Thursday, February 3, 2011

Democrats warn of US shutdown over debt

Editor's Note:  Anyone else having a flashback

Dees Illustration
AFP/Activist Post 

WASHINGTON - Senate Democrats warned Thursday of dire economic consequences if Congress fails to raise the US debt ceiling, saying it could prompt a shutdown of the federal government.

"It's playing with fire," said US Senator Chuck Schumer said of the legislative standoff.

If a shutdown were to occur, "citizens couldn't get their checks, veterans couldn't get their benefits, military payments would stop," the veteran New York lawmaker said.

Congress early in 2010 raised the US debt ceiling to nearly $14.3 trillion -- very near the current US debt of some $13.9 trillion dollars.

The government will run out of money in about two months' time, according to the US Treasury Department, unless Congress votes to raise the federal debt ceiling.

But while Democrats, along with most Republicans, agree on the need to avoid having the United States default on its debt, which likely would likely trigger a massive economic meltdown, some conservatives remain firmly against increasing ceiling.


They insist instead of that it is time for massive spending cuts and belt-tightening, and say that raising the debt ceiling further only forestalls needed austerity moves.

Illinois Senator Richard Durbin said a similar curtailment of government services today could "precipitate an economic crisis, driving up interest rates on mortgages, loans, businesses, families across America."

Durbin called it a "political tactic could kill our economic recovery and drive unemployment even higher."

Democrats noted that the last similar such standoff which led in 1995 to a brief government shutdown that was limited in scope, proved politically costly for Republicans after the public sided en masse with Democratic President Bill Clinton.
© AFP

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9 comments:

Anonymous said...

A shutdown of the federal government? Really? You promise?

Gordon said...

How about if we shut the Feds down and sell Washington DC for its scrap value?

Robobagons said...

Lmao @ First post. Either way, were fucked, if they raise the debt level, it will only make recovery (Which is a Myth), that much harder to achieve. I honestly don't believe there is going to be a recovery, not without a great failure first. Or they could just let the shit hit the fan now, instead of making the inevitable that much harder to survive through...

Anonymous said...

Maybe we should outsource the federal government to Mexico or India, and pay them 1 or 2 dollars an hour like a lot of the crummy businesses in this country do. Would save the taxpayers billions every year.

jwpegler said...

This is actually really simple.

If we don't extend the debt ceiling, the government can only spend what it receives in taxes.

How much is that? Over $2 TRILLION, which is what the government spent in 2002!!!

2002. Not 1982. Not 1892. 2002.

Spending would have to be prioritized. The top priority would be paying the interest on the debt so we don't default.

This demonstrates how crazy spending has gotten. It has to end NOW.

Anonymous said...

4:06 PM wrote "The top priority would be paying the interest on the debt so we don't default."

Why not default and restructure the debt?

Would not this happen in the REAL world?

Anonymous said...

The end of the blood suckers has arrived. Now it's up to the people to decide how much more blood they are willing to give to these parasites.

They can cover the Sun with the palm of their hands but that does not make the Sun go away.

Truth makes Free.

Anonymous said...

lol....shut the government down...please!

What good are you? In fact, if we fire all the congressional members, we might have enough money to last us a lifetime.

Why do we accept this? Everything the government does is against the better good for america and others in the world. Enough is enough. Stop the madness. Bring this government to justice. Our justice!

European American said...

How about come April 15 those hard earned dollars of yours are kept in your own pocket?

Let it all come to a end. The existing system does not work. We need to make a stand. Good day to do it, huh?

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