Toomey casts doubt on consequences of not raising debt-ceiling


As the U.S. government inches closer to reaching the legal amount it is allowed to borrow, Republican Sen. Pat Toomey laid out a plan that he says would prevent the government from defaulting on its loans without increasing the amount of money the U.S. can legally borrow. Toomey said he was fearful of what would happen if immediate action was not taken to control the federal debt.

"The thing that worries me as a much as anything else is the danger that we could have a dangerous and catastrophic shock," Toomey said before the Heritage Foundation in Washington, D.C.

Toomey introduced legislation, which would require the Treasury department to pay off some debts and defer payments of others. That stands in direct contrast to warnings from the Obama administration.

Treasury Secretary Tim Geithner has said that it is "essential" for Congress to raise the $14.29 trillion debt limit soon because sometime between April 5 and May 31, the government will exceed what it can now legally borrow to cover it's obligations.

Toomey believes the president is not supporting this bill, because he would rather try to scare members of Congress into voting for an increase in the ceiling.

Republicans have mixed views on how to tackle the debt ceiling with many saying they won't support an increase without significant structural reforms in the budget process or big spending cuts.

Some Republicans are requesting that Congress vote in favor of a balanced-budget amendment before they deal with the debt ceiling. The amendment, offered by Sen. Mike Lee (R-UT), would require a super-majority to raise taxes and possible spending caps that would create immediate reductions in government spending.

Discuss this post

You allow it to be raised and your history next election ! Your move America is watching !

  • 2 votes
Reply#1 - Wed Feb 16, 2011 4:42 PM EST

In way toomey is right as long as debt interest is paid off. Other program spending can be delayed and prioritized on an ongoing basis.

Much like many Americans are paying down on credit card debt. The squeaky wheel gets the grease.

  • 3 votes
Reply#2 - Wed Feb 16, 2011 4:48 PM EST

Stop using concrete, real world examples. It's not fair to the libbies around here.

I wonder if Bev. or Fiesty have a credit card?

  • 4 votes
#2.1 - Wed Feb 16, 2011 5:09 PM EST

Spanky.... wouldnt that just be called government entitlements?

  • 3 votes
#2.2 - Wed Feb 16, 2011 5:18 PM EST

Spanky-

I wonder if Bev. or Fiesty have a credit card?

Still being nosy, eh Spanky. It's really none of your D@^# business.

    #2.3 - Wed Feb 16, 2011 5:18 PM EST

    Take it easy on my pal Spank. He doesn'thave enough to do, and gets bored. 'Sides- asking questions is how you learn things, Bev. 'Specially when your a lawyer. I mean, a degreed accountant. I mean, a guy that hangs drywall (it's dang hard work!). I mean, the posting-police. I mean, an employer. I mean, MY BESTEST BUDDIE!

    • 3 votes
    #2.4 - Wed Feb 16, 2011 5:30 PM EST

    Aww, thanks Drive By.

    But let's be clear - former drywaller - no more hard labor for me. And of course I always use my accounting background, but don't actually do accounting. I got peeps for that.

    Posting police - absolutely. And yes I am at work. How about you? I know, damn near quittin' time for you. Give you really cool, let's you post at work, boss a hug for me. He's one cool dude!

    • 1 vote
    #2.5 - Wed Feb 16, 2011 5:41 PM EST
    Reply

    FR: Toomey casts doubt . . .

    Finally, some original thought from someone.

    Some would call this "Change". And something has to change to stop this run-away high speed spending train from killing the American economy. And the sooner this spending ends, the better.

    Balls back in your court Obama/Democrats. You wanted some new ideas, here they are. Are you going to support them, come up with your own, or trash the Republicans?

    • 4 votes
    Reply#3 - Wed Feb 16, 2011 5:00 PM EST

    But, but Obama needs more money!

    Bye the way a couple years ago he was all about those "green jobs" and talked up the effect of the "green soots" on the economy. Promised thousands of new jobs in new industries.

    Uh, what happened to all that? I was frigging promised I'd be able to run my car on unicorn juice and fairy dust, and gosh darn it I want my unicorn dust and fairy dust!

    • 4 votes
    #3.1 - Wed Feb 16, 2011 5:05 PM EST

    "...come up with your own...."

    That's rich! Thanks for the smile, Smiff.

      #3.2 - Wed Feb 16, 2011 5:36 PM EST
      Reply

      The thing that worries me as a much as anything else is the danger that we could have a dangerous and catastrophic shock," Toomey said before the Heritage Foundation in Washington, D.C.

      Why isn't Toomey worried about America's default or the Global repercussions?

      Oh, that's right the Heritage Foundation is another tentacle of the Kochtopus. Toomey is a liar the Koch Brothers don't want to lose any of their billions.

      Among the institutions that they have/are subsidize(d), which files lawsuits opposing state and federal regulations the Kochs, this time, won't be the deficit hawks when it comes to their billons.

      • 2 votes
      Reply#4 - Wed Feb 16, 2011 5:04 PM EST

      Bev. I do so much enjoy reading your post and commenting upon them, but if you are not going to rtry to be coherent it really makes it difficult.

      I get the Koch bros. are EEEVVILLL - I watch Rachel too. But I cannot glean any actual meaning from the remainder.

      • 4 votes
      #4.1 - Wed Feb 16, 2011 5:08 PM EST

      And there we have it ladies and gentlemen.....the progressives / liberals / left / no labels / Democrats / whatever they are going by today to make themselves not sound like socialists have been screaming for conservatives to come up with ideas...

      One has been placed before them and since its not "lets just spend more money that we dont have and tax the rich to death" they revert to their norm..... attack the idea giver....

      Bev I take it this means you have absolutely nothing negative to say about Toomey's idea so you must thrash him....

      atta girl....

      • 4 votes
      #4.2 - Wed Feb 16, 2011 5:13 PM EST

      Spanky.... let me translate...

      "I have nothing bad to say about the idea and it actually makes sense but since Toomey didnt say 'tax the EEEEEVVVVIIIILLLLLL job producing rich people to death and give a bunch more money to people who don't actaully do anything to earn a living (wealth redistribution), I must thrash Toomey and some random conservatives....."

      I think that should about cover it.

      • 3 votes
      #4.3 - Wed Feb 16, 2011 5:17 PM EST

      Thanks Larry. I think it's hard for the old gal to see the little keys anymore.

      But seriously her and Fiesty are so getting hammered around here lately I damn NEAR feel sorry for them.

      • 2 votes
      #4.4 - Wed Feb 16, 2011 5:43 PM EST

      Larry...sorry we couldn't hear you without the bold font button pressed.

        #4.5 - Wed Feb 16, 2011 5:49 PM EST
        Reply

        A super majority to raise taxes? Afraid you can't clog the Senate forever? Afraid the middle class might wake up and realize the lord of the manor retreated to his castle having kidnapped their wives, closed the gates of the castle and left them to the Vikings?

          Reply#5 - Wed Feb 16, 2011 6:13 PM EST

          so pay the interest first, then stop paying social security and medicare claims until the debt is gone.

            Reply#6 - Wed Feb 16, 2011 6:39 PM EST

            Senator Toomey sound like he's seeing the light at the en of the tunnel, and it a train headed straight towards the Republican and TEA party right when the following continues: Typical Republican and Tea party cutting of PBS and NPR funding while at the same time funding for Rep. John Boehner home district - The Republicans continue to take care of their own at the expense of the general public - The Republicans under 13.5 Billion from a program that has reduced crime 40 percent and would layoff 45 percent of one communities police force. The TEA and Republican party want gut the EPA and remove federal regulations from the EPA rendering it nothing. Rep. Boehner wants to cut 450 million and allow 3.7 million people get, suffer and die of HIV and or AIDS. But at the same time - Boehner is doing everything he can for his high-dollar cronies in his district. Boehner and House Republicans appear to have included an earmark-in-all-but-name for the new Speaker’s district in the newly released House Appropriations Continuing Resolution (CR). The CR includes massive cuts to important programs like Head Start and LIHEAP, but one thing it doesn’t cut is $450 million stashed away for the construction of a Joint Strike Fighter engine the Pentagon does not even want. This pulled from national headlines, proof positive there are lives at stake with the Republican Right and the TEA sippers. General Electric and Rolls Royce will benefit tremendously in Boehners district. It now appears that Boehner is funneling money to his own district in an earmark-in-all-but-name may be part of the reason for that. This from the leader trying cut 100 billion from the deficit, but not from his district.

              Reply#7 - Wed Feb 16, 2011 9:26 PM EST

               Lets see we can spend on two wars, tax cuts for the Rich which have had for the last 30years, tax cuts for big Oil who are making record profits, a jet engine that only Boehner wants for pork which he said he would cut out Lier,

              Instead lets go after all the middle class and poor 

              this is what you get with Republicans and Tea Party

              they claimed to be for freedom and Rights and yet they are taking it all away 

                Reply#8 - Thu Feb 17, 2011 3:59 AM EST

                  Reply#9 - Thu Feb 17, 2011 4:06 AM EST

                  Osama Bin Laden has won. He set out to bankrupt the US. It is the story of the tar baby in Uncle Remus. It continues on at 2 billion or so every week, his plan was to incite the US to come after a ghost. The US spends 41% of the worlds military spending. We have over 700 bases all around the world. You really can't blame the 800 billion dollar gorilla in the room on Obama, but a series of individuals. Most of them behind the scenes. The perscription drug benefit passed under Bush is unfunded. It will balloon as the boomers age. The entitlement spending, is in trouble, primarily due to the govenment skimmng off the funds to pay down debt. The estimate is 2.6 trllion from Social Security. It is also estimated that if that were restored into the system, there would be 4 trillion by 2037 in the coffers. Mediicare is taking a big hit right now for 2 reasons. The boomers are coming of age and can't afford 900 dollar a month health insurance payments and the economic downturn that is currently global. A few years ago, they lost a chunk of their retirement in the market crash and they are hurting.

                  Niether the Dems or the Rebubs care to touch Entitlements (SSI, Medicare, Medicaid). This is mandatory spending, along with the interest on the debt. The president is required by law to fully fund these items. It takes congressional action to do anything with them other than pay the bill. Without SSI, your unemployment rate would be around 40%. Certain parties claim welfare, entitlement fraud and abuse and then won't fund the agency that is supposed to control it. Life is full of unintended consequences.

                    Reply#10 - Thu Feb 17, 2011 4:58 AM EST

                    I would like to offer a number of relatively easy, but politically unpopular proposals that would play a significant role in driving down the deficits while not having a large scale impact on jobs. 1. Eliminate the cap on the amount of money eligible for social security taxes - people making over $106K really don't need the additional tax break (by the way I'm in this category). 2. Eliminate corporate welfare and all of the tax benefits that are given to the oil companies who are making record profits while raising gasoline prices to over $3.00 a gallon. 3. Eliminate agricultural subsidies - this includes raising the rates for the use of public lands from rates set in the early 20th century to equitable rates set on current land values, and raise rates for corporate farmers for use of water - set a sliding rate based on the number of acre feet use . This same rationale applies to all extractive industries - mining, oil extraction, etc. 4. Establish a sliding scale means test for social security and medicare benefits there is no reason thay millionaires should draw social security. 5. Eliminate the Civil Works function of the US Army Corps of Engineers and place those responsibilities with the appropriate federal or state agencies - i.e., harbor commissions, interior department, EPA, Fish and Wildlife, etc. where the projects would have to compete with other priorities. And revise the formula for determining cost/beneft analysis where projects woud have to return benefits at least twice the cost to construct versus current 1.01 to 1. 6. Examine the Federal Government structure to consolidate departments that perform identical functions, but for different purposes - i.e., dam contruction - which is in the Army Corps of Engineers, Bureau of reclamation, Soil conservation service, and several others.

                      Reply#11 - Thu Feb 17, 2011 8:58 AM EST

                      6. Allow the Federal and State Governments to negotiate prescription drug prices for Medicare/state MediCAL recipients. 7. Promote the establishment and use of electronic medical records thus reducing medical errors and avioding prolonged hospitalizations due to improper procedures being performed/improper medications being administered. 8. Invest in rail and road infrastructure and promote the use of rail movement of freight to the maximum extent possible saving on traffic congestion and pollution, and promote truck movement to non-peak hours. 9. Invest/upgrade the electrical grid to provide for greater access of new sources of power, wind, solar, nuclear. 10. Stop building systems the pentagon neither wants nor needs. 11. Promote the return of jobs to the US by eliminating tax benefits to corporations that off-shore jobs from the US, and promote tax benefits for returning such positions.

                      Eliminate programs that have completed their missions - Tennessee Valley Authority, Rural Electrification Adminstration.

                        Reply#12 - Thu Feb 17, 2011 9:14 AM EST

                        I know those of you wanting to stop an increase in the debt limit truly believe that what you are doing is in the best interest of the country. But you are thinking emotionally, not rationally, and simply don't have enough of a grasp on the issue to understand the consequences. They are horribly bad!

                        Your ability to borrow money, refinance a home, collect social security, disability, veterans benefits.. all gone. The value of the dollar will fall, inflation will spike,.. Really scary stuff. If you have a job and a heartbeat, you will suffer significant economic harm if this happens.

                        Bridging the gap between the goverment services we want and what we are willing to pay for is necessary and needs to be done quickly.. But it simply cannot happen in 6 months.

                        I've been screaming about deficits for 10 years now, since Republicans decided to use projected social security surpluses to justify giving it all away up front as tax cuts. I know you can be patient for a few years while we look for sensible reductions.

                        Freezing the amount our country can borrow is the equivalent of trying to shed 20 pounds immediately by chopping your own legs off. Nevertheless, there's about 40 tea party Republicans that I believe are determined to do just that. And they will probably succeed.. They have the numbers.. And I fear the disaster their idealogical blindness will bring may well be irreversible.

                          Reply#13 - Thu Feb 17, 2011 12:21 PM EST
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