Another day, another debt limit debate

Clouds move as the sun sets against the west front of the United States Capitol building.

Congressman Jerrold Nadler.

New York Democratic Rep. Jerrold Nadler has introduced a bill to get rid of the debt ceiling. It’s called the 'Full Faith and Credit Act.'

Just make it go away.

(Which does seem almost too easy.)

When it comes to debt ceiling negations, Congressman Nadler likens Republicans in the House to “a 1930s gangster movie -- that’s a nice economy you got there. Pity if it should blow up.”

He says Democrats, while not willing to discuss cuts to social security, would be willing to negotiate cuts to Medicare. Provided, of course, those cuts aren’t in Medicare benefits. But Rep. Nadler says Republicans have “weaponized” the debate around the debt ceiling and “we should not be prepared to negotiate at the point of a gun.”

He acknowledges the debt limit debates reflect poorly on Congress. “Only one party is being really irresponsible here and it takes two to tango.”

At the end of the day, Rep. Nadler hopes President Obama will either reconsider the trillion-dollar coin (#MintTheCoin) or invoke the 14th Amendment.

About the author

Kai Ryssdal is the host and senior editor of Marketplace, public radio’s program on business and the economy.

Congressman Jerrold Nadler.

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Congress has the power of the purse in the US. The only reason that the Treasury can issue debt is because Congress gave it that power during WWI. When Congress did so they also put a debt limit in place, as a sort of governor on itself. So if Congress wants to raise more money, it can issue it's own debt. Debt that Congress issues wouldn't be Subject to the Debt Ceiling laws it put in place over the Treasury.
The good Congressman bemoans how the Debt Ceiling is being used as a weapon. That's the whole purpose of the Debt Ceiling. The budget hawks in Congress knew that the budget was going to go over projections, so they wanted some serious consequences to kick in when some limit got hit, to force Congress to wake up and realize that it was too big.
Yes we can borrow cheaply right now, but once we can't life would get way worse than fixing our spending problems before we reached that point.
Wanna save billions? Disband the TSA.

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