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No More Endless Lines of Credit

Rep. Nunes Outs Chicken Little Debt Limit Tactics

Washington, May 18, 2011 | Andrew House (202-225-2523)
“The American people want spending under control, which is largely why they took away the President’s blank check in November of 2010.

It should come as no surprise to observers that I and a majority of my colleagues in the House will not support a “clean” debt limit increase. Nor will we be compelled into a compromise that ignores our nation’s structural budget problems on the basis of “chicken little” tactics.

The President and his allies should be aware that a default by the federal government, no matter how damaging and painful it may be, is not so great a threat as to force the House Republican Conference to cave in our unified demand for spending controls.

The massive structural budget deficits we face make the Obama Administration’s proposal a greater threat to our economy than a short-term default, which would by necessity be followed by substantial budget reforms.

The Obama debt limit increase would result in higher interest rates in a depressed economy with no reforms to our bloated government— reforms that are essential to improving the U.S. economy.

In short, it is time to put to an end President Obama’s notion of a phony debt limit— one that exists in theory but not in practice,” said Rep. Devin Nunes.

Editors Note:

Congressman Nunes in Politico today:

“No one is saying, ‘Raise the debt limit.’ No one. Zero. Unless you pay really close attention to politics, you’re not talking about the debt ceiling,” Rep. Devin Nunes (R-Calif.) said of his interactions with constituents. Of his colleagues, he said, “Everyone’s getting the TARP feeling again.”
As for the debt limit, there are indications that rank-and-file Republicans are rejecting warnings from the administration, many economists and even some GOP leaders that default would result in an abrupt international economic collapse.

Nunes says the debt cap must be raised at some point but not necessarily before the point of default.

“By defaulting on the debt, in the short and long term, it could benefit us to go through a period of crisis that forces politicians to make decisions” on major policies that affect the budget, he told POLITICO.

Congressman Nunes’ comments sparked an immediate response by liberal bloggers and their allies who believe that the debt limit is fine in theory but not in practice.

Senator Tom Carper (D-Del) said, “When I hear people say stuff like that, I wonder what they’re smoking,” Carper, a member of the Senate Finance Committee, told us. “And it’s not something that’s legal -- well, it could be.” (link)

Special note to Senator Carper: The addicts in the room are not conservatives seeking sensible spending controls. They are your ideological allies who are so addicted to spending other people’s money that they can’t stop even when there is nothing left to spend.