Debt limit fight could bring back shutdown specter

As Congress prepares for the next big round of budget battles, House Speaker John Boehner says he wants to see trillions of dollars in spending cuts as part of the legislation to increase the country’s debt limit, reports the Associated Press.

To avoid the first ever U.S. default on its obligations, Congress must raise the $14.29 trillion debt ceiling. A default would have far-reaching effects throughout the U.S. economy and impact global markets. And the clock is ticking: In a letter to Congress, Treasury Secretary Timothy Geithner stated the U.S. can continue borrowing until Aug. 2 due to stronger than expected tax receipts and extraordinary measures implemented by the Treasury Department.

Talk of a government shutdown has cooled since the 11th-hour solution reached in mid-April to fund the remainder of fiscal 2011, but the debt ceiling debate could reignite it. The last time the government shut down, in the mid 1990s, was because of a stalemate between a Republican-controlled House of Representatives and a Democratic president over the debt ceiling.

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Reader comments

Fri, May 13, 2011

What are you talking about whining! You dope!! Those who are able need to pay their fair share. I bet your grandparents even collected a check from the Feds, so don't knock our system. What part of Asia are you talking about anyway. If it is China, maybe you got a point there about more government intervention to right this ship. You see you can't sell or build in China unless you do so with a Chinese company as a partner. That ensures that their people keep jobs and gain the knowledge to compete. If you mean Japan, well their corporate executives are not greedy fat cats like in the USA. Their salaries don't crack $500,000 compared to the $8 and $11 million that the heads of Ford and ExxonMobil are raking in. Yes, we need that. Plus, they believe that old folks are to be honored and taken care of, which is different from your typical Republican who wants to take from the elderly to give to themselves. On another point, in playing policeman to the world, we pay more for defense than Russia, China, and almost all others combined. There is a lesson there. Pulling a good share of that money back would solve our deficit problem too.

Thu, May 12, 2011

What a bunch of whining whimps. My grandparents came to this country seeking opportunity to create a better life not to take from those who are already successful. Remove the regulations, stop trying to make energy more expensive and let the entrepreneur thrive. You only need to look to Asia to see how these prinicples work. Big companies, big government and big labor suffocate innovation. Greed is not the only deadly sin. There's also envy. If you don't like the big company then buy from a small company. Life is not fair and stop driving manufacturing overseas where the environment is even less protected and the worker protections are non-existent.

Wed, May 11, 2011

Hey OK, it's not about mediscare tactics, soaking the rich, and your obtuse comment on progressive spending. First off, if you work, you pay into Medicare. It is a government run insurance plan. If more money is needed just either raise the income cap for taxing it or the percentage assessed for it. This is a cheaper and better solution than giving it over to private companies who want their cut to fatten the wallets of corporate executives and saddling everyone when they are a senior with inflated future medical costs when they can least afford to pay them or the premium that would be required. Second, a large amount of that progressive spending that you are referring to is for the two war efforts and the interest we are paying for borrowing for the two war efforts over the last ten years. The war efforts need to be paid for by all citizens and that includes the rich, businesses, and corporations. That means getting rid of those tax cuts that have been in place for ten years to dig this country out of this deficit. As far as the oil companies are concerned, other than their usual business tax deductions, why should taxpayers provide them with billions of dollars in additional subsidies or breaks eternally when they are already sailing around with tankers full of cash and profits? Don't get stuck on stupid!

Wed, May 11, 2011

OK. Keep it up. Keep up the mediscare tactics. Keep up the "let's tax the rich" mantra. Keep taking aim at the oil companies (the ONE hope you actually have of EVER seeing a vibrant economy again, BTW). We're already seeing the damage that these ridiculous levels of "progressive" spending have caused. You haven't see enough? Go ahead. Keep it up. It gets worse. I doubt you'll have to wait long.

Wed, May 11, 2011

I wish I could raise my debt ceiling!

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