It is now becoming a daily occurrence for President Obama to make a statement of the dangerous game Republicans are playing with our economy if they do not vote to raise the debt ceiling. At this point I think we have heard ALL of the different ways to describe what will happen if the debt ceiling is not raised and the most commonly used word….. Catastrophic, might be the most over-used word in the English language right now.
As the August 2nd deadline to raise the debt ceiling approaches Secretary of Treasury Timothy Geithner, Chairman of the Federal Reserve Ben Bernake, Moody’s and S&P have all stated the blow a failure of raising the debt ceiling will cause to our growing but still fragile economy.
Standard & Poor’s has warned lawmakers privately that it would downgrade the country’s debt if the Treasury Department is forced to prioritize payments because Congress does not raise the debt limit – S&P
“A default on Treasury debt could lead to concerns about the solvency of the investment funds and financial institutions that hold Treasury securities in their portfolios, which could cause a run on money market mutual funds and the broader financial system — similar to what happened in the wake of the collapse of Lehman Brothers. As the recent financial crisis demonstrated, a severe and sudden blow to confidence in the financial markets can spark a panic that threatens the health of our entire global economy and the jobs of millions of Americans.” – Sec. of Treasury Tim Geithner
“Would likely push us into a double dip recession.”– Sec. of Treasury Tim Geithner
“It’s not something you want to play around with — the United States would be forced into a position of defaulting on its debt… And the implications of that for our financial system, for our fiscal policy, for our economy would be catastrophic.”– Fed Chairman Ben Bernake
And even with all the warnings House and Senate Republicans continue to talk about NOT raising the debt ceiling. Stop me if you have this before, NUTBAGS like Michele Bachmann and Sara Palin continue to tweet and go on talk shows talking about Geithner has it all wrong and that Republicans should “Reload” and not “Retreat” when it comes to voting against raising the debt ceiling.
So if Republicans and their nutbag friends refuse to listen to the Tim Geithner’s of the world, who could possibly convince them of the dangers of not raising the debt ceiling????
How about Ronald Reagan aka Mr. Conservative…..
Here is the text of what Reagan was saying in this address about the debt ceiling:
Congress consistently brings the Government to the edge of default before facing its responsibility. This brinkmanship threatens the holders of government bonds and those who rely on Social Security and veterans benefits. Interest rates would skyrocket, instability would occur in financial markets, and the Federal deficit would soar. The United States has a special responsibility to itself and the world to meet its obligations. It means we have a well-earned reputation for reliability and credibility – two things that set us apart from much of the world.
This was a speech Reagan gave back in 1987, but the message still resonates 24 years later!
What Pres Obama has been saying all along about the debt ceiling mirrors what Reagan said back then; if Republicans don’t want to believe a Liberal like Obama maybe they will listen to their Conservative hero Ronald Regan
If there is something to be said, “It’s On Broadway” to step up and say it!!
May 04 2011 By Jeff Jacoby Globe Columnist AS THE public debt of the United States approaches the 14.3 trillion limit currently allowed by law Congress is being pressed by the Obama administration to change the law and raise the limit. For months Treasury Secretary Timothy Geithner has warned that failing to lift the debt ceiling would have unthinkable consequences. But many lawmakers are insisting that they will block the federal government from borrowing more money unless budget cuts and spending reforms are part of the deal.Geithner told CBS last week that the results of failing to raise the debt ceiling would shake the basic foundation of the entire global financial system. Other voices are singing from the same hymnal.