Senate Democrats back automatic debt limit hikes

WASHINGTON (AP) — The Senate voted along party lines Tuesday to reject a GOP effort that would have blocked the approved increase in the national debt limit.

The chamber voted 54-45 against the GOP move to try to use a special "disapproval" process to block that increase.

The move came as Senate Democrats proposed to avoid future showdowns over the so-called debt ceiling by giving the president authority to authorize additional federal borrowing unless Congress can muster veto-proof margins to block him.

The move by Sens. Charles Schumer, D-N.Y., Barbara Boxer, D-Calif., and Mazie Hirono, D-Hawaii, is aimed at heading off future Washington confrontations over increasing the government's borrowing cap. Debt limit battles this fall and in 2011 spooked financial markets and took the government precariously close to a default on its obligations.

"It's time for us to put in place a straightforward process to avoid a catastrophic default on our nation's debt," Boxer said, adding that the legislation "sends a strong message of certainty to the markets, to our families and to the world."

The Democratic legislation is based on a proposal first unveiled by GOP Leader Mitch McConnell of Kentucky during the 2011 debt limit battle. But McConnell weighed in against the Democratic plan even before it was unveiled, saying debt increases must be paired with spending cuts or other reforms.

The recently-passed debt limit measure included the mechanism under which the president proposes a debt increase that takes effect automatically unless Congress approves legislation to overturn the move. He could veto that legislation, however.

"Increases in the debt ceiling should be accompanied by reforms," McConnell said. "That's just what we did in 2011, when Congress raised the debt ceiling in return for enacting $2 trillion in bipartisan spending control."

McConnell is positioned to filibuster the measure if Democrats try to force a vote and the measure is a non-starter with the GOP-controlled House.


http://news.yahoo.com/senate-democrats-back-automatic-debt-limit-hikes-145832075--finance.html 

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I completely agree with this. The concept of Congress setting a debt limit is stupid.

The debt limit is set by the creditors. As long as idiots will loan the US government money at 2% interest, we should sponge it up and delay the bankruptcy.

'Raising the Debt Ceiling...Does Not Increase Our Debt,'

:-k

That is true. Selling treasury bills raises our debt.

Damn the torpedoes...full steam ahead!

Yep that is technically correct, but it allows the debt to continue to increase. a.k.a Debt Increase.:-k

The debt continues to increase because we want to borrow money to live beyond our means and creditors line up to loan us the money.

A legislated debt ceiling is the equivalent of Citibank offering you a $20,000 credit limit and you arbitrarily deciding to never let the balance get over $11,000.

The debt ceiling only really provides a venue for idiots to grandstand for more idiots.

Congress sets how much we're gonna need to borrow when they decide and approve the budget.

To approve the budget, then say they won't allow us to borrow the money necessary given the existing budget is stupid. They don't seem to have a problem when it's actually being decided. Just when it's flashy...

If only we had a budget.

Exactly

Don't be silly. In march 2013 congress passed a budget for the rest of 2013. Anyone who passed that essentially signed on for the debt requirements of Oct/Nov/Dec.

I haven't cross referenced the names, but it would be an interesting exercise to see which politicians signed the budget but then threw a hissy fit in Oct.

^ That was the first formal budget passed by the Senate in FOUR years.

You ain't seen nothin' yet.