News / USA

House Speaker Boehner: US Will Not Default on Debt

Speaker of the US House of Representatives, John Boehner (File Photo)
Speaker of the US House of Representatives, John Boehner (File Photo)
TEXT SIZE - +
Cindy Saine

The speaker of the Republican-controlled U.S. House of Representatives, John Boehner, has said that the United States will not default on its debt, but that the Obama administration must cut government spending. Experts say the U.S. government's debt limit could be reached as soon as March 31, and Congress must vote to approve raising the debt ceiling in order for the United States to take on more debt.

Republicans swept last November’s mid-term elections nationwide with promises to crack down on federal government spending in order to reduce the spiraling national debt.  Some fiscally-conservative Tea Party Republican lawmakers have threatened to vote against raising the U.S. debt ceiling of $14.29 trillion when that limit is reached. Experts say that will likely happen sometime between late March and mid-May.

But in an interview with Fox News Sunday the new Republican House speaker, John Boehner, said a U.S. default on its financial obligations would be a disaster and is "not even on the table." "That would be a financial disaster not only for our country, but for the worldwide economy.  Remember, the American people on election-day said ‘we want to cut spending and we want to create jobs.’  And you can't create jobs if you default on the federal debt," he said.

Echoing other Republican lawmakers, Speaker Boehner made clear that Democratic President Barack Obama must be willing to make significant cuts to the federal budget. "And if the president is going to ask us to increase the debt limit, then he's going to have to be willing to cut up the credit cards.  We have got to work together, by listening to the American people, and reducing these obligations that we have," he said.

Boehner said the House Appropriations Committee will come up with targeted budget cuts in a proposal set to come to the House floor around mid-February.  Last week, the House voted on a non-binding measure to cut government spending by 20 percent to 2008 levels.

President Obama has not called for such large budget cuts, but has called for a five-year freeze on non-discretionary government spending (government spending that is required by law).  In his State of the Union address last week, the president said there will have to be cuts in some areas, but also called for government investment in education, innovation and infrastructure to keep the U.S. competitive on the world market.

New White House Chief of Staff William Daley told CBS News’s Face the Nation that even talk of a default on U.S. financial obligations could scare investors in government bonds and the stock market. "No one wants the government to go into default.  We have seen governments around the world go into default, and considering we are just beginning to come out of this great recession we were in, any thought, any concept of trying to use the debt ceiling as some sort of threat or leverage will run the possibility of spooking the markets," he said.

Benton Ives of Congressional Quarterly/Roll Call says there is widespread agreement among economists that a showdown on the debt ceiling would be bad for the economy.

"Given the concern that it could cause, you know a, for example, rapid decline in the Dow Industrial Average, and the resulting losses for stockholders, the political leadership of the Republican Party has no interest in seeing that happen. So he really has got to start digging his heels in and trying to convince some of his members, including a lot of these new freshman Tea Partiers  that this is not the kind of brinksmanship that is going to be good for the party long term," he said.

Apart from a vote on raising the debt ceiling, Congress will also have to pass a budget to fund the federal government for the current fiscal year by March 4 - another opportunity for either  compromise or a showdown between Democrats and Republicans on government spending.

You May Like

Analysts Warn of Regional Proxy Conflict in Afghanistan

Analysts warn if Kabul’s neighbors do not start to cooperate, competing desires for influence could deteriorate into a bloody proxy war in the country More

Saudi Intelligence Chief Replaced

Bandar bin Sultan came under criticism for supporting al Qaida, prompting King Abdallah to wrest Syria operations away from him in February, handing them to Interior Minister Prince Mohammed bin Nayef More

Poetry Magazine editor Don Share talks what makes a good poem with VOA's David Byrd

What makes a good poem? And is poetry as viable an art form as it once was? To find out, VOA's David Byrd spoke to Don Share, the editor of Poetry Magazine. More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Google Buys Drone Companyi
|| 0:00:00
...
 
🔇
X
George Putic
April 15, 2014
In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
Video

Video Ray Bonneville Sings the Blues and More on New CD

Singer/songwriter Ray Bonneville has released a new CD called “Easy Gone” with music that reflects his musical and personal journey from French-speaking Canada to his current home in Austin,Texas. The eclectic artist’s fan base extends from Texas to various parts of North America and Europe. VOA’s Greg Flakus reports from Austin.
Video

Video Millions Labor in Pakistan's Informal Economy

The World Bank says that in Pakistan, roughly 70 percent work in the so-called informal sector, a part of the economy that is unregulated and untaxed. VOA's Sharon Behn reports from Islamabad on how the informal sector impact's the Pakistani economy.
Video

Video Passover Celebrates Liberation from Bondage

Jewish people around the world are celebrating Passover, a commemoration of their liberation from slavery in Egypt more than 3,300 years ago. According to scripture, God helped the Jews, led by Moses, escape bondage in Egypt and cross the Red Sea into the desert. Zlatica Hoke reports that the story of the Jewish Exodus resonates with other people trying to escape slave-like conditions.
Video

Video Police Pursue Hate Crime Charges Against Kansas Shooting Suspect

Prosecutors are sifting through the evidence in the wake of Sunday’s shootings in a suburb of Kansas City, Missouri that left three people dead. A suspect in the shootings taken into custody is a white supremacist. As VOA’s Kane Farabaugh reports, he was well-known to law enforcement agencies and human rights groups alike.
Video

Video In Eastern Ukraine, Pro-unity Activists Emerge from Shadows

Amid the pro-Russian uprisings in eastern Ukraine, there is a large body of activists who support Ukrainian unity and reject Russian intervention. Their activities have remained largely underground, but they are preparing to take on their pro-Moscow opponents, as Henry Ridgwell reports from the eastern city of Donetsk.
Video

Video Basket Maker’s Skills Have World Reach

A prestigious craft show in the U.S. capital offers one-of-a-kind creations by more than 120 artists working in a variety of media. As VOA’s Julie Taboh reports from Washington, one artist lucky enough to be selected says sharing her skills with women overseas is just as significant.
Video

Video UN Report Urges Speedier Action to Avoid Climate Disaster

A new United Nations report says the world must switch from fossil fuels to cleaner energy sources to control the effects of climate change. The Intergovernmental Panel on Climate Change released the report (Sunday) following a meeting of scientists and government representatives in Berlin. The comprehensive review follows two recent IPCC reports that detail the certainty of climate change, its impacts and in this most recent report what to do about it. VOA’s Rosanne Skirble has the details.
AppleAndroid