Raising The Debt Ceiling?
Local News
by
Adam Uhernik
last edited on
Thursday, June 30, 2011
The debt ceiling is a growing $14.3 billion problem.
Some officials like Treasury Secretary Timothy Geithner have argued Congress must raise the debt limit if the U.S. wants to maintain its creditworthiness.
Avoid defaulting on its loans, and avert another financial crisis, and that agreement has to be reached by August 2, 2011.
Geithner is now expected to step down.
About one month ago, the Treasury Department began issuing IOU’s rather than bonds to some government pension funds.
That allowed for continued auctions of so-called "risk-free" treasury bonds until Aug. 2, 2011.
Unless congress acts by then, the world's richest nation unable to borrow $4 billion a day to pay its bills would risk default.
South Dakota Senator John Thune says the U.S. government shouldn't spend more than it takes in, and lawmakers should be accountable.
Thune says, "We all know South Dakota's constitution house budget amendment in it requires a balanced budget, and the Federal Government shouldn't operate any differently. I would characterize this as a very common sense way to operate."
Thune says we're $14 trillion in debt and counting, and 791 days lapsed since the Senate Democrats passed a budget.
Thune says, "And in that time our national debt has gone up by $3.4 trillion. So we have serious fiscal issues that have to be dealt with here and if we don't deal with them soon we are headed for a train wreck, I've said that repeatedly."
Treasury Secretary Timothy Geithner has indicated to White House officials that he may step down once President Obama strikes a deal with Congressional Republicans about raising the national debt ceiling.