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Obama's Offer on the Debt Ceiling is a No-Brainer

Posted at noon on Nov. 30, 2012

Many have noted that amid the intense focus on the “fiscal cliff,” there is one problem that makes a final deal even more difficult: the debt ceiling is set to expire in early 2013. Jonathan Weisman looks at President Obama’s proposal to permanently end debt ceiling crises.

“Mr. Geithner proposed permanently ending Congressional purview over the federal borrowing limit, Republican aides said. He said that Congress could be allowed to pass a resolution blocking an increase in the debt limit, but that the president would be able to veto that resolution. Congress could block a higher borrowing limit only if two-thirds of lawmakers overrode the veto.”

Joe Weisenthal: “the #1 thing that lawmakers could do to improve US fiscal prospects is eliminate the debt ceiling… There’s only one counterargument: The debt ceiling provides a nice opportunity to take stock of the nation’s finances. It’s a good tradition to have in place.”

“This is why Tim Geithner’s new proposal is so brilliant… This almost completely prevents a debt ceiling crisis ever again, while keeping the ceremonial aspect that people like. There would still be votes, but they’ll mainly serve as a way to let politicians play politics, without putting anything at risk.”

7comments
Budget & Taxes, Economy, Government Reform

Headlines

  • http://twitter.com/kgoebel Kevin Goebel

    Geithner’s sounds like a good idea no matter who is president.

  • dw

    Would this be constitutional? The Constitution gives Congress the sole power to “borrow money on the credit of the United States”

    • Chredon

      Since Congress passes the laws and the budgets, the only reason there would ever be a need to raise the debt ceiling is if Congress voted to spend more than we had. I say that if Congress votes to raise spending and lower taxes (as they did in 2001 and 2003), then they have already tacitly given permission to borrow the money necessary to do so. The debt ceiling votes are simply a chance to force a crisis in which Congress gets to blame the President and the Federal Reserve for spending the money that Congress itself approved.

    • http://twitter.com/WideAwakeNews Charlie McGrath

      dw is 100% correct

  • BigGuyDon

    The idea of a debt limit is foolish on the face of it. Deciding on the fiscal parameters of government programs should be done at the budgeting level, not wait until the goods are received or the services rendered and then when the bill comes due deciding whether or not to pay it. It’s gutless posturing to make a big deal out of the debt after you’ve already agreed upon sweatheart deals to your buddies at Haliburton or massive tax giveaways to your billionare financiers that caused the debt in the first place.

    The increases in debt are absolutely expected and built into the budgets. If you don’t like the debt, don’t spend the money in the first place. I promise if you wouldn’t be giving as much slack to poor families who decide on a whim which bills to pay after the bills come in not what to buy in the first place.

    • Chredon

      Exactly. If Congress doesn’t want deficit spending, they should pass balanced budgets. If they pass a budget that includes more spending than revenue, then they shouldn’t be surprised that Treasury has to borrow money to pay the bills. And they should not all stand in a circle afterwards and cry about how the President is bankrupting the country with all this deficit spending.

      • Lorehead

        I agree absolutely. When Congress decides how much to spend and how much to tax, it also has decided how much to borrow. Creating a risk of default is dangerous nonsense that harms America.

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