Debt Ceiling: The First Big "Showdown"?

Republicans and Democrats are breaking out some dramatic rhetoric in anticipation of a debate over the national debt.

In an interview with conservative magazine Human Events published today, conservative Sen. Jim DeMint said he wants to see a "big showdown" over the upcoming vote to raise the nation's debt ceiling, which currently stands at $14.3 trillion. One of the White House's top economists, meanwhile, calls such a threat "insanity."

If the Congress does not raise the limit, the nation would essentially default on its obligations. The government's debt now stands at close to $13.9 trillion, and it is expected to hit the ceiling this spring. Tea Party-affiliated Republicans, however, are intent on using the debt ceiling vote to make a point about government spending.

"We need to have a showdown at this point that we are not going to increase our debt ceiling anymore," DeMint said. "We are going to cut things necessary to stay within the current levels, which is over $14 trillion. This needs to be a big showdown."

Rep. Michele Bachmann, leader of the House Tea Party Caucus emphasized her opposition to raising the debt ceiling on CBS' "Face the Nation" on Sunday.

"Congress has had a big party the last two years. They couldn't spend enough money. And now they're standing back, folding their arms, saying, oh, taunting us - 'How are you going to go ahead and solve this big spending crisis?'" Bachmann said about the Democrats. She said that she has started a petition on her website urging voters to tell their representatives to oppose raising the debt ceiling.

On NBC's "Meet the Press," Sen. Lindsey Graham (R-S.C.) even threatened to vote against raising the debt ceiling unless Social Security is reformed.

"This is an opportunity to make sure the government is changing its spending ways," he said. "I will not vote for the debt ceiling increase until I see a plan in place that will deal with our long-term debt obligations starting with Social Security, a real bipartisan effort to make sure that Social Security stays solvent, adjusting the age, looking at means-tests for benefits."

Meanwhile, White House Council of Economic Advisers Chair Austan Goolsbee said on ABC's "This Week" that "the impact on the economy would be catastrophic" if Congress failed to raise the debt ceiling.

"I mean, that would be a worse financial economic crisis than anything we saw in 2008," he said. "As I say, that's not a game. I don't see why anybody's talking about playing chicken with the debt ceiling.

CBS News political analyst John Dickerson said on CBS' "The Early Show" that the GOP is essentially playing chicken -- hoping to use the vote as a bargaining chip to mollify Tea Partiers.

"As they battle over maybe getting some spending reduction in order to raise that limit, what Republicans will try and do is say to their Tea Party backers, 'Look, we had to raise the debt limit it would have been catastrophic not to, but we got spending reductions as part of a deal to do so,'" Dickerson said. "And they'll just have to hope the spending reductions are good enough for their Tea Party supporters."

Watch John Dickerson discuss the upcoming Congress:

[fxr60]

Obama has spent more money than ALL THE PRESIDENTS together from the time of George Washington up to Ronald Reagan! Has been reported on TV. "Clunkers", bail outs, bribes, pay offs, deals with Unions, lack of "going line by line" and cutting out the earmarks, etc. Now that Nasty Nan has the gavel taken from her hand, the new people can start to work on Reid and Obama and STOP the spending and "give aways"!!!!

[cepe10-2009]

Does Bachmann know Bushes and Reagan are responsible for $12 Trillion of that total... zfacts.com She must be a real dolt or real dishonest

[1renegade]

Afetr reading most of the comments. I see that most of you seem to forget about the 47% or so that paid no tax, most with a refund larger than what they paid in to begin with. Crap like EIC is a major waste of money how pray tell can you receive back i.e., $7,000 if you only paid in $1000 ????? Everyone uses some kind of Gov't service they need to pay for their share also. One solution is to eliminate most of the deductions, set a fair rate with fewer brackets and everyone will pay something one dollar or 10 million whatever the case maybe.

[oldbasicgal]

by steeepe January 3, 2011 4:33 PM EST
oldbasicgal: According to the GOP, deficits don't matter. They had a chance to rein in deficits by letting tax cuts on the wealthiest expire and they absolutely refused to do it. They aren't serious about the deficit, period. Sure, they''ll find a few savings in cutting some stuff but it won't be nearly adequate to keep social security and the military humming along or paying off the debt. The GOP has this crazy idea that you can run two wars and cut taxes big. It's insane, as any economist can tell you.

+++++++++++++++++++++
If the people of America would return the Federal Government to its original purpose, taxes would not have to be raised, and spending would automatically fall to a manageable level.

Education, healthcare, and charity should not be a part of the Federal Government's duties, nor should they spend tax monies in these area.
These three areas includes any education except military, any healthcare, including that for politicians, and any charity, from foreign aid to any type entitlements or welfare.

The Federal Government's main purposes are Military & Defense, interstate infrastructure, and Federal tax collecting. Anything else should be left up to state and local governments, and corporate & individual competition.

[hamsterattack]

the only good republican is an ex-republican

[robbyr2]

If the Republicans don't want the country to pay its bills, its on their head. The Democrats shouldn't give them anything.

[abhorlibs]

I met a genie today who said she would grant me one wish.

"I want to live forever," I said.

"Sorry" said the genie, "I'm not allowed to grant wishes like that."

Fine," I said, "I want to die after the Democrats pull their heads out of their *****!"

"You crafty bastard," said the genie.

[thanksgreed]

Well, now that they got their trillion dollar continued tax cuts, the GOP will certainly agree to raise the debt ceiling. Our leaders don't give a sh## about the country. They care about themselves and their pockets. Too bad the TPers turned out to be stooges...

[pubsrtoast]

Too bad the TPers turned out to be stooges...
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What else would you expect to belched out of the likes of Phil Gramm and the Koch Brothers?

[jmailbox]

We need to stop this debt nonsense. We need to stop the spending of money that government doesn't have, that is going to eventually break our backs and default on the money loans.

You know that they passed the credit card reform act because citizens of this country are not good debt holders, yet the government has us in the hole for $14 Trillion dollars, which is our GDP.

So now were going to go further into debt because of "obligations", what is obligating us into the poor house that we have to borrow even more money?

WE need to stop the excessive budget spending, and it's gonna have to start with the fraud in the military budget, the medicate budget and the social security budgets.

The miltary budget is our biggest government expense, did it ever occur to anyone that the more the military budget is increasing the more jobs we are losing? It's not just cocident but the tax dollars are drainging the life out of business in the coutry because of a huge miltary budget being spend mostly oversears. Look how long it took to respond to hurricance katrina, the BP oil spill, basically forever, but pakistan has a major floor and were are there in hours.

Medicare has a lot of fraud too,, doctors over billing grossing getting million plus home on medicare funding, illegals getting free medicare for them while we are paying for it and getting almost nothing in return

Social security, most people who are collecting are legit, but there a big number of people whose parents have died who are illegally collecting their social security payments by not telling the government they are dead, basically free money for doing nothing.

[Jhihmoac]

Wasn't this debated last year...and the year before that? Etc...etc...