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Thursday, April 14, 2011

postheadericon How to prevent a financial doomsday

Among Obama administration officials, calls to raise the debt ceiling are getting more melodramatic by the day. Timothy Geithner kicked things off in January, warning that defaulting on our debt would be "catastrophic."  Senior White House adviser David Plouffe added the flourish "catastrophic failure" and threw in a "wreak havoc" on Sunday's "Meet the Press." With few options left in the thesaurus by Monday, White House press secretary Jay Carney turned to the Bible to describe a failure to raise the debt limit as "Armageddon-like."
 
A skeptic might think the Democrats are laying the groundwork to accuse Republicans of being reckless in insisting that the debt ceiling vote be accompanied by debt reduction measures. In reality, it would be irresponsible to automatically raise the debt ceiling without implementing meaningful fiscal reforms.

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