Paul Ryan: Debt limit talks will probably go to "last minute"

Paul Ryan (R-Wis.)

/ AP Photo/J. Scott Applewhite

Just a day after Treasury Secretary Tim Geithner announced that the United States had hit its $14.3 trillion debt limit, Rep. Paul Ryan predicted that negotiations over raising the limit would go until the "last minute" - despite Geithner's entreaties to act "as soon as possible" in order to prevent an economic crisis.

Ryan said in a radio interview on Monday that "we're going to negotiate this thing probably up through July, that's how these things go," according to Reuters.

If Congress does not approve an increase to the debt ceiling, the federal government could default on its bonds for the first time in history, much of the government would shut down, and Social Security and Medicare checks would likely see delays as a result of the government's inability to make payments to agencies.

Geithner has repeatedly warned Congress that delaying a vote on raising the debt ceiling could lead to instability in the markets - and that failing to vote in favor of the increase altogether would likely lead to widespread economic catastrophe.

"I have written to Congress on previous occasions regarding the importance of timely action to increase the debt limit in order to protect the full faith and credit of the United States and avoid catastrophic economic consequences for citizens," Geithner wrote in a letter to Congress on Monday. "I again urge Congress to act to increase the statutory debt limit as soon as possible."

Vice President Joe Biden has been working with a bipartisan team of lawmakers to try to hammer out a deal for raising the limit, but the group has yet to put forth a proposal despite weeks of collaboration.

And while most leading Republicans have conceded to the fact that, ultimately, the debt limit will need to be raised, a growing number of conservatives are expressing skepticism over the fact that allowing the U.S. government to default on its debts would really be such a big deal.

Many skeptics believe that the government takes in ample revenue to pay its bills - and that the government could, through deep spending cuts, still avoid default.

"That's disruptive; that's not optimal," Sen. Pat Toomey (R-Pa.) said in a recent interview. "But it's not a financial crisis. It's not a default on our debt. It's not a catastrophe. It's a disruption."

Alabama Sen. Jeff Sessions, the ranking Republican on the Senate Budget Committee, argued that the White House was trying to manipulate lawmakers into passing the increase - much like he said he thought the previous administration had done in passing the federal bailout in 2008.

"Congress was stampeded," Sessions said of the 2008 bailout vote, according to Politico. "They will have a harder time stampeding the Congress."

"The one acting like his hair is on fire is Mr. Geithner," added Rep. David Schweikert (R-Ariz.). "It's absolutely silly. We have plenty of cash flow to pay debt, which means I'm trying to figure out how credibly the administration can keep using that language."

Even House Speaker John Boehner, who has repeatedly emphasized the importance of raising the ceiling, has recently given credence to the doubters.

"Well, I think it is necessary, but I understand the doubts," he said in an interview with CBS News' "Face the Nation" Sunday. "Two days after I was sworn in as Speaker, I got a letter from Geithner telling me that we had to raise the debt limit in...60 days. And then they pushed the date back and they pushed the date back and pushed the date back. So, I understand the doubt."

Geithner argues, however, that failing to meet other financial obligations - such as salaries, tax refunds, and contract payments - would be equally damaging to the U.S. economy.

"This abrupt contraction would likely push us into a double-dip recession," he warned in a letter to Colorado Sen. Michael Bennet on Friday.

Politico reports that, in a speech at New York's Harvard Club on Tuesday, Geithner will take a new tack in his efforts to convince lawmakers to take action, emphasizing that the debt limit debate is really "about the past" and urging them to "not get stuck on a debate about funds that past Congresses and administrations have already committed and spent."

[user000049586849302948603]

Ryan and Ellen Degeneres -- twins separated at birth?

[ubroc]

The republiCons are cheap political terrorists, the debt ceiling is their gun held to the head of every American. They demand the dissolution of Medicare and Medicaid or they will pull the trigger and blow up our economy in a singular act of creative destruction. This is asymmetric political warfare. They were despondent that Obama saved us from a total economic collapse caused by their
finantial crisis and this time they are going to make sure they finish the destruction Bin Laden started.

We don't negotiate with terrorists who would drive our economy into a ditch to help their election prospects. Its time to send a political Seal Team 6 into The House and send Osama Bin Ryan home for good.

[GoGoUsa]

DJ is are a troll.

[some_guy_555]

I'll take a sexually harassed intern over 5,000 dead soldiers.

[ejr1953]

What a difference a decade makes. Bill Clinton handed George W. Bush & the Republican Congress three years of surplus, with the potential of paying off the entire U.S. Public Debt in about ten years. But with tax cuts and increases in spending here we are in a bad way. It seems to be lost on most people that the very people who put us in this jam are suddenly "less government" types and are trustworthy to get us out of the jam they created?

[reluctantzealot]

Bill Clinton left 5.5 trillion in debt and a recession, plus a country torn apart by his impeachment because he sexually harrassed an intern.

That is what Clinton left.

[ubroc]

The majority of that debt was piled up by Reagan and Bush 1.

[reluctantzealot]

The fact that we are here today to debate raising America's debt limit is a sign of leadership failure. It is a sign that the U.S. Government can't pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government's reckless fiscal policies. ? Increasing America's debt weakens us domestically and internationally. Leadership means that "the buck stops here." Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.

[realist51]

No the debt is the republicans with there stupid trickle down supply sided economics and tax cuts for the rich, borrow and spend policies under both regan and bush 43 they both doubled the national debt. with these beliefs. If tax rate had been left alone and budgets kept in line under bush there very may as well been a republican in the white house now. there needs to be cuts and there needs to be an increase in taxes to reduce the debt. You and the rest need to man up and pay your bills and not pass them on to the children and grand children.

[reluctantzealot]

So you agree the nation needs to man up, pay it's bills and NOT RAISE THE DEBT CEILING...

You are making progress!

[reluctantzealot]

I think that when Obama signs his latest debt increase into law, he should be required to let his children sign it too since the debt is theirs.

[lily777]

I HOPE THEY KEEP DOING NOTHING--they need to follow Hippocrates law--first -Do no harm---so as long as the Republicans sit on their hands until the Democrats have to beg--I'm good with it! Just say NO!, SAY IT NOW, SAY IT LOUD, BE PROUD! Like cutting up an irresponsible teenagers credit card, I think the majority of Americans would sleep better at night--MAKE HISTORY--Be the first adults come on Republicans grow a pair!

[reluctantzealot]

They won't, they will cave. Democrats will run "seniors are going to die" propaganda campaigns and republicans will get scared and losers will be America's children.

It's always easiest to hurt those who can not stand up for themselves.

[reluctantzealot]

Anyone hear the democrats talking about cutting payments for government workers???

No, they are going straight for the SS checks!!!!

Democrats hate old folks.

[meboard]

President's already frozen gov raises. Don't you follow the news???

[reluctantzealot]

Since when is freezing the same as cutting?

You don't make headway by keeping the status quo...

[Okieoneshinobi]

Once again Republicans put politics before country.

[reluctantzealot]

Once again Democrats put Wall Street before senior citizens.

[jimbom121]

umm, who was begging before Wall St just last week?

[meboard]

by doctor_know May 17, 2011 12:25 PM EDT
meboard is correct, this took way longer than Obama has had.... started with Reagan.
---
Thank you Dr. Know...I love validation!

[reluctantzealot]

I thought it started with the Viet Nam war....but whatever.

Obama is not the leader we need to takle the problem. He has proved himself incapable and his "team" failures.

He has brought us to the point of cutting off checks to old folks so he can finance Wall Street with trillions.

[meboard]

Zealot, you really need to get some therapy for your anger issues.