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)
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

Photogallery Americans Celebrate Thanksgiving With Feasts, Festivities

Holiday traditions include turkey dinners, 'turkey trots,' American-style football and New York parade with giant balloons More

Video For Obama, Ferguson Violence is a Personal Issue

With two years left in term, analysts say, president has less to lose by taking conversation on race further More

Video Italian Espresso Expands Into Space

When Italian astronaut Samantha Cristoforetti headed for the ISS, her countrymen worried how she would survive six months drinking only instant coffee 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.
To Make A Living, Nairobi Street Vendors Face Legal Hurdles, Physical Violencei
X
Lenny Ruvaga
November 27, 2014 7:05 PM
The Nairobi City Council has been accused of brutality in dealing with hawkers in the Central Business District - in order to stop them from illegally selling their wares on the streets. Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video To Make A Living, Nairobi Street Vendors Face Legal Hurdles, Physical Violence

The Nairobi City Council has been accused of brutality in dealing with hawkers in the Central Business District - in order to stop them from illegally selling their wares on the streets. Lenny Ruvaga has more for VOA News from the Kenyan capital.
Video

Video For Obama, Ferguson Violence is a Personal Issue

Throughout the crisis in Ferguson, Missouri, President Barack Obama has urged calm, restraint and respect for the rule of law. But the events in Ferguson have prompted him to call — more openly than he has before — for profound changes to end the racism and distrust that he believes still exists between whites and blacks in the United States. VOA White House correspondent Luis Ramirez reports.
Video

Video Online Magazine Gets Kids Discussing Big Questions

Teen culture in America is often criticized for being superficial. But an online magazine has been encouraging some teenagers to explore deeper issues, and rewarding their efforts. VOA religion reporter Jerome Socolovsky went to this year’s Kidspirit awards ceremony in New York.
Video

Video US Community Kicks Off Thanksgiving With Parade

Thursday is Thanksgiving in the United States, a holiday whose roots go back to the country's earliest days as a British colony. One way Americans celebrate the occasion is with parades. Anush Avetisyan takes us to one such event on the day before Thanksgiving near Washington, where a community's diversity is on display. Joy Wagner narrates
Video

Video Aung San Suu Kyi: Myanmar Opposition to Keep Pushing for Constitutional Change

Myanmar opposition leader Aung San Suu Kyi says she and her supporters will continue pushing to amend a constitutional clause that bars her from running for president next year. VOA's Than Lwin Htun reports from the capital Naypyitaw in this report narrated by Colin Lovett.
Video

Video Mali Attempts to Shut Down Ebola Transmission Chain

Senegal and Nigeria were able to stop small Ebola outbreaks by closely monitoring those who had contact with the sick person and quickly isolating anyone with symptoms. Mali is now scrambling to do the same. VOA’s Anne Look reports from Mali on what the country is doing to shut down the chain of transmission.
Video

Video Ukraine Marks Anniversary of Deadly 1930s Famine

During a commemoration for millions who died of starvation in Ukraine in the early 1930s, President Petro Poroshenko lashed out at Soviet-era totalitarianism for causing the deaths and accused today’s Russian-backed rebels in the east of using similar tactics. VOA’s Daniel Shearf reports from Kyiv.
Video

Video Hong Kong Protests at a Crossroads

New public opinion polls in Hong Kong indicate declining support for pro-democracy demonstrations after weeks of street protests. VOA’s Bill Ide in Guangzhou and Pros Laput in Hong Kong spoke with protesters and observers about whether demonstrators have been too aggressive in pushing for change.
Video

Video US Immigration Relief Imminent for Mixed-Status Families

Tens of thousands of undocumented immigrants in the Washington, D.C., area may benefit from a controversial presidential order announced this week. It's not a path to citizenship, as some activists hoped. But it will allow more immigrants who arrived as children or who have citizen children, to avoid deportation and work legally. VOA's Victoria Macchi talks with one young man who benefited from an earlier presidential order, and whose parents may now benefit after years of living in fear.
Video

Video New Skateboard Defies Gravity

A futuristic dream only a couple of decades ago, the hoverboard – a skateboard that floats above the ground - has finally been made possible. While still not ready for mass production, it promises to become a cool mode of transport... at least over some surfaces. VOA’s George Putic reports.
Video

Video Falling Gas Prices Impact US Oil Extraction

With the price of oil now less than $80 a barrel, motorists throughout the United States are benefiting from gas prices below $3 a gallon. But as VOA’s Kane Farabaugh reports, the decreasing price of petroleum has a downside for the hydraulic fracturing industry in the United States.
Video

Video Tensions Build on Korean Peninsula Amid Military Drills

It has been another tense week on the Korean peninsula as Pyongyang threatened to again test nuclear weapons while the U.S. and South Korean forces held joint military exercises in a show of force. VOA’s Brian Padden reports from the Kunsan Air Base in South Korea.
Video

Video Mama Sarah Obama Honored at UN Women’s Entrepreneurship Day

President Barack Obama's step-grandmother is in the United States to raise money to build a $12 million school and hospital center in Kogelo, Kenya, the birthplace of the president's father, Barack Obama, Sr. She was honored for her decades of work to aid poor Kenyans at a Women's Entrepreneurship Day at the United Nations.
Video

Video Ebola Economic Toll Stirs W. Africa Food Security Concerns

The World Bank said Wednesday that it expects the economic impact of the Ebola outbreak on the sub-Saharan economy to cost somewhere betweenf $3 billion to $4 billion - well below a previously-outlined worst-case scenario of $32 billion. Some economists, however, paint a gloomier picture - warning that the disruption to regional markets and trading is considerable. Henry Ridgwell reports from London.
Video

Video Chaos, Abuse Defy Solution in Libya

The political and security crisis in Libya is deepening, with competing governments and, according to Amnesty International, widespread human rights violations committed with impunity. VOA’s Al Pessin reports from London.
Video

Video US Hosts Record 866,000 Foreign Students

Close to 900,000 international students are studying at American universities and colleges, more than ever before. About half of them come from Asia, mostly China. The United States hosts more foreign students than any other country in the world, and its foreign student population is steadily growing. Zlatica Hoke reports.

All About America

AppleAndroid