Republicans willing to destroy U.S. credit over debt limit

Eric Cantor: Willing to play with fire.

House Republicans appear more than willing to destroy the “full faith and credit” rating of the United States to force their demands for massive spending cuts and budget reforms on Democrats and President Barack Obama.

 

House Majority Leader made that clear Wednesday when he laid down the gauntlet to Democrats:  No debt limit increase without “major spending cuts or budget process reforms.”

The Virginia Republican makes is clear that he is willing to put America’s credit standing on the line to get what he and his right-wing followers in the House want: Total capitulation by Democrats on spending and budget issues.  Instead of a government shutdown — narrowly averted with a last minute, six-month spending package earlier this month — Cantor is now using the threat of default is Republicans don’t get their way.

Democrats are firing back.

“Congress will not permit the nation to default on its obligations because it would be beyond irresponsible to do so,” Brian Fallon, spokesman for New York Democratic Senator Chuck Schumer, told Politico in a prepared statement. “Leader Cantor knows this, and he should heed the many business leaders who are telling Republicans to stop playing games with the debt ceiling to gain political leverage.”

But a scorched earth policy is an tried-and-true GOP tactic when it comes to using a national crisis for political advantage and Cantor is willing to send America’s fragile economy into another nose dive if an agreement is not reached on increasing the debt limit.

According to the Treasury Department, the United States will hit its debt ceiling sometime between mid-May and July 8.  The country took a hit on the international credit markets this week when Standard and Poor changed its rating on U.S. debt from “stable” to “negative.”

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8 Responses to "Republicans willing to destroy U.S. credit over debt limit"

  1. Almandine  April 21, 2011 at 9:23 am

    Yada, yada, yada…

  2. woody188  April 21, 2011 at 11:47 am

    So if our credit is downgraded due to our inability to lower the debt, how will raising the debt limit save our credit rating?

    We have to lower the debt to save our credit rating. Why is this so hard to understand?

    This would be like a credit card customer demanding the card issuer give them more credit when they can just barely make the minimum payment. Once they use up that extra credit and can no longer afford the minimum payment, then they still default.

    Is it better to default now on a lower debt level in an effort to lower the debt, or is it better to take on more debt and default later when we can no longer service the debt load?

    Any vote to raise the debt limit must be accompanied by a plan to lower the debt immediately and not out over 20 years. It also must be understood that any increase in debt limit or downgrade in credit rating will result in an inability to pay the service or interest on the debt given current outlays and receipts. In other words, taxes will have to be raised, or spending must be cut just to pay our debt. There can be no business as usual. We must change or we will default. Period.

    • Almandine  April 21, 2011 at 12:21 pm

      Watch it Woody… logic is verboten!

  3. Tayo  April 21, 2011 at 12:43 pm

    The fact that we’re here today to debate raising America’s debt limit is a sign of leadership failure. Leadership means ‘The buck stops here.’ Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better. I therefore intend to oppose the effort to increase America’s debt limit.

    The speaker: Then-Sen. Barack Obama, D-Ill., back in 2006.

  4. baal  April 25, 2011 at 4:31 pm

    Do what the GOP wants. Once it destroys Americas credit rating it will break the GOPs back and America will be rid of this whack job party forever…

  5. baal  April 25, 2011 at 4:41 pm

    At least Obama has the intestinal fortitude to admit he made a mistake. Unlike your Hero, GW Smirk….

    http://blog.jeffchidester.com/obama-regrets-vote-against-raising-debt-limit-please/

    “WASHINGTON (AP) — The White House said Monday that President Barack Obama regrets his vote as a senator in 2006 against raising the debt limit — the same kind of increase he’s now pressuring Congress to approve.

    Obama “thinks it was a mistake,” presidential spokesman Jay Carney told reporters. “He realizes now that raising the debt ceiling is so important to the health of this economy and the global economy that it is not a vote that, even when you are protesting an administration’s policies, you can play around with.”

  6. bogofree  April 25, 2011 at 5:15 pm

    From what I have read this debt ceiling is constantly on the rise. If I had a ceiling like that in my house I’d need a 500 foot ladder to change a light bulb. Now it seems like we are trapped – at least that is what Chicken Little is saying. Maybe cut it off and send Washington to a fiscal rehab.

  7. Almandine  April 25, 2011 at 6:31 pm

    As if raising the debt ceiling could save our credit rating…

    http://www.alt-market.com/articles/103-into-the-economic-abyss

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