WASHINGTON DC | Is the FED the Key Factor Behind the Debt Limit? Treasury Secretary Jacob J. Lew is calling on Congress to raise the debt limit in February. The Treasury Department now expects the debt limit "endgame" to arrive in late February, rather than in March. To some observers, this is rather surprising, since just last week, Senate Majority Leader Harry Reid indicated the nation wasn't likely to hit the debt ceiling until May. Lew wrote in a letter to Congressional leaders that "the large obligations of the government that occur in the month of February" will soon put a strain on the government. Lew also wrote: "Protecting the full faith and credit of the United States is the responsibility of Congress, because only Congress can extend the nation's borrowing authority. No Congress in our history has failed to meet that responsibility. I respectfully urge Congress to provide certainty and stability to the economy and financial markets by acting to raise the debt limit before Feb. 7, 2014, and certainly before late February." The response on Capitol Hill was swift and predictable. Democrats are pushing for a straightforward increase in borrowing authority. And Republicans want to include other provisions related to the debt and deficit. Senate Budget Chairwoman Patty Murray, a Washington Democrat, was among those who called for an increase with no strings attached. As quoted by Roll Call, Murray stated: "With the bipartisan agreements on the budget and on funding the government for this year, we have an opportunity to move past the manufactured crises and work together on real challenges. I hope Republicans will listen to Secretary Lew and join Democrats to ensure the U.S. pays its bills on time..." But Michael Steel, a spokesman for Republican House Speaker John Boehner, dismissed that suggestion: "The Speaker has said that we should not default on our debt, or even get close to it, but a 'clean' debt-limit increase simply won't pass in the House. We hope and expect the White House will work with us on a timely, fiscally-responsible solution." What's always lost in the shuffle during debt-ceiling discussions is that the government has a debt ceiling because it's a borrower, not a creator of money. The money is borrowed at interest—lots of interest. Yet, the Constitution empowers Congress "to coin money and regulate the value thereof." That may be the escape hatch from the debt trap the American people need. Applying that constitutional change seems like a steep uphill challenge. But the fact that Congress 100 years ago handed over its money-creation power to the private Federal Reserve System is the real issue lurking behind fleeting headlines about Washington's debt-limit. Fed critics find it unfortunate that the current Congress cannot muster the courage that past Congress members found decades ago to shine a bright light on the Federal Reserve. Download your free Next News "Heroes & Villains" Poster here: http://bit.ly/KgbQD5 LIVE: http://bit.ly/1eChpVo Facebook: http://on.fb.me/18RdIek Twitter: http://bit.ly/1eChqZD Sub: http://NNN.is/the_new_media Meet the Next News Team: http://bit.ly/18RdIen Hashtag: #N3 About: Next News Network's WHDT World News program airs daily at 6pm and 11pm Eastern on Comcast, DirecTV and Over-the-Air and Online at http://NNN.is/on-WHDT WHDT World News is available to 6 million viewers from South Beach to Sebastian, Florida and to 2 million viewers in Boston, Massachusetts via WHDN. WHDT broadcasts on RF channel 44 (virtual channel 9) from Palm City and is carried on cable TV channels 44 (SD) and 1044 (HD) by AT&T, on cable channels 17 (SD) and 438 (HD) in West Palm Beach by Comcast, on satellite channel 44 (SD) in West Palm Beach by DIRECTV, and on WHDN-Boston which broadcasts on RF channel 38 (virtual channel 6) from the Government Center district in downtown Boston. More about WHDT: http://bit.ly/18RdIuB
Debt Ceiling Solution: Stop borrowing from the FED!!!
WASHINGTON DC | Is the FED the Key Factor Behind the Debt Limit? Treasury Secretary Jacob J. Lew is calling on Congress to raise the debt limit in February. The Treasury Department now expects the debt limit "endgame" to arrive in late February, rather than in March. To some observers, this is rather surprising, since just last week, Senate Majority Leader Harry Reid indicated the nation wasn't likely to hit the debt ceiling until May. Lew wrote in a letter to Congressional leaders that "the large obligations of the government that occur in the month of February" will soon put a strain on the government. Lew also wrote: "Protecting the full faith and credit of the United States is the responsibility of Congress, because only Congress can extend the nation's borrowing authority. No Congress in our history has failed to meet that responsibility. I respectfully urge Congress to provide certainty and stability to the economy and financial markets by acting to raise the debt limit before Feb. 7, 2014, and certainly before late February." The response on Capitol Hill was swift and predictable. Democrats are pushing for a straightforward increase in borrowing authority. And Republicans want to include other provisions related to the debt and deficit. Senate Budget Chairwoman Patty Murray, a Washington Democrat, was among those who called for an increase with no strings attached. As quoted by Roll Call, Murray stated: "With the bipartisan agreements on the budget and on funding the government for this year, we have an opportunity to move past the manufactured crises and work together on real challenges. I hope Republicans will listen to Secretary Lew and join Democrats to ensure the U.S. pays its bills on time..." But Michael Steel, a spokesman for Republican House Speaker John Boehner, dismissed that suggestion: "The Speaker has said that we should not default on our debt, or even get close to it, but a 'clean' debt-limit increase simply won't pass in the House. We hope and expect the White House will work with us on a timely, fiscally-responsible solution." What's always lost in the shuffle during debt-ceiling discussions is that the government has a debt ceiling because it's a borrower, not a creator of money. The money is borrowed at interest—lots of interest. Yet, the Constitution empowers Congress "to coin money and regulate the value thereof." That may be the escape hatch from the debt trap the American people need. Applying that constitutional change seems like a steep uphill challenge. But the fact that Congress 100 years ago handed over its money-creation power to the private Federal Reserve System is the real issue lurking behind fleeting headlines about Washington's debt-limit. Fed critics find it unfortunate that the current Congress cannot muster the courage that past Congress members found decades ago to shine a bright light on the Federal Reserve. Download your free Next News "Heroes & Villains" Poster here: http://bit.ly/KgbQD5 LIVE: http://bit.ly/1eChpVo Facebook: http://on.fb.me/18RdIek Twitter: http://bit.ly/1eChqZD Sub: http://NNN.is/the_new_media Meet the Next News Team: http://bit.ly/18RdIen Hashtag: #N3 About: Next News Network's WHDT World News program airs daily at 6pm and 11pm Eastern on Comcast, DirecTV and Over-the-Air and Online at http://NNN.is/on-WHDT WHDT World News is available to 6 million viewers from South Beach to Sebastian, Florida and to 2 million viewers in Boston, Massachusetts via WHDN. WHDT broadcasts on RF channel 44 (virtual channel 9) from Palm City and is carried on cable TV channels 44 (SD) and 1044 (HD) by AT&T, on cable channels 17 (SD) and 438 (HD) in West Palm Beach by Comcast, on satellite channel 44 (SD) in West Palm Beach by DIRECTV, and on WHDN-Boston which broadcasts on RF channel 38 (virtual channel 6) from the Government Center district in downtown Boston. More about WHDT: http://bit.ly/18RdIuB
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