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

Credo: A Nietzschean Testament by Jonathan Bowden
2014 11 26
This lecture by Jonathan Bowden was given at the 11th New Right meeting in London on September 8, 2007. The original title of the presentation was “The Art and Philosophy of Jonathan Bowden.” I think ideas are inborn, and you’re attracted, if you have any, toward certain systems of thinking and sensibility and response. From a very young age, I was ...
A Look Back at the OJ Simpson Verdict -- Reactions
2014 11 26
This is a look back at the different reactions to the OJ Simpson verdict some 20 years ago (exact date of verdict was Oct 3, 1995). The OJ Simpson jury consisted of 9 Blacks, 1 Hispanic, and 2 Whites. It would raise eyebrows after they only deliberated for 4 hours in a case that they were involved in for almost ...
New York Times Publishes Darren Wilson’s Street Address and Photo of House #Ferguson
2014 11 26
Hey here are the two @nytimes scumbags that published Wilson’s home address. —> @juliebosman & @campbellnyt— Ben Howe (@BenHowe) November 25, 2014 Michael Brown’s Stepdad Shouting ‘Burn This Bitch Down’ The New York Times published information about the address of Ferguson Police Officer Darren Wilson on Monday in a move that has generated controversy. Tensions are running high in Ferguson, Missouri, as ...
How Monsanto is Destroying the Brains and Health of Everyone
2014 11 25
Interested in slowing your aging process? Take note! One of my most recent blog entries summarized roughly 10 years of research related to the consequences of inflammatory processes in the periphery of the body, such as the gut, and how this was driving brain degenerative inflammatory processes within the brain. One of the key findings from that research was how pathogenic ...
Guccifer: Pennsylvania City to be Nuked Next Year
2014 11 25
From Youtube: Renowned hacker Guccifer, who accessed the private emails of numerous top military, political and intelligence leaders, told the New York Times that a city in Pennsylvania is the target of a nuke attack in 2015. Guccifer also revealed that he is sitting on an archive of hacked emails that have not been publicly released.
More News »