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Obama: Raise debt ceiling or risk global recession


Auburn85

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http://news.yahoo.com/s/ap/20110415/ap_on_re_us/us_obama_interview

By BEN FELLER, AP White House Correspondent

CHICAGO – Failure by Congress to raise the U.S. debt limit "could plunge the world economy back into recession," President Barack Obama declared Friday, and he acknowledged that he must compromise on spending with Republicans who control the House to avoid such a crisis.

"I think it's absolutely right that it's not going to happen without some spending cuts," the president told The Associated Press in an interview in his hometown, agreeing with House Speaker John Boehner's assessment.

Obama urged swift action to raise the ceiling on the money the nation can borrow, saying he doesn't want the United States to get close to a deadline that would destabilize markets. He said he was confident Congress ultimately would raise the limit.

"We always have. We will do it again," he said.

The president also said that he doesn't expect either side to get everything it wants in deficit negotiations and that he's pushing for "a smart compromise that's serious."

He warned of dire consequences if the debt ceiling is not raised before it hits its limit of $14.3 trillion in mid-May. But he said some questions about where the government trims its operations will have to be left until after the 2012 presidential election.

The interview came a day after the Democratic president held the first major fundraising events of his re-election campaign, which was launched a week ago. To win a second term, Obama must convince a nation suffering from stubbornly high unemployment that he deserves more time to help the economy recover from a recession he inherited from George W. Bush.

"I think the economy's going to continue to improve, and I think that I can make an effective case ... that not only have I been able to yank this economy out of that hole" but also that he has been able to start making wise fundamental changes. He pointed to overhauling the health care system, investing in clean energy and making college more affordable.

"I'm the person who is best prepared for us to finish the job so that we're on track to succeed in the 21st century," Obama said.

The 2012 presidential race is the first in which the tea party coalition, which rails against the growth of government, excessive spending and Obama's presidency, will play a major role.

Obama said his views differ from the tea party in terms of the proper role of the government in society, but he also said he welcomes active public participation in democracy.

On the subject of the nation's continuing war efforts, Obama refused to estimate how many troops he would pull out of Afghanistan this summer, saying he's waiting for a recommendation from Gen. David Petraeus, who is overseeing the mission.

"I'm confident that the withdrawal will be significant," he said, "a real process of transition" and "not a token gesture."

On Libya, Obama said he doesn't anticipate any stepped-up U.S. military role, even as he conceded that a stalemate exists on the ground. He credited the United States and NATO with averting a "wholesale slaughter" of civilians and said Libyan leader Moammar Gadhafi is under increasing pressure to leave.

The president said Gadhafi is "getting squeezed in all different kinds of ways," running out of money and supplies.





This is CLASSIC! Obama spent enough money to save the country. Now he can spend enough to save the WORLD. Next year, if we REALLY spend, he can save the UNIVERSE or the GALAXY. He is such a badass!!!!

Imagine that

http://www.slate.com/BLOGS/blogs/weigel/archive/2011/04/15/tea-party-patriots-don-t-raise-the-debt-limit.aspx

Senator Obama: "The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. … Increasing America’s debt weakens us domestically and internationally. Leadership means that ‘the buck stops here. Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better."

Steny Hoyer: Opposed the debt celing increase referring to "reckless spending."

Also opposed were folks like Sen. John Kerry, Minority Leader, Nancy Pelosi, and Assistant Democratic Leader James Clyburn.

http://www.youtube.com/watch?v=PjnN_J6wPmk&feature=related

http://www.youtube.com/watch?v=DT7HT4RpvmI&feature=related

All Republicans have to do to get people to stop bringing up their hypocrisy is use the same strategy by Obama and all is well.

Indulgences for everyone! Well...expect the people you disagree with.

Everyone rails against it. Doesnt mean it doesnt need to happen. It MUST get raised.

Of course it's going to be raised. This is where Rand Paul will probably lose some support. He could filibuster the debt ceiling being raised, but there will be a fuss til the end and it'll ultimately be raised.

It's the politics of the situation.

So is Obama now "shifting the burden of bad choices today onto the backs of our children and grandchildren?"

He should be as agressive on himself and his party as he was back in 06 on the debt ceiling vote. Afterall, the debt is much higher now than in 06.

Everyone rails against it. Doesnt mean it doesnt need to happen. It MUST get raised.

What is the purpose of a debt limit?

Well we are talking about Congress and politicians.

Everyone rails against it. Doesnt mean it doesnt need to happen. It MUST get raised.

What is the purpose of a debt limit?

Well we are talking about Congress and politicians.

We are the only major country that has a debt limit. Its honestly pointless (our debt should be proof of that). Just a political game, and since all of you demagogue political games, you should be in favor of abolishing it.

Everyone rails against it. Doesnt mean it doesnt need to happen. It MUST get raised.

What is the purpose of a debt limit?

Well we are talking about Congress and politicians.

We are the only major country that has a debt limit. Its honestly pointless (our debt should be proof of that). Just a political game, and since all of you demagogue political games, you should be in favor of abolishing it.

I am.

I'm also in favor of confiscating assets of politicians who run up these kind of debts.

I'm also in favor of jailing politicians who don't pay their taxes. And you can tell Eric Holder I said so.

You guys do realize the Ryan Plan, which the GOP in the House has already approved, calls for raising the debt ceiling, don't you?

Faced with an unpopular vote over raising the $14.3 trillion debt ceiling, Democrats want to make the case that House Republicans already endorsed an increase to the national borrowing limit of $1.9 trillion over the next year when they voted to adopt the Ryan budget. Included in the ambitious 10-year budget plan is the assumption that the “appropriate” level of debt by 2021 would be $23.1 trillion.

“The bottom line is that the Ryan budget calls for significant increases in the debt ceiling,” New York Sen. Chuck Schumer (D-N.Y.) told POLITICO Friday. “So for Republicans to talk about getting their debt lower and not raising the debt ceiling when their own proposal raises it significantly shows that they’re really talking out of both sides of their mouth. … They just ought to extend the debt ceiling, stop the charade and we should negotiate a serious debt-reduction package.”

http://www.politico.com/news/stories/0411/53589.html

Further, by voting for a budget deal that averted a government shutdown, the Republicans have already voted to appropriate funds in excess of the debt ceiling.

So not only do Republicans not have leverage with respect to the debt ceiling (failing to raise it would be an economic disaster), they couldn't even pass their own budget plans into law without raising it.

H/T

You guys do realize the Ryan Plan, which the GOP in the House has already approved, calls for raising the debt ceiling, don't you?

Faced with an unpopular vote over raising the $14.3 trillion debt ceiling, Democrats want to make the case that House Republicans already endorsed an increase to the national borrowing limit of $1.9 trillion over the next year when they voted to adopt the Ryan budget. Included in the ambitious 10-year budget plan is the assumption that the “appropriate” level of debt by 2021 would be $23.1 trillion.

“The bottom line is that the Ryan budget calls for significant increases in the debt ceiling,” New York Sen. Chuck Schumer (D-N.Y.) told POLITICO Friday. “So for Republicans to talk about getting their debt lower and not raising the debt ceiling when their own proposal raises it significantly shows that they’re really talking out of both sides of their mouth. … They just ought to extend the debt ceiling, stop the charade and we should negotiate a serious debt-reduction package.”

http://www.politico.com/news/stories/0411/53589.html

Further, by voting for a budget deal that averted a government shutdown, the Republicans have already voted to appropriate funds in excess of the debt ceiling.

So not only do Republicans not have leverage with respect to the debt ceiling (failing to raise it would be an economic disaster), they couldn't even pass their own budget plans into law without raising it.

H/T

You act like this is about republicans vs. democrats, it is about saving the country. I am ready to put an end to the spending no matter who recommends it. Like it or not, it is time for "bad" things to happen. Bad things like ending the govt. funding of fruit fly studies, ending paying people to stay home and have babies, ending giving the able-bodied disability checks, ending encouraging people to buy homes they can't afford.

Somehow, we have become a country that thinks we are too good to work at McDonalds and live in a mobile home. THERE IS NOTHONG WRONG WITH IT! It is okay to drive a clunker. It is okay NOT to take vacations. You don't have to have a boat. The government needs to "get it" and the American public needs to "get it." It will hurt, but it is going to hurt a lot more later when we don't fix this.

You guys do realize the Ryan Plan, which the GOP in the House has already approved, calls for raising the debt ceiling, don't you?

Faced with an unpopular vote over raising the $14.3 trillion debt ceiling, Democrats want to make the case that House Republicans already endorsed an increase to the national borrowing limit of $1.9 trillion over the next year when they voted to adopt the Ryan budget. Included in the ambitious 10-year budget plan is the assumption that the “appropriate” level of debt by 2021 would be $23.1 trillion.

“The bottom line is that the Ryan budget calls for significant increases in the debt ceiling,” New York Sen. Chuck Schumer (D-N.Y.) told POLITICO Friday. “So for Republicans to talk about getting their debt lower and not raising the debt ceiling when their own proposal raises it significantly shows that they’re really talking out of both sides of their mouth. … They just ought to extend the debt ceiling, stop the charade and we should negotiate a serious debt-reduction package.”

http://www.politico.com/news/stories/0411/53589.html

Further, by voting for a budget deal that averted a government shutdown, the Republicans have already voted to appropriate funds in excess of the debt ceiling.

So not only do Republicans not have leverage with respect to the debt ceiling (failing to raise it would be an economic disaster), they couldn't even pass their own budget plans into law without raising it.

H/T

You act like this is about republicans vs. democrats, it is about saving the country. I am ready to put an end to the spending no matter who recommends it. Like it or not, it is time for "bad" things to happen. Bad things like ending the govt. funding of fruit fly studies, ending paying people to stay home and have babies, ending giving the able-bodied disability checks, ending encouraging people to buy homes they can't afford.

Somehow, we have become a country that thinks we are too good to work at McDonalds and live in a mobile home. THERE IS NOTHONG WRONG WITH IT! It is okay to drive a clunker. It is okay NOT to take vacations. You don't have to have a boat. The government needs to "get it" and the American public needs to "get it." It will hurt, but it is going to hurt a lot more later when we don't fix this.

Amen Brother

Grumps fer prez :cheer:

You guys do realize the Ryan Plan, which the GOP in the House has already approved, calls for raising the debt ceiling, don't you?

Faced with an unpopular vote over raising the $14.3 trillion debt ceiling, Democrats want to make the case that House Republicans already endorsed an increase to the national borrowing limit of $1.9 trillion over the next year when they voted to adopt the Ryan budget. Included in the ambitious 10-year budget plan is the assumption that the "appropriate" level of debt by 2021 would be $23.1 trillion.

"The bottom line is that the Ryan budget calls for significant increases in the debt ceiling," New York Sen. Chuck Schumer (D-N.Y.) told POLITICO Friday. "So for Republicans to talk about getting their debt lower and not raising the debt ceiling when their own proposal raises it significantly shows that they're really talking out of both sides of their mouth. … They just ought to extend the debt ceiling, stop the charade and we should negotiate a serious debt-reduction package."

http://www.politico....0411/53589.html

Further, by voting for a budget deal that averted a government shutdown, the Republicans have already voted to appropriate funds in excess of the debt ceiling.

So not only do Republicans not have leverage with respect to the debt ceiling (failing to raise it would be an economic disaster), they couldn't even pass their own budget plans into law without raising it.

H/T

You act like this is about republicans vs. democrats, it is about saving the country. I am ready to put an end to the spending no matter who recommends it. Like it or not, it is time for "bad" things to happen. Bad things like ending the govt. funding of fruit fly studies, ending paying people to stay home and have babies, ending giving the able-bodied disability checks, ending encouraging people to buy homes they can't afford.

Somehow, we have become a country that thinks we are too good to work at McDonalds and live in a mobile home. THERE IS NOTHONG WRONG WITH IT! It is okay to drive a clunker. It is okay NOT to take vacations. You don't have to have a boat. The government needs to "get it" and the American public needs to "get it." It will hurt, but it is going to hurt a lot more later when we don't fix this.

Well said!

You guys do realize the Ryan Plan, which the GOP in the House has already approved, calls for raising the debt ceiling, don't you?

Faced with an unpopular vote over raising the $14.3 trillion debt ceiling, Democrats want to make the case that House Republicans already endorsed an increase to the national borrowing limit of $1.9 trillion over the next year when they voted to adopt the Ryan budget. Included in the ambitious 10-year budget plan is the assumption that the “appropriate” level of debt by 2021 would be $23.1 trillion.

“The bottom line is that the Ryan budget calls for significant increases in the debt ceiling,” New York Sen. Chuck Schumer (D-N.Y.) told POLITICO Friday. “So for Republicans to talk about getting their debt lower and not raising the debt ceiling when their own proposal raises it significantly shows that they’re really talking out of both sides of their mouth. … They just ought to extend the debt ceiling, stop the charade and we should negotiate a serious debt-reduction package.”

http://www.politico.com/news/stories/0411/53589.html

Further, by voting for a budget deal that averted a government shutdown, the Republicans have already voted to appropriate funds in excess of the debt ceiling.

So not only do Republicans not have leverage with respect to the debt ceiling (failing to raise it would be an economic disaster), they couldn't even pass their own budget plans into law without raising it.

H/T

You act like this is about republicans vs. democrats, it is about saving the country. I am ready to put an end to the spending no matter who recommends it. Like it or not, it is time for "bad" things to happen. Bad things like ending the govt. funding of fruit fly studies, ending paying people to stay home and have babies, ending giving the able-bodied disability checks, ending encouraging people to buy homes they can't afford.

Somehow, we have become a country that thinks we are too good to work at McDonalds and live in a mobile home. THERE IS NOTHONG WRONG WITH IT! It is okay to drive a clunker. It is okay NOT to take vacations. You don't have to have a boat. The government needs to "get it" and the American public needs to "get it." It will hurt, but it is going to hurt a lot more later when we don't fix this.

Thats a Republican talking point. You say cut spending - I say raise revenue. You cant claim to be nonpartisan, then spout talking points from your perspective.

Thats a Republican talking point. You say cut spending - I say raise revenue. You cant claim to be nonpartisan, then spout talking points from your perspective.

What'd you expect? ;)

You guys do realize the Ryan Plan, which the GOP in the House has already approved, calls for raising the debt ceiling, don't you?

Faced with an unpopular vote over raising the $14.3 trillion debt ceiling, Democrats want to make the case that House Republicans already endorsed an increase to the national borrowing limit of $1.9 trillion over the next year when they voted to adopt the Ryan budget. Included in the ambitious 10-year budget plan is the assumption that the “appropriate” level of debt by 2021 would be $23.1 trillion.

“The bottom line is that the Ryan budget calls for significant increases in the debt ceiling,” New York Sen. Chuck Schumer (D-N.Y.) told POLITICO Friday. “So for Republicans to talk about getting their debt lower and not raising the debt ceiling when their own proposal raises it significantly shows that they’re really talking out of both sides of their mouth. … They just ought to extend the debt ceiling, stop the charade and we should negotiate a serious debt-reduction package.”

http://www.politico.com/news/stories/0411/53589.html

Further, by voting for a budget deal that averted a government shutdown, the Republicans have already voted to appropriate funds in excess of the debt ceiling.

So not only do Republicans not have leverage with respect to the debt ceiling (failing to raise it would be an economic disaster), they couldn't even pass their own budget plans into law without raising it.

H/T

You act like this is about republicans vs. democrats, it is about saving the country. I am ready to put an end to the spending no matter who recommends it. Like it or not, it is time for "bad" things to happen. Bad things like ending the govt. funding of fruit fly studies, ending paying people to stay home and have babies, ending giving the able-bodied disability checks, ending encouraging people to buy homes they can't afford.

Somehow, we have become a country that thinks we are too good to work at McDonalds and live in a mobile home. THERE IS NOTHONG WRONG WITH IT! It is okay to drive a clunker. It is okay NOT to take vacations. You don't have to have a boat. The government needs to "get it" and the American public needs to "get it." It will hurt, but it is going to hurt a lot more later when we don't fix this.

Thats a Republican talking point. You say cut spending - I say raise revenue. You cant claim to be nonpartisan, then spout talking points from your perspective.

You say raise revenue but when do we hit the limit. I hope my math is right. The 2010 budget was around $3.4 trillion. That is approximately $11,000 for each person in the U.S. (300 million population). The budget includes SS , medicade, etc. But no matter your status in life, that comes across to me as obscene. Yes there are corp taxes etc, but most everything ends up back to the individual.

So for a family of four, the theoretic tax liability is $44,000 dollars.

In all sincerity, do you think that is o.k? That the govt should spend that much per person. That just gets us to a balance budget for a single year. To eliminate the debt would require another $40,000 per person. Do you think this is reasonable?

You say raise revenue but when do we hit the limit. I hope my math is right. The 2010 budget was around $3.4 trillion. That is approximately $11,000 for each person in the U.S. (300 million population). The budget includes SS , medicade, etc. But no matter your status in life, that comes across to me as obscene. Yes there are corp taxes etc, but most everything ends up back to the individual.

So for a family of four, the theoretic tax liability is $44,000 dollars.

In all sincerity, do you think that is o.k? That the govt should spend that much per person. That just gets us to a balance budget for a single year. To eliminate the debt would require another $40,000 per person. Do you think this is reasonable?

That's some pretty fuzzy math.

The math looks pretty sound...$3.4T spend divided by 300m population...that is $11,333 per person....you may not like the math...but it doesn't change it...that's too damn much spending per capita...and the debt is $14T...so 3.4T X 4...pretty close...

and just to remind everyone; we would still run a current annual deficit if we confiscated 100% of the incomes of the wealthy. We do not have a tax problem...we have a spending problem...we have a government that has reached so far beyond any concept I ever imagined that we have now reached beyond the ability of the populace to afford it.

You say raise revenue but when do we hit the limit. I hope my math is right. The 2010 budget was around $3.4 trillion. That is approximately $11,000 for each person in the U.S. (300 million population). The budget includes SS , medicade, etc. But no matter your status in life, that comes across to me as obscene. Yes there are corp taxes etc, but most everything ends up back to the individual.

So for a family of four, the theoretic tax liability is $44,000 dollars.

In all sincerity, do you think that is o.k? That the govt should spend that much per person. That just gets us to a balance budget for a single year. To eliminate the debt would require another $40,000 per person. Do you think this is reasonable?

That's some pretty fuzzy math.

Then it should be right down your alley. :rolleyes:

Actually, its not. $3.4T / 300M people ~ $11K bill per person.

There are many flaws in this logic, for starters:

1.) This simplistic approach doesn't take into account corporate taxes, excise taxes, estate and gift taxes, customs duties, and miscellaneous receipts (earnings of the Federal Reserve System and various fees and charges), etc. (~20%). Another words, individuals do not bear the entire burden of total expenditures.

2.) Taking the above logic a step further, the $3.4T spend is composed of ~$1.5 in mandatory spending (e.g., SS, Medicare). As you know, these are programs people pay into (via Payroll tax, etc) throughout a lifetime of work and thus are "entitled" to the benefits they generate. As such, I find it quite misleading to brand this huge chunk of spend, discretionary, as this logic seems to indicate.

3.) Lastly, we have a progressive tax structure where note every one carries the same tax burden; not too mention not all 300M citizens pay taxes (young, poor, illegals, etc) -- the entire underlying assumption is wrong.

and just to remind everyone; we would still run a current annual deficit if we confiscated 100% of the incomes of the wealthy. We do not have a tax problem...we have a spending problem...we have a government that has reached so far beyond any concept I ever imagined that we have now reached beyond the ability of the populace to afford it.

You really need to ditch this talking point, it doesn't come anywhere close to passing the smell test....

The three biggest drivers of the deficit are, in order, the Bush era tax cuts, the continuing problems with the overall economy, and the wars in Afghanistan and Iraq.

12-16-09bud-rev6-28-10-f1.jpg

Just two policies dating from the Bush Administration — tax cuts and the wars in Iraq and Afghanistan — accounted for over $500 billion of the deficit in 2009 and will account for almost $7 trillion in deficits in 2009 through 2019, including the associated debt-service costs. (The prescription drug benefit enacted in 2003 accounts for further substantial increases in deficits and debt, which we are unable to quantify due to data limitations.) These impacts easily dwarf the stimulus and financial rescues. Furthermore, unlike those temporary costs, these inherited policies (especially the tax cuts and the drug benefit) do not fade away as the economy recovers.

Without the economic downturn and the fiscal policies of the previous Administration, the budget would be roughly in balance over the next decade. That would have put the nation on a much sounder footing to address the demographic challenges and the cost pressures in health care that darken the long-run fiscal outlook.

Critics Still Wrong on What’s Driving Deficits in Coming Years

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