Sometime before August, Congress will have to hold its collective breath and vote on whether to raise the limit on the federal debt, which now stands at a record $1.6 trillion.
In the past, that debt limit has always been raised before the debt ever hit it. But this year, there are growing doubts over whether this will happen. In large part, this is because a growing number of the 87 freshman Republicans who comprise more than one-third of the GOP’s House majority are voicing a willingness to vote “no” on lifting the ceiling.
“I do not want to raise the debt ceiling, but I also realize the debt is just the symptom, and the disease is out-of-control spending,” freshman Rep. Bill Johnson (R.-Ohio) told HUMAN EVENTS two weeks ago. “There is a difference between raising the debt ceiling the way the Democrats did in 2010—just to continue spending at the federal level—and raising the debt ceiling now to continue our obligations, but with serious, serious cuts.”
Johnson’s view was seconded by fellow freshman Rep. Dan Webster (R.-Fla), who told us he does not believe that “Armageddon will come if the debt ceiling is not raised immediately. Look, the administration is already starting to take steps to deal with situations if Congress refuses to raise the ceiling. As I see it, we will operate on a cash basis for a while, the government won’t be able to borrow, and the revenue that comes in will go immediately to pay for critical necessities—national defense and Social Security for starters."
Coming as the “no” votes from Republican House freshmen mounted during four successive Continuing Resolutions to keep the government running this year, such talk has fueled “gloom and doom” predictions from the White House. Last month, Press Secretary Jay Carney told reporters at the White House that “the consequences of failing to raise the debt ceiling would be Armageddon-like.”
(Interestingly, in 2006, then-Sen. Barack Obama (D.-Ill.) voted against raising the debt ceiling. Spokesman Carney said the President now “regrets” that vote.)
So what will happen if it appears Congress will say no to raising the debt limit in May?
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6 comments:
Ummm ... the federal debt now stands at over $13.5 trillion. The $1.6 trillion amount listed here is what congress will add to the debt this year.
Personally - I think the debt situation is to far gone to resolve now.
Our Government's spending has been out of control for so long that only a national bankruptcy can now remedy the condition.
Because the Federal Reserve Bank (private for-profit international bankers) own the Congress the debt ceiling will be raised.
This is being reported so that we little people might allow ourselves to believe for a few moments that Congress is in control. It is not.
It is (each and every Member) wholly owned through the financing of campains by Bankers. The Fed has become the government.
The Rich People are in control.
The Congress never does what the people want to be done. Ever. They simply ignore our wishes and do as they are told by their Masters.
Q: What happens if the debt limit isn't raised?
A: The governmant can pay interest payments and run the government on the tax revenues coming in, about 2.5 trillion/year
806pm-You are correct. The debt would be serviced, and the gov't would only be able to spend what it brings in, no more adding to the debt can happen, unless they raise the debt ceiling.
Don't listen to the fluff.
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