Meeting U.S. debt obligations is the only plan, Lew says
July 17th, 2011
09:22 AM ET
3 years ago

Meeting U.S. debt obligations is the only plan, Lew says

Washington (CNN) - If the White House has a plan for how it will deal with a potential default on its bills, budget director Jacob Lew wasn't talking about it Sunday.

"There is no plan other than meeting our obligations," Lew told CNN's "State of the Union" when asked how the government would spend revenues that make up about 60 percent of obligations if Congress fails to allow it to borrow more money by August 2.

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Filed under: Congress • Debt • Deficit • Jacob Lew • TV-State of the Union
soundoff (14 Responses)
  1. Ancient Texan

    The only plan is continued wild uncontroled spending. Raising the debt limit means Obama and company will spend all we as a nation can borrow in more failed "stimulus" payoffs to the unions and other far left Democrat toys. Raising taxes will result in higher unemployment and more former taxpayers unable to purchase anything.

    July 17, 2011 09:37 am at 9:37 am |
  2. terry,va

    Obummie hasn't lead one day in office. He was dragged kicking and screaming on the continuing budget that the Repubs passed a couple months ago. Obummie doesn't have a debt ceiling plan on paper. The Rebubs have had a plan on paper for months. The only budget Obummie submitted was voted down 97-0 in the Senate. Aren't there 52 Dumbocraps in the Senate? All voted against the fool in chief. Obummie voted with the other 47 Senators not to raise the debt ceiling in 2006. Now that the fool Obummie is in charge he wants to spend like a drunken sailor with handouts to his to sorry to work dumbocrap base.

    July 17, 2011 10:03 am at 10:03 am |
  3. vic , nashville ,tn

    Raising taxes will result in higher unemployment joke
    The fact is
    When G.W.Bush took office unemployment rate 4.2% when he left the office unemployment rate 7.8%
    When H.W.Bush took office unemployment rate 5.4% when he left the office unemployment rate 7.3%
    Unemployment rate go up when Bush in the white house

    July 17, 2011 10:06 am at 10:06 am |
  4. James B

    Republican stewardship in the previous administration ran this country into the proverbial ditch. Republicans took a healthy surplus and turned it into a $1.5 Trillion year-on-year deficit while running up a near $11 Trillion long-term debt. Now many of these same actors who championed disastrous policies under GWB are back to bully the American people to acccept Grover Norquiest' fringe pledge (no tax increases ever, particularly if it affects top earners).

    Republicans advocate we do not pay our incurred obligations and is wholely irresponsible. Republicans have no problemes going to war, giving tax breaks to rich donors and large corporations, and providing unpaid benefits (Medicare Part D), but when the bill comes due they suggest we duck out the back door and blame the current president for largely their party's transgressions. Their actions are beyond shameless they are bordering on unpatriotic. It is good we have a grown-up in Mr. Obama in the White Hourse. Mr. Obama supports a more balanced approach of spending cuts and tax increases; what we call common sense in my neck of the woods. GOP please step aside and do what's good for the country for a change. Country first, please!

    July 17, 2011 10:29 am at 10:29 am |
  5. The Elephant in The Room

    I don`t believe this man. Any remotely competent executive would have a contingency plan that lays out how to scale back government expenditures by 38% to match our Federal revenues. If Obama does not, hLd better fire all those lawyers that typically occupy Congress and other political jobs and hire some business executives with engineering & MBA backgrounds; people who mitigate risk rather than litigate.

    Moreover, the way to win a war is to be prepared to bring unrelenting pressure. To win this political war with the GOPTP, Barack Obama needs to be prepared to halt Congressional paychecks [the country will cheer] and continue soldiers pay and Grandma`s Social Security check [America cheers louder].

    July 17, 2011 10:32 am at 10:32 am |
  6. terry,va

    @ Vic....what does having a Bush in the White House have to do with what is happening now? Ancient history my friend. Obummie owns the economy. He has increase the national debt by 135%, gas prices over 100% and unemployment was 5.8% at the end of 2008 not 7.8% as you stated. Therefore unemployment has gone up 58%. History will record Bush as a genius compared to Obummie.

    July 17, 2011 10:32 am at 10:32 am |
  7. The Greedy Old Pigs have declared war on US!

    Wow Ancient Texan, your brain must be totally decayed to post garbage like that. Debt ceilings get raised all the time. Spending grew under Clinton yet his tax policies put us on track to pay down the debt. You are a cult member if you believe that greater spending is automatically bad. Indeed, if you understood math you'd realize that as the country grows spending will almost always grow with it. Managing growth and managing spending are done via the budget and taxation, not debt ceiling dramas created by the GOBPbaggers to cover their own financial misconduct during the Bush years. You are aware that the majority of the US deficit was caused by GOBPbaggers like Reagan and Bush, right? Learn some facts and don't expect to find them on Fakes News.

    Oh yeah, and to paraphrase the dear, departed St. Reagan, the GOBP is not the solution; the GOBP is the problem.

    July 17, 2011 10:51 am at 10:51 am |
  8. Four and The Door

    vic , nashville ,tn
    Raising taxes will result in higher unemployment joke
    ________________________________________________________________________________________________
    Actually Vic, the fact that a government demanding more taxes from individuals and businesses hurts the economy and increases unemployment is not only a fundamental truth, it is completely obvious. The only way a company can create a job is if it has work to do, someone available to do that work and money to pay that person to do it. The less money that business ( or individual who owns the business ) has, it is obvious that their ability to pay someone new to do work for them has been reduced. Right now there is plenty of work to do, plenty of people available to be hired, but not a lot of money available for most companies to make that new hire. Sure, you hear about companies that have a bunch of cash, but these are not the small businesses that create most new jobs. Most small businesses right now are having cash flow challenges. Raise taxes on them and those challenges get more difficult. It's a fact, Vic. There's no way around it.

    July 17, 2011 10:52 am at 10:52 am |
  9. The Greedy Old Pigs have declared class war on US!

    Terry, you must share that brain (cell) with Ancient Texan. Bush lied, people dies. Obama led; Osama's dead. So can the lies about leadership. And President Obama's plan is quite clear: Spending cuts AND tax increased on the top 2%. They wanted to put it in a coloring book for you so you'd have that oh so important "paper" you mentioned, but they have better things to do dealing with extreme right wing obstructionists in the GOBP.

    July 17, 2011 10:55 am at 10:55 am |
  10. The Greedy Old Pigs have declared class war on US!

    Terry, the past 10 years is most certainly not "ancient history" by any sane definition of the word. And it's especially relevant now (actually the last 30 years) because the majority – here, let me spell it out for you and Ancient Texan since you're obviously a bit slow – M-A-J-O-R-I-T-Y – of the current deficit was caused by the GOBPbaggers. And, since you apparently haven't noticed, underregulated no-reserve commodities traders have much, much more to do with gas prices than does the president. It's astounding you are so ignorant of such basic facts. Educate yourself!

    July 17, 2011 11:00 am at 11:00 am |
  11. The Greedy Old Pigs have declared class war on US!

    "the fact that a government demanding more taxes from individuals and businesses hurts the economy and increases unemployment is not only a fundamental truth, it is completely obvious."

    Now that's a heaping helpin' of corporatist cult propaganda. There is little correlation between raising tax rates and employment. Certainly the last 10 years have proven that cutting taxes certainly doesn't "create" jobs. Demand is what creates jobs, which you'd know if you weren't such a brainwashed cult member (or are you a paid troll?). You also demonstrate a very basic (but common to teatards) misunderstanding of tax policy. Taxes are levied after deducting employee costs. So the tax rate doesn't change whether 1 person is hired or 100. Tax policies don't affect hiring unless directly connected, like payroll tax holidays (doesn't always work) and tax credits for hiring (which can easily be gamed so must be applied cautiously). Stop getting your phony talking points and false "knowledge" from the extreme right wing noise makers and maybe you'll learn something.

    July 17, 2011 11:07 am at 11:07 am |
  12. terry,va

    @The Greedy Old Pigs have declared war on the US..... You must be one of the 47% of the peopel in this country that pay no taxes. You can thank GWBush for alot of you sorry people that don't pay taxes. All you liberal dumbocraps say is that Bush reduced taxes on the rich. As a matter of fact, he reduced taxes on all income taxpayers and eliminated taxes for millions of low income people. All of those people should thank him. I don't have a problem if Obummie wants to raise taxes on every one. He can go back to the old rates if he wants to. I can stand it if you liberal fools can. The problem I have is to take more of my money and no one elses. Yeah, I'm in the top 2% and have worked hard to get there unlike people with their hand out.

    July 17, 2011 11:12 am at 11:12 am |
  13. Four and The Door

    The Greedy Old Pigs have declared class war on US!
    ...Demand is what creates jobs, which you'd know if you weren't such a brainwashed cult member (or are you a paid troll?). You also demonstrate a very basic (but common to teatards) misunderstanding of tax policy.
    ____________________________________________________________________________________________________
    I started my own small ( 20 employees ) business from personal savings of mine from working 15 years and have all 20 employees working very hard because there is so much that needs to be done. I would love to hire 5 more so I could take more business and pay myself as much as I pay some of my employees but I do not have nearly enough cash flow to make that increased payroll. But the federal government gets their cut of our profits. They get it first because that's the way taxes work. I wish I could make as much money from my business as the federal government does. But they need more?!?!

    July 17, 2011 11:22 am at 11:22 am |
  14. Okie

    Under Bush, we Borrowed Money to fight the Wars. Default on that. Jobs should be Job One. Where are the plans for the Jobs? Raising the retirement age, for what, there isn't any jobs, you just suffer longer. Plus, worked to 69, when 71 is the average death age. You can't do at 69, what you do at 34.

    July 17, 2011 11:30 am at 11:30 am |