On the origins and meaning of the debt ceiling
Business forum: Debt ceiling dangers
Article by: PATRICK DELANEY
Minneapolis StarTribune
January 20, 2013 - 12:51 PM
It is expected that an increase in the current United States debt ceiling level will be required by March 1 of this year.
House Republicans threatened to refuse to raise the debt ceiling unless President Obama agrees to cut future spending of the federal government for purposes and in amounts satisfactory to them.
The president has said he will not permit his administration's position about spending cuts to depend on a threat that he, and a great many other Americans of both political parties, consider dishonorable and not capable of debate in rational political terms. There was some softening of the Republican position Friday. But it is still worth considering the origins and meaning of the debt ceiling.
Federal law requires Congress to authorize our government to borrow money needed to carry out programs passed by Congress. Debt financing is obtained by issuance of promissory notes sold by the U.S. Treasury Secretary to finance obligations already incurred. Holders of U.S. Treasury notes rely on the full faith and credit of the United States to pay the notes and interest on them.
(More here.)
Minneapolis StarTribune
January 20, 2013 - 12:51 PM
It is expected that an increase in the current United States debt ceiling level will be required by March 1 of this year.
House Republicans threatened to refuse to raise the debt ceiling unless President Obama agrees to cut future spending of the federal government for purposes and in amounts satisfactory to them.
The president has said he will not permit his administration's position about spending cuts to depend on a threat that he, and a great many other Americans of both political parties, consider dishonorable and not capable of debate in rational political terms. There was some softening of the Republican position Friday. But it is still worth considering the origins and meaning of the debt ceiling.
Federal law requires Congress to authorize our government to borrow money needed to carry out programs passed by Congress. Debt financing is obtained by issuance of promissory notes sold by the U.S. Treasury Secretary to finance obligations already incurred. Holders of U.S. Treasury notes rely on the full faith and credit of the United States to pay the notes and interest on them.
(More here.)
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1 Comments:
Did you see Ryan's latest press release advocating Governing by Gimmick ?
“Since taking the majority, House Republicans have done their job. We’ve passed a budget that promotes economic growth and gets spending under control. But for nearly four years, Senate Democrats have refused to pass a budget. Today’s agreement will hold the Senate accountable for this legal and moral failure. Just as April 15 is tax day for American families, it is budget day for Congress. Unless the Senate acts, there will be no consideration of a long-term debt-ceiling increase. I look forward to working with my colleagues—in both houses and in both parties—on this vital issue.”
What Ryan does not acknowledge is that the Republicans when they retook the majority in the House passed the "Ryan Rule" where by as Chairman, he is given unilateral power to set spending subject to a up-and-down vote ... last time a "few" Republicans voted against the Ryan Budget ... and this past December, a "few" Republicans got re-assigned.
Note, also that Ryan's statement “I stand in strong support of the agreement reached by my colleagues today. Our conference has united around a common-sense proposal. which essentially means the Republicans decided this gimmick without any input from the Democrats.
Now, why hasn't the Senate passed a budget ... well if they had the "Reid Rule" whereby he was given unilateral power that only required a simple majority, then the Senate would pass a budget too ... but the TEA Party-Republicans would not permit that rules change.
The "Gimmick" is that if the Senate does not pass a budget by April 15th then pay for Members will not be granted until a budget is approved or the session ends (December 31,2014) .... they still get paid.
Yep it's a gimmick ... if the Republicans were serious, they would require that a budget be passed by April 15th or reductions are done in each Member's Representational Allowance which is how they pay their staff and send franked mail and as well reductions in Committee staff. I have a hunch if their operating budgets started getting hit, they might be more responsive than this silly No Budget, No Pay gimmick ... oh, and if this legislation would be approved, then the "Debt Ceiling" would be suspended allowing the government to pay for appropriations already authorized ... the way it should be.
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