TPMDC Debt Ceiling: January 2012
Debt Ceiling
Uh-Oh... Looks Like We'll Hit The Debt Limit Again This Year
President Barack Obama
President Obama sacrificed an awful lot last year to take the debt limit off the legislative table until his second term, or some lucky Republican's first term. More importantly, he wanted it off the table until after the 2012 elections, to prevent a replay of last year's debt limit fight from playing out in the middle of election season, when the political consequences would be farther-reaching. And by "farther-reaching" we mean the doomsday scenario of legislators succumbing to a collective action problem and allowing the country to default on its debt.
Well, it looks like Obama will probably get his wish, but it will be an awfully close call.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: 2012, 2012 elections, Barack Obama, Bush Tax Cuts, Debt, Debt Ceiling, Super Committee, Treasury, Treasury Department
Defense Spending
Top Defense Dem: GOP Must Blink First To Avoid Pentagon Cuts
Despite a brewing panic among Congressional Republicans (and some Democrats) over automatic, across-the-board defense cuts set to kick in on January 1, 2013, the top Democrat on the Senate Armed Services Committee says those cuts must stand unless and until Republicans relent on their anti-tax absolutism, and agree on a balanced deficit reduction package that includes higher revenue.
"The purpose of the sequester is to force us to act to avoid the sequester," Sen. Carl Levin (D-MI) told reporters at a Christian Science Monitor roundtable. "It's like a nuclear weapon -- it's totally useless; it can't be used except to accomplish some other goal than its use. It's used to deter."
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Carl Levin, Debt, Debt Ceiling, Defense Spending, Deficit, Medicare, Pentagon budget, Senate Armed Services Committee, Super Committee, Tax Cuts, Taxes, pentagon
Debt Ceiling
House GOP's First Priority: A Meaningless Rebuke Of Obama!
House Speaker John Boehner (R-OH) and Houser Majority Leader Eric Cantor (R-VA)
For their first legislative act of 2012, House Republicans plan on delivering a symbolic rebuke to President Obama on Wednesday for raising the federal debt limit, which the August 2 law permits them to do. The GOP resolution is expected to pass the chamber, but no matter the outcome, it won't threaten the ability of the U.S. government to meet its obligations either at home or abroad.
After a grueling battle last summer, Congress passed with strong bipartisan support a three-stage increase in the federal credit limit totaling $2.4 trillion. The first $400 billion took effect right away; the second $500 billion came a month later, and the final $1.2 trillion was requested by President Obama last week.
PERMALINK | COMMENTS | RECOMMEND RECOMMEND (0)Topics: Debt Ceiling
Economy
CHART: How The Debt Limit Fight Hurt The Economy, Delayed Recovery
House Speaker John Boehner (R-OH) and Houser Majority Leader Eric Cantor (R-VA)
Last week's surprisingly positive jobs report overshadowed another bit of good news for the economy: last November showed the biggest growth in consumer credit in 10 years. Typically that's a sign that consumer confidence is up, banks are willing to lend, and demand is on the rise.
If you look back at recent monthly data, though, you'll see that this particular green shoot should have poked through the ground months ago, but was stymied by the GOP's debt ceiling hostage drama.
Take a look at the evidence:
Topics: Debt, Debt Ceiling, Economy, Jobs, Unemployment
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