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View Diary: Lindsey Graham promises global 'financial collapse and calamity' over debt ceiling (195 comments)

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  •  going over the fiscal cliff means tax (2+ / 0-)
    Recommended by:
    lgmcp, Ralphdog

    increases and spending cuts -> small deficit -> delays the need to raise the debt limit

    •  I see the idea. (0+ / 0-)


      A child of five would understand this. Send someone to fetch a child of five. -- Groucho Marx

      by Pluto on Tue Dec 11, 2012 at 03:09:29 PM PST

      [ Parent ]

    •  But I don't think it works: (0+ / 0-)
      -Just go over

      The simplest option for Congress and the White House would be to do nothing. Taxes would go up. The military and domestic spending cuts in the sequester would bite down. This would be the single largest act of debt reduction in American history, cutting some $1.2 trillion from the deficit over the next two years. Trouble is, that much austerity would likely also induce a recession. That’s why few policymakers advocate this scenario.

      There’s another problem with this plan: Lawmakers can’t just sit back and do absolutely nothing. Even if the tax hikes and spending cuts kick in, Congress would still need to vote to lift the $16.4 trillion debt ceiling by February or so. Otherwise, the United States government would no longer be able borrow money to fund its obligations. That could be trouble.

      http://www.washingtonpost.com/...


      A child of five would understand this. Send someone to fetch a child of five. -- Groucho Marx

      by Pluto on Tue Dec 11, 2012 at 03:16:46 PM PST

      [ Parent ]

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