BLITZER'S BLOG: Debt ceiling failure would be disastrous
July 13th, 2011
05:34 PM ET
3 years ago

BLITZER'S BLOG: Debt ceiling failure would be disastrous

(CNN) - I think President Obama and the Democratic and Republican leaders with whom he's been negotiating an increase in the nation's debt ceiling all fully appreciate the stakes. Based on everything that I'm hearing, they are all convinced that the consequences of failure would be a huge disaster for the U.S. economy and the American people. It probably would make the 2008-09 recession look like child's play.

The warnings have been coming fast and furious in recent days – from the president, his treasury secretary, Timothy Geithner, and, today, from Federal Reserve Chairman Ben Bernanke. And all of this helps explain why Senate Minority Leader Mitch McConnell came up with his rather complicated, last-minute and very desperate proposal to resolve the issue.

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soundoff (10 Responses)
  1. California Conservative

    U.S.’s Aaa Debt Rating Placed on Review for Possible Downgrade by Moody’s
    QBy Greg Chang – Jul 13, 2011 2:02 PM PT

    Obama's economy,

    Obama better do something about his economy or Moody's will.

    July 13, 2011 05:44 pm at 5:44 pm |
  2. Four and The Door

    The warnings have been coming fast and furious in recent days – from the president, his treasury secretary, Timothy Geithner, and, today, from Federal Reserve Chairman Ben Bernanke.
    _______________________________________________________________________________________________
    Yeah, and all of these bufoons were right on board the Obama Bandwagon when he was spending us into this mess. What made them think the debt limit increase would just be automatic? Enough is enough. And we will not accept Obama demanding that he tax his way out of this. He needs to start dealing with the economic situation responsibly like the rest of us have outside of Washington DC. He is very out-of-touch with most Americans. Stop spending and start managing.

    July 13, 2011 05:56 pm at 5:56 pm |
  3. Liberal James

    I view this whole mess differently. The problem is big business. They have chosen to destroy America. Under the guise of competition they have moved all the jobs that they can to foreign countries which puts American's out of work and on the roles of the unemployed. They also have chosen to move their corporations to countries to avoid paying taxes on the outrageous profits that they are getting. This destroys the American dream. Somehow they have convinced the middle class that fixing the government is their problem. We pay our taxes and the corporations use every means possible to avoid paying taxes. Everyone knows that the economy was being propped up by the housing industry. It used to be cars and houses. Now we have neither. It is time to reverse the death spiral. Quit buying stuff from China. Let the Bush tax cuts expire and make the corporations pay their fair share.

    July 13, 2011 06:17 pm at 6:17 pm |
  4. Albo58

    When you don't lead, you're ALWAYS in crisis! This inept President is an unmitigated disaster!

    July 13, 2011 06:36 pm at 6:36 pm |
  5. B

    Whichever way the Republicans turn now, they will lose because of what they have already done in supporting this endless fight to save the corporate world from taxes at ANY cost even the Fiscal Solvency of this country.

    Most Americans now understand what is defining the whole Republican cause and will reject it in 2012.

    July 13, 2011 06:52 pm at 6:52 pm |
  6. Terrie

    I have a feeling they won't be able to make the deadline, I also feel like I can't trust or on the government. I think they will let the dollar value go down and everything because if I am right, Obama is not willing to compromise and that is just sad. So if they don't make the deadline, I think it would be Obama's fault.

    July 13, 2011 06:55 pm at 6:55 pm |
  7. Soldier

    It's amazing how people on this blog try to defend the "Bush tax Cuts" when I would bet a full months pay that 100% of you all make under $250,000 and are probably looking forward to SS and Medi Care! Same goes for complaining about BIG Government and everything else...we have seen what happens if you have a Natural Disaster in your Region...the Republicans are against helping the American people! But, like kids we will get what we ask for....so no complaining when the Republicans come into power....the middle class will be destroyed and we can only blame ourselves for being IGNORANT to the facts! Divide and Conquer, that's the game. They're playing Chess while we play checkers!

    July 13, 2011 07:57 pm at 7:57 pm |
  8. Anthony

    Two things for Republicans to ponder:

    1. If the U.S. government defaults, the dollar will depreciate With the U.S. losing its sterling credit rating, the dollar will no longer be the safest currency in the world. How much will your tax cuts be worth with a depreciated dollar?

    2. If Republicans force the government to default over tax cuts (they turned down a spending cuts of 3 trillion dollars because they refused to give up any of their tax cuts), how are they going to get the Bush tax cuts renewed next year when it is due to expire? The Bush tax cuts will not renew themselves. If they are willing to kill the economy over tax cuts for the rich (Democrats are only asking Republicans to allow the top marginal rate, the tax rate for the highest income bracket, to go back to where it was before the Bush tax cuts), how are they going to get the vast majority of Americans to vote for them in 2012? Do they think Democrats in Congress are going to help them renew the Bush tax cuts next year?

    July 13, 2011 08:10 pm at 8:10 pm |
  9. Wise1Speak

    PEOPLE – - – TAKE NOTE!

    Eric Cantor is one of those arrogant jerks who should not be sitting at the same table with grownups. Cantor needs to sit in the corner by himself until he learns to eat his peas.
    Yet, the "Republican Tea Party GOP Hypocrites" are following his leadership into the debts of he11.

    July 13, 2011 08:16 pm at 8:16 pm |
  10. Trickle down economics & the Republican Congress

    At one time in our history, the American Dream was attainable just by reaching the middle class level. However the middle class has changed since then. In the 1950s, if you owned a house in the suburbs, a car or two in the driveway, one breadwinner was able to provide for the household, and a job for life, you were living the American Dream and you were a happy member of the middle class. What about today? the trickle down economics never worked will never work and the more the GOP oppress the middle class, the lesser the government revenues in the form of paid taxes which result in higher debt. Solve the middle class problems and you will be solving the debt issues simultaneously, break the middle class, break the government its a simple as that!!!

    July 13, 2011 08:42 pm at 8:42 pm |