January 26, 2014
More political theater, On February 7 the United States will once again reach its statutory debt limit, meaning it cannot legally borrow any more money.
Since the obvious option of cutting spending to match the amount of revenue that the government collects is off the table for some inexplicable reason, Congress will have to pass a new, higher debt ceiling to replace current law.
Just understand that the two weeks until the deadline we should be prepared for all sorts of lies, threats, and forecasts of doom if the debt ceiling is not increased.
Like the U.S. Treasury will likely hit the debt ceiling earlier than first thought, Treasury Secretary Jack Lew said, setting the stage for another fiscal showdown.
“When I previously wrote to you in December, I estimated that Treasury would exhaust extraordinary measures in late February or early March,” Lew wrote in a letter to House Speaker John Boehner, R-Ohio, and the other top three congressional leaders.
“Based on our best and most recent information, we believe that Treasury is more likely to exhaust those measures in late February,” said the letter, which can be found at tinyurl.com/UPI-Lew-letter.
A surge of February spending, mainly for 2013 tax refunds, will leave the Treasury with little room to maneuver after the official debt limit is reached Feb. 7, he said in the letter.
Boehner spokesman Michael Steel said in a statement Republicans would need concessions from Democrats before they’d agree to raise the borrowing limit.
“The speaker has said that we should not default on our debt, or even get close to it, but a ‘clean’ debt limit increase simply won’t pass in the House,” Steel said. “We hope and expect the White House will work with us on a timely, fiscally responsible solution.”
President Obama has said he will not negotiate over the debt limit, calling it a congressional responsibility, not a bargaining chip.
White House senior adviser Dan Pfeiffer told “Fox News Sunday” that President Obama will “not pay ransom” for getting Congress to fulfill its duty to increase the ceiling and that members should “spare the country the drama.”
Both parties are trying to put on a good show for the American public. Dividing the American people seems to be an art form for Obama and his administration.