What CBS News Did With Catherine Herridge's Files Could Have Chilling Effect on...
Blue Laws for Red Citizens
Google’s Racist AI Generator
Democrats' Fake News Sites Face Plant in Wisconsin and Tennessee
Alabama Supreme Court's Embryo Ruling Embodies America's Legal Heritage
Environmentalists in Denial About Biden's Unpopular EV Mandate
Why Can't the Networks Investigate James Biden?
Iran Foreign Minister's Presence Undermines UN Human Rights Council Mission
Biden Open-Door Policy: Some Facts and Historical Context
While Biden Pushes Ukraine To Fight, He Demands Israel Surrender
Is the Biden Crime Family Worse Than the Mafia?
Message to Nikki Haley: Time to Go
Nancy Pelosi's Massive Stock Trade Paycheck Raises Concerns
Illegal Alien Accused of Killing Cop Files Lawsuit Claiming 'Disability' Over Not Speaking...
There's An Alarming Amount of Chinese Migrants Being Apprehended at the Southern Border
Tipsheet

Bernanke Warns Democrats on Budget Brinksmanship

There's a coming fiscal cliff at the end of the year. The expiration of the Bush tax cuts coupled with the across-the-board spending cuts from last summer's debt ceiling deal and another hit to the debt ceiling mean that on January 1, 2013, the United States will undergo severe measure of austerity if legislators don't act.
Advertisement

Democrats are already accusing Republicans of brinkmanship. Democrat Senate Majority Leader Harry Reid claimed that the Republicans are engaging in obstruction by proposing that a debt ceiling increase be tied to deficit reduction. Fed Chairman Ben Bernanke, however, knows that it's the Democrats who need a warning about political gamesmanship.

Taxes will increase by an estimated $5 trillion over the next decade if Congress does not extend expiring law by Dec. 31. The nation also faces an automatic $1.2 trillion spending cut and the expiration of the payroll tax holiday and benefits for the unemployed.

Bernanke warned Democrats at a lunch meeting that the combined effect would have severely damaging consequences for the recovering economy.

President Obama met with Speaker John Boehner today at the White House that looks to set a preliminary stage for budget negotiations that are likely to continue through to the end of the year - or until a deal is reached.

According to a readout of the meeting from the Speaker’s office, Boehner asked Obama if he was proposing that Congress increase the debt limit without corresponding spending cuts. The president replied, “Yes,” the Boehner aide said. At that point, Boehner told Obama, “As long as I’m around here, I’m not going to allow a debt-ceiling increase without doing something serious about the debt.”
Advertisement

White House spokesman Jay Carney audaciously said, in response to Boehner's concerns about the Obama Administration's lack of a budget reform plan, "he knows exactly where it is," and pointed to Obama's budget plan.

Later, after Carney had claimed that the Obama Administration had a serious debt reduction proposal, the Obama budget was defeated 99-0 in the Senate.

Join the conversation as a VIP Member

Recommended

Trending on Townhall Videos

Advertisement
Advertisement
Advertisement