It turns out that even with the big budget cuts that canceled the Blue Angels and furloughed thousands of federal employees, the United States has once again hit the debt ceiling. In fact, according to the president’s chief economic adviser, Alan Krueger.
“We’ve already surpassed the debt ceiling and we’re into emergency measures,” said Krueger.
But it’s happening because Congress has dug in.
Just last week on the floor of the House, top Democrat Steny Hoyer put the question to Republican Majority Leader, Eric Cantor.
“I want to ask the majority leader, whether he expects we’ll take an up or down vote on a debt limit extension when we return in September, and I yield to my friend.”
“I would say to the gentleman, that my answer to that last question is, ‘No,'” responded Cantor.
And that’s because many Republicans in the House are determined to do whatever it takes to UN-fund Obamacare, plus they want a plan to balance the budget within ten years.
And at the same time, many Democrats reject outright any budget balancing plan that cuts Medicare and Social Security – even though mathematically that may be the only way.
And so here it is, one week since Standard & Poors changed the government’s credit rating from NEGATIVE to STABLE and we get a sequel to the crisis that got it downgraded in the first place.
“The idea of reaching the debt limit is really unthinkable,” said Krueger.
“I was thinking about this SyFy movie you probably saw, “Sharknado,” where you have this tornado which brings sharks and they land on people’s heads,” said Krueger. “I think if we cross the debt limit it would be worse for the financial sector.”
And if you agree with the hero of “Sharknado,” who yells, “I just can’t sit back and watch this!” … then you better call your congressman right away.