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US turns to 'extraordinary measures' on debt but GOP will not use default threat US turns to 'extraordinary measures' on debt but GOP will not use default threat
(35 minutes later)
The United States officially exhausted its borrowing capacity on Friday, forcing the Treasury to begin using so-called “extraordinary measures” to meet its obligations.The United States officially exhausted its borrowing capacity on Friday, forcing the Treasury to begin using so-called “extraordinary measures” to meet its obligations.
Republicans in the House of Representatives appear to lack either the appetite or the unity, however, to use the threat of government default to leverage policy concessions from the White House.Republicans in the House of Representatives appear to lack either the appetite or the unity, however, to use the threat of government default to leverage policy concessions from the White House.
The merry-go-round over the debt ceiling, which needs to be raised by Congress in order to pay for expenditure that has already been authorised, is a common feature of Washington politics. Historically, both parties have used the threat of a default to force concessions from the administration, insisting that policy concessions are attached to any bill that raises the Treasury’s borrowing limit.The merry-go-round over the debt ceiling, which needs to be raised by Congress in order to pay for expenditure that has already been authorised, is a common feature of Washington politics. Historically, both parties have used the threat of a default to force concessions from the administration, insisting that policy concessions are attached to any bill that raises the Treasury’s borrowing limit.
Republicans have often rallied around the need to bring down spending. But the sting has been taken out of that argument by the fast-declining deficit which, due in large part to the recovering economy, is the smallest it has been since 2007.Republicans have often rallied around the need to bring down spending. But the sting has been taken out of that argument by the fast-declining deficit which, due in large part to the recovering economy, is the smallest it has been since 2007.
House Republicans appear unwilling to pass a so-called “clean” debt limit – a bill that has no extraneous policy concessions attached – but have been unable to coalesce around a common cause. The White House is refusing to negotiate, saying it will not be held hostage by the threat of an economic crisis. Such a strategy proved effective in October, the last time Republicans threatened a showdown over the debt ceiling.House Republicans appear unwilling to pass a so-called “clean” debt limit – a bill that has no extraneous policy concessions attached – but have been unable to coalesce around a common cause. The White House is refusing to negotiate, saying it will not be held hostage by the threat of an economic crisis. Such a strategy proved effective in October, the last time Republicans threatened a showdown over the debt ceiling.
“It’s the responsibility of Congress to ensure that bills that have already been incurred are paid in a timely fashion, so that the United States doesn’t default,” White House press secretary Jay Carney said on Thursday. “We are not going to pay ransom in return for Congress fulfilling this basic responsibility.”“It’s the responsibility of Congress to ensure that bills that have already been incurred are paid in a timely fashion, so that the United States doesn’t default,” White House press secretary Jay Carney said on Thursday. “We are not going to pay ransom in return for Congress fulfilling this basic responsibility.”
The Republican House Speaker, John Boehner, promised that the late February deadline – the real crunch point, when the extraordinary measures will run out and the US will risk being unable to pay its creditors – will not be missed. The Republican House speaker, John Boehner, promised that the late February deadline – the real crunch point, when the extraordinary measures will run out and the US will risk being unable to pay its creditors – will not be missed.
“Look, we do not want to default on our debt, and we’re not going to default on our debt,” he told reporters.“Look, we do not want to default on our debt, and we’re not going to default on our debt,” he told reporters.
Boehner and other Republican leaders find themselves in a bind. Keen to lose their party’s reputation for obstructionism, ahead of November’s mid-term elections, senior Republicans would rather forgo a confrontational debt limit fight and concentrate on constructive legislation, such as immigration reform.Boehner and other Republican leaders find themselves in a bind. Keen to lose their party’s reputation for obstructionism, ahead of November’s mid-term elections, senior Republicans would rather forgo a confrontational debt limit fight and concentrate on constructive legislation, such as immigration reform.
However there is little enthusiasm among rank-and-file Republicans for a focus on immigration reform, which is unpopular among conservatives. On Thursday, less than a week after a concerted drive to make his members embrace an immigration reform agenda, Boehner was forced into an embarrassing climbdown, conceding such reform “would be difficult to pass this year”.However there is little enthusiasm among rank-and-file Republicans for a focus on immigration reform, which is unpopular among conservatives. On Thursday, less than a week after a concerted drive to make his members embrace an immigration reform agenda, Boehner was forced into an embarrassing climbdown, conceding such reform “would be difficult to pass this year”.
The Republican caucus is so divided that is has been unable to decide on a single policy demand to use in a confrontation with the White House.The Republican caucus is so divided that is has been unable to decide on a single policy demand to use in a confrontation with the White House.
“Mother Theresa is a saint now, but if the Congress wanted to make her a saint and attach that to the debt ceiling, we probably couldn’t get 218 Republican votes,” Boehner said.“Mother Theresa is a saint now, but if the Congress wanted to make her a saint and attach that to the debt ceiling, we probably couldn’t get 218 Republican votes,” Boehner said.