Glad to see some Republicans putting America before their party! clo
Domenici ‘Truth Squad’ Confronts Fellow Republicans on U.S. Debt Ceiling
By Heidi Przybyla - Jul 1, 2011 12:01 AM ET
Former U.S. Senator Pete Domenici, who helped forge four major federal budget agreements, has formed a “truth squad” to caution fellow Republicans about the hazards of breaching the U.S. debt ceiling.
Domenici, 79, is working with former federal budget officials including Jay Powell, a Treasury undersecretary for President George H.W. Bush, to detail the negative economic and social consequences if Congress fails to approve an increase in the $14.3 trillion borrowing limit before an Aug. 2 deadline.
A report by the group, the Washington-based Bipartisan Policy Center, predicts that by mid-August the government wouldn’t be able to meet 44 percent of its obligations, leading to about 800,000 federal employee furloughs and spending cuts equal to 10 percent of the gross domestic product. Such moves could choke the economy, still struggling to recover from the worst recession since the Great Depression, and shake the confidence of U.S. creditors, the report’s authors said.
Domenici, of New Mexico, said his mission is made more urgent by signs that Republicans who discount the risks of not lifting the debt cap may be winning the message war within the party. These Republicans include Representative Michele Bachmann of Minnesota, who is running for president, and Senator Pat Toomey of Pennsylvania, who says the government can simply prioritize its obligations to stave off a default.
‘They’re Wrong’
“The debt’s coming due, and they say it isn’t coming due,” Domenici said in a recent interview. “They’re wrong.”
He expressed frustration that his party may be willing to let the debt limit be ruptured. “Who do we get?” he asked. “Bring God down, Christ” to make the case against doing so?
Domenici, who during his six Senate terms set the record for most years as Budget Committee chairman, and his group have briefed at least 30 lawmakers and their staffs on the study.
He said Republicans, particularly in the U.S. House, “have got to listen to another radio because it’s not the way they’re telling them.”
On June 28, House Speaker John Boehner called the Treasury Department’s Aug. 2 estimate for when the U.S. risks default “artificial,” adopting the argument of Republicans such as Toomey who say investors would have no reason to panic if Congress deadlocks on the debt limit. The government will have the tax revenue to meet its debt obligations, Toomey says, while treating its other bills -- including employee salaries -- as a secondary concern.
for complete article:
http://www.bloomberg.com/news/2011-07-01/domenici-s-truth-squad-challenges-fellow-republicans-on-debt-cap-debate.html
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