Obama signs bill averting government default

U.S. President Barack Obama / Pete Souza/The White House/Getty Images/File

WASHINGTON President Barack Obama has signed into law a bill raising the federal government's borrowing limit, averting a default and delaying the next clash over the U.S. debt until later this year.

The legislation temporarily suspends the $16.4 trillion limit on federal borrowing. Experts say that will allow the government to borrow about $450 billion to meet interest payments and other obligations.

• Senate passes bill to suspend debt limit
  
• Standard & Poor's decries government suit
  
• Fed chairman urges Congress to raise debt limit
  

The Senate gave the bill final approval last week and sent it to Obama, who signed it Monday.vDemocrats and Obama had warned that failure to pass the bill could set off financial panic and threaten the economic recovery.

The bill includes a provision attached by Republicans in the House of Representatives that temporarily withholds lawmakers' pay in either chamber that fails to produce a budget plan.

[animekenji]

What people don't realize is that we do not need to raise the debt ceiling at all. In fact, we could easily pay down the debt without borrowing more or increasing taxes. Congress has the power to create money so how in the world is it even possible for the government to be unable to pay it's debts? If you had the power to create your own and to enforce it's acceptance, would you ever need to go into debt again? If you wouldn't have to go into debt, then why would the government?

[democracy8]

Sure, let's just print more money so that we can devalue our currency and cause rampant inflation. Sheesh!

[Ulgnud]

So instead of doing what is needed, cutting the spending, wee can go through all this nonsense again a few more months down the road. We are overspending to the max and what are they worried about? Trashing the Second Amendment, pushing the BSA to lower their standards, and Amnesty for illegal invaders. Why don't we simply send them all home and lock the doors of Congress and the W/H?

[LosAngelesCA]

Good. However, I am tired of you all kicking the can down the road. And don't think for one minute that Americans agree to cuts in Social Security or Medicare. Instead - start with the super dooper pension and health insurance plans Congress, Senate and the President get. We ran screaming from England because we didn't agree in the divine right of Kings so why do our elected representatives vote for Gold standard benefit packages that the most highly paid CEOs don't even get?