Debt Ceiling Debate

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POSTED: Monday, July 18, 2011 - 6:47am

UPDATED: Tuesday, October 4, 2011 - 4:08am

Lawmakers get back to work on a compromise that will raise the nation's credit line.

Today on Capitol Hill, Senator Tom Coburn unveils the most ambitious plan yet to break the debt ceiling stalemate.

"Oh, I wouldn't expect it to pass, but I would expect people to look at it," said Coburn.

He's taking aim on nine trillion dollars in government cuts.

"Pick half of them. Half of them solve our problem," said Coburn.

It's just one of several competing Republican efforts to beat the August second deadline to raise Uncle Sam's credit limit.

Senate Minority Leader Mitch McConnell is crafting what looks like the leading contender, but critics say it's too much of a compromise.

Ohio Representative Jim Jordan said, "Well, look, the McConnell doesn't have 218 Republican votes. No way."

Maryland Representative Chris Van Hollen said, "What it does it says, we, the Congress, will not take responsibility or accountability for our own decisions."

Before moving ahead, the Tea Party is going to get a vote on a balanced budget amendment.

South Carolina Senator Lindsey Graham said, "So the real deal to limit spending and get us in balance would be to an amendment to our Constitution. Without that we're just going to talk to each other and run America into the ground."

Plenty of plans, but right now there is no clear way forward.


 

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The credit rating of the U.S. government would be trashed and our future borrowing would be done at a much higher interest rate -- we would be paying hundreds of billions more per year for exactly what we're getting now, just wasting huge amounts of money. If you don't pay your bills, your credit score gets ruined. There are still people who will give you cash advance you money, but you will pay a much higher interest rate.

Analysts are saying that the nation's credit rating might be reduced even if the debt ceiling is heightened by next week's deadline. Some also say, nevertheless, that a downgrade would be much less catastrophic than feared. It would not be the end to payday loans as individuals have imagined.

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