House rejects debt ceiling increase, 318-97

Link to full article HERE

In a symbolic vote to send a message to budget negotiators, the House on Tuesday defeated a measure to raise the national debt ceiling without any accompanying deficit or spending reduction provisions. The Republican-controlled House voted 318-97 on the legislation that would have raised the federal government's debt limit by approximately $2.4 trillion.

Not surprising at all. Personally I feel the ceiling does need to be raised, but massive spending cuts also need to be put in place. The country still needs money, and defaulting isn't going to help the situation at all. But raising the debt ceiling simply to allow the current trend of borrowing with no intention of paying it back with real money (meaning, not paying it back with more borrowed money) isn't the answer either.

I find it ironic the House voted this down because they wanted spending cuts, yet they just passed the $690 Billion defense bill. A tad hypocritical in my opinion.

Democrats warn that the Republicans risk rattling financial markets

Oh so now the mainstream news outlets, like CNN blame Republicans for the financial crisis, if you ask me all the two parties are the same, do you think any of them would make any difference or even care how people live? i wouldn't think not.


Both parties share the blame for the financial crisis.

reply to post by Agent_USA_Supporter


I'd have to agree with you 100%

It's a big partisan blame game when both are just as guilty. The republicans were right for not raising the debt ceiling without cuts, but at the same time the republicans refuse to actually make cuts! How silly is that. The defense budget is huge, and the people spending that money are doing nothing but making this country less safe by sewing seeds of western hate throughout the world. Then the democrats just want to spend spend spend without realizing they are going to have to pay that money back eventually.

People really need to realize that neither side has the answer, because both sides are the cause of the problem, just in different ways.

The debt ceiling is an artificial limit that allows us to borrow more fairy dust. I'd vote against it, too.

/TOA

And I thought they were just going to raise the debt ceiling for the 11th time since 2001…

Ok great, we ending our idiotic spending spree! So now I am assuming the House of Reps. has a really, really intelligent plan to help us avoid complete bankruptcy and all that comes with the breaching the debt ceiling? Oh... they don't? They are just going to take chump change from the people that need it most, seniors, and raise the poverty line above the current middle class...!!!?? Ugh.

I bet they'll increase taxes on everything, quadruple the amount of immigrants allowed into the country to increase their overall revenue, and then they will refinance our $15 trillion of loans from the banksters through the next millennium! Go! Go! Leaders of the free world!

We are definitely going to need to spend that 2/3’s of a trillion dollars every single year on our military because our bankrupt country is gonna need some serious protection from our creditors.

money.cnn.com...

What happens if Congress doesn't raise the debt ceiling before Aug. 2?

No one knows for sure. But the going assumption is that no good can come of it.

Treasury would not have authority to borrow any more money. And that can be a problem since the government borrows to make up the difference between what it spends and what it takes in. It uses that borrowed money to help fund operations and pay creditors.

Geithner's critics say he could prevent default by simply paying the interest due to bondholders.

But since average spending -- minus interest -- outpaces revenue by about $118 billion a month, Geithner won't be able to pay all the country's bills.

That means he will have to pick and choose who to pay and who to put off every day. And there's no guarantee that paying interest while shirking other legal obligations will protect the country from the perception of default.

Geithner said it would be akin to a homeowner who pays his mortgage but puts off his car loan, credit cards, insurance premiums and utilities. The mortgage is taken care of, but the homeowner's credit could still be damaged.

Ultimately, if lawmakers fail to raise the ceiling this year, they will have two choices, both awful.

They could either cut spending or raise taxes by several hundred billion dollars just to get through Sept. 30, which is the end of the fiscal year. Or they could acknowledge that the country would be unable to pay what it owes in full and the United States could effectively default on some of its obligations.

The first option would be impossible to execute without serious economic repercussions.

And the second option could cripple the economy and send world markets into a tailspin.

"Not only the default but efforts to resolve it would arguably have negative repercussions on both domestic and international financial markets and economies," according to the CRS.

At a minimum, a default could hurt U.S. bonds, the dollar and investors' portfolios. "Our bond market and stock market would crash," said former Congressional Budget Director Rudolph Penner.

it's a dog and pony show.
if it doesn't pass then a secret fund
will open up that you never heard of that
will make up the difference. Do you really
think congress has any say-so over
Rothschild's money ??? c'mon

www.wnd.com...

we haven't had a republic since 1913
and we haven't had a legitimate president
since JFK in 1963.

Do you actually think that is a legitimate congress
voting on a debt ceiling ???

hahahaha