Debt ceiling delay would be 'chaotic'
June 28th, 2011
02:43 PM ET
3 years ago

Debt ceiling delay would be 'chaotic'

New York (CNNMoney) – Here's what Americans can look forward to if lawmakers fail to raise the debt ceiling in time: Treasury would not be able to pay between 40% and 45% of the 80 million payments it needs to make every month.

That's the estimate from a new analysis by the Bipartisan Policy Center, a think tank in Washington founded by four former Democratic and Republican Senate majority leaders.

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Filed under: Debt
soundoff (8 Responses)
  1. Democrat Class Warfare - Destroying the economy, destroying the country

    It will be less "chaotic" than when the country is bankrupted by the Democrats. Their plan is to spend, tax and borrow until the economy and country goes under. These are the same fools that think you can borrow and spend your way to prosperity. Total lunacy.

    June 28, 2011 02:54 pm at 2:54 pm |
  2. A Kickin' Donkey

    Memo

    To: E. Holder (Attorney General)

    From: B. H. Obama (Chief Executive of the United States)

    Subject: Executive Order

    Eric – Please draft for my review and signature an Executive order which eliminates weekly compensation for all Members of Congress in the event that the United States debt ceiling is not raised.

    Ammendment 14 of the Constitution: can be paraphrased as 'our national debt will not be allowed to become invalid' and I view this Executive Order as a prudent step to

    1.) motivate obstructionist members of Congress (like John Boehner and Mitch McConnell) to compromise with other members of the legislative branch, and,

    2) prevent more debt [beyond the amount of the ceiling] to be added to America's obligations.

    cc: Tim Guethnier (Secretary of the Treasury)

    June 28, 2011 03:01 pm at 3:01 pm |
  3. Bill from GA

    It would be chaotic for the repugs only if they can't blame it on the President. The repugs could care less if they further ruin our economy.

    mcconnell has said any tax increase is not possible, so if the repugs don't get their way, it's President Obama's fault for not giving in (again) to the repugs. mcconnell is now crediting the dems and President Obama with the tax cut extension from last fall, even though the repugs held all further economic relief hostage to get their way.

    June 28, 2011 03:14 pm at 3:14 pm |
  4. Bill from GA

    To stretch the funds further, Secretary Geithner should immediately cut all payments for funding Congress: salaries, benefits, expenses such as electricity and water, and all payment for staff.

    Not likely, maybe not possible, but I can dream, can't I??

    June 28, 2011 03:19 pm at 3:19 pm |
  5. rs

    Chaotic- and that's why the Republicans are likely to work against another debt limit increase. Republicans have become economic nihilists- despite their addiction to debt ceiling increases made almost every year under Reagan and the Bush presidencies. They liked deficit spending then.

    Remember- there is no policy with the Republicans, nor a plan- just a goal to make things worse for American citizens like you and me (i.e. those not filthy rich).

    June 28, 2011 03:21 pm at 3:21 pm |
  6. B

    Unfortunately for us all the Republicans will jeopardize this country to play politics with this until the clock runs out.

    June 28, 2011 03:33 pm at 3:33 pm |
  7. Anthony

    "Here's what Americans can look forward to if lawmakers fail to raise the debt ceiling in time: Treasury would not be able to pay between 40% and 45% of the 80 million payments it needs to make every month.....Such payments include Social Security checks, food stamps, federal worker and military paychecks, government contractor bills and payments to Medicare and Medicaid providers."

    Once Republican voters realize that their social security checks or military paychecks may not be coming if there is a default, Republicans can kiss the House and the 2012 presidential election goodbye. Republicans' plan to use the debt ceiling as a weapon would be less popular than Ryan's budget plan. After all, Ryan's plan only kills Medicare.

    June 28, 2011 03:39 pm at 3:39 pm |
  8. Rudy NYC

    Let us all hope that Congress will realize that defaulting on the debt is a black mark on their records first and foremost.

    The American people have been fed a steady stream of grossly distorted and biased information regarding the debt and the annual deficits. Bush43 set the nation on this road we are on with deficits in the multiples of hundreds of billions range. The economy went into a ditch during a recession that began in December 2007 and officially ended in June 2009.

    As the economy came out of the ditch, the motor has sputtered and continues to do so. But, we are still on the same road that leads to annual deficts in the hundreds and hundreds of billions.

    The President has tried to change the course, only to be thwarted from doing so at every turn in the road. The Bush Tax Cuts account for $5T of our current debt. The unfunded wars account for another $2T in debt. Lost revenue from unemployment since 2007 accounts for at least another trillion. The Bush Tax Cuts have cost more than all entitlements combined. As much as we have a spending problem, we also have an even bigger revenue problem on our current path.

    June 28, 2011 03:43 pm at 3:43 pm |