GOP lays out consequences of missing debt deadline
July 30th, 2011
09:28 AM ET
11 years ago

GOP lays out consequences of missing debt deadline

Washington (CNN) - With Congress and the White House still at odds on raising America’s debt ceiling, Republicans used their weekly address to illustrate the dire risks of missing next week’s deadline for reaching a deal.

“The consequences of missing this deadline could be severe, precisely because Washington borrows so much money – more than 40 cents out of every dollar it spends,” Republican Sen. Jon Kyl of Arizona said.

He continued, “Markets would likely respond, dropping in value and hurting the retirement savings of millions of Americans. Republicans have tried to work with Democrats to avoid this result and put our country on a better path, but we need them to work with us.”

Kyl cited debt crises spreading across Europe as examples of what could happen if politicians don’t strike a deal before early next week.

“If we don’t do something about our spending problem now, the scenes we’ve seen playing out all across Europe could happen in America,” Kyl said. “If we don’t change the way Washington operates, we will not get control of our government, or our future.”

Kyl criticized the way Democrats were approaching the debt ceiling negotiations, saying they had failed to recognize the opportunity to cut spending.

“Unfortunately, after weeks of negotiations, it became clear that Democrats in Washington did not view this crisis as an opportunity to rein in spending,” Kyl said. “Instead, they saw it as an opportunity to impose huge tax increases on American families and small businesses.”

Kyl’s comments come on a weekend of anxious negotiation between Democrats and Republicans trying to strike a last-minute deal. On Friday the House of Representatives passed a Republican-sponsored debt plan, only to have the Democratically-controlled Senate table the measure.

In his weekly address, Obama criticized Republicans for putting forth a plan that he said didn’t solve the problems at hand.

"It’s a plan that wouldn’t solve our fiscal problems, but would force us to relive this crisis in just a few short months,” Obama said. “It would hold our economy captive to Washington politics once again. If anything, the past few weeks have demonstrated that’s unacceptable."

Kyl said in his address that a bipartisan approach is possible – but only if both sides are willing to compromise.

“Republicans believe we must solve our debt crisis – and we believe we can solve it if Democrats will work with us,” Kyl said. “No one will get everything they want, and we can’t solve all of our problems at once, but surely we can reach an agreement that will increase the debt ceiling, impose accountability, and begin reducing the size of our federal government.”

Filed under: Jon Kyl • national debt
soundoff (25 Responses)
  1. Larry King

    More hypocrisy from republicans. I used to be a "Reagan" republican. That part of the party is gone. Now I feel like I must support the Democrats because they are the only ones who care about our country.

    July 30, 2011 09:32 am at 9:32 am |
  2. Randy, San Francisco

    Why the mixed messages from the GOP/Tea Party? Tea Party wingnuts like Palin, Bachmann, and Paul have been saying that nothing disastrous will happen and Tea Party politicians will be punished for compromising. It is irresponsible that Tea Party politicians would sacrifice the country's welfare for their political and economic ideologies.

    July 30, 2011 09:43 am at 9:43 am |
  3. Donovan

    Kyl ... just push a CLEAN debt ceiling bill. We can have this discussion without default or credit issues.

    July 30, 2011 09:44 am at 9:44 am |
  4. Republicans Are The American Taliban

    This is the exact type of "manufactured crisis" trick that the Republicans used to get us into the Iraq war! Seems to be a common tactic they use to get what they want in the face of overwhelming logic and facts. Create a "crisis", then proclaim that their snake oil is the only cure for it. Remember the "made up" WMD that would end the world if we didn't invade Iraq? They have a quick solution to their own "crisis"...raise the debt ceiling!

    July 30, 2011 09:48 am at 9:48 am |

    Why do they continue to make money for it is worthless. They use it as leverage against the countries we owe money to.

    July 30, 2011 09:51 am at 9:51 am |
  6. Republicans Are The American Taliban

    Funny that Republican Sen. Jon Kyl of Arizona was the one on television about 3 months ago proclaiming that the government needed to be shut down. Now he and his Taliban bretheren have devised a way to destroy our economy and assist their Al Qaeda brothers overseas achieve their goal of taking down America.

    July 30, 2011 09:52 am at 9:52 am |
  7. Kevin

    The GOP are a bunch of liars, this never was a crisis until we elected an African American president. The GOP has piliticize this entire process. After all their grand standing now they want to compromise? What a load of BS. Everything they've done is about defeating the President. They know because that past that BS Paul Ryan budget they'll have to defend it in 2012, so they want to keep this manufactured crisis going all through the election year to keep the American public distracted. They will run in the same old platform in cut taxes, deregulate and they know the American public dine heard that song before and WE are nit going to fall for it again.

    July 30, 2011 09:53 am at 9:53 am |
  8. aaron in MN

    Kyl said. “No one will get everything they want, and we can’t solve all of our problems at once." With all do respect, yes we can. After WWII our debt was 100% of GDP, way more than today. We don't have a crisis, the republicans are making the crisis. The national debt primarily belongs to the GOP from Cold War spending, Kuwait spending, and Iraq and Afghanistan spending. They never raise taxes to pay for their wars. When the deficit grows they point the finger and social security and Medicare. Those two boys are not bankrupting us, the wars are. Republicans stole our wealth in the 80s(debt among middle class grew from 26% to 41% of GDP from 1980-1988), In the 2000s they stole our homes. And now they're going after the social security and Medicare funds. Here's an idea, let's make the rich start paying their tab for the wars. And let's stop spending billions to foreign gov'ts for oil. Why not live off renewable energies? Personally I think Earth would like that a lot.

    July 30, 2011 09:53 am at 9:53 am |
  9. Indy

    “Unfortunately, after weeks of negotiations, it became clear that Democrats in Washington did not view this crisis as an opportunity to rein in spending,” Kyl said. “Instead, they saw it as an opportunity to impose huge tax increases on American families and small businesses.”

    The above statement is yet another LIE that Republicans hope to spew to the stupid people, because we all know Republicans are the ones trying to make every single person pay more interest while they once again take the economy in the toilet and the Dems have offered huge cuts in spending but the Republicans refuse to ask the wealthy to help pay down the debt and will only accept a deal if the middle class pays all of the debt.They even had Rand Paul saying that the debt ceiling has nothing to do with the possible downgrade of its credit rating, he blamed Obama and the economy !!! Under this scenario you would have to believe credit scoring agencies can charge you more interest if your local economy is not doing well. There is no level Republicans will stoop to in order to try and make Obama look bad and they wake up happy every day that our lives are in financial ruins.

    July 30, 2011 10:10 am at 10:10 am |
  10. Republicans Are The American Taliban

    Funny that Rep. Jon Kyl can explain to us the consequences of shooting his hostage in the head, yet is compelled to do it anyway. Even went on national television to proclaim to all that he would do it. He is just doing what the voters of Arizona sent him to Washington to do, destroy America. Arizona is the home of Kyl, McCain, Palin, and J.D. Hayworth...and a host of other Taliban members. Arizona is where Al Qaeda sent their pilots to flight school before the 9/11 attacks.

    July 30, 2011 10:13 am at 10:13 am |
  11. Namryan NC

    I thought they said it was a fake deadline... Oh, but that was before they passed their asinine plan!

    July 30, 2011 10:18 am at 10:18 am |
  12. Stop GOPorate nonsense

    The GOPers are acting like they are the only ones whose opinion matters and anyone who disagrees with them is the enemy. Their twisted perception of the world does make the GOP (27%) the enemy of the thinking Americans who live in the real world – the GOP & fox media with their simpleton henchmen the tea-tards are are trying to destroy our democracy!

    July 30, 2011 10:23 am at 10:23 am |
  13. Tom

    "“Instead, they saw it as an opportunity to impose huge tax increases on American families and small businesses.”"

    This statement bothers me more than anything that is going on as I think some taxes should increase, but I haven't heard the administration say anything more then 'you cannot saddle all of this debt on the American lower income($250,000 down). I heard nothing of imposing huge tax increases on anyone making more. What I heard the president say was that the tax loopholes need to be changed and maybe the tax structure changed. I can agree on that. At one time I did make a 6 digit salary and I was amazed at how well my accountant could find tax loopholes etc to avoid higher taxes. When that job opportunity passed, I found that I am paying more in taxes with fewer deductions making less money. That is not fair to the lower income family. The taxing laws are not fair and need to be changed to a flat tax. Why the Republicans or Democrats don't incorporate in this into their bills is beyond any understanding of professionalism if you want to actually make a compromise. So my opinion of the all the lawmakers is pretty much thinking along the lines of "get it fixed! you d****d idiots"!!!!!!!!

    July 30, 2011 10:24 am at 10:24 am |
  14. SecedingfromTexas

    Kyl, why would you embarrass yourselves any further with a stupid radio talk like this one? Just now dawning on you
    how much damage you all have done?

    July 30, 2011 10:24 am at 10:24 am |
  15. Nelson in NC

    Typical Republican hypocrisy. This is nothing but a flimsy excuse to keep giving the rich everything and stop giving the poor anything.

    July 30, 2011 10:25 am at 10:25 am |
  16. pn

    And how is a bill with no revenue increases and a balanced budget amendment compromise?

    July 30, 2011 10:37 am at 10:37 am |
  17. Linda

    You "Stupid Greedy Goppers" We got the message!!!! What your doing is "Despicable and Immoral" Your calling Americans "Stupid" Look in the Mirror Boehner???? Cantor, Bye Bye in 2012!!!!! Teaparty incites "Hatred and Greed in America!!! GOP= GONE 2012.

    July 30, 2011 10:41 am at 10:41 am |
  18. Libertarian

    "Republicans believe we must solve our debt crisis"

    ...and Libertarians believe that we must default to starve this government to death. To each their own.

    July 30, 2011 10:44 am at 10:44 am |
  19. Teresa

    Since Congress can't make up their minds I say let's have the people vote on it and that will prove what the people want

    July 30, 2011 10:45 am at 10:45 am |
  20. RAY

    Senior vote for a republican president and reps if you what your social security and Medicare cut

    July 30, 2011 10:46 am at 10:46 am |
  21. Joe Mair- Small business owner of 30 years who has always paid his bills

    The Common Everyday American, has the power to stop the problems in Washington. We just have to do what our leaders say is ok to do. Being from Texas and a democatic I realize I have been wrong about goverment and gov. Rick Perry and people like Sarah, Michele and the Tea Party people. I also have decieded my father was wrong about paying my bills, my leadership in this country is right. So I have decieded that I will follow the republicans advice and default. WHO CARES IF NOBODY GETS PAID ANYWAYS...

    July 30, 2011 10:48 am at 10:48 am |
  22. vonnise cobb

    What is so bad about having to vote on a balanced budget amendment? Just put it to a vote!! let it pass or fail......What are the Democrats so afraid of?

    July 30, 2011 10:49 am at 10:49 am |
  23. Ken, AZ

    What Kyle means is that Democrats did not help the GOP destroy Medicarem Medicaid, and Social Security the way the GOP had hoped to do. The national debt is a problem and has to be dealt with but in a fair and balanced way, not at the point of a gun. It took more than 30 years to get into this mess and we won't get out of it overnight. The GOP plans just won't work.

    July 30, 2011 10:58 am at 10:58 am |
  24. To tell the truth

    this is the story of owner not arresting a thief on time, making the theif arresting the owner.. these republicans are professional spinning machines man. it's ridiculous.

    July 30, 2011 11:08 am at 11:08 am |
  25. Dan J

    I just don't get the democrats right now. The Boehner and Reid bills are essentially the same, but Boehner's bill will be revisited, hopefully with some fine-tuning in six months. The democrats don't want this because they say having to go through this again will potentially lead to another set of debt talks that could wind up being catastrophic in 6 months. Well that's all fine and dandy, but now that they didn't even give the bill a chance, we will have these catastrophic events NOW. That's backwards logic, and it solidfies their position as the party of "no." As an independent, I am voting republican next term.

    July 30, 2011 11:12 am at 11:12 am |