White House warns of debt ĎArmageddoní
2011-04-12 0:00

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 donít 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 administrationís 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

Norwegian school brutally kicks out students, reopens as immigration center
2015-11-25 1:46
A failing Norwegian school has brutally kicked out all of the students living there with just a few days notice to find somewhere else to live and study. It has now reopened as a reception center for immigrants. The school, called Waldorf, is in the R√łyken municipality of Buskerud County. It had been failing for sometime, and was officially declared bankrupt ...
Why not hear about Islam from a woman who grew up as Muslim in the ME?
2015-11-25 1:52
Youtube description: She says: "I have reached a boiling point with these lies about Islam! Please share it, don't let me waste my breath....go to voxpopulinews.net for a translation of the ISIS website along with other great articles and podcasts!" Source: youtube.com
Funniest Moments of Illegal Migrants
2015-11-25 1:27
Youtube description: - Beginner picture: Macedonia - Disastrous migrant: Hungary-Serbia border (Serbian side) - Grateful migrants: Hungary (Budapest) - Border Control: Austria (Slovenian border) - Migrant actor: Hungary-Serbia border (Serbian side) - Intelligent migrants: Hungary-Serbia border (Hungarian arie) (The fence was built from the border 2,5meters, in Hungarian area) - Idiot migrant: Hungary (Bicske) Source: youtube.com
Pew: 65% say the news media has a 'negative effect' on America
2015-11-25 1:55
More than six in 10 Americans believe that the news media, followed closely by Hollywood, has a negative effect on the country, according to a new survey. An extensive new Pew Research Center survey finds that 65 percent believe that the news media "has a negative effect on the way things are going in the country." Some 56 percent said the ...
Hostage situation reported in N. France, several suffer 'gunshot wounds''
2015-11-25 1:12
A hostage situation has been reported in the northern French town of Roubaix near the Belgian border. Several people have sustained gunshot wounds, Reuters reported citing medical sources. The area has been cordoned off by police, RTL reported, adding that gunfire can be heard. La Voix du Nord newspaper says the hostage takers are armed with Kalashnikovs. Witnesses told the daily that ...
More News »