The debt ceiling battle: Where things stand
July 29th, 2011
03:06 PM ET
3 years ago

The debt ceiling battle: Where things stand

WASHINGTON (CNN) – The federal government has four days left to raise the nation's current $14.3 trillion debt ceiling, the Treasury Department said. A failure to do so will risk an unprecedented national default.

If the debt ceiling is not raised by Tuesday, Americans could face rising interest rates and a declining dollar, among other problems.
As the cost of borrowing rises, individual mortgages, car loans and student loans could become significantly more expensive. Some financial experts have warned of a downgrade of America's triple-A credit rating and a potential stock market crash.

FULL STORY

Filed under: Debt • Deficit • House of Representatives • Senate
soundoff (17 Responses)
  1. A True Centrist

    Where do things stand? The Republicans in the House are about to pass their third bill which will probably again get voted down by the Dems in the Senate. In the meantime, the Dems have not offered one bill. Yes, people keep talking about the supposed Reid bill but as one Dem House member said yesterday, "no one has seen it". Does it really exist? Not sure, but I do know that the House hasn't seen it. What about the President? Today, Carney said the President has a "secret plan". Yup, a secret plan...now that's leadership!

    The liberals on this site can no longer call the Republicans the party of no. Now they are BOTH the party of no!!

    July 29, 2011 03:15 pm at 3:15 pm |
  2. Rudy NYC

    Half of the GOTP 2012 candidates claim the the Obama adminstration is lying to the public. That we can blow through this date without harm or foul. They advocate that we can somehow juggle the dollars through creative accounting and keep the bills paid.

    First of all, do you want people who think creative accounting should be used with our nation's finances should be President?

    Second of all, the Treasurere stated back in May that he had enough cash to keep going without resorting to creative accounting or deciding who gets paid and who does not.

    Thirdly, the Treasurer is not authorized to decide who gets paid and who does not, and neither is the President. All revenue is appropriated by the Congress with legislation that originates in the House.

    July 29, 2011 03:39 pm at 3:39 pm |
  3. Rick McDaniel

    Stalemate........dead in the water.......no where to go.

    July 29, 2011 03:40 pm at 3:40 pm |
  4. Rudy NYC

    The Treasurer is not authorized to decide who gets paid and who does not, and neither is the President. All revenue is appropriated by the Congress with legislation that originates in the House.

    The House decides how much is appropriated and where. The House budget bill is voted on by the Senate, where any amendments must be voted on again by the House. So, if the House originates bills that define who does get paid and how much, shouldn't the House decide who doesn't get paid and how late? Just wondering. I'm no scholar, like that guy at 1600.

    July 29, 2011 03:53 pm at 3:53 pm |
  5. Sniffit

    "The plan also calls for a congressional vote on a balanced budget amendment to the Constitution by the end of the year."

    No, that is NOT what it requires. What it requires is that both chambers of Congress PASS the balanced budget amendment and send it to the states and makes raising the debt ceiling that second time contingent on it. In other words, it's an attempt to legislate that a vote against the balanced budget amendment next time is a vote against raising the debt ceiling next time...i.e., it holds the economy hostage just like the GOP is doing now so they try to force through a a piece of idiotic ideologue legislation that every economist in the country has called a very stupid and extremely dangerous thing to add to the Constitution. STOP COVERING FOR THEM BY GLOSSING OVER THE TRUTH, CNN.

    July 29, 2011 03:53 pm at 3:53 pm |
  6. The Day of Financial Reckoning is HERE - The Great Democrat Welfare Society Ends

    As the dot.com bubble burst, as the real estate bubble burst, so must the government entitlement bubble burst. Interest rates SHOULD rise. Artificially low rates only fuel artificial scenarios that eventually have to come back to earth (aka a crash).

    Our dollar is ALREADY declining thanks to Obama and the Fed printing money like crazy.

    Our enormous debt and future projected deficits, and their refusal to cut them, thanks to Obama and the Democrats has ALREADY guaranteed a down grade.

    Our federal government is the ONLY entity not to undergo a reality check over the last few years. Thanks to Obama and the "progressive"/leftist Democrats, we are well on our way to becoming Greece.

    July 29, 2011 03:54 pm at 3:54 pm |
  7. vkmo

    Boehner is dangerously irresponsible. He has elements of President Hoover, Weiner, Herr Fuhrer and current Tiger (they all have "er" at the end of their names). He has tanked stock markets, home sales causing Trillions in losses worldwide. Private savings have shrunk since he opened up. Butt him out.

    July 29, 2011 03:57 pm at 3:57 pm |
  8. vic , nashville ,tn

    Last Monday night we show to the world both parties can’t come to any conclusion when it’s come to increase the debt ceiling
    Last night we show to the world even one party can’t come to any conclusion when it’s come to increase the debt ceiling

    PATHETIC

    July 29, 2011 04:07 pm at 4:07 pm |
  9. Sniffit

    "As the dot.com bubble burst, as the real estate bubble burst, so must the government entitlement bubble burst."

    That's not even apples to oranges...it's dildos to oranges. Get a life and find yourself a new place to get your talking points. Where it is you're getting them now just makes you sound like you're a trisome.

    July 29, 2011 04:12 pm at 4:12 pm |
  10. Rudy NYC

    Yes, people keep talking about the supposed Reid bill but as one Dem House member said yesterday, "no one has seen it". Does it really exist?
    -------------
    The House must first send a bill to the Senate, where the Senate can make amendments. The Senate cannot originate appropriations bills. The only time you might think see it happen is when the same party controls both chambers of Congress. All members of the same party work together on a single, which is still originated in the House.

    You will see Reid's bill when and if Boehner can get his act together and send something for Sen. Reid to completely re-write with his amendments. The bill he brings to the floor will be a completely transformed version of Boehner's bill.

    July 29, 2011 04:14 pm at 4:14 pm |
  11. Fair is Fair

    What have you got against a balanced budget ammendment, Snifft? All or almost all of the states have it.

    July 29, 2011 04:16 pm at 4:16 pm |
  12. MAhole

    GOP = Get Obama Party.

    Disgusting.......

    July 29, 2011 04:25 pm at 4:25 pm |
  13. Rudy NYC

    sniffit brilliantly wrote:
    ...In other words, it's an attempt to legislate that a vote against the balanced budget amendment next time is a vote against raising the debt ceiling next time ...
    -------------
    Sneaky, oh so sneaky they are on the right. Seems like the further you go the sneakier they get. Good call, by 'sniffit'.

    Now we can gain a better understand for all of the tea-hugs over the CC&B bill.

    July 29, 2011 04:26 pm at 4:26 pm |
  14. The Day of Financial Reckoning is HERE - The Great Democrat Welfare Society Ends

    Obama has been in office for 2 years not 4. So try getting your facts straight before you go blaming him for EVERYTHING!!!
    ===================================================================================================
    2.5 years to be exact. But given his past performance, I have absolutely NO reason to believe the next 1.5 years will be any better than the previous 2.5 years. He's an arrogant, narcicistis socialist that doesn't have a CLUE about leadership or our economy. We would have been better with Mickey Mouse in the Whitehouse.

    July 29, 2011 04:30 pm at 4:30 pm |
  15. The Greedy Old Pigs have declared class war on US!

    Where things stand (concise versions):

    The GOBPbaggers still refuse to ask their corrupt corporatist cult leaders to share in the sacrifices the rest of us are making.

    The cultbaggers refuse to discuss increased revenues despite the fact that is exactly what the vast majority of Americans want.

    The teatards want to hold America hostage to a short term deal so they can engage in their political terrorism again next year.

    Boehner still can't lead.

    July 29, 2011 04:30 pm at 4:30 pm |
  16. madvoter

    Do you get the feeling that there is a "terrorist" in the White House! I am not talking about the House and Senate either.
    All of our 401 K's will bite the dust along with life as we know it. Do you really feel better today than you did when Bush was in the White House? Are you disgusted with all politicians like I am. These are the people that are using OUR tax money for their outrageous retirement plans and medical plans, and our elected President doesn't care about how much money that he gives away! Something SMELLS!! 2012 cannot come SOON ENOUGH for me.

    July 29, 2011 04:32 pm at 4:32 pm |
  17. Four and The Door

    John Boehner is doing an excellent job in this process for so many Americans who just want to see Washington get serious about managing our tax dollars. $17 trillion ( by 2012 apparently ) of debt, about 115% of our Gross National Product now is way out of control. We are not going to tax our way to prosperity. The government is not going to buy the economy back to life. It's time to make the tough decisions and do what everyone knows needs to be done. Just cut the borrowing and spending. There are no tricks or gimmicks left. Manage the tax dollars. It's just that simple.

    July 29, 2011 04:37 pm at 4:37 pm |