Obama warns of worse crisis if no debt ceiling rise

Source: Reuters

WASHINGTON, May 15 (Reuters) - President Barack Obama warned Congress that failing to raise the U.S. debt limit could lead to a worse financial crisis and economic recession than 2008-09 if investors began doubting U.S. credit-worthiness.

In remarks recorded last week and broadcast by CBS News on Sunday, Obama repeated his stance that Republicans should not link the debt ceiling decision to spending cuts as part of deficit-reducing measures.

"If investors around the world thought that the full faith and credit of the United States was not being backed up, if they thought that we might renege on our IOUs, it could unravel the entire financial system," Obama told a CBS News town-hall meeting.

"We could have a worse recession than we already had, a worse financial crisis than we already had."

The White House and congressional Republicans are locked in a debate over the deficit and the debt ceiling.

The Treasury Department is expected to hit its $14.3 trillion borrowing limit on Monday, making it unable to access bond markets again.



Read more: http://www.reuters.com/article/2011/05/15/obama-debt-idUSN1419971120110515

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Are these Rethugligans nuts? They will plunge America into a Depression just to score Political points? The debt ceiling will be eclipsed in a couple of hours from now. Check out the debtclock here... http://www.usdebtclock.org/ Can't the Senate or Obama do anything? How could America put these immature idiots in charge of the House....

I bet they are going to do demand full reform on Medicare and Social Security, repeal of the Patient Affordable Care ACT, etc as condiitons to raising the debt ceiling....

No doubt this will be historic.

Jim Lehrer's question the other day when asked.

Thanks for the thread, humbled_opinion.

Repubs claimed spending went up tremendously under Obama, and that the BUDGET debt went up under Dems (Obama), when what really happened is that Bush had lower budget numbers because he did not include wars in his budget numbers.

So, it was just for the rhetoric on the talk shows. Mislead. Lie. Whatever, it's what Repubs do.

Just sayin'...

if taxes are raised, ie the rich paying their burden, corporations not sending jobs overseas, et al.,

Stop the war funding, invest in America, et al.,

BUT, as well as the well to do like the Koch Brothers and US Chambers as well as the Bushies, Chenney and even Karrrrl Rovveee,
if the debt ceiling is not raise, their profits, money, evern "gold" will fall sharply, ie MAJOR DEPRESSION, and the upper class will LOSE.

Pretty cool I think, but like the dirt bags as they are will bring down most of the country as well, although, this might be the best thing in 2011.

I like how supporter of raising debt limit use the meme that because congress has always passed debt limit raises we should continue to raise it like some how that makes it morally right to pass our kids trillions of dollars in debt because we cant cut our overblown military budget.

i understand that democrats would like repubs to be in power when the tough decisions would have to be made but passing another debt limit increase would make things worse for our kids and as someone who is yet to spawn my offsprings, I do not support it

Did I read you right, you say... "Democrats would like Repubs to be in power when the tough decisions need to be made?"

What are you some kind of Troll go back to freeperville with that crap. Democrats are perfectly capable of making the tough choices.... How about a 15 percent wealth tax on your happy ass CEO's that would certainly lower the National debt but you idiots on the right can't stand taking anything from the most wealthy.... Why is that? Answer that...

the party in power. Address our National debt is a touch decision and democrats as politicians would rather see republican loose some skin for making the touch decision. How exactly does that make me a freeper? both side vote against it when the other is in power and its very obvious why

Democrats not wanting to be in power for tough decisions.... those are your words.... I respect our leadership and believe that they definately want to be in power for the tough calls.... Like I said not enough empashis is being put on the rich...

You want out of this debt crisis then by all means do a 15 percent wealth tax on the rich tomorrow make the Repukes defend the rich against paying their fair share on the debt. The rich unfairly benefit from the status of this country where the middle class and poor are in no position to benefit so the solvency of this country's programs that help those less fortunates is what is at stake.... 15 percent of their net wealth is a pittance to pay to ensure that this country can continue to pay its bills, a one time tax once and done.... the debt would be erased...

the tax cut for the rich was passed by democrats, yes democrats passed it because they didnt want a backlash that would accompanied a refusal to pass it. You want to fix the debt without raising the debt limit? then stop passing tax cuts you cannot pay for

the debt when the Bushies were running up the debt, huh.

The rate the gopers are going everyone but the 2% will be dirt poor.

I have never supported raising the debt limit ever since I knew what the was. The guy above accused me of being a freeper troll, I guess opposing increase the debt we leave for our children makes one a freeper. sad

How Democrats don't want to make tough decisions is what got you labled that from me don't try and defend your crap...

a voter backlash was waiting for them if they had kept their campaign promise of ending the Bush tax cuts. The tough decision for them was raising taxes.

:evilgrin:

15 percent tax on household worth of every millionaire in America it would solve this problem so we could move forward toward some good reforms.....

http://www.time.com/time/business/article/0,8599,1910208,00.html

Tuesday, Jul. 14, 2009

The $787 billion stimulus plan is turning out to be far less stimulating than its architects expected.

Back in early January, when Barack Obama was still President-elect, two of his chief economic advisers — leading proponents of a stimulus bill — predicted that the passage of a large economic-aid package would boost the economy and keep the unemployment rate below 8%. It hasn't quite worked out that way. Last month, the jobless rate in the U.S. hit 9.5%, the highest level it has reached since 1983.

wanted a much larger stimulates bill but was fought off by the "fillbuster" threat so they had to deal with a much smaller one. What they got did keep some from being laid off, but y'know the major corporations are still outsourcing jobs b/c they don't want to pay their portion of taxes, but in fact, don't really care. Hey if corporations like oil companies can make profits and still get kick backs from the government and pay no taxes, screw the commoners.

The goper presidental contenders are crying about slavery. They speak with fork tongues. They speak the opposite of what they mean. Its not the Dems it's the gopers who want to bring back slave wages. Who are busting Unions, taking away women rights, hope that seniors don't survive, thats why they want to destroy Medicare. No Medicaid for the poor nor seniors and take away Plan Parenthood.

I just think they hijacked the entire country and are saying "fuck it, if we can't be happy then NO ONE gets to be happy".

They are a miserable bunch, however, it is incompent upon our leaders to speak out and explain to the American people exactly how these political games only hurt those that have no voice the poorest and most vunlerable among us. If the Democrats in leadership do not speak out and teach the populace then the other side do gain political advantage... i.e., I am hearing the Rethug talking points that this debt ceiling is exactly what is needed to force the Democrtas to come to the table and make serious cuts in entitlements. These rethugs claim that the Democrats have been bribing the people with the peoples own tax dollars for many years now and their chickens have finally come home to roost.

If the Repukes vote it down, the economy tanks immediately. The President should tell them to go fuck themselves. There'll be no concessions. If you break it you own it.

The owners of the GOP (corp America) wont allow them to crash the economy.

that the buck stops at the Oval Office and that the President could easily have created the program cuts needed to stop the debt clock, but that he didn't.... They are already claiming that Democrats have been bribing the American electorate with their own tax dollars by creating all the entitlement programs that are now insolvent...

Let them complain all they like. Folks will be bringing tar and feathers to their town halls.

got a ear full during their town halls, and guess what, they blamed the Dems for it. These people will never learn or they don't five a "F".

voted no the only time he had a chance to vote to raise the debt limit as senator.

That's EXACTLY what they want.

certainly. Why not?

...make it go up in value.

Ok, honestly...that's tough for even me to swallow. I think.

If the debt ceiling is not raised we are in terribly deep shit as a country and it doesn't matter if they get it passed a few days later. Once it happens you can't entirely roll back the clock.

PB

By this time next week you'll be dead.

Stupid morons doing stupid things get what they deserve, and sometimes that has really bad side effects for their neighbors.

. . . Get ready to get royally screwed. By your own party. Because we're wusses and that's what we do."

...so don't worry. :sarcasm:

Many Democrats seem to have lost their voices.... so sad since Obama could have been used by them to orate the proud principles of our platform and bring about real change in America... sadly he has been duped by the neo-cons....

nt

and the Tee Vee controls many of the voters.

They said on the Chris Wallace show that default is nothing but a scare tactic by Obama. Their reasoning: Interest on the national debt has to be paid first and will so default is a non issue. While that is technically true, what about all of the other obligations by the federal government. Do they simply pay 50 cents on the dollar on everything else or do they completely stiff some while paying others in full? The impact of either action would be immediate and severe with the only people getting paid being OPEC and China. I guess that is what Boehner and his cheerleaders on Fox News want.

This is arguing the budget by threat of making America's future interest payments disastrously higher.

Dayum. Tons of data there.

NT

Some leader.