Posted on 05/18/2011 4:08:25 PM PDT by Sub-Driver
W.H. warns of debt 'calamity' By ABBY PHILLIP | 05/18/11 4:12 PM Updated: 05/18/11 4:56 PM
In an effort to clamp down on “misinformation” about the debt ceiling and to ratchet up the pressure on Congress to act, the Obama administration said Wednesday that there is no “Plan B” for the government if Congress fails to raise the borrowing limit.
Unlike the budget standoff in March, where a plan would have gone into place if the government shut down, an administration official warned that there is no “secret plan” that would kick in if the government runs out of borrowing power.
“There is no plan that can preserve our credit rating,” said a senior administration official, who briefed reporters under the condition of anonymity. “There really is no alternative to raising the debt limit. It has to be raised before the deadline ... well in advance of the deadline.”
Adding to their own warning against the risk of default, administration officials cited similar arguments being used by previous Republican administrations: That the consequences of the United States defaulting on debt are as terrible as they are varied. They include “market chaos, financial institution failures, higher interest rates, flight from the dollar, and loss of confidence” in all government obligations, which would produce a “global economic and financial calamity,” they said, quoting from former Reagan chief of staff James Baker in a letter to Congress on the debt limit in 1987.
The heightened pitch of the administration's message on the debt limit reflects a growing concern that a sense of urgency is being lost after the debt ceiling was reached, as expected, on May 16.
(Excerpt) Read more at politico.com ...
As far as I understand any one who has ever been a congressman or senator for at least 1 term receives their pay for life. Cut all of that and let them get a job. They are probably all rich anyways and wouldn’t have to go out into the private sector like so many true Americans have to
bttt
Exactly as they all jet off to their homes in the West Indies after spending a zillion dollars on studying chinese hooker, field mice, art museums no one gives a frick about and building more golf courses.
Needs to be emphasized.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.