US Debt Ceiling Debate Continues
The Department of the Treasury has warned that unless the debt ceiling is raised from its current $14.29 trillion, the US will begin to default on its bills beginning August 2nd. The Treasury Department warns that any further defaulting on U.S. obligations could lead to another round of financial crisis and recession. Many financial analysts believe the U.S. is currently involved in a ‘soft’ depression and that by raising the debt ceiling further would only encourage the Federal Reserve to print more money, causing inflation to rise even more.
The main area of concern is the stabilization of the economy, which cannot be achieved by raising the debt ceiling or by further defaults on U.S. debt obligations. It would seem that the U.S. is between and rock and a hard place. Dems want to raise the debt ceiling while raising taxes. This stance brought the bi-partisan talks on raising the debt ceiling to a grinding halt as House Majority Leader Eric Cantor (R. Va.) and Senator Jon Kyl (R. Ariz.) walked out of meetings on Thursday.
The conservative firecracker Senator Jim DeMint has made it plainly obvious that the American people will not tolerate a raised debt ceiling. Senator DeMint is pushing hard for a Constitutional Amendment forcing a balanced budget as well as massive budget cuts from areas across the board. He is actively putting members of Congress on notice that if they support an increase in the debt ceiling before budget cuts and a balanced budget amendment the voters will know and put them out of office.
Senator DeMint stated, “Based on what I can see around the country, not only are those individuals gone, but I would suspect the Republican Party would be set back many years.” When asked about the amount of concern about the potential increase in the already impossible to repay debt ceiling, Senator DeMint stated, “I can tell you if you look at the polls, Democrats, Republicans, Independents, they do not think we should increase the debt limit.”
