The much-dreaded “debt-ceiling” is expected to be reached just about Halloween time this fall, according to multiple media reports on the matter, and no progress seems to have been made among leadership at the federal level regarding how to deal with the problem.
Treasury Secretary Jack Lew said in an interview on Meet the Press, broadcast over the weekend, that Congress just needs to raise the debt limit and take away the “cloud of uncertainty” about the nation’s ability to pay its bills, according to a report from the Huffington Post.
“The fight over the debt limit in 2011 hurt the economy, even though, in the end, we saw an extension of the debt limit. We saw confidence fall, and it hurt the economy. Congress needs to do its job. It needs to finish its work on appropriation bills. It needs to pass a debt limit.”
Lew is quoted in the Atlanticwire as stating that there won’t be a fight over the debt limit this time. According to the report, Lew said the President was clear that there won’t be any negotiations for spending cuts with Congress over the spending limit issue.
Lew was quoted in the story:
“I certainly hope that Congress isn’t looking to create confrontations and false crises because we did see, in 2011, how bad that is for the American economy. The mere fact of negotiating over the debt limit, after 2011, would introduce this notion that somehow there’s a question about whether or not we’re going to pay our bills, whether or not we’re going to protect the full faith and credit of the United States.”
And rumblings from a group of Senators who may be working to fix cuts caused by the Sequester, did not impress. Lew stated that there are limitations to what can and can’t be fixed:
“What the president said, and has written to Congress, is that they cannot fix the problems created by the across-the-board cuts — known as sequestration — by cutting domestic priorities in order to fund defense. That’s unacceptable. [The President] won’t sign that.”
And from CNBC is the news of Senator Marco Rubio’s announcement that he and his colleagues were drawing a “line in the sand” over the debt ceiling.
“The bottom line is that the debt limit and the fact that we don’t have a solution for the debt is also the reason for the crisis. We need to begin dealing with this seriously and stop playing games. Someone has to draw a line in the sand, and I know many of my colleagues and I intend to do so every chance we get.”