White House warns of debt ‘Armageddon’
2011 04 12

From: Google.com / AFP


The White House warned Republicans on Monday that failing to raise the $14.29 trillion US debt limit would spark "Armageddon-like" consequences for the slowly recovering US economy.

As a new political showdown looms over the economy following a defused budget row, aides also said President Barack Obama now "regrets" his vote as a senator against raising the debt ceiling in 2006, calling it "a mistake."

"The consequences ... of failure to raise the debt ceiling would be Armageddon-like in terms of the economy," said White House spokesman Jay Carney.

Congress must raise the US debt limit, or the maximum amount the Treasury is allowed to borrow, by May 16 or see the United States default on interest payments of its debt.

But the move has become embroiled in fiercely partisan battles over the economy and spending.

Carney warned that the result of failing to raise the debt ceiling were so grave, it would be irresponsible for politicians to exploit the drama for political gain.

"We don’t need to play chicken with our economy by raising the debt ceiling," said Carney.

However, Republicans who control the House of Representatives are demanding vast new spending cuts from Obama -- over and above the $38 billion agreed to end the budget row last week, in exchange for raising the debt limit.

Obama, under pressure to define the economic debate a week after launching his 2012 reelection battle, is due to tackle the issue -- and a budget deficit that is set to reach $1.6 trillion this year -- in a speech Wednesday.

Administration officials say that failure to raise the debt limit could drive up interest rates, making it more difficult for Americans to borrow money at a time when home values are depressed and market-linked pension savings are down.

They also say that global confidence in the US economy would be badly hit.

"The reality is the United States is the largest economy in the world. It is looked to around the globe as the anchor of the world economy and must establish, through this vote, its creditworthiness," said Carney.
The White House also delicately navigated around a vote made by Obama in March 2006 against a plan to raise the debt limit while George W. Bush was president, in protest at what he said was a lack of leadership.
"The president ... regrets that vote and thinks it was a mistake," Carney said.

"He realizes now that raising the debt ceiling is so important to the health of this economy and the global economy that it is not a vote that, even when you are protesting an administration’s policies, you can play around with.

"You need to take very seriously the need to raise the debt limit so that the full faith and credit of the United States government is maintained around the globe."

Carney also quoted the head of JPMorgan Chase, CEO Jamie Dimon, as saying that anyone who failed to raise the debt limit would be "crazy" and any move of that kind would have "catastrophic and unpredictable" results.

Article from: google.com


American Depression Era Bread line, circa 1937 - Coming to a town near you?



Related Articles
Iceland votes to reject debt slavery, is threatened with reprisals
Geithner presses Republicans to raise U.S. debt limit
US national debt climbs to $14 trillion
US To End 2010 With $13.9 Trillion In Debt, Total Debt Incurred Since Great Financial Crash: $4.4 Trillion
What the Europe Debt Bomb Looks Like (Image)
Geithner warns U.S. to hit debt ceiling by May 16


Latest News from our Front Page

The Ebola hoax: questions, answers, and the false belief in the “One It”
2014 10 23
“The Reality Manufacturing Company doesn’t just sell ‘fake paintings’ that are easy to spot. No. They also sell images that are geared to mesh with people’s deeply held instincts and thereby produce rigid false beliefs. People are sure that if they gave up such beliefs, their world would fall apart and blow away in the wind.” ...
New Controversial Theory Suggests "Hobbits" Were Not Human - Who Were These Mysterious Beings?
2014 10 23
The origin of the Hobbit species remains a challenging subject to scientists. The Hobbit’s discovery confirmed the view that the Earth was once populated by many species of human, but new research the Hobbit’s were not human at all! So, who were these mysterious beings? Where did they come from? The idea that our species, Homo sapiens, was the only species of human on ...
Right into enemy hands? ISIS shows off new weapons allegedly airdropped by US (VIDEO)
2014 10 23
Islamic State has published a new video in which a jihadist shows off brand-new American hardware, which was purportedly intended for the Kurds they are fighting in the Syrian border town of Kobani. The undated video, posted by the unofficial IS mouthpiece “a3maq news”, sees a jihadist showing several boxes of munitions with English-language markings, with a parachute spread out on ...
STAGED INFECTION: Has The Ebola ‘Outbreak’ Narrative Fallen Apart?
2014 10 22
Over the past month, the ‘pandemic’ propaganda surrounding the deadly Ebola virus seemed to reach vitriolic levels – raising serious questions about the validity of this current viral outbreak… On Monday of this week, it was reported that 48 people were released and cleared after a 21-day quarantine due to their contact with the now deceased Ebola-stricken patient Thomas Eric ...
6,000-Year-Old Temple with Possible Sacrificial Altars Discovered
2014 10 21
A 6,000-year-old temple holding humanlike figurines and sacrificed animal remains has been discovered within a massive prehistoric settlement in Ukraine. Built before writing was invented, the temple is about 60 by 20 meters (197 by 66 feet) in size. It was a "two-story building made of wood and clay surrounded by a galleried courtyard," the upper floor divided into five ...
More News »