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Obama aide: Don't 'play chicken' with debt ceiling

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Joanne98 Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-02-11 09:31 AM
Original message
Obama aide: Don't 'play chicken' with debt ceiling
Source: WP

WASHINGTON -- The top White House economic adviser is warning against what he calls "playing chicken" with the need to raise the nation's debt ceiling.

For some conservatives, refusing to raise the limit on the federal debt would be a tactic to force the government into cutting spending.

Last February, Congress raised the debt ceiling to $14.3 trillion. The debt is now at nearly $13.9 trillion and growing each day. A move to raise the ceiling again is expected this spring.

The chairman of the White House Council of Economic Advisers, Austan Goolsbee, says that refusing to raise the debt ceiling would push the country into default - and a far greater economic crisis than Americans saw in 2008.



Read more: http://www.washingtonpost.com/wp-dyn/content/article/20...




Look at the way the WP worded this story. The republicans are going to "force the government into cutting spending". That is NOT what they're doing and I'm sure the WP is fully aware of that. The Republicans have been on CNBC telling them that what they're trying to do is lower the tax rate for the rich to 28%. I'm sure the WP has people who can watch TEE VEE to find out what they SAY they're doing.

This is a sign of the way the media is going to report fights in Congress. Just LIE about what's happening to help the Republicans deceive the voters.
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Skink Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-02-11 09:39 AM
Response to Original message
1. Go ahead play Chicken.
Force obama to raise taxes.
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DCKit Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-02-11 11:21 AM
Response to Reply #1
13. Or, to end the wars.
Then, to cut the crap out of the Pentagram's budget.

That'll fix 'em.
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Po_d Mainiac Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-02-11 11:42 AM
Response to Reply #13
14. +1000
Lots of problems get cured.....
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bhikkhu Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-02-11 01:26 PM
Response to Reply #13
16. Exactly - tax cuts and war are the big budget problems
and the repugs are on the wrong side of both of them,
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Parche Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-02-11 09:39 AM
Response to Original message
2. thanks to gw bush
we need to get this down
the interest on this is obsurd
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dballance Donating Member (460 posts) Send PM | Profile | Ignore Sun Jan-02-11 10:22 AM
Response to Original message
3. I Hope They Do It. They'll never live down the ramification of crashing the US economy.
Just like Newt and his bad of a-holes.
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daa Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-02-11 10:29 AM
Response to Reply #3
5. Obama is no Clinton the repugs will clean his clock - again nt
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MannyGoldstein Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-02-11 10:31 AM
Response to Reply #5
7. You assume that Obama did not want that outcome
Given the total lack of fight, I'm not sure that's a reasonable assumption.
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Dokkie Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-02-11 11:03 AM
Response to Reply #7
11. and you are assuming the rethugs
are really against the raising of the debt ceiling. Its going to be raised alright its just that I hope and dead and long gone before the bills come due. The main losers are going to be the future generations who will be stuck paying down money borrowed to fight endless wars because contrary to what we hear on TV, its not used for social security and medicare (which has already been paid for and running huge surpluses)

There are few area where I want the rethugs to win and raising the debt ceiling is one of them, end the wars and tax the rich if they do not want to default.
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MannyGoldstein Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-02-11 11:10 AM
Response to Reply #11
12. The Rethugs just want more money for the rich
Everything else is simply a tool for them to use in that quest.
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Unvanguard Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-02-11 02:32 PM
Response to Reply #3
19. Obama is president and will be blamed. n/t
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earthside Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-02-11 10:25 AM
Response to Original message
4. It's too late.
Obama's capitulation on extending tax cuts for the super wealthy and the estate tax cuts has already put him on the side of the "chicken players".

His so-called 'Deficit Reduction Commission' also put him on the side of the "cut spending" mob.

I, for one, would hope that Democrats in Congress announce in no uncertain terms that raising the debt ceiling OR default is a decision that lies completely with the new U.S. House majority. Period.
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lark Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-03-11 03:02 PM
Response to Reply #4
32. You are assuming that Obama has a spine
when so far there is exactly zero evidence that he has even a shred of one. He's a tool who will do exactly as his rich, corporatist masters demand.

Lindsey Graham was on TV today saying he'd vote down the debt ceiling increase unless social security was cut first. That's it, exactly what the Repugs #1 wet dream is and the reason they let Obama win in the first place - only a Dem can cut social security just like only Nixon could go to China in the 70's.
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MannyGoldstein Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-02-11 10:30 AM
Response to Original message
6. It's a set up to slash Social Security
Obama will be "held hostage" over this and be forced to slash Social Security.

Very transparent.
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midnight armadillo Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-02-11 10:31 AM
Response to Reply #6
8. Can you say flat tax and a VAT?
that'll be the deal to preserve Social Security. And we'll be told to shut up and love Obama for it.
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MannyGoldstein Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-02-11 10:42 AM
Response to Reply #8
9. We already have a flat federal tax
Edited on Sun Jan-02-11 10:43 AM by MannyGoldstein
The median American pays a total of 16%, and the wealthiest pay 17% (due to capital gains).

Now Obama and company want to steal the pension fund that working Americans have built up.
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Jackpine Radical Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-02-11 12:37 PM
Response to Reply #6
15. Well, Manny, once again
you have saved me the bother of posting exactly the same thing.

Then the next capitulation will occur when he has to buy more unemployment extensions in 13 months. He will again exchange permanent damage to the social fabric in exchange for minor temporary concessions that he would have gotten anyway.
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MannyGoldstein Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-02-11 01:31 PM
Response to Reply #15
17. Hey, just returning the favor!
We're fairly screwed for some time to come, no?
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Safetykitten Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-02-11 11:03 AM
Response to Original message
10. For a person who plays chicken badly, he sure brings it up alot.
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Jackpine Radical Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-02-11 02:13 PM
Response to Reply #10
18. Hew plays Chicken just fine.
Unfortunately the other side is playing Fox.
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GeorgeGist Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-02-11 04:21 PM
Response to Original message
20. If the sky is falling ...
what difference does the height of the ceiling make?
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Kelvin Mace Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-02-11 05:41 PM
Response to Original message
21. Threats and tough talk are meaningless
when the other side knows you will cave EVERY time.
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harvey007 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-03-11 03:48 AM
Response to Original message
22. Goolsbee Says Failure to Raise U.S. Debt Ceiling Would Be `Catastrophic'
Source: Bloomberg

The government is slated to hit the legal limit on borrowing, $14.3 trillion, early this year. Congress must agree to raise that ceiling or the U.S. could be forced to default on its obligations.

Read more: http://www.bloomberg.com/news/2011-01-02/goolsbee-says-...
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BlueJazz Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-03-11 03:48 AM
Response to Reply #22
23. Screw that shit. These Sons-a-bitches ran on the premise that they can cut taxes..
...balance the budget, create lots of good jobs and (almost) walk on Water.
I want to see them come face-to-face with that "Pesky" thing called Reality.
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GeorgeGist Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-03-11 03:48 AM
Response to Reply #22
24. $47,666.67 ...
is too damn high; except for the Rich.
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No Elephants Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-03-11 03:48 AM
Response to Reply #22
25. Will Social Security be held hostage?
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customerserviceguy Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-03-11 03:48 AM
Response to Reply #25
26. Everything the Federal government is involved in will be held hostage
And therein lies the true power of the tea partiers. They'll either get the blame if everything shuts down for more than a couple of days, or they'll get the credit for forcing reductions in government spending.

Establishment Republicons are working furiously to get them to play go-along, get-along, just like everybody else in Congress, but this might be the place where it doesn't work. A tea partier can either go home in 2012 because people didn't like the government shutdown, or he/she can go home because their districts are mad that they didn't do a shutdown when they had the chance.

My theory is that they would prefer the former as the reason they're not going back to Congress.
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No Elephants Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-03-11 06:44 PM
Response to Reply #26
33. thanks. I should have been more specific: Will Republicans insist on cuts to OASDI
Edited on Mon Jan-03-11 06:47 PM by No Elephants
before raising tbe debt ceiling, with Obama saying he had no choice because Republicans were holding the American people hostage?

IOW, can we expect a repeat of the recent tax cuts for the rich/unemployment benefits scenario?

It was more of a rhetorical question/worry, but I appreciate your reply.
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girl gone mad Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-03-11 03:48 AM
Response to Reply #22
27. So stop borrowing to spend.
Why pretend we're stuck on the gold standard at the same time the Fed is printing trillions to float zombie banks?
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high density Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-03-11 03:48 AM
Response to Reply #22
28. So cue the teabaggers...
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Doctor_J Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-03-11 03:48 AM
Response to Reply #22
29. We could use a catastrophe
Whatever it takes to get the guillotines oiled up.
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Javaman Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-03-11 10:01 AM
Response to Reply #22
30. It's one of those "the nation wouldn't survive this" type of arguments.
Edited on Mon Jan-03-11 10:02 AM by Javaman
aka the politicians in charge or currently serving wouldn't survive this.

While not raising the debt ceiling probably would cause all sort of accounting problems and appears very dire on paper, I believe the nation will muddle along anyway.

And besides, raising the debt ceiling only delays the inevitable anyway. As our debt goes up and up, the real presumed worth of the dollar continues to plunge.

They could raise the debt to 30 trillion, it won't do a damn thing. We still live in a fiat economy.

the libertarians scream and yell about how we should go back to the gold standard, well here's something to chew on about that: there isn't enough gold in the world to cover just the dollar.

The dollar is linked semi-permanently to oil. 1/3 to 1/2 of our trade deficit is due to oil.

But honestly since the report on the m3 was abolished by george w. moron*, we really have no idea how many US dollars are currently in circulation. And since oil production and distribution is at plateau, I can bet you that there certainly isn't enough recoverable oil of worth (aka sweet crude) to cover the amount of US currency in circulation.

So what is the dollar based on? A really nice wish. It has no intrinsic value other than what those in power claim it is.

So those people screaming about raising the debt ceiling or we will face dire consequences are amusing. We already are facing dire consequences.

This is what end of empire looks like folks. Track how many times and how often the debt ceiling has had to be raised to cover our obligations for the past 20 years. It has accelerated dramatically.

We will hit the brick wall in about 5 years, when it will no longer matter how high we raise the limit, the dollar will effectively be worthless to everyone in the world.

Aka someone finally had the nerve to pull back the curtain on the great oz.

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Doctor_J Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-03-11 12:54 PM
Response to Original message
31. Yeah, the prez is so good at chicken
:eyes:
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