Time for the US to default already? I figured....2012. ;-)
FACTBOX-Combative debate looms over U.S. debt limit
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Wed Jan 5, 2011 11:58am EST
(For full coverage of the new Congress, click [ID:nCONGRESS])
Jan 5 (Reuters) - A top item for the new U.S. Congress is the federal government's borrowing limit, a potential flash point for freshmen Republicans backed by the fiscally conservative Tea Party movement.
The debt ceiling was last raised in February 2010 to $14.3 trillion. But the Treasury Department expects to reach that mark sometime in the first or second quarter of this year.
Deficit hawks have talked about using the issue to exact spending cuts from the Obama administration, while the White House has warned of dire consequences for the United States if the issue becomes engulfed in partisan politics.
Here are quotes on the issue from members of President Barack Obama's administration, the House of Representatives and the Senate, as well as private analysts:
AUSTAN GOOLSBEE, CHAIRMAN OF THE WHITE HOUSE COUNCIL OF ECONOMIC ADVISERS
"The debt ceiling is not something to toy with. If we hit the debt ceiling, that's essentially defaulting on our obligations, which is totally unprecedented in American history."
"The impact on the economy would be catastrophic. I mean, that would be a worse financial economic crisis than anything we saw in 2008."
"If we get to the point where you damage the full faith and credit of the United States, that would be the first default in history caused purely by insanity."
REPRESENTATIVE PAUL RYAN, INCOMING REPUBLICAN CHAIRMAN OF THE HOUSE BUDGET COMMITTEE
"I want Washington to actually do things to get spending under control. So I'm not interested in raising the debt ceiling on the hope that a promise will be fulfilled at a later time."
"I'm only interested in raising the debt ceiling if we get concessions on spending, on real controls to get our fiscal situation turned around and headed in the right direction."
"There's a lot of options that we have at our disposal on different kinds of controls. I think we should put caps on spending."
RAND PAUL, NEWLY ELECTED REPUBLICAN SENATOR FROM KENTUCKY AND TEA PARTY FAVORITE
"A lot of us think that raising the debt ceiling should be linked to a balanced budget rule. And then, if you want us to vote to raise the debt ceiling, promise in law that you will balance the budget from here on after."
"The people are tired of it. The people don't want to add more debt. The people are worried about the debt and what it does to our economy."
reuters.com |
