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While Republicans like House Speaker John Boehner are signaling to support raising the debt ceiling -- if spending cuts and entitlement reform are attached -- Democrats say they want a clean debt-ceiling vote.
"We do not need to play chicken with our economy by linking the raising of the debt ceiling to anything," said White House Press Secretary Jay Carney. "We should do that right away."
And in a letter to House Democrats, Rep. Peter Welch (D-VT) writes, "We ask you to convene a caucus to discuss and establish a Democratic position in favor of a clean extension of the debt ceiling. The debt ceiling vote is about one thing: affirming that America pays its bills. It does not authorize new taxpayer obligations; it affirms to the world our commitment to pay obligations already incurred."
Welch's office says that approximately 20 House Democrats have signed on to the letter.
When First Read asked Welch's office if there are enough votes -- in either the House or Senate -- to pass a clean bill, his spokesman responded: "We’ll have to wait and see. Peter believes the stakes are too high to play the negotiating game on this issue, especially given the economic repercussions that would result in a failure to raise the debt limit."
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The White House believes the debt ceiling issue is too important to become a political issue. Everything in Washington is a political issue. It just is.
You've got that right, Ron. As for me, I want a down and dirty debt ceiling vote. So let's get after it.
I love this stuff.
Rep. James Clyburn (Democratic Leader because Nancy Pelsoi said he would be) was busy reciting what Nancy told him to say on the morning news. Jimmy talked about "Clean bills", "Jobs", and "Moral obligations", to raising the debt ceiling. Jimmy also talked about being "an adult" about raising the ceiling.
So is it really being "an adult" by giving the chronic credit card abuser of the national credit card an even high credit limit without putting any conditions are doing so?
And of course this was Senator Obama's take on the issue 5 years ago:
"The fact that we are here today to debate raising America's debt limit is a sign of leadership failure," he [Obama] said on March 16, 2006. "Leadership means that 'the buck stops here.' Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership . Americans deserve better. I therefore intend to oppose the effort to increase America's debt limit."
Source: http://blogs.abcnews.com/politicalpunch/2011/01/gibbs-senator-obama-only-voted-against-raising-debt-ceiling-in-2006-because-he-knew-it-would-pass-an.html
Doesn't everyone? Who doesn't like spending the next generations of taxpayers money, all the while they can't vote because they're still in diapers!!
I didn't say I liked spending, although I have nothing against it. I just like politics.
JoAnna - at this point, its not about chronic credit card abusers. The debt ceiling is something that can't easily be translated into a regular person's financial situation.
Because an individual or a family can't run thier household at a deficit because simply we would lose everything ( like food ). However, company's and governments are different. An example would be the airlines who can operate at a deficit ( I know ..yucky example ). By the way YouTube has never made a profit but I guess you ( and I ) would LOVE some YouTube stock right now.
Everything at a MACRO level can't be translated to the MICRO level and those that tend to always try to do that are a bit short-sighted.
Pablo - Thank you for your response. The raising of the debt limit has always been a trivial event for our government. Just another bullet-item to check off on the process to continue to spend more and more borrowed money. The trigger point for the raising of that limit though has been passed, and no longer can raising the ceiling be trivial. The debt ceiling is now another opportunity to get the federal governments out of control spending back in check, and that is exactly the point of having to legislate the raising of the ceiling. There will be conditions when the debt ceiling is raised this time, those conditions will not be trivial, and they will not take place many years from now.
Um, Pablo? You are only right up to a point.
Greece is currently denied access to the bond market. So is Portugal. Spain came close, although they had been considered too big for that treatment- they heard the message, loud and clear, and adopted the austerity measures they had been resisting.
What do you think happens if the U.S. Is denied access to the market? First of all, it renders any discussion of raising the debt ceiling moot, as it means no new borrowing. The EU bailed out Portugal, which has had austerity forced on it, as did Greece. Who do you think would bail us out- and at what cost?
Obama and the democrats are delusional if they think they can get a debt ceiling raise without concurrent cuts in the budget. They do not have the numbers behind them, (and I am pretty sure that there are more than a few democratic senators who remember what happened last year when they caved to Obama without the electorate behind them); moreover, they do not have the markets, let alone common sense, behind them.
In other words, there will not be a clean bill. Obama is going to have to deal with it.
Excellent explanation of the circumstances surrounding the raising of the debt ceiling, njnb.
Don't expect acclamation from most of the First Read regulars, though.
I'll bet President Obama would privately agree with your assessment...regardless of any meaningless statements from the White House Press Secretary.
Republicans are after our Social Security money, that's what they're desperate for.
I want the Democrats to pass a law that says Republicans can't borrow from our Social Security Trust Fund anymore. So long as Republicans are able, they're going to continue to go after our money while they let multi-millionaires get off tax free.
American Girl. The Social security trust fund will be the first thing to go if there is a default on the debt ceiling. Geitner? spelling? can extend the time it takes for the United States to go into default until July. So there is some time to haggle this.
The Social Security Trust fund is funded in part by bonds issued on the national debt. The moment the United States becomes insolvent is the moment there will be no more funds for social security. Is it any wonder that there are conservatives who do not want the debt limit to go up?
Wouldn’t the effect of not increasing the debt ceiling be to default on our debt
which would cause our credit rating to be downgraded
and as a result cause our interest rate to go up
which would cause our debt to increase even faster?
The debt ceiling will be lifted, but there will be real limits placed on future spending as part of that legislation. Reid will pass it in the Senate, and Obama will sign it.
Didn't you hear? Speaker Boehner and President Obama "Understand each other". Boehner tells Obama what to do, and Obama does it. It's a good working relationship those two have.
OH NO ! another run at defunding Planned Parenthood !
YOu know that without that 'real limit' on future spending the country is DEAD!
Did you see how well BP did financially even after a year of the largest oil spill ever?
Perhaps we can limit the money we give to the oil companies?
Let the silly fight begin again !
Think the Dems will fall for it twice? Or is it Cowboy's Poetry turn to survive the cut?
The Democrats and Obama are free to bring any or all of these concerns to the negotiating table. Why do you think they haven't?
Nothing silly about this next debate. You'll notice how angry the Democrats will be when their precious spending is cut. They don't think it's silly at all.
Nice, Dennis-
Now...
Can you explain your post to Feisty, Bev, Houston, Navy, IR, John B, Jody, Amy B, et al?
Ordinarily, they wouldn't accept that from me for a New York minute...
But NOW it's President Obama who needs the debt ceiling raised, isn't it?
And the White House is now acknowledging that in 2006, when Senator Barack Obama voted against raising the debt ceiling...
It was a mistake.
Kudos to our own Chuck Todd for pointing out that, a mere three months ago, the White House was still defending Senator Obama's vote against raising the debt ceiling.
Who knew?
Rates will be increasing right after the Fed terminates its QE2 program. You can only print so much money before inflation becomes a serious problem, and we're at that point. Have you noticed the price of gas? The cost of a loaf of bread? Getting a little pricey, no?
In your dreams, JoAnna. Boehner asked for even more dessert (riders on the bill) and Obama said "Nope".
And Obama said "No way, no how will the cuts will go above $32 billion." Ended up at $38 billion. The riders were just a negotiating ploy. The GOP will use them again to get their way with the raising of the debt ceiling.
The debt ceiling has to be raised, or we as country are in deep do-do.
Oh yeah, Job1!
Now you're talking.
So...moving on.
What's it going to take to get that done?
President Obama voted against raising the debt ceiling in 2006...and the White House is furiously backpedaling from then-Senator Obama's bad decision.
I'm pretty sure that Speaker Boehner will behave like an adult...just as President Obama and Majority Leader Reid have described him.
Why do we need to vote on raising the debt ceiling? Oh yea, I forgot according to Obama it's because there is a lack of leadership in Washington. I agree with Obama there is a lack of leadership in the White House.
I am afraid I don't understand that why raising the debt ceiling appears to Republicans to be such an opportunity to enforce their social agenda on others, especially women. Raising the debt ceiling has been done numerous times under Republican presidents without any problem. Not being able to pay our debts is not an option.
Raise the debt ceiling and move on to the legitimate battle of the budget for 2012. Let me know when the Republicans start talking about reducing the defense budget which is 46.7% of our budget. Then I will feel they are truly serious about making changes.
Some are going to blame Social Security and Medicare for the deficit and the need to raise the debt ceiling. Let's discuss why these programs even exist!!
I personally believe that government should quit creating legislating and allow individuals to choose for themselves. If you want to participate in SS and MC you will have to make your contributions; at probably a higher rate than you currently are. If you wish to "opt-out" and go-it-alone, that's OK too.
Problem...you went out on your own...you are 68...you had a catastrophic illness and used-up the money you had set aside. Question: How do we then provide food, clothing, shelter and further medical care?
Problem...you went out on your own...you are 63...you go through a divorce and half the money you saved for retirement and health-care is awarded to your spouse. You have a physical disability and can longer earn enough money to recover your loss. Both spend what they do have and by age 66 it is all gone. Question: How do we then provide food, clothing, shelther and further medical care?
Problem...you are working...you are 55...an accident occurs and you can no longer earn a living. You chose to go out on your own. Question: How do we then provide food, clothing, shelther and further medical care?
Sure, there is waste and fraud occurring with regards to government programs and that means improvements to over-sight procedures are necessary. It doesn't suggest budget cuts. It's quite clear that Congress is NOT doing the job they are being paid to do.
Compassion for others is what separates the United States from most other countries. We are a nation where the highest value is placed on the individual; not money. Social Security and Medicare are guarantees from worry. We are assured pension payments and medical care when we enter retirement or become disabled.
For those of you complaining about those less fortunate and receiving what you label "hand-outs" and that this is the reason we have to raise the debt ceiling; I have questions for you: When was the last time you performed a random act of kindness? Was community volunteer service part of your family up-bringing? When was the last time you offered food and shelter to a "dirt bag" stranger? Is it really all about money?
No choice here Journey Social Security works only if everyone is in it. We are beyond the point that random acts of kindness will be effective. When conditions are this bad, the government must act. That being said what you wrote made sense.