White House Steps up Pressure on Congress: “There is No Way Around” Increasing the Debt Limit
EmailFrom Sunlen Miller (@sunlenmiller): Two days after the federal government reached its $14.29 trillion limit, The White House today ratcheted up pressure on Congress to increase the debt ceiling by August 2nd. Their message today is: there is no way to push this vote off, Capitol Hill.
“There really is no alternative to raising the debt limit,” an administration official said, “there is no way around it.”
Officials said there is no Plan B, no emergency plan if the debt limit is not raised.
“There is no alternative to increasing the debt limit. There is not a secret plan that’s available that can make everything alright.”
Senior administration officials said there is an “observable phenomenon” in the past when the government has had to raise the debt limit when members of Congress say ‘wait, there must be more time, there must be some way that I have to face this decision.’
Today, they stressed, there is no way around this, and members of Congress must face this decision.
Administration officials used past as precedent, providing letters from administrations past requesting the debt limit to be raised, warning against the same economic impacts should it not be raised, including letters sent by President Ronald Reagan in 1983 to then Senate Majority Leader Howard Baker and from 1987 from Secretary Baker to Speaker Jams Wright describing the “unprecedented and catastrophic would ensure,” if the debt ceiling was not raised then.
“You can see that the administration in both parties, Secretaries of Treasury in both parties have spoken about the debt limit and made the same conclusions about the effects of a failure to increase the debt limit over decades.”
As we reported on Monday, the government has created some wiggle room postponing any defaulting on payments until August 2nd by measures which include borrowing billions from special government funds that are used to provide benefits to retired and disabled Federal employees, stabilize the dollar or foreign currencies or fund local and state securities.
Today administration officials said they have also told Congress that there’s one other step they could deploy between now and August 2nd –unwinding the dollar denominated portion of the exchange stabilization fund, a fund maintained to intervene in currency markets. But, that would only be an addition of $23 billion, not large in the grand scheme of things.
So in sum, with Monday’s announcement and the extra $23 billion that would mean a total of $230 billion of headroom can be created between now and August 2nd.
But, that’s it. No more headroom, administration officials stressed today.
“When we reach that date we really will be out of room for additional borrowing.”
Democrats on the Hill and the administration have called for a “clean” authorization and Republicans have called for spending cuts to be included in any deal to raise the debt ceiling.
Some conservatives have suggested extreme measures to reduce the deficit such as selling off government assets like land, real estate, or even the 261.5 million ounces of gold.
Administration officials warned against this and the need to be “extremely careful” suggesting such moves.
“We need to be extremely careful. We are not interested in fire sales where we would be dumping assets on the market, getting a depressed price and not recognizing a good return for taxpayers,” a senior administration official said. “The idea of dumping gold on the market in a hurried sale would be extremely disadvantageous not only to the taxpayers but to the markets.”
Administration officials also noted that it wouldn’t change the fact that when you got though selling the assets you would still need to raise the debt limit.
-Sunlen Miller
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“There really is no alternative to raising the debt limit,” an administration official said, “there is no way around it.”
Maybe not raising it, you moronic fool.
Posted by: Timbo | May 18, 2011, 4:13 pm 4:13 pm
“The idea of dumping gold on the market in a hurried sale would be extremely disadvantageous not only to the taxpayers but to the markets.”
Interesting. And here I thought that US currency wasn’t based on gold. Or that precious metals markets weren’t all that important. Good faith and credit and all that…
Posted by: J. Cash | May 18, 2011, 4:43 pm 4:43 pm
I want a clean bill, I want to SPEND your money
BHO
Posted by: verrrrrrrry inte resting | May 18, 2011, 4:46 pm 4:46 pm
“There really is no alternative to raising the debt limit,” an administration official said, “there is no way around it.”
That is F A N T A S T I C news!
That means we are going to get the massive cuts we need and want.
Woooo Hoooo!
Thank You Obama Administration for finally seeing the wisdom of Conservative Fiscal Responsibility.
Now please tell us the figure on the huge cuts.
We wanna know.
Posted by: Noz | May 18, 2011, 4:48 pm 4:48 pm
Its all Kabuki anyway – the Republicans have already said they’re going to vote for it, and the Democrats are ready to vote for it too.
What possible reason would the Democrats have for even entertaining a “deal” with the Republicans that results in the vote going forward?
There is only one explanation that makes sense: the Democratic leadership wants to make cuts to programs that benefit working class people and they want to use the Republicans as cover for it.
Posted by: Flash Override | May 18, 2011, 4:52 pm 4:52 pm
The ball is in the Administrations hands. Agree to the 2012 Ryan budget and the Boehner offsetting spending reductions! Easy as pie!!
Posted by: Voice_Reason | May 18, 2011, 5:00 pm 5:00 pm
Perhaps if Little Timmy and the rest of his tax cheat cohorts in the WH and their corporate cronies like GE would pay their taxes we wouldn’t have a deficit crisis? Don’t raise the debt ceiling one dime until these loonie libs in office overcome their spending addictions. It never pays to give a junkie more drugs when they promise to kick the habit after the next fix.
Posted by: Rockinrobinhood | May 18, 2011, 5:02 pm 5:02 pm
There is only one explanation that makes sense: the Democratic leadership wants to make cuts to programs that benefit working class people and they want to use the Republicans as cover for it.”
So they are scared? Shocking!
Posted by: News at 11 | May 18, 2011, 5:03 pm 5:03 pm
Repubs are real idiots.
YOU WILL RAISE THE DEBT LIMIT.
Whether you like it or not, you will RAISE that limit, practically undonditionally.
This is one more upcoming win for Obama.
You GOPhers are no match for the wiz kid Bams.
He has got you cornered like scared rats.And you MUST raise the debt limit.
You shall yield to the virtual media, economic and collective waterboarding of the American people in the next two months and you shall yield like a broken dam (to quote Mr. Muk…. of the GOP).
You shall beg for the political waterborading to stop, then you shall coil your tails between your legs, vote to raise the debt limit and then retire and wait to count your losses in 2012.
Posted by: STEVE_NJ | May 18, 2011, 5:04 pm 5:04 pm
“…wait to count your losses in 2012″
Indeed. A replay of the 2010 congresional elections for those defeated, crushed Republicans!
Posted by: Nancy | May 18, 2011, 5:13 pm 5:13 pm
700+ days of no budget from the social democrats.
Posted by: Foghorn Leghorn | May 18, 2011, 5:15 pm 5:15 pm
700+ days of no budget from the social democrats.-
Dude, go easy. It goes a lomg time to create, not read and then pass gov’t healthcare and then hand out waivers to friends. First things first!
Posted by: Nancy | May 18, 2011, 5:18 pm 5:18 pm
Ground Air Farce 1 and we would save a bundle! Who the h is he campaigning against?
Posted by: Maria | May 18, 2011, 5:29 pm 5:29 pm
Indeed, @Nancy is correct: 2012 will be a replay of the 2010 elections – old folks will bury the party they see as threatending Medicare.
Posted by: Flash Override | May 18, 2011, 5:32 pm 5:32 pm
“Moronic fool”? Sorry TIMBO speak for yourself.
Without raising the debt limit, the Treasury would not be able to do any additional borrowing to pay existing budgetary obligations, forcing a partial shutdown of the government and severely damaging the U.S. economy.
But I guess that’s OK for tea soaked Libertarian Republicans whose goal is to drown government in the bathtub and prevent the fruits of their superiority redistributed by Ayn Rand’s “looters and moochers”.
Posted by: green.goddess | May 18, 2011, 7:23 pm 7:23 pm
“Moronic fool”? Sorry TIMBO speak for yourself.-
Why should he? Turbo Tax does the talking.
Posted by: Jeffrey | May 18, 2011, 7:28 pm 7:28 pm
“Officials said there is no Plan B, no emergency plan if the debt limit is not raised.”
Plan B: STOP SPENDING!!!!!
Posted by: wheresmymoney | May 18, 2011, 7:39 pm 7:39 pm
Without raising the debt limit, the Treasury would not be able to do any additional borrowing to pay existing budgetary obligations, forcing a partial shutdown of the government and severely damaging the U.S. economy.”
So without gov’t help, the economy will be damaged? Wow, awesome system. Tell ya what, send in another 50% of your income just to make sure things keep working.
Posted by: Free Money | May 18, 2011, 7:44 pm 7:44 pm
FREE MONEY | MAY 18, 2011 7:44:04 PM posted: “Tell ya what, send in another 50% of your income just to make sure things keep working.”
That’s exactly RIGHT ! It’s all about MY money. No need for additional income when our nation has to pay the interest on Trillions in debt. Slashing social services is the ONLY WAY !
Welcome to new tea soaked Libertarian Republican fantasy land. Kill Medicare and Medicaid while increasing tax deductions for the wealthy.
Their prophet, Ayn Rand, called altruism a “basic evil” and referred to those who perpetuate the system of immoral taxation and redistribution as “looters” and “moochers.” She even wrote a book titled “The Virtue of Selfishness”, explaining that that accepting any government controls is “delivering oneself into gradual enslavement.”
Sorry to say, eventually Ms. Rand turned to America’s evil collectivism when she needed Social Security and Medicare for cancer surgery.
Posted by: green.goddess | May 18, 2011, 8:26 pm 8:26 pm
Free, that statement you quoted isn’t exactly correct. If it ever really came down to an actual possibility of the debt ceiling not being raised (extremely unlikely), then the executive would invoke the 14th amendment, and the borrowing would continue.
Posted by: Flash Override | May 18, 2011, 8:27 pm 8:27 pm
Posted by: green.goddess | May 18, 2011 8:26:34 PM
I agree completely with you. You need to lead by example. Start with sending in more money. All wealthy liberals do. They also send their kids to public school.
Posted by: After You | May 18, 2011, 8:54 pm 8:54 pm
Kill Medicare and Medicaid while increasing tax deductions for the wealthy.
Yeah, that republican libertarian president Obama. How dare he! And no taxes on GE?!
Posted by: Outrage | May 18, 2011, 8:55 pm 8:55 pm
Time for the government to have the worlds largest “garage” sale to generate the funds to avoid raising debt limit. Selling 1/2 of the underutilized government surplus at 10% of the absorbent prices paid and by stopping the new unnecessary spending raising the debt ceiling wouldn’t be needed!
Posted by: Voice_Reason | May 18, 2011, 9:18 pm 9:18 pm
Repealing the Bush tax cuts alone would largely halt increases in the debt.
Posted by: Skip | May 18, 2011, 9:23 pm 9:23 pm
Senator Barack Obama
Senate Floor Speech on Public Debt
March 16, 2006
“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.
Over the past 5 years, our federal debt has increased by $3.5 trillion to $8.6 trillion.That is “trillion” with a “T.” That is money that we have borrowed from the Social Security trust fund, borrowed from China and Japan, borrowed from American taxpayers. And over the next 5 years, between now and 2011, the President’s budget will increase the debt by almost another $3.5 trillion.
Numbers that large are sometimes hard to understand. Some people may wonder why they matter. Here is why: This year, the Federal Government will spend $220 billion on interest. That is more money to pay interest on our national debt than we’ll spend on Medicaid and the State Children’s Health Insurance Program. That is more money to pay interest on our debt this year than we will spend on education, homeland security, transportation, and veterans benefits combined. It is more money in one year than we are likely to spend to rebuild the devastated gulf coast in a way that honors the best of America.
And the cost of our debt is one of the fastest growing expenses in the Federal budget. This rising debt is a hidden domestic enemy, robbing our cities and States of critical investments in infrastructure like bridges, ports, and levees; robbing our families and our children of critical investments in education and health care reform; robbing our seniors of the retirement and health security they have counted on.
Every dollar we pay in interest is a dollar that is not going to investment in America’s priorities.”
The debt is now over $14 Trillion and the annual deficits will exceed a Trillion dollars every year that Obama is in office. By Obama’s own definition this is a true failure of Leadership.
Posted by: Dave in colorado | May 18, 2011, 9:30 pm 9:30 pm
To Sunlen Miller:
I know it’s your gig. But the White House has zero credibility on debt and deficits. Ergo, your reporting what the White House says also has zero credibility.
Posted by: Dave in colorado | May 18, 2011, 9:33 pm 9:33 pm
“Repealing the Bush tax cuts alone would largely halt increases in the debt.”
Funny Obama signed that bill then…Heck, he could ask for GE to be taxed too.
Posted by: Ballpoint | May 18, 2011, 9:48 pm 9:48 pm
Funny Obama signed that bill then
+++++++++++++++++++
Not really, since we all know whose interests Republicans look out for it was a compromise to extend the tax cuts for the middle class until the employment situation improves, like the Republicans swore up and down they would focus on last election. So when are they actually going to focus on jobs? Their tanking poll numbers show the electorate has not forgotten…unfortunately for them.
Posted by: Skip | May 18, 2011, 9:54 pm 9:54 pm
Heck, he could ask for GE to be taxed too
++++++++++++++++++++
I’m glad you openly admit Obama is not anti-business.
Posted by: Skip | May 18, 2011, 9:57 pm 9:57 pm
Plenty of businesses dodge paying taxes, for a contemporary list see “Senator Bernie Sander’s guide to Corporate Freeloaders”.
Posted by: Skip | May 18, 2011, 10:01 pm 10:01 pm
Sorry to say, eventually Ms. Rand turned to America’s evil collectivism when she needed Social Security and Medicare.
The last time I checked contributing to these programs was mandantory.If one is forced to contribute then the least one could expect is to be treated for sickness and get a little bit of the money paid in before kicking the bucket.
Posted by: david | May 18, 2011, 10:02 pm 10:02 pm
Plenty of businesses dodge paying taxes, for a contemporary list see “Senator Bernie Sander’s guide to Corporate Freeloaders-
Wish Obama would read that…
Posted by: Flicker | May 18, 2011, 10:09 pm 10:09 pm
Wish Obama would read that…
++++++++++++++++++++++
How ’bout John Boehner?
Posted by: Skip | May 18, 2011, 10:20 pm 10:20 pm
Imagining Obama being concerned about closing corporate tax loopholes is at least feasible for virtually anybody, imagining John Boehner being equally concerned is down right hilarious.
Posted by: Skip | May 18, 2011, 10:26 pm 10:26 pm
Wish Obama would read that…
++++++++++++++++++++++
How ’bout John Boehner?
————
Maybe someone could lead by example…Who did John hire from GE?
Posted by: Flicker | May 18, 2011, 10:29 pm 10:29 pm
Imagining Obama being concerned about closing corporate tax loopholes is at least feasible for virtually anybody, imagining John Boehner being equally concerned is down right hilarious.”
Awesome excuse. Thanks Skip. You bring good things to life!
Posted by: Jeffrey | May 18, 2011, 10:30 pm 10:30 pm
green goddess wrote:”That’s exactly RIGHT ! It’s all about MY money. No need for additional income when our nation has to pay the interest on Trillions in debt. Slashing social services is the ONLY WAY”
.
I’m sure that is what oBama was doing today at the Brookline home of advertising mogul Jack Connors, where 130 supporters paid $35,800 per couple to tell oBama sob stories about their lack of social services.
Posted by: gk | May 18, 2011, 10:39 pm 10:39 pm
Maybe someone could lead by example…Who did John hire from GE?
++++++++++++++++++++
Are you trying to claim Republicans never hire corporate insiders? The comedy continues. Republicans ARE corporate insiders.
Posted by: Skip | May 18, 2011, 10:40 pm 10:40 pm
Let’s see the Republicans lead by example…they can start by abandoning their diversionary debt scare and start focusing on job creation like they promised….except none of their policies actually help job creation so we’re left with comic drama.
Posted by: Skip | May 18, 2011, 10:42 pm 10:42 pm
“Are you trying to claim Republicans never hire corporate insiders? The comedy continues. Republicans ARE corporate insiders.”
The current POTUS Obama must be a Republican.
Posted by: Flicker | May 18, 2011, 10:43 pm 10:43 pm
The current POTUS Obama must be a Republican
++++++++++++++++++++
You’re right! So now you can vote for him.
Posted by: Skip | May 18, 2011, 10:46 pm 10:46 pm
“Let’s see the Republicans lead by example…they can start by abandoning their diversionary debt scare and start focusing on job creation like they promised….except none of their policies actually help job creation so we’re left with comic drama.”
Shovel ready indeed, Skip. If you’re Jeffrey Immelt.
Posted by: Trench | May 18, 2011, 10:47 pm 10:47 pm
The current POTUS Obama must be a Republican
++++++++++++++++++++
You’re right! So now you can vote for him.
–
Of course, the DINO scam worked on you too!
Posted by: Flicker | May 18, 2011, 10:48 pm 10:48 pm
“Are you trying to claim Republicans never hire corporate insiders? The comedy continues. Republicans ARE corporate insiders.”
Interesting. When Republcians do it, it is horrible. When Dems do it it is just business. Good to know.
Posted by: Tony | May 18, 2011, 10:49 pm 10:49 pm
David, while true, your comment does not address the issue. She vowed never to accept it, and them did so under a different name.
Posted by: Flash Override | May 18, 2011, 10:49 pm 10:49 pm
Of course, the DINO scam worked on you too!
++++++++++++++++
The scam is just your contrivance. I’m perfectly happy that Obama turned out to be nowhere near as much of a corporate stooge as John McCain and Sarah Palin….or Mitt Romney or Michell Bachmann will be.
Posted by: Skip | May 18, 2011, 10:54 pm 10:54 pm
Everyone relax. Geithner is going to solve this problem using his financial ability and TurboTax…
Posted by: Easy Money | May 18, 2011, 10:54 pm 10:54 pm
“The scam is just your contrivance. I’m perfectly happy that Obama turned out to be nowhere near as much of a corporate stooge as John McCain and Sarah Palin….or Mitt Romney or Michell Bachmann will be.”
So they hired more GE employees and took more contributions from Goldman Sachs? Not to mention haveing my buddy Lloyd visit the WH or having that nice little meeting in San Fran. You remember that meeting Barry had Skip? Sadly, the press was not allowed…
Posted by: Jeffrey | May 18, 2011, 10:56 pm 10:56 pm
What happened to the charge that Democrats are Marxists?? Your allegation that Democrats are controlled by big business to the same extent as Republicans is a joke. The electorate will not fall for it.
Posted by: Skip | May 18, 2011, 11:01 pm 11:01 pm
So where does this baloney come from that Obama is stopping the oil industry from drilling? Surely they control his administration too. The anti-Obama effort is hopelessly contradictory.
Posted by: Skip | May 18, 2011, 11:04 pm 11:04 pm
Why is the Obama administration failing to strip environmental regulations? Surely the business interests in his administration must have big plans.
Posted by: Skip | May 18, 2011, 11:08 pm 11:08 pm
“I’m sure that is what oBama was doing today at the Brookline home of advertising mogul Jack Connors, where 130 supporters paid $35,800 per couple to tell oBama sob stories about their lack of social services”
Obama will be sure that they get the services and jobe they need. No doubt the public schools they send their kids to will be better too!
Posted by: Braintree | May 18, 2011, 11:09 pm 11:09 pm
Meawhile at wikipedia:
“A September 2010 New York Times story said Boehner was “Tightly Bound to Lobbyists” and “He maintains especially tight ties with a circle of lobbyists and former aides representing some of the nation’s biggest businesses, including Goldman Sachs, Google, Citigroup, R.J. Reynolds, MillerCoors and UPS.”.
Any surprise there?
Posted by: Skip | May 18, 2011, 11:18 pm 11:18 pm
This was from romney in 2008
“My campaign is not based on Washington lobbyists,” Romney said. “I haven’t been in Washington. I don’t have lobbyists at my elbow that are arguing for one industry or another industry and I do not have favors I have to repay to people who have been in Washington for years.”
The truth is that Romney is tied closely with many lobbyists. The AP reporter Romney exchanged sharp words with later reported that several Romney aides and advisers are lobbyists. Additionally, as the Nation first reported, Romney has accepted the second most money from lobbyists of any Republican presidential candidate, and has received the most endorsements from lobbyists.”
Do you think he’s still lying about this?
Posted by: Skip | May 18, 2011, 11:23 pm 11:23 pm
Then there is Newt[the fidelitous] who IS a lobbyist…
Posted by: Skip | May 18, 2011, 11:43 pm 11:43 pm
in a weird way I wish Obama would go back to his core, at least there he was giving money to American businesses with his bailouts, waivers, and hirings. Granted many of those crony companies are truly American but at least a little bit they are. But the millions he pledges in yet another go-round to support his co-religionists in straight up cash and also in wheat (while food prices rise here and will increase more due to fires and flooding) is amazing. Maybe, for once, he could think about Americans instead of Islamists halfway around the world??
Posted by: Ed | May 18, 2011, 11:44 pm 11:44 pm
Maybe, for once, he could think about Americans instead of Islamists halfway around the world??
+++++++++++++++++++=
Promoting stability in the Middle East IS thinking about Americans…remember the gas prices and the wars? The opportunistic ignorance for political jabs is amazing.
Posted by: Skip | May 18, 2011, 11:53 pm 11:53 pm
POSTED BY: AFTER YOU | MAY 18, 2011 8:54:36 PM posted: “I agree completely with you. You need to lead by example. Start with sending in more money. All wealthy liberals do. They also send their kids to public school.”
How old are you? Do you actually HAVE children? Yes, I will be happy to send in more taxes – just let the Bush era tax cuts expire. Did you know those tax cuts have been the second largest contribution to our debt after the wars in Afghanistan and Iraq?
Seriously, I want to know if you have children attending school. Mine have gone to public schools, paid by my taxes.
And Dave in Colorado, if our debt is robbing Americans, then it’s time to ante up, not just destroy our national support. We borrowed for the wars while giving tax cuts. It’s time to pay the piper.
Posted by: green.goddess | May 19, 2011, 12:18 am 12:18 am
Skip: “stability” in the Middle East. Yeah, the Islamist doctrine of Obama sure is accomplishing that. I thought we would have LESS wars, not new ones. Bush was awful but Obama is even worse considering his mixed motives and naivete.
GreenGoddess: there is no one, even evil Republicans, who say that you can’t pay more taxes. Feel free to give as much as you wish over your legal requirement! I doubt the IRS will refuse it! And if they do you are free to give to your state, school, charities, etc. Nobody says you CAN’T give more. Which is why it is so weird that the billionaires keep saying “i dont mind if my taxes go up”. If they really wanted that they could simply cut a check!
Posted by: Ed | May 19, 2011, 12:28 am 12:28 am
Unlike the rest of the phony ‘political’ stuff, much of the debt is real — the paper debt doesn’t matter very much, devaluation does.
as for the constant cry about taxes we all know that a small percentage pays the majority of taxes(remaining ‘equal’ in the eyes of the law)while govt’s minions and businesses pay no taxes at all. where’s the beef? the execcutive branch and congress should be renamed the Dept of Waste Mismanaement with the court calling a halt to spending until the word budget means something — putting some of those in this administration in jail or deported.
If the court can’t do that much, they deserve the same.
Why wait ’till August, the Roman Holiday is already over.
Have a nice day.
Posted by: Dexter | May 19, 2011, 10:22 am 10:22 am
The GOP needs the economy to tank if they are going to win in 2012.
Things are bad enough, but a recovery would be devastating for their campaign narrative.
Posted by: blip | May 19, 2011, 10:25 am 10:25 am
“The GOP needs the economy to tank if they are going to win in 2012.
Things are bad enough, but a recovery would be devastating for their campaign narrative.” – Skip
If true then it’s a good thing the Demos have been playing along keeping the Economy in the ditch. Gee, if they could really turn the economy around then they might have a chance to hold on to power. What bad luck that their economic ideas don’t work.
Posted by: Noz | May 19, 2011, 11:34 am 11:34 am