GOP faces spending test as debt nears $14.3T ceiling

Glenn Beck to Michele Bachmann: Are you seriously voting against the debt ceiling?
He insists (as he’s done before) that he’s on the fence about whether they should vote no, but if even a guy who’s famous for apocalyptic Rhetoric is uncomfortable with the possibilities from this vote, it’s a cinch that the GOP will rustle up enough support to raise the ceiling. (No less than Paul Ryan admitted as much yesterday.) The suspense isn’t whether the votes are there; the suspense is whether The One will very foolishly try to capitalize on the GOP’...

Primary dealers raise Treasury yield forecasts: Reuters poll
By Chris Reese NEW YORK | Fri Jan 7, 2011 9:12pm EST NEW YORK (Reuters) - Leading Economists have boosted their outlook for Interest Rates on benchmark Treasury Debt in tandem with rising expectations for growth in the world's largest economy, a Reuters poll found on Friday. The forecasts for stronger growth came despite a disappointing U.S. Payrolls report, which showed employers hired less workers than expected in December, although the Unemployment rate ticked lower. "Today's (payrolls) re...

Conservatives Admit Debt Ceiling Threat Is A Bluff
It's increasingly clear that Republican leaders are bluffing when they threaten to destroy the full faith and credit of the American government by allowing the Debt ceiling to be shattered unless draconian Budget cuts are made. And a clear bluff is a bad bluff. There is no need to concede to any of their demands to protect American credit and the Global Economy. Last year, the now-Speaker John Boehner said Republicans would have to deal with the Debt ceiling like "adults." And this week, the ...

Geithner Pushes Congress to Raise Debt Ceiling
Reuters reports: Republicans acknowledged on Thursday they will have to sign off on more Deficit spending to avoid a Debt default that would roil Financial Markets and bring the government to a grinding halt. Treasury Secretary Timothy Geithner pressed lawmakers to raise the nation’s $14.3 Trillion Debt Limit to allow the United States to borrow more and avert a crisis in the coming months. House Budget Committee Chairman Paul Ryan, a Republican, said he recognized the need to allow the ...

Frolic Into Boehnerland
… The Democrats have plenty of creatures like Boehner. But in the new Speaker of the House, the Republicans own the perfect archetype — the quintessential example of the kind of glad-handing, double-talking, K Street toady who has dominated the politics of both parties for decades. In sports, we talk about athletes who are the “total package,” and that term comes close to describing Boehner’s talent for perpetuating our corrupt and Debt-addled status quo: He’s...

Palin: Obamas deliberately trying to weaken America by raising the debt ceiling
I can’t tell if she’s being serious or just making a rhetorical point to rub his face in his Senate vote against raising the ceiling back in 2006. Quoth The One at the time: The fact that we are here today to debate raising America’s Debt Limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies

'It can't happen'
'IT CAN'T HAPPEN'.... A friend of mine following the Debt-ceiling vote emailed today to note that plenty of notable media Conservatives have warned their Republican allies: don't screw around on this. Charles Krauthammer said on Fox News this week, "The Republicans have to be careful here. In the end the Debt Limit will be raised. You can't not pass it. It is catastrophic. It means American debt is in question. It can't happen." Dana Perino told Sean Hannity a day later, "If [Sen. Jim DeMint] ...

Re: The Debt Ceiling ... to raise or not to raise?
Over at Contentions ... Peter Wehner addresses Treasury Secretary Timothy Geithner's letter to Congress yesterday, and makes an 'adult' argument for the GOP to agree to an increase in the Debt ceiling as a way to win concessions on spending ... saying that the argument for limiting the size of the federal government and reducing spending is extremely strong - but refusing to raise the Debt ceiling, however, isn't the way or the place to do it. While my gut tells me Wehner's right, in my heart of...

No Negotiations on the Debt Limit
Here’s Paul Ryan talking about the Debt ceiling: But House Budget Chairman Rep. Paul Ryan says that tactic isn’t viable. “Just refusing to vote for it, I don’t think that’s really a strategy,” he said, noting that a failure to raise the ceiling could result in the nation defaulting on its debts to investors. “Will the Debt ceiling be raised? Does it have to be raised? Yes,” he said at an event sponsored by economics21 and the Manhattan Institute ...

Sarah Palin: Obama 'hell bent' on weakening America
While appearing as a guest on the Laura Ingraham radio program Friday, Sarah Palin openly said what many believe: President Obama is purposefully weaking the United States. “What I believe that Obama is doing right now — he is hell-bent on weakening America," she said. Palin explained by using then Senator Obama's own words in 2006.  While debating whether or not to raise the Debt ceiling, he said: The fact that we are here today to debate raising America’s Debt Limit is a...

Where did the deficit really come from?
I have recently read a lot about the US federal Budget’s expanding Deficit.   The new Republican congressional majority has made much hay of the deficit’s expansion under the Democrats and has vowed to reduce it.   No doubt that the current deficit is troubling and unsustainable, but a closer look at the numbers should mute the Republican’s posturing. I went back and looked at the historical budget numbers from the past 35 years.   The Federal dept...

Geithner Urges Congress to Raise Debt Limit
(WASHINGTON) — Treasury Secretary Timothy Geithner warned congressional leaders Thursday that the government could reach its borrowing limit by spring and failure to raise it could affect millions of American jobs. The government will reach the limit between March 31 and May 16, Geithner said in a letter to congressional leaders. Not increasing the $14.3 Trillion Debt Limit could lead to Job Losses, he said. Inaction could drive up Interest Rates and make it more costly for U.S. companies...

Baucus warns GOP against 'playing chicken' on debt limit
Sen. Max Baucus (D-Mont.) is warning Republicans against "playing chicken" on increasing the statutory Debt Limit. The Finance Committee Chairman agreed with recent GOP calls to reduce the Deficit, but said such efforts should be done in a "serious, Bipartisan Fashion" that "doesn't risk the full faith and credit of our economy and our country in the process," according to a statement released by his office. "Rather than waiting until the last minute, we need to work together with our colleagu...

Hatch says it's up to Obama to pressure Senate Dems on debt limit
Sen. Orrin Hatch (R-Utah) says if Democrats want to find agreement on raising the Debt ceiling, President Obama will have to pressure congressional leaders to make serious concessions on Spending Cuts.  Hatch said he expects the new Republican majority in the House to vote to slash spending considerably in the run up to the vote on raising the Debt ceiling, which will place the ball in the court of Senate Democrats.   "That means the White House will have to exert its influence over Senate D...

Debt limit already a hot-button issue for GOP
In power scarcely a day, House Republicans bluntly told the White House on Thursday its request to raise the nation’s $14.3 Trillion Debt Limit will require federal Spending Cuts to win their approval, laying down an early marker in a new era of divided government. Speaker John Boehner made the challenge as the new GOP majority voted to cut funding for House members’ own offices and committee operations by $35 million. Rank and File Republicans described that vote as a mere down paym...

Tea party groups warn GOP
With the GOP now taking control of the House, but showing signs that they may be backing down from promises made on the Campaign Trail, Tea Party groups are warning Republicans that they are watching them: As Republicans celebrated their new power in Washington yesterday, two prominent Tea Party Activists walked the halls of Capitol Hill carrying a message: we’re keeping an eye on you. Although many freshman lawmakers ran on a Tea Party platform — and enjoyed Tea Party support — Je...

4 Ways to Think About the Debt Ceiling Frenzy
Treasury Secretary Tim Geithner's letter to Congress on the Debt ceiling warns that if Washington doesn't raise the government's borrowing limit, The Economy will face catastrophe. To which, you might respond: What's a Debt ceiling? What kind of catastrophe? And what outcome should I root for? Let's break this debate down into four questions. 1. What's the Debt ceiling? When Congress passes a law that increases the Deficit, we borrow money to pay the difference. But for reasons that defy sanity,...

Debt Ceiling
Debt Ceiling Friday, 01/7/2011 - 12:07 pm by Bryce Covert | Post a Comment What is the debt ceiling? The debt ceiling is the maximum amount of debt that the government is legally allowed to take on. Whereas Congress used to approve each federal debt issuance separately, in 1917 it passed the Second Liberty Bond Act, which limited the amount of debt the Treasury can issue but also provided it with more leeway. The Treasury was granted the authority to issue enough debt to fund government oper...

Will Obama Cave On Extending The Debt Ceiling?
Sit back and let Wall Street Lobbyists do battle with the Tea Party nutjobs they elected to Congress. Let Pimco explain to them what will happen to their bondholdings. And, Goldman Sachs can explain what it would do to the Stock Markets. Let the hedgies inform them about who buttered their bread. …No negotiations. No discussions. No deals. No way. No how. If President Obama were to show strength during these negotiations then it would set up an interesting battle between the lunatic Tea Pa...

Washington Extra Its my party
“Now, we know these numbers can bounce around from month to month. But the trend is clear,” President Barack Obama said. “We saw 12 straight months of Private Sector job growth.  That’s the first time that’s been true since 2006.” Gene Sperling has something to party about, he’s just got his old job back. Obama announced additions to his White House economic team and named Sperling as director of the National Economic Council (a post he held in Pres...

Palin: Debt ceiling a plot by Obama to weaken America
Confused, hateful, or both? Sarah Palin is charging that President Barack Obama is “hell-bent on weakening America” by pushing to raise the National Debt ceiling. “What I believe that Obama is doing right now — he is hell-bent on weakening America,” the possible 2012 Republican contender said Friday on “The Laura Ingraham Show.” She accused the president of “purposefully” trying to harm the country and acknowledged that her stinging comments...

Tea Party Betrayed On Spending Cuts
This post originally appeared at Campaign for America's Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF. The Tea Party membership is being set up for yet another huge betrayal by the DC Republican establishment. The members had very clear expectations that specific Spending Cuts would fix the government's Budget problems. The Republican leadership is betraying them by cutting things Tea Party members do not want cut, and are not cutting the things they were led to believe would ...

Top GOPer praises Obama picks
(CNN) - Senate Minority Leader Mitch McConnell is hopeful the staff shake ups at the White House this week that included a new Chief of Staff and director of the National Economic Council are a sign President Barack Obama is moving toward the political center. "Finally they found a guy who has some real world business experience," McConnell said on CNN's "John King, USA." "So maybe the president is going to take a more Centrist direction and if he does we may be able to do some business." Invoki...

Palin: Obama 'hell bent' on weakening America
Sarah Palin is charging that President Barack Obama is “hell-bent on weakening America” by pushing to raise the National Debt ceiling. Continue Reading Text Size - + reset Politico 44 “What I believe that Obama is doing right now — he is hell-bent on weakening America,” the possible 2012 Republican contender said Friday on “The Laura Ingraham Show.” She accused the president of “purposefully” trying to harm the country and acknowledged tha...

Palin: Obama Hell Bent on Weakening America
On today’s Laura Ingraham Show, Governor Palin does not mince words about McCain, Obama, and makes an interesting comment about her travel plans for the upcoming year. Laura: “That’s your former Running Mate. That’s the guy who picked you on the ticket talking about comprehensive Immigration reform.” Palin: “I’m giving him [McCain] the benefit of the doubt that he’s got some ideas that ultimately will result in no Amnesty and securing our borders. ...