Dire warnings on debt limit hark back to Reagan
By Zachary A. Goldfarb, Published: May 14
WashPost
Several prominent congressional Republicans have dismissed the Obama administration’s claim that the country would face dire consequences if Congress does not vote to raise the federal limit on government borrowing by August.
But an icon of the Republican Party – former president Ronald Reagan – warned Congress during his presidency that a failure to raise the debt limit could also cause a financial catastrophe.
In a November 1983 letter to then-Senate Majority Leader Howard H. Baker Jr. (R-Tenn.), Reagan warned that without a higher debt ceiling, the country could be forced to default for the first time in its history.
Reagan wrote: “The full consequences of a default – or even the serious prospect of default – by the United States are impossible to predict and awesome to contemplate. Denigration of the full faith and credit of the United States would have substantial effects on the domestic financial markets and the value of the dollar.”
(More here.)
WashPost
Several prominent congressional Republicans have dismissed the Obama administration’s claim that the country would face dire consequences if Congress does not vote to raise the federal limit on government borrowing by August.
But an icon of the Republican Party – former president Ronald Reagan – warned Congress during his presidency that a failure to raise the debt limit could also cause a financial catastrophe.
In a November 1983 letter to then-Senate Majority Leader Howard H. Baker Jr. (R-Tenn.), Reagan warned that without a higher debt ceiling, the country could be forced to default for the first time in its history.
Reagan wrote: “The full consequences of a default – or even the serious prospect of default – by the United States are impossible to predict and awesome to contemplate. Denigration of the full faith and credit of the United States would have substantial effects on the domestic financial markets and the value of the dollar.”
(More here.)
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1 Comments:
Increase in government debt is not a partisan issue, nor should fixing it. Where is the Democrat’s plan beyond shrieking and scare mongering at any Republican ideas?
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