U.S. Can't Afford Obama's No-Debt-Limit Credit Card

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U.S. Can't Afford Obama's No-Debt-Limit Credit Card​

Fiscal Policy: The president tells business leaders he wants to do away with Congress when it comes to raising the country's legal debt limit and be able to do it all by himself.

aclgsIf hypocrisy were taxable, we should soon be able to balance the budget and repay the national debt.

It was on display again Wednesday, when President Obama told CEOs at the Business Roundtable he is no longer playing the debt ceiling "game" of agreeing to raise the limit in exchange for administration concessions on spending and taxes.

Calling the last debt battle in 2011 a "catastrophe" that led to the lowering of America's credit rating and a stalled economic recovery, the president, who has received six debt-ceiling increases as he added more debt than the first 42 presidents combined, told the nation's business leaders:

"If the Congress in any way suggests they are going to tie negotiations to the debt ceiling and take us to the brink of default once again as part of a budget negotiation. ... I will not play that game because we've got to break that habit before it starts."

The way he proposes to break that habit is by doing away with the debt ceiling altogether or at least by taking from Congress and giving the president the power to raise the nation's credit limit at will.

Earlier on Wednesday, the Treasury Department posted a statement advocating that Congress adopt a so-called "McConnell Provision," named after an idea once floated by the GOP Senate leader.

Under this proposal the debt ceiling would automatically increase, and Congress could only stop it with a two-thirds majority vote in both chambers.

"Extension of the McConnell Provision would lift the periodic threat of default from the U.S. economy and remove politics from future debt-limit debates, while preserving Congress' essential role in spending, revenue and borrowing decisions," argued Treasury spokeswoman Jenni LeCompte.

Treasury Secretary Tim Geithner also floated the idea on last Sunday's "Meet The Press" show on NBC.

Don Stewart, spokesman for Sen. McConnell, says Geithner et al. are misrepresenting the idea floated during the 2011 debt-ceiling debate, noting "the debt ceiling was raised last year only after the White House agreed to at least $2 trillion in cuts to Washington spending, and agreed to be bound by the timing and amount set by Congress — not his own whim.

"The president wants to have the ability to raise the debt ceiling whenever he wants, for as much as he wants, with no responsibility or spending cuts attached."


Read More:
U.S. Can't Afford President Obama's No-Debt-Limit Credit Card - Investors.com

 

[waltky]

Granny says, "Dat's right - dem spend happy politicians makin' Obama do it...

Obama on Congress:‘They Order Me to Spend’
January 14, 2013 – Explaining why he has no choice but to demand an increase in the legal limit on the national debt, President Barack Obama said at a Monday press conference that Congress orders him to spend money.

“This is a matter of Congress authorizes spending,” Obama said. “They order me to spend," he said. "They tell me: ‘You need to fund our Defense Department at such-and-such a level. You need to send Social Security checks. You need to make sure that you are paying to care for our veterans.’ They lay all this out for me, and--because they have the spending power--and so I am required by law to go ahead and pay these bills.”

The current debt ceiling is $16.394 trillion, a number that President Obama and House Speaker John Boehner agreed to in August 2011, when they increased the previous limit by $2.4 trillion. The Constitution gives Congress the power to borrow money. So, the president cannot increase the debt of the United States unless Congress enacts legislation authorizing him to do so. “Separately, they also have to authorize a raising of the debt ceiling in order to make sure that those bills are paid,” said Obama. “And so what Congress can’t do is tell me to spend X and then say, but we’re not going to give you the authority to go ahead and pay the bills.”

During Monday’s press conference, Obama talked about why he refused to cut federal spending in exchange for Republicans in Congress once again increasing the legal limit on how much the federal government can borrow. “The issue here is whether or not America pays its bills,” Obama said. “We are not a deadbeat nation and so there’s a very simple solution to this. Congress authorizes us to pay our bills. Now if the House and the Senate want to give me the authority so that they don’t have to take these tough votes, if they want to put the responsibility on me to raise the debt ceiling, I’m happy to take it.” Obama referenced a proposal by Senate Minority Leader Mitch McConnell (R-Ky.) during the 2011 battle over raising the debt ceiling that would have given the president authority to raise the debt ceiling without prior congressional authorization.

Obama said he did not want to raise the debt ceiling himself unless Congress authorized it. But he called on them to expedite it. “If they want to keep this responsibility, then they need to go ahead and get it done and you know, there are no magic tricks here,” Obama said. “There are no loopholes. There are no, you know, easy outs. This is a matter of Congress authorizes spending.” While the GOP-dominant House of Representatives has passed budgets for the last two years, the Democrat-led Senate hasn’t passed a budget since April 2009. Also, the House passed several annual appropriations bills but they too were not taken up by the Senate, headed by Senate Majority Leader Harry Reid (D-Nev.).

Instead, over the last few years, Congress and the White House have ended up passing Continuing Resolutions to keep the federal government operating. In September 2012, the GOP-led House passed a $1.047 trillion funding bill, a Continuing Resolution, which will fund the government through March 27, 2013. To become law that CR also needed to pass the Senate and be signed by Obama. Once the current CR expires in March, the executive branch will only be able to spend the money that Congress authorizes it to spend after that date.

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We'll back Obama if he raises debt limit unilaterally
1/11/13 - Senate Democratic leaders have sent a letter to President Obama pledging their support if he raises the nation's $16.4 trillion debt ceiling unilaterally in the face of Republican resistance.

Support has been growing among Democrats in Congress for Obama to invoke the 14th Amendment or another legal justification for expanding the nation’s borrowing authority without congressional approval. “In the event that Republicans make good on their threat by failing to act, or by moving unilaterally to pass a debt limit extension only as part of unbalanced or unreasonable legislation, we believe you must be willing to take any lawful steps to ensure that America does not break its promises and trigger a global economic crisis — without Congressional approval, if necessary,” Senate Majority Leader Harry Reid (D-Nev.) and other Democratic leaders wrote in a letter dated Jan. 11.

Senate Democratic Whip Dick Durbin (Ill.), Senate Democratic Policy Committee Chairman Charles Schumer (N.Y.) and Democratic Conference Secretary Patty Murray (Wash.) signed the letter. “It is hard to imagine that the Speaker and Leader McConnell would really follow through on their threat to let our nation default on its debts. They are responsible leaders who know better,” they wrote in reference to Speaker John Boehner (R-Ohio) and Senate Republican Leader Mitch McConnell (Ky.). “Sadly, some of their Republican colleagues do not. Therefore, we believe that you must make clear that you will never allow our nation’s economy and reputation to be held hostage,” they wrote in a reference to Tea Party-affiliated conservatives in the House who have vocally opposed more borrowing.

Michael Steel, Boehner’s spokesman, said Democrats must face GOP demands to slash spending and reform entitlement programs and predicted a backlash if Obama increased borrowing authority without cuts. “Senate Democrats cannot ignore their responsibilities for political convenience — and the American people will not tolerate an increase in the debt limit without spending cuts and reforms,” Steel said. “Out-of-control Washington spending is costing jobs now, and condemning future generations of Americans to a lower standard of living. Washington Democrats must stop spending money we don’t have.”

House Democratic Leader Nancy Pelosi (Calif.) said last week she would invoke the 14th Amendment if given the choice. “I've made my view very clear on that subject: I would do it in a second,” Pelosi told reporters Jan. 4. “But I'm not the president of the United States.” Reid has changed his mind on the issue over the past 18 months. In the summer of 2011, he said Obama should not use the 14th Amendment to circumvent Congress. "We should play by the rules," Reid told reporters at a press conference in July 2011.

Obama rejected the prospect of raising the debt ceiling on the basis of the 14th Amendment when some Democrats suggested it at the time. “I have talked to my lawyers,” Obama said in the summer of 2011. “They are not persuaded that that is a winning argument.” A Republican aide suggested Reid has shifted his position because he knows Democrats cannot prevail upon Republicans to pass a debt-limit increase without deep spending cuts attached. “It sounds like Senate Democrats are running scared because they know they can’t pass the ‘clean’ debt limit the White House is demanding,” the aide said.

Read more: Senate Dems: We'll back Obama if he raises debt limit unilaterally - The Hill's On The Money

 

[Mr. H.]

One of these days, I gotta meet yer granny.

 

[tinydancer]

I see a real Ok Corral moment in the near future.

 

[Trakar]

U.S. Can't Afford Obama's No-Debt-Limit Credit Card​

Read More:
U.S. Can't Afford President Obama's No-Debt-Limit Credit Card - Investors.com

Fundementally flawed, the debt-limit doesn't stop congress from spending, it only stops congress from paying the bills that the country owes. The only option open when bills come due are to pay them, or default. When a nation defaults on its bills, it collapses. Advocating for the congressional Republicans to do what the English, Soviets and terrorists could not (destroy America), is not a solution to America's problems, it is national suicide.