Mar 14, 2006

Snow Renews Calls To Raise Debt Ceiling Before Federal Default


(Washington, DC) At some point in the next seven days the United States is expected to hit the $8.2 trillion debt limit, and the nation could suffer the ignominy of defaulting on obligations.

Treasury Secretary John Snow today called again on lawmakers to enact legislation raising the debt ceiling to avoid default.

"I am urging members of Congress in the strongest possible terms to resist coupling an increase in the debt ceiling with other issues," he said. "Rather, they should vote to raise the ceiling this week. It would be unthinkable for them not to take action."

Snow said that the "full faith and credit" of the US government was at stake, and that a failure to raise the debt limit would bring an immediate threat of defaulting on its debts.

Rep. Charles Rangel(D - NY) said that any further rise in the debt limit should be coordinated with legislation that would help bring future deficits down.

"Simply raising the limit on George W. Bush's credit card and crossing our fingers won't solve anything," Rangel said last week in a statement. "Any long-term debt limit increase must be accompanied by a serious effort to bring our budget back to the balance we achieved under the Clinton administration."

Senate Democrats argued that the national debt has risen by $3 trillion since President Bush took office, an increase of some 40 percent in a little over five years.

Addendum: The Hotline thinks that John Snow may be getting booted out, noting that his calendar has been cleared for Thursday and Friday of this week.


Anonymous said...

These idiots just need to get the bill passed and not mess around with US credit.

White Mormon Patriot said...

I'm sure you noticed how the curve flattened out a bit towards the end of the Clinton Administration. Look how steeply it's risen during the Bush Administration, even before 9/11. At some point, Congress needs to stand up to this spend-a-holic in the White House. Endless wars abroad compounded by tax cuts for the rich have exacerbated our debt and transformed annual surpluses into deficits.

historymike said...

Yes, the Clinton era saw a decline in the growth of the debt.

Some might argue Clinton was the lucky recipient of a growing economy, though, a/w.

Name withheld to protect the guilty said...

He was also a lucky recipient of one of the budget laws passed by Bush I, the one which required us to balance discretionary spending with income...the one which expired just as Bush II came into office.

Stephanie said...

The spending is outrageous and poorly prioritized. That doesn't happen because of any one thing.

Peahippo said...

Bush's prior Treasury secretary, Paul O'Neill, claims in his book "The Price of Loyalty" that Dick Cheney said to him "Reagan proved that deficits don't matter." Cheney then went into explaining how further tax cuts were going to happen, period.

This is how this administration runs. It cares nothing for consequences, and takes cares of its "base" (i.e. the monied elite). Of course, it also takes the Congress to make the budget, so they're in complete collusion.

Somewhere along the way, fiscal conservatives were run out of the White House and the Congress. The Reagan/BushI years were significant assaults upon the stability of the American government, by promoting enormous indebtedness. The Clinton Administration may have played fast and loose with the stats, but deficits were certainly reduced from the Reagan highs. BushII has wiped all that away, making it seem as if the Clinton years never happened; BushII's deficits look as if he's trying to make up for Clinton's "deficit deficit".

The country is simply being destroyed. There's no other honest way to put it. This is why Bush mouths words of "national security" but then does things like quickly and discreetly authorizing US port takeovers by an Arab nation with a highly suspect culture. There is no plan here except the one that Bush and his cronies in the Administration never mention: the looting of America while the elite grow ever fatter.

Regardless, by November 2006 the Republicans will have waved various fringe (anti-gay , etc.) issues repeatedly like flags over the heads of Americans, and said Americans will vote for their beloved "values party" in droves ... while said Republicans literally sell the nation out from under them.

Hooda Thunkit said...

Three somewhat related points:

Our debt always rises during wartime.

Every time tax cuts have been tried, the government's "income" has increased, often dramatically.

Every time the government's income has increased, congress goes on a spending spree.

Methinks the correlation between the last two is the REAL source of our problems...