Fireworks in Congress as debt ceiling deadline looms
July 4th, 2011
11:10 AM ET
3 years ago

Fireworks in Congress as debt ceiling deadline looms

Washington (CNN) - Senators and representatives crammed in their July 4 parades and other festivities Monday as Congress prepared to cut short its Independence Day break and resume talks over the need to raise the federal government's debt ceiling.

The Senate is set to return to work on Tuesday; House members follow suit on Wednesday.

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Filed under: Congress • Debt • Deficit
soundoff (11 Responses)
  1. Four and The Door

    Treasury Department officials and leading economists have warned of potentially catastrophic consequences if the ceiling is not raised by August 2, at which point the country could default on its debt obligations.
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    Where were these Treasury Department officials when Obama and the Democrats were spending their way up to and past the existing debt limit?!?! Is it a foregone conclusion that the debt limit would be breached and that congress would " do it's job" and allow the debt limit to go up a few trillion more dollars? If that's the case, then a debt limit is meaningless.

    But that's not the case. A debt limit is important. It saves America's future from greedy politicians who feel it is their duty to borrow like crazy, spend like crazy and give handouts to everyone who may be having a tough time. Of course, the idiots who have worked hard enough to make $250,000 or more a year, who already pay the highest taxes in the country can always be taxed more and more. There must be 80 million registered voters who are not in this group, so it will be easy to get them on board with the idea to just tax our way out of this mess as if that will make any difference to the spiral down to $25 or $50 trillion debt that we will leave our children. It will not.

    Thank goodness the Republicans did so well in the last election. For one, our debt would probably already be at $20 trillion but it is not. And there is at least someone in Washington actually fighting to keep it from getting there.

    July 4, 2011 11:54 am at 11:54 am |
  2. B

    I predict that Obama will cave in again as he did on healthcare and in the end it will be to the benefit of corporations as it always does because they Own Government!

    This country is on its way downhill and the international corporate moguls will own us all. It is nothing less than social Darwinism, the mega rich and therefore the Powerful end up controlling everything, Supreme court,Congress,state and local leaders, and the rest are left to their own devices to survive.

    Think that is extreme? just wait

    July 4, 2011 12:04 pm at 12:04 pm |
  3. Republicans - The "Not Intended To Be Factually Accurate" Party

    Do not expect Wall Street executives to pressure Republicans to do this debt ceiling increase deal.

    A default will make the US less creditworthy and interest rates will go up; T-Bonds rates, mortgages, car loans, business loans, credit cards, rates abroad – EVERYTHING will get a push in the same direction.

    By using man-made, no-value-added financial derivative instruments, speculators can make money if the US defaults on its debt. For example, if Wall Street Gamblers were to "short Treasuries" [that is, sell something they don't own with the hopes of buying it back later at a lower price] and the August 2 deadline passes without a deal, they will make a TON OF MONEY.

    Congressman Eric Cantor is rumored to have some personal investments structured this way. He should be investigated for a "conflict of interest" given his role in the debt ceiling negotiations particularly given his actions of last week.

    American people – keep your eyes open. Don't assume Wall Street will force the Republicans to do the right thing at the 11th hour. The stock market would decline with a default but if these traders BET AGAINST THE ECONOMY and the GOP delivers a default, they will be very happy.

    July 4, 2011 12:04 pm at 12:04 pm |
  4. GI Joe

    Pay the Congressional members (both House and Senate) by actual piece of legislation they get thrru. STOP PAYING THEM FOR THEIR VACATIONS WHILE WE HAVE NO JOBS (Rremember. that's what they ran on in 2010 - not "no new taxes").

    July 4, 2011 12:07 pm at 12:07 pm |
  5. GI Joe

    FOUR - it didn't save us from Dubya - he spent a surplus, ran up debt (7 limits lifted), and that DID NOT EVEN INCLUDE THE WARS AND TAX CUTS FOR THE WEALTHIEST ! (Where are the jobs thos tax cuts created? India? China?)

    July 4, 2011 12:08 pm at 12:08 pm |
  6. James B

    Four and the Door: You do understand that much of the debt that has accumulated over the past 2.5 years is a direct result of a continuation of two wars and the tax cuts enacted in the Bush era. By the way, the overall debt was doubled during Mr. Bush's tenure and the debt ceiling was raised 7 times. It seems less than honest to ascribe the debt problem on Mr. Obama. Although, he could surely do better if the Republican House of Representatives would actually work with him on solving problems instead of dictating their own plans. Lastly, most economics would not suggest spending cuts while we are trying to grow the economy. It is my guess that a month or two before the election, Republicans will pass some form of jobs bill to offset the blame they are due. I am hopeful that the American people can see through a thick smokescreen on this 4th of July and vote using informed common sense.

    July 4, 2011 12:17 pm at 12:17 pm |
  7. Four and The Door

    GI Joe
    FOUR – it didn't save us from Dubya – he spent a surplus, ran up debt (7 limits lifted), and that DID NOT EVEN INCLUDE THE WARS AND TAX CUTS FOR THE WEALTHIEST !
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    The tax cuts enacted under Presidents Bush and extended by Obama ( under the advice of his own Chief Economic Advisor )were for everyone. That's right, everyone. Every American who works and pays taxes. The Republicans fought to make sure tax cuts were for everyone and did not discriminate just because one group ( the low scales ) has more voters than the other ( the higher scales ). The Republicans fight for fair government.

    July 4, 2011 12:21 pm at 12:21 pm |
  8. cindy

    Amen G.I. Joe and James B!!! I couldn't agree more or state it any better. Thank you!!!

    July 4, 2011 12:31 pm at 12:31 pm |
  9. juliei4

    Did the GOP demand spending cuts when the debt ceiling was raised 7 times in the Bush administration. I put money on they didn't. This is only aginst this president – not a Democratic president, but this president. Shame on all the hypocritical members of the GOP. Are there any sane minded Republicans left in Washington? Why would they be bending over for the Tea Party on an economic issue that the Tea Party knows nothing about?

    July 4, 2011 12:32 pm at 12:32 pm |
  10. Four and The Door

    James B
    ... It seems less than honest to ascribe the debt problem on Mr. Obama. Although, he could surely do better if the Republican House of Representatives would actually work with him on solving problems instead of dictating their own plans.
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    I'm still waiting for Obama or any Democrat to come up with a plan that comes even close to getting a handle on the national debt crisis like the plan presented by Representative Ryan. So far, the Ryan Plan is the only one that actually deals with the reality of the biggest challenge to our nation's future. It isn't easy, but it is reality.

    July 4, 2011 12:45 pm at 12:45 pm |
  11. Name Wiley S.

    Is Michele Bachmann going to Washington to use her strong leadership skill s and knowledge to resolve the debt ceiling issue or is she just going to criticize the president?

    July 4, 2011 12:46 pm at 12:46 pm |