the whole country". Actually, it was, I believe. GOP lineup is looking bleak- nothing left but tha scalawags, utra-consers, and party-poopers.

    May 23, 2011 10:30 am at 10:30 am |
  15. MPeters

    @ John: I'm fairly sure that Republicans in the Senate just voted to KEEP spending $20B over the next 10 years in Oil and Gas Subsidies to the most profitable industry in the world. I dunno what you are smoking, but...I find that pretty darn "irresponsible" and NOT "cutting wasteful spending" but rather propping up a Campaign revenue stream.

    Also, I'm a Democrat and I have held several "real" jobs. Most Republicans I know are "social conservatives" but agree with me on fiscal policy. Which is, if you spend it you pay for it. So, raise the tax rates. Since Nixon the Republicans haven't had a single President that had a balanced budget. So, you tell me...which party is the one that likes to spend a bunch of money and cannot "govern" properly, but instead gives largess to their benefactors?

    Answer: Republicans, who have single-handedly added approximately $11.3T of debt to the current $14.3T America has. Those are the facts, buddy.

    May 23, 2011 10:40 am at 10:40 am |
  16. Nick

    @Four and the Door:

    You could not be more wrong in your claim that "Amarica is collecting more in taxes than any country in the history of the world ever has." I can think of a country that has collected more taxes than we are now... it's the United States before the Bush tax cuts. Taxes were higher under Reagan (who raised taxes three times), Bush Sr., Clinton, and even W until the tax cuts. Of course, you probably don't even want to talk about the tax brackets during the 1950s, a time that enjoyed enormous economic growth despite being the highest tax rate we've ever had. Spending is a problem too, but if you ignore the revenue side you've got your head in the sand.

    May 23, 2011 10:41 am at 10:41 am |
  17. Jim

    All this Republican anti-intellectual propaganda is on the verge of sinking America. If I didn't know better, I'd think Republicans were trying to turn America into the third world. I don't know how any of them could have ever bothered to crack open a text book about international financial markets and thought that not raising the debt ceiling and letting America default on our debt is a good idea. Guess what? It's not. You know what kind of countries default on loans? Countries like Haiti default on loans. If Americans thought the last recession was bad, imagine what it will be like when our credit rating is blown to bits to "balance the budget"? It won't be pretty.

    May 23, 2011 10:49 am at 10:49 am |
  18. MPeters

    @ Nick: Nick, he's specifically ignoring the revenue side because of the Republican philosophy to "Starve the Beast." Such a philosophy will eventually lead to the Federal Government being able to do NOTHING but spend on military stuff and whatever "enumerated" powers Conservatives say is in the Constitution. It's all part of the Republican plan started 30 years ago by Reagan.

    @ Four and the Door: Your proposal to "cut as much as we raise the debt limit by" is asisine and illogical. If we cut spending by that much, then why would we have to raise the debt limit at all? To have a higher limit but not spend as much? That makes absolutely no logical sense.

    Moreover, I think you fundamentally misunderstand what the Debt Ceiling is for. The Debt Ceiling is for PAST debt obligations. The Federal Government already appropriated funds–BY LAW–that must be spent. The Debt limit is what they can legally borrow in excess of what they have collected in revenue (represents the shortfall in what we actually raised to pay for stuff and what we obligated ourselves to pay), i.e., it represents PAST DEBT FOR MONEY THAT HAS ALREADY BEEN SPENT. By not authorizing an increase, America defaults on its debtors. This will happen REGARDLESS of whether we cut spending or not, because the money we are talking about has already been spent AND we owe interest on it (which means we have to pay that money too). I think you need some economics courses, or accounting courses. Something.

    May 23, 2011 10:53 am at 10:53 am |
  19. Four and The Door

    Nick
    @Four and the Door:
    You could not be more wrong in your claim that "America is collecting more in taxes than any country in the history of the world ever has."...Spending is a problem too, but if you ignore the revenue side you've got your head in the sand.
    __________________________________________________________________________________________________
    I have to just express my profound respect for the Democratic spin machine. Imagine being so completely successful at your political brainwashing to actually have citizens of your country screaming for higher taxes. Yes, it can be done. Even in a country where taxes are among the highest in the world. It's like a fox cunning enough to have the hens in the henhouse working to let him in. You have to respect that fox.

    May 23, 2011 10:57 am at 10:57 am |
  20. Bill from GA

    The more I think about, maybe if Treasury stops paying the bills for Congress; no lights, no air conditioning, NO SALARIES, I'll bet Congress would solve the debt ceiling fast.

    May 23, 2011 10:57 am at 10:57 am |
  21. MPeters

    @Four and the Door: Simply stating, repeatedly, that taxes in this country are the "highest in the world" does not make that so. Sweden has a 70% tax rate. Japan, France, England, Germany, and Canada all have higher marginal tax rates than America does. You know who has lower tax rates than America? Haiti, Saudi Arabia, Botswana, Afghanistan. Know where I don't wanna live? Places that have a lower tax rate than America.

    May 23, 2011 11:09 am at 11:09 am |
  22. Illikal

    I want every democrat to call their creditors and have their credit limit raised. Than go blow your entire savings by giving it to your neighbor. Then call your creditors and ask them to raise your credit limit again. Than go give to the poor. After you do that tell your children you can't feed them. Welcome to the democratic party! Democrats have good intentions but piss poor execution.

    May 23, 2011 11:15 am at 11:15 am |
  23. Marcus

    Four and the Door – Still spinning facts to make your points valid while calling those who point out your spin the spinners?
    When will you ever going to be honest in your posts, dude?

    May 23, 2011 11:16 am at 11:16 am |
  24. Rudy NYC

    John wrote:
    It just go to show just how Dumb the Republican are ....
    -------------------------
    Nah, I don't think so. I think it shows how dumb Republicans think the American people are.

    May 23, 2011 11:17 am at 11:17 am |