GOP braces to back off on the debt ceiling

It took, of all people, Paul Ryan to explain what would happen if they refused to stand down. But at least it’s something.

At a closed-door meeting Friday morning, GOP leaders turned to their most trusted budget expert, Rep. Paul D. Ryan of Wisconsin, to explain to rank-and-file members what many others have come to understand: A fiscal meltdown could occur if Congress fails to raise the debt ceiling.

Freshman Rep. Steve Womack (R-Ark.) said the presentation about skyrocketing interest rates that could result from downgraded bond ratings was “sobering.”

“It illustrates to us that doing nothing is unacceptable,” he said. “I think the conference understands this is a defining moment for us. It’s time to put the next election aside.”

Interesting indeed.

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2 responses to “GOP braces to back off on the debt ceiling

  1. “A fiscal meltdown could occur if Congress fails to raise the debt ceiling.”
     
    No, a “fiscal meltdown” could occur if Congress defaults on its interest payments.  And interest is a little over $22B per month — only about 15% of what the government collects *before* borrowing.  In other words, the government could easily avoid default if the limit wasn’t raised.
     
    So, really, a fiscal meltdown could only occur if Congress fails to raise the debt ceiling and then the President fails, rather miserably, to prioritize existing revenues.
     
    In fact, the best part of *not* raising the limit is that it would expose Obama’s true priorities.  Like last week, when he said he might withhold Social Security checks.  Or if he might not make our interest payment.  How much “bad” occurs, without a debt limit increase, really depends on who the President wants to hurt.

  2. Remember when liberals were asking where their “surplus” went?
     
    How do we get those liberals back, instead of the ones we have now?

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