Treasury Secretary Calls For Abolishing The Debt Ceiling
Source: Think Progress
Early next year, the U.S. is on pace to once again hit its debt ceiling, the statutory borrowing limit imposed by Congress. When the U.S. neared its debt limit in 2011, House Republicans took it hostage, demanding spending cuts and forcing the first credit downgrade in U.S. history due to their intransigence on taxes.
That the U.S. faces periodic standoffs over the debt ceiling is a problem entirely of Congress own creation. The debt ceiling didnt even exist until 1917, and serves little practical purpose. During an interview on Bloomberg Television, Treasury Secretary Tim Geithner acknowledged as much, saying that the U.S. should abolish the debt ceiling entirely:
Treasury Secretary Timothy Geithner said the U.S. absolutely should get rid of the debt ceiling as soon as possible.
It would have been time a long time ago to eliminate it, Geithner told Bloomberg TV on Friday. The sooner the better.
Read more: http://thinkprogress.org/economy/2012/11/19/1212691/geithner-abolish-debt-ceiling/
Sekhmets Daughter
(7,515 posts)Including mine....As republicans always abuse the debt more than Dems. Can you imagine if Georgie had had unlimited funds, how many wars he might have started....
Carnage251
(562 posts)War funding is included in spending bills, there was a fight over Iraq war spending when Dems took back congress.
Sekhmets Daughter
(7,515 posts)make it that much easier to get as much war funding as a president would want? No debt limit could lead to no spending limit couldn't it?
Carnage251
(562 posts)The debt ceiling limits how much we can borrow, with it or without it there are amounts that both parties don't want to exceed.
Sekhmets Daughter
(7,515 posts)I have little confidence in the House of Rep.
AnnaLee
(1,040 posts)and then say Oops, went over the debt ceiling. Raising the ceiling to at least the level of the budget (plus other internal transfers) should be implicit in passing the budget/authorizing in the first place. And yes, continuing resolution is authorized.
The debt ceiling is a political ploy that hurts the country. It has no fiscal value even if people think it does.
bossy22
(3,547 posts)the debt ceiling limit is silly and detrimental. It allows such things as what happened last year to happen.
Macoy51
(239 posts)The more we go in to debt, the harder it will be for our descendants pay our bills. The longer we wait to solve our debit problem, the more it is going to hurt. Anyone remember the Gramm-Rudman Act in the mid 80s? If congress would have followed through, we would have had a bad time economically for a few years and now we would have had a balanced budget.
Instead, our leaders just kick the can down the road, and when the end finally comes, it is going to be real ugly.
Macoy