Washington (CNN)- Republican presidential hopeful Michele Bachmann says that increasing the debt ceiling won’t solve the country’s fiscal woes.
“The government hasn’t gone on a diet, it’s private business that has gone on a diet and it’s time to have tough love and just do the opposite. It’s federal government that needs to go on a diet,” Bachmann told Fox’s Bill O’Reilly on Monday.
The Minnesota congresswoman says she is not nervous about the government defaulting on its debt. Even if congressional leaders and President Barack Obama come to an agreement on deficit reduction, Bachmann is one Republican who opposes an increase to the debt limit.
Treasury Secretary Timothy Geithner warned negotiators on Sunday that the outcome could be catastrophic for Americans if the debt limit isn’t raised, detailing that the United States will not be able to meet some of its obligations to foreign investors, creating a domino effect that will compromise the worth of the U.S. dollar and hurt the stock market.
“He’s wrong because all you have to do is look at the books. We have sufficient revenue coming in,” Bachmann said, “Everybody needs to get their feathers down and not ruffled.”
A majority of GOP presidential candidates have pledged to sign the “Cut, Cap and Balance” commitment to cut government spending, but Bachmann wants a pledge that will go further, including a motion to completely defund “Obamacare.”
The Hawkeye native campaigned in Indianola, Iowa, on Monday, where she spoke to workers at a cement-handling machine company.
“You cut spending first, the last resort is you raise taxes,” Bachmann said, adding that what this country needs is a president with a “titanium spine.”
Michele Bachmann is a tax lawyer , special interests and subsidies, what dose she know about global economics.
She's a frozen corn dog at the county fair !
So she holds her ground in a debate she isn't even a part of? Unless I have missed something, Bachmann has absolutely nothing to do with the meetings between the Republicans, Democrats and President Obama.
Imagine if she'd be allowed to finger the trigger for our nukes!
As usual, Michelle Bachmann seems to have new clue as to what she is talking about. Here's an analogy that even she should be able to grasp. If you decide not to pay your credit card one month, the credit card company slaps you with a $39 late fee and jacks your interest rate up to 29%. In other words, defaulting on that payment costs you even more money in both the short term and long run. The same thing happens to governments who don't pay their bills. If the debt ceiling isn't raised, we won't be able to make our current payments, we eventually will have to borrow the money anyways, only now it (and the money we already owe) will cost us even more, multiplying our debt and deficit even more.
Congresswoman Bachmann you recently voted to increase military spending to $650 Billion, one of the largest drivers of our National debt. If we are to live within our means you can't keep giving the lion's share of our revenue to one organization while leaving nothing to fund our infrastructure, education, and food and drug safety programs. If you refuse to collect more money, then stop overspending money on the military.
She's a talker . . . just not much of a thinker.
Do any of these Republicans, who hold Ronald Reagan in such high regard, even know what his record on taxes was. For all the conservative rhetoric – and he was after all the "great communicator" – Reagan was smart enough to know that you do what you have to do based on the practical reality of the situation. Not some ideological proposition that sounded good on the campaign trail, to an audience of people who don't really understand the complexities of how things actually work at a national or global scale.
Sorry, but we let a spoiled child run the show for 8 years. No need for another one who picks their own facts to mold their own reality.
Yes, the govt still has income, but ... It's currently spending $333B per month while taking in about $200B per month. When we hit the debt limit, spending must instantly drop by 33%. Since interest payments can't be stopped, that means everything else will need to drop by about 40% immediately - with no gentle phased decrease.
What will be the mayhem when:
a. Social Security checks decrease by 40%.
b. Medicare/Medicaid payments decrease by 40%.
c. Immediate layoff of 40% of all fed employees including the military.
d. Contracts of all sorts immediately terminated.
How many secondary layoffs will result from these cutbacks? Will stores layoff staff as sales drop? Will companies layoff employees when govt. contracts are cancelled aburptly?
You can't pull 40% out of the spending in only a few weeks without creating massive problems. You can do all sorts of tricks to try to mitigate the pain, but the pain remains massive and severe.
Sure, we can take SS and medicare income to pay to subsidize corporations. Then we just quit paying those benefits out and before you know it all the old people will be dead and we won't owe them anymore. Problem solved TEA party style.
What the Republicans don't want to speak about is the cost of the two BushWars have had. But I guess its okay to spend money on war, but no on health.
Letting the country default would not be the better of the two options. If you want to see massive chaos then stick with this lady. She is as crazy as Palin. I could not belive it when I heard her on GMA saying we should eliminate the minium wage and let companies pay what they want to pay.