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Ensuring that Paying the National Debt Remains a Priority
Posted by Randy | April 19, 2011
Continuing the discussion on the potential impacts of the rising federal debt on the U.S. credit rating: two weeks ago, Treasury Secretary Timothy Geithner recently said the U.S. will hit the limit on its borrowing capacity by May 16 and warned that it could start defaulting on some of its debts soon after that unless Congress acts to raise the debt ceiling. Yesterday, Sec. Geithner took a decidedly more optimistic tone, assuring the public that an agreement will be reached in time to prevent default.

Allowing the U.S. to default on its debts would jeopardize the full faith and credit of the U.S. government, causing the dollar to lose its status as the world’s reserve currency, and in turn causing a lower standard of living and higher interest rates for the American taxpayers.

Whether or not the debt ceiling is raised, the federal government collects several times as much revenue as it needs to fulfill U.S. debt obligations. We can—and must—make paying the national debt a top priority. Failure to do so would pose unthinkable risks to the financial future of our country.

That is why I have cosponsored the Full Faith and Credit Act. This bill will ensure that the U.S. government does not default on its debt by requiring the Treasury to prioritize payments on the public debt over any other payments, in the event the debt ceiling is not raised. The Full Faith and Credit Act will reassure creditors that the U.S. is serious about making significant spending cuts. By taking the option of default off the table, this bill will allow Congress to have a productive debate about how to rein in the government’s out-of-control spending.

Weigh in: what are your thoughts on the debt ceiling and the Full Faith and Credit Act?
Comments
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  • Ivan Terry commented on 4/20/2011
    Here is a plan. We should know in a day or so how much money was taken in from taxes. This should be the budget. no borrowing of money. The of this amount 70% will be for the operation of the government, 25% should to pay down the debt. 5% into a reserved fund. The reserved fund can not be used for 2 years. Then only 35% of that fund can be use each year after that. This budget shall remain the standard until the debt is paid off. Now since this will less than the government is has been using, The first costs cuts will be to the operating budgets of the White House, The House, and The Senate. Then to the Department of State and Other International Programs. Next the budget of Overseas Contingency Operations. And Corporation for National and Community Service, Environmental Protection Agency, Department of Labor, Department of Education, And so forth. This is just a start. Social Security and Medicare Shall not be touched as these programs are paid for by a specific tax for these. To help Social Security Pass a Law to raise the tax cap from 106,800.00 To 250,000.00 and in this law include that no congress shall remove funds from these as they did in the past. This is just a start as more work will be needed to kept these programs in place and effective.
  • Thomas Griswold commented on 4/20/2011
    This seems like a wise proposal to protect the country from the public defaults even though raising the debt limit would accomplish the same objective without creating chaos with the other debt. Raising the limit cannot be avoided regardless of the budgetary path that is ultimately adopted. We need a rational approach to debt reduction that encompasses regulatory review, a look at trade agreements, bipartisan agreement on tax simplification and closing of loopholes that are being exploited by corporations and the very wealthy. The one issue that is the easiest to address is raising taxes on the wealthy because an overwhelming majority of Americans support such an initiative. Polls indicate that 81 percent of the public feels this would be acceptable and it would provide dramatic proof that the congress is willing to respond to that will. The facts are in, the Bush tax cuts did not create an expansion and they were a major contributor to adding 7.5 TRILLION dollars to the national debit during that administration. The bottom line is that raising the debt limit has to be done and now. There is no reason to move this debate to the 11th hour yet again. Had the congress acted early in the year to do the inevitable the S and P may not have moved as they have.
  • David Crear commented on 4/20/2011
    I sincerly hope that all who elected these Reckless Republicans, with their slashing knives, for their rich supporters, and catheters for inflating taxes on the rest of us , are satisfied with the outcome. There's only one true outcome....somebody has to pay for what's happened. The only problem is....too many of the wrong ones are being made to pay for what a few are responsible for. "DO THE WANTS OF THE FEW OUTWEIGH THE NEEDS OF THE MANY"?
  • Nancy Moore commented on 4/20/2011
    Randy, I really don't know what yall should do. But I know what we do at home. When we get our credit cards over $1000 we stop spending, going out to dinner and shopping and take on more shifts at the hospital or pick up work wherever we can to pay it down before we go spending more. When our children or other family members or friends are hurting financially we sacrifice some more to help them. My husband is retired from the Fed Govt. and always told me he was in danger of loosing his job if our debt got out of hand. People have been fired from the Shipyard for carrying too much debt. It's not safe, it makes us a target for the bad guys to owe so much. It's not responsible. I'd be in favor of closing some of the social programs and having the good people of America and their millions of churches start helping the poor. Maybe the poor and needy will also accept the good news of Jesus at the same time. Sincerely indebted to you for your service.
  • Joe Dotson commented on 4/22/2011
    It's time to stand tall in opposition to increasing the debt ceiling. I suggest congress advance the Paul Ryan Budget with a take it or leave it stance like the health care bill was rammed through last year. No compromise and let the President shut the government down. I think I can survive and all concerned citizens will do just fine. Those that have historically been the takers may suffer a little. Those that are unfortunate will get help from others. Let The President swing with the wind!
  • Jerome Avenson commented on 4/23/2011
    There's plenty of money coming in from taxes, FICA, sale of Treasury notes, foriegn debts, etc. without raising the debt ceiling at this time. If you're serious cut some of those worthless Sacred Cow government programs that keep getting renewed each year. If my personal finances showed that my personal standard of living is 140% of my earnings and I expect it to be 160% next year without any sign of my earnings increasing -- what would you expect me to do? Borrow money to increase my lifestyle or cut back on my lifestyle? You guys are living beyond your means and have been for quite a while. What are you going to do if the Chinese raise the interest rate on what you've borrowed? Get a reality check Mr. Congressman!
  • Bonner Paul commented on 8/6/2011
    National debts are the most important priority for the govenrment to first pay off then the other things should be considerd but they havent been sucessful in this therefore today they are facing this debt crisis now. http://www.flexcredit.co.uk
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