Obama adviser Austan Goolsbee: Not raising the debt ceiling beyond $14.3 trillion will cause "a worse financial economic crisis than anything we saw in 2008"

from theblogprof by The blogprof


Obama adviser Austan Goolsbee: Not raising the debt ceiling beyond $14.3 trillion will cause "a worse financial economic crisis than anything we saw in 2008": "Meet the new meme. Same as the old meme: we have to spend our way out of the recession. We have to spend money we don't have to keep from going bankrupt. blah, blah, blah. From ABC News via memeorandum: Goolsbee to Tea Party: 'Playing Chicken' With Debt Ceiling Vote is 'Insanity'. On the plus side, the tea party that the Democrats have said a million times is irrelevant is all of the sudden relevant:

President Obama's top economic advisor, Austan Goolsbee, warned today against 'playing chicken' with raising the country's debt ceiling, saying it would cause 'a worse financial economic crisis than anything we saw in 2008.'

'This is not a game. The debt ceiling is not something to toy with,' said Goolsbee, the chairman of the White House Council of Economic Advisers, in an exclusive interview on 'This Week.'

'If we hit the debt ceiling, that's ... essentially defaulting on our obligations, which is totally unprecedented in American history,' he said. 'The impact on the economy would be catastrophic.'

Congress raised the debt ceiling to $14.3 trillion last February, but the federal debt is now at $13.9 trillion, meaning the ceiling will need to be raised again this spring to avoid pushing the country into default.

What is the point of even having a debt ceiling based on Gollsbee's rationale? How about STOP SPENDING MONEY THAT WE DON'T HAVE???? As I have pointed out many times in this blog, the FY 2007 federal budget - the last one put together by Republicans - was $2.7 trillion. Since Pelosi and Reid took over, the federal budget is at $3.8 trillion. The deficit is entirely comprised of new Democrat spending since 2007. This is the result of Pelosi's promise and lie to the American people (Good news: National Debt Has Increased $5 Trillion Since Nancy Pelosi Vowed, 'No New Deficit Spending'):

Note that the deficit was decreasing for 4 consecutive years until Pelosi, Reid and then Obama got their hands on it.Just roll the budget back to 2007 levels. Good grief already! More from Outside the Beltway

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