Republicans are planning to demand major spending cuts next year before they would agree to raise the amount of federal debt that can be issued, setting up a clash between the Obama administration and a Congress stocked with lawmakers who campaigned as deficit hawks.
The U.S. can't accrue debt above a certain ceiling set by lawmakers. In the most extreme scenario, the government would default on certain debts if the cap doesn't move.
Republican lawmakers, including South Carolina Sen. Jim DeMint, and congressional aides have said major spending cuts are the primary demand they will make going into the discussions over whether to raise the limit.
It isn't clear whether the White House would agree to significant cuts so quickly, though, and Obama administration officials could try to portray the GOP as playing political games with the country's ability to borrow.
The U.S. currently has $13.7 trillion of debt outstanding, just shy of the $14.3 trillion limit Congress set in February. Barring big changes in federal spending, taxes or the economy, the government is expected to hit the ceiling by May, and administration officials have already said it will have to be raised by then.More here
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4 comments:
Now here is a real test of bipartisan cooperation. Give some to get some. Lets see if the pols. step up to the plate.
People need to think about what our government is doing right now. The Federal Reserve is admittedly printing our money ($600Billion) and yet the government is letting us know they will cut or cap spending.
So the Fed is expanding and thereby debasing our currency, while the government refuses to spend it for us. We take austerity measures while our currency is trashed.
We should not allow them to have it both ways. If they are going to create inflation by monetizing the debt, then the least they can do is allow the money to ciculate out to the public. The so called stimulus projects should have been infrastructure building so we get the jobs growth and we get something tangible for the spending like new roads, bridges, etc. Instead all of the "bail out" money went to the bankers and the corporate interests who control our elections.
I encourage everyone to learn how money is created. The Congress has the power to create money without interest. Learn the truth.
10:03, like it or not, the stimulus went primarily to infrastructure, tax cuts, and state gov. jobs.
10:56
I don't doubt for a minute that you believe that. However, it is still not true.OUr govt is more corrupt than you may realize
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