White House Defends Obamas Senate Vote against Raising Debt Ceiling But Warns of Catastrophe If GOP Doesnt Raise Debt Ceiling

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...

Ryan acknowledges debt limit must be raised
House Budget Committee Chairman Paul Ryan (R-Wis.) said at a National Press Club event Thursday that Congress will have no choice but to raise the ceiling on the nation’s Debt in the spring because the alternative is too dire. “Just refusing to vote for it, I don’t think that’s really a strategy,” Ryan said. "Obviously you can't default." Ryan wants to use the Debt ceiling to push deep Spending Cuts, but as interviewer Paul Gigot, of the Wall Street Journal editorial page, n

Paul Ryan: We're Not Going To Default On The Debt (VIDEO)
By hook or by crook, the Republican-controlled House will raise the federal Debt ceiling before the government defaults on its debts. That's the word from Rep. Paul Ryan (R-WI), the House GOP's fiscal guru and chair of the House Budget Committee. Ryan told Bloomberg's Peter Cook today while it may be a tough slog, in the end default will be avoided. The Debt ceiling fight is expected to be some high drama, as Tea Party Republicans who have said they'll vote against any increase that doesn't co...

Geithner: Debt ceiling must be raised
Published: Jan. 6, 2011 at 5:32 PM U.S. Treasury Secretary Timothy Geithner warned Republican legislators the cap on federal borrowing must be raised to avoid long-term economic disaster. UPI/Roger L. Wollenberg WASHINGTON, Jan. 6 (UPI) -- U.S. Treasury Secretary Timothy Geithner warned Republican legislators the cap on federal borrowing must be raised to avoid long-term economic disaster. Geithner Thursday said in a letter to Congress a failure to raise the Debt ceiling, which could be hit by ...

Senior Republicans Weigh In On Debt Ceiling Vote
Treasury Secretary Timothy Geithner today urged Congress to vote to raise the $14.3 Trillion Debt ceiling by March 31, and Obama Administration officials want a vote with no strings attached. Republicans, however, say they’ll only vote for the increase in exchange for a major reduction in spending. Senate Minority Leader Mitch McConnell (R., Ky.): “I view it as an opportunity — an opportunity for both sides to come together and say to the American People, ‘We understand tha...

Geithner Warns Congress: Don't Play Games on Debt Limit
(Credit: Vince Bucci) Facing a new Congress in which Republicans are more dead-set than ever on reducing Government Spending, Treasury Secretary Tim Geithner served notice that the U.S. government could hit the statutory Debt Limit as early as March 31 and no later than May 16. "Never in our history has Congress failed to increase the Debt Limit when necessary," warned Geithner in his letter urging the House and Senate to take action no later than the end of March. He said a failure to raise ...

Henry Paulson Urges Debt Limit Increase Vote
Yahoo! Buzz Former Treasury Secretary Henry Paulson on Thursday urged lawmakers to raise the Debt ceiling beyond the $14.3 Trillion level, warning that failing to do so “is simply not an option.” “I applaud the commitment lawmakers have made to reduce spending and put the country on a more fiscally responsible path,” he said in a statement. “As they pursue smarter spending, it’s also vital to protect America’s creditworthiness, and therefore I’m co...

House Republicans challenge Obama on debt limit
(01-06) 15:20 PST WASHINGTON (AP) -- 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 th...

Ryan hints at debt ceiling strategy
Even as it exposes fault lines in the new Republican Caucus, a looming clash over the Federal Government’s borrowing power could serve as a major bargaining chip for Republicans hoping to force President Barack Obama to green light major Spending Cuts. Some conservative Republicans have urged their GOP colleagues to resist raising the ceiling -- which currently clocks in at $14.3 Trillion -- under any circumstances. Rep. Michele Bachmann of Minnesota is collecting signatures on her PAC's w...

John Boehner Releases Statement On Debt Ceiling
G.I. Wood Shop Inc. Mrs. Peel Oh…My Valve! V The K’s Caption This! An error has occurred; the feed is probably down. Try again later. “I’ve been notified that the Obama Administration intends to formally request an increase in the Debt Limit.  The American People will not stand for such an increase unless it is accompanied by meaningful action by the President and Congress to cut spending and end the job-killing spending binge in Washington.  While America canno...

House budget chairman says deeper cuts ahead
WASHINGTON (Reuters) - The Republican-led House of Representatives will push for Spending Cuts in the next Fiscal Year that will be even deeper than those they promised voters, the lawmaker leading the effort said on Thursday. "If people think we're afraid of cutting $100 billion they've got another think coming," House Budget Committee Chairman Paul Ryan said. "That's just a down payment." Ryan's comments come one day after he and other Republicans said they would not reach their target of $100...

Budget Cop Paul Ryan: No 'Naked' Debt Increase, No Bailouts for States
Rep. Paul Ryan, chairman of the House Budget Committee in the new Republican era, is staking out territory as the tough new cop on the beat. In an hour-long session at the National Press Club, Ryan laid down conditions for raising the Debt Limit. He also said his budget won't include any money for the new Health Care law and he opposes bailing out states in fiscal crisis. The country's Debt is more than $14 Trillion and rising, and is expected to bump up against a borrowing ceiling in early spri...

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...

Speaker Boehner: GOP Will Not Increase Debt Limit Without Spending Cuts
Shouldn't Obama be in 100% agreement with Boehner here? Didn't he promise to reduce the Deficit by going through the Federal Budget line by line and get rid of those programs that do not work? gatewaypundit reported Speaker John Boehner said that Republicans will not agree to increase the Debt Limit without Spending Cuts. Boehner released a statement: Washington (Jan 6) House Speaker John Boehner (R-OH) issued the following statement on the Debt limit: “ I’ve been notified that the...

Radtke: Raising debt ceiling "sign of insanity"
Virginia Senate Candidate and tea partier Jamie Radtke says raising the Debt ceiling would be "a sure sign of insanity." Radtke, who announced her candidacy right after Christmas, is out with a statement warning of a Debt burden that is pushing the country to the brink of catastrophe. But rather than skewering Obama with red meat, she highlights the president's thinking when he was a senator. "In 2006, then Senator Obama voted against raising the Debt ceiling, calling the practi...

House budget chairman says deeper cuts ahead
WASHINGTON (Reuters) - The Republican-led House of Representatives will push for Spending Cuts in the next Fiscal Year that will be deeper than they promised voters in last year's congressional Elections, the lawmaker leading the effort said Thursday. "If people think we're afraid of cutting $100 billion they've got another think coming," House Budget Committee Chairman Paul Ryan said Thursday. "That's just a down payment." Ryan's comments come one day after he and other Republicans said they wo...

In a single day, Obama admin. defense cuts nearly top GOPs entire first-year austerity pledge
"The surprise announcement from Gates was a reminder for the Military establishment - which has benefited from a gusher of new money over the past decade - that it will not remain exempt from painful Austerity measures that federal lawmakers say will be necessary to control the soaring National Debt," The Washington Post's Craig Whitlock noted. The $78 billion comes in addition to $100 billion in cuts that Gates directed the Pentagon to find in May. In a Thursday news conference, the defense sec...

William Daley Named White House Chief of Staff
Former Commerce Secretary William Daley will become the next White House Chief of Staff, President Barack Obama announced Thursday. Daley, 62, primarily has business experience, but has been appointed to prominent political positions in the past, including three years as former President Bill Clinton's Commerce Secretary. "Few Americans can boast the breadth of experience that Bill brings to this job," Obama said as he made the announcement with Daley by his side. "But most of all, I know Bill...

Boehners Opening Bid On the Debt Limit
John Boehner’s office released a statement on the Debt ceiling issue: I’ve been notified that the Obama Administration intends to formally request an increase in the Debt Limit. The American People will not stand for such an increase unless it is accompanied by meaningful action by the President and Congress to cut spending and end the job-killing spending binge in Washington. While America cannot default on its debt, we also cannot continue to borrow recklessly, dig ourselves deep...

House Republicans challenge Obama on debt limit
WASHINGTON (AP) — 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 ...

House Republicans challenge Obama on debt limit (AP)
WASHINGTON – 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 ...

Gates seeks $78 billion in cuts to Pentagon budget
GATES SEEKS $78 BILLION IN CUTS TO Pentagon Budget.... As far as the House Republican leadership is concerned, lawmakers have to slash federal spending -- but the defense budget, well over a half-trillion dollars, should be considered off-limits. The Secretary of Defense disagrees. Defense Secretary Robert Gates Thursday told Congress the administration is seeking $78 billion in cuts to the Defense budget over the next five years on top of $100 billion in efficiencies. House Armed Services Co...

The Illogic of America's Debt Ceiling
One of the peculiar embarrassments of the American political process is the fact that Congress votes separately on the Deficit and Debt, as if they were two different decisions. This bizarre arrangement allows Congress the luxury of instructing the Treasury to spend more than it takes in as revenue while at the same time voting to deny the authority to borrow the funds that would be necessary to implement the plan. If the government is (a) required by the Deficit Legislation to spend, and (b) pr...

Dont Raise the Limit on Obamas Credit Card
Floyd and Mary Beth Brown, FloydReports.com Fear-mongering works - why not try again? This must be the thinking behind Obama’s latest attempts to manipulate the new Congress. Austan Goolsbee, chairman of the U.S. Council of Economic Advisers, trotted out before the cameras this week to threaten the Republican Congress, saying that if they don’t raise the limit on the USA’s Debt ceiling, the “impact on The Economy would be catastrophic.” Goolsbee spun the new lin...

Republicans May Not Care About Deficits, But They Care About Cutting Social Spending
It’s tempting to just laugh at the hapless Republicans who are flailing away at their initial promises, and to conclude that they don’t care about the Deficit. This is all true, and they don’t. But that doesn’t mean they won’t engage in very consequential Spending Cuts. There’s no question that the new House rules allow for broad exemptions on deficit-busting Legislation, particularly the Repeal of Health Care. As Harry Reid said today in a statement, the re...