Reid to Obama: OK to skip Congress on debt ceiling
Senate Majority Leader Harry Reid and other top Democrats are putting new pressure on the White House to circumvent Congress to boost the nation’s debt ceiling if no bipartisan agreement can be reached.
In a strongly worded letter to President Barack Obama obtained by POLITICO, Reid and his leadership team argue that failing to raise the $16.4 trillion debt ceiling would threaten the full faith and credit of the United States. Reid and Sens. Dick Durbin, Chuck Schumer and Patty Murray asserted that Obama “must make clear that you will never allow our nation’s economy and reputation to be held hostage.”
Continue Reading(Also on POLITICO: Report: Debt ceiling 'X Date' Feb. 15)
“In the event that Republicans make good on their threat by failing to act, or by moving unilaterally to pass a debt limit extension only as part of an unbalanced or unreasonable legislation, we believe you must be willing to take any lawful steps to ensure that America does not break its promises and trigger a global economic crisis — without congressional approval, if necessary,” the Friday letter to Obama says.
The letter amounts to the most concerted push yet by Senate Democratic leaders for the White House to take unprecedented action to raise the debt ceiling given the bitter stalemate in Congress. After the messy debt ceiling fight from 2011, and the protracted fiscal cliff battle that extended until New Year’s Day, Obama has said he will not use the debt ceiling increase as a bargaining chip and will refuse to negotiate with GOP leaders on the issue.
(Also on POLITICO: Dems to W.H.: Don't rule out 14th)
But Republicans have demanded that dollar-for-dollar spending cuts must accompany any increase in the debt ceiling. And after agreeing to raise marginal income tax rates on high earners as part of the fiscal cliff deal, Republicans refuse to consider any new revenue as part of a debt-ceiling accord. Democrats say taxes must be part of any deal.
In addition, many conservative Republicans are not convinced that failure to lift the debt ceiling — which will be reached as early as next month — would constitute immediate default by the U.S. government. These Republicans believe that the U.S. government can continue to make interest payments to debt holders without defaulting.
“The fact that we continue hitting the debt ceiling is a symptom of Washington’s spending problem, and hitting the debt ceiling does not immediately trigger a default,” said Rep. Steve Scalise (R-La.), chairman of the powerful Republican Study Committee, in a statement on Thursday. “The Treasury Secretary has an obligation to preserve the credit rating of the United States and should pledge to continue making necessary interest payments to avoid default.”
(PHOTOS: Who won, lost with fiscal cliff deal)
Following the prolonged 2011 debt fight, the credit rating agency Standard & Poor’s downgraded U.S. debt, and analysts warn more downgrades could be possible, which could have dire consequences for the American and global economies.
Hill Democrats, for their part, are worried that they lack the leverage in the debt ceiling battle and stand to lose big in any deal cut between the White House and congressional Republicans.
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Jack Reacher Member Since: Mar. 31, 2012 Party: NA #7 Jan. 11, 2013 - 3:11 PM EST FOUR that is 4 years without a budget is a deriliction of duty - yet Harry Reid gets his salary, his benefits, his slush funds and all the other goodies! ---------------- Large font doesn't make your lack of understanding of how our government works any less obvious. Just an "fyi".- Reply
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argmate1 Member Since: Jul. 26, 2011 Party: N/A #9 Jan. 11, 2013 - 3:14 PM EST - Reply
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Read all 440 comments in our forumThis is unsurprising advice, coming from the master of skipping out on budgeting responsibilties.
They don't need no stinkin' rule of law!
They don't need no stinkin' fiscal responsibility!
I'm with Harry Reid, it is silly and dangerous for the Republicans to threaten to shut down the normal operation of our government by playing politics with the debt ceiling limit.
Congress and only Congress authorized all of the spending that leads to our present need to raise the legal debt limit. Congress must now act promptly to authorize paying the bills.
President Obama should take all legal measures to make sure we don't damage the creditworthiness of the United States.
Read more on my blog: Barley Literate by Rick
http://barleyliterate.b...
Who cares - we control the Senate and we can do what we want!
Just make off your King James, King Charles or Emperor Obama!
Who cares what is right, proper and ethical!
Just tell them that's how it is done in Chicago
Is this the trillion dollar platinum coin Plan that Harry Reid is supporting?
Probably, old Harry is so frustrated that he can't spend any more money on Chinese energy companies...lol
Reid needs to just go home. He has proven he has no intention of doing what he is there for.
Following the prolonged 2011 debt fight, the credit rating agency Standard & Poor’s downgraded U.S. debt, and analysts warn more downgrades could be possible, which could have dire consequences for the American and global economies.
Lowering the US’s credit rating making the Debt more expensive to maintain is all part of Starving the Beast.
Which is Grover’s plan to ******** the government insuring that revenues will only match obligations and nothing will be left over to actually run the country creating the Libertarian utopia of the United States of Somalia
FOUR that is 4 years without a budget is a deriliction of duty - yet Harry Reid gets his salary, his benefits, his slush funds and all the other goodies! Harry Reid should be tossed out on his ear by the Ethics Committee or they should be tossed with him! Flagrant Deriliction of Duty is now an attribute with Obama playing his Telepromter while the USA goes downhill!
The Congressional Democrats don't want to discuss spending cuts or entitlement reform.
To them, the $16 trillion in debt is unimportant, the coming crisis in Medicare is a fiction.
So, they're willing to disregard a law that has been in effect since 1917, that both Parties have heretofore complied with, a law that requires dialogue and negotiation regarding the nation's fiscal future.
They should change their Party's symbol to an ostrich.
Just keep spending democrats. I'm sure that will solve all problems. Don't worry about repaying. I'm sure the economy will be just fine-lol
When Harry Reid first became senate majority leader, I have to admit I was somewhat skeptical. He seemed like a marshmallow. Ol Harry has turned out to be one of the best fighters for democracy in the history of the US. Thank you Senator Reid.
It all depends on who is in power, Democrats (including Obama who made a very passionate speech against raising the debt ceiling under Bush) do it when there is a Republican at the helm, and vice versa. It's sad to see everyone casually switching sides for political convenience. And to anyone making comments about creditworthiness... raising the debt ceiling is WHAT causes the world to doubt our creditworthiness. The more debt, the less attractive US treasuries are to the investors who fund our debt. The "trillion dollar coin" would deep six the dollar as a reserve currency as our creditors would see that we have no interest at all in paying them back. It would be far less detrimental to skip paying interest and save what little credibility US debt still has.
Looks like Harry Reid isn't planning on trying to pass Obama's budget the old fashion way AGAIN this year. I expect Politico and the mainstream media to really get on these guys about not passing the annual budget AGAIN. ha ha.
Ah, cons.
Your new found concern about the debt is charming.
And yet...oddly lacking when unilateral and illegal wars occur under GOP Administrations.
JUST DO IT!
What a joke. We have a President who in 2008 ran against raising the debt ceiling, reckless spending, how unpatriotic it was, etc. And here we are close to five year later and he behaves in the complete opposite way, and BOTH Dems and Republicans continue to do nothing and at the last minute start crying how horrible it will be if.........
Sorry, but we need to leave the ceiling where it is at and use the revenue Governement receives to pay the interest on the debt (of which there is plenty of revenue to do that) , use what ever is left to fund Gov and whatever there is no more money for - oh well!!!. Then keep it this way until EVERYONE in Washington stops all the rhetoric and actually do their job.
Reid needs to just go home. He has proven he has no intention of doing what he is there for.
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Compared to whom, Boehner? McConnell? Give me a break.
I remember reading about the past, when America was great and followed the rules and worked hard...the elected officials on both sides of the aisle fought tooth and nail but ended up agreeing on a budget every year.
Now we have Obama and Harry Reid. that don't mean jack to these guys. Budget? they won't do a budget and the media doesn't care. It's not the Republicans who are responsible, after all... so who cares?
Pelosi and Reid...BUSTED calling for President to bypass congress? I do believe that is a violation of the oath in which they both promised to uphold.
From United States Senate Website:
Upon taking office, senators-elect must swear or affirm that they will "support and defend the Constitution." The oath is required by the Constitution; the wording is prescribed by law." http://www.senate.gov/referenc...
Just keep spending democrats. I'm sure that will solve all problems. Don't worry about repaying. I'm sure the economy will be just fine-lol
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Did you just start paying attention in 2008? Completely oblivious to the previous 20 years? Yeah, may want to check into that, boss....
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