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Austan Goolsbee: Not Raising The Debt Ceiling Would Be “Catastrophic” And “Insanity”

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» 17 comments

Austan Goolsbee, chairman of the White House Council of Economic Advisers, stopped by This Week and told substitute host Jake Tapper that the “impact on the economy would be catastrophic” if Congress failed to raise the debt ceiling. Furthermore, despite the wishes of the Tea Party or newly elected Republicans, this issue of raising the limit is “not a game.”

Goolsbee continued:

I don’t see why anybody’s talking about playing chicken with the debt ceiling. If we get to the point where you’ve damaged the full faith and credit of the United States, that would be the first default in history caused purely by insanity. . . . The United States is not in danger of default. We do not have problems such as that. This would be lumping us in with a series of countries through history that I don’t think we would want to be lumped in with.

Wonder if Representatives Bachmann and Kelly, who just this morning expressed doubts about raising the ceiling, were listening?

Watch the clip from ABC below:

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  • Greg

    Yes but Austin, insanity is so in Vogue right now… A man with a tasty penchant for firearms and grand theft auto is going to take our president to task for for something or other that is at least currently undefined (but should be fabulous) and people who secretly hate America will talk endlessly about a “real world” that they imagine as they scurry like weevils though the fields of governance. What fun!

  • Pablo

    Wonder if Representatives Bachmann and Kelly, who just this morning expressed doubts about raising the ceiling, were listening?

    I wonder if they’ve been listening to Goolsbee all along. He has a strong tendency toward being…um…wrong.

  • Just4thefax

    Fact: No way! Nada! zilch! Not going to happen! Spending over budget days are gone sucker!

  • ChiliPeppersFan

    it has been pointed out so many times since this past election…how did shutting down the government last time work for ya?

  • Fox News: Serving the Freeper community since 1996

    Here is George Will’s take on it: The one positive resulting from a majority voting against it is that the American people would finally realize what EVIL SCUM they voted into office once the markets collapsed.

    I know of no other developed nation that has a debt ceiling. This is a purely recurring symbolic vote to make people feel good by voting against it.

    The trouble is it’s suicidal if you should happen to miscalculate and have all kinds of people voting against it as a symbolic vote and turn out to be a majority. Because if the United States defaults on its sovereign debt, the markets will be — well, it will be stimulating.

  • felixw

    I love the hypocrisy. Throughout this blighted and benighted administration, the Left has grumbled that the Right has no real solution to the government debt crisis, and is just as ready to spend borrowed money as the Democrats. But the moment Republicans take power and show courage in their willingness to stop the bleeding and borrowing, panic sets in on the Left. The honest truth here is that every time Republicans have controlled Congress, they have reined in spending, and over the entire history of Republican control of Congress has actually generated surpluses. The Democrats are quaking in their boots that this may happen again, and that their years of living profligately on a maxed out credit card could be over.

  • Helix

    In Nevada, we would call this guy(Austin G.) a lousy poker player. The only question is whether he will fold like a cheap suit before or after the ante.

  • lazzzlo

    Fox News: Serving the Freeper community since 1996 said:
    Here is George Will’s take on it: The one positive resulting from a majority voting against it is that the American people would finally realize what EVIL SCUM they voted into office once the markets collapsed.

    I know of no other developed nation that has a debt ceiling. This is a purely recurring symbolic vote to make people feel good by voting against it.

    The trouble is it’s suicidal if you should happen to miscalculate and have all kinds of people voting against it as a symbolic vote and turn out to be a majority. Because if the United States defaults on its sovereign debt, the markets will be — well, it will be stimulating.

    I know you are laughing @ George Will. But he is getting close to the answer.

    I smiled and ducked on this statement… I know of no other developed nation that has a debt ceiling. This is a purely recurring symbolic vote to make people feel good by voting against it.

  • lazzzlo

    This is a purely recurring symbolic vote to make people feel good by voting against it.

    That is a smart analysis…he won’t agree he said it.

    Filter out the BS and lets see how many people validate their constituent’s vote.

  • Just4thefax

    Fact: Oh God I’m a democrat why would I wake up in the morning if I can’t spend the money I don’t have! I hate Tea Party and they hate me! I need a fix of cash! I need to spend! Hey I tax More I can spend More! I’ll send Hillary Clinton to see my buddy Chavez and get his advice on it!

  • CAconservative

    So, continually raising the debt ceiling, rather than cutting spending, in this clowns, view is the way to go? Allowing the debt to spiral out of control thereby, making our dollar worthless is insane! The damage being done to “full faith and credit of the U.S.” is being done by running up debts we can’t possible pay for. We shouldn’t be discussing putting a cap on the amount of money Washington can steal from us an piss away on entitlement programs that are destroying this country? At this point, I’m wondering if spending this country into bankruptcy isn’t part of Obimbo’s socialist plan? Destroy our financial system and the government can justify taking over private enterprises at the point of a gun.

  • OxyCon

    Ghoulsbee is the assclown that got caught lying red handed about Obama’s lying about NAFTA concerning Canada.
    Obama was campaigning against NAFTA while this little Ghoulsbee rodent was telling Canada not to listen to Obama because he was simply lying to the American public.
    What a trustworthy guy. But all that lying he did on behalf of Obama paid off with a nice cushy government job.

  • lazzzlo

    OxyCon said:
    Ghoulsbee is the assclown that got caught lying red handed about Obama’s lying about NAFTA concerning Canada.
    Obama was campaigning against NAFTA while this little Ghoulsbee rodent was telling Canada not to listen to Obama because he was simply lying to the American public.
    What a trustworthy guy. But all that lying he did on behalf of Obama paid off with a nice cushy government job.

    I thought NAFTA would really work; obviously that was a mistake, the drugs moved freely but not all the goods and services.

    Can we change? If we say their is a new Boss in town…what do you think the answer will be?

  • lazzzlo

    Also, we are fine with our budgeted debt.

  • Obeezy

    when Goulsby said that the administration created 1.5 million jobs this past year, the first question this pathetic excuse for a journalist should have asked.. ” Can you tell us where these jobs are and what industry created them”? He would have never been able to answer it and would have looked worse than he already did

  • http://none pyrope

    Fox News: Serving the Freeper community since 1996 said:
    Because if the United States defaults on its sovereign debt

    What makes you think the government has to default on its debt if the debt ceiling is capped? The difference could easily be made up by cutting the budgets of existing programs, bureaus, and agencies–along with the salaries of non-military government employees.

  • Nahu Tuk

    pyrope said:
    What makes you think the government has to default on its debt if the debt ceiling is capped? The difference could easily be made up by cutting the budgets of existing programs, bureaus, and agencies–along with the salaries of non-military government employees.

    You’re only partiallly correct old man. It would also take cutting some of those “entidamits.” Now, before you get your undies in a twist, I am NOT talking about social security–social security is NOT an entitlement, it is a means by which the government gives back some of the monies it confiscated from people who WORKED all their lives and PAID into the fund that–starting with LBJ–the government squandered on various boondoggles.

    In actuality, there will probably have to be a rise in the debt ceiling in order to service the debt that our government has run up by borrowing from other countries, but I believe the government MUST NOT spend money as they’ve done in recent years, and We the People had best DEMAND that the trade off for this increase in the debt ceiling be accompanied by a balanced budget amendment to the Constitution.

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