Posted by JM Ashby
In addition to the very real prospect of a government shutdown occurring in the near future, Republicans are also intent on playing games with the national debt ceiling. I don't think I need to spell out the consequences of what would happen if the United States government defaulted on its debt, but it seems clear to me that Boehner and Cantor do not have a great deal of influence over the freshman Teabaggers in the House.
(Reuters) - The Senate could vote this week on Republican proposals that will ensure some government payments continue uninterrupted if Congress fails to approve increased federal borrowing authority, congressional aides said on Monday.
The federal government could bump up against its $14.3 trillion limit on U.S. debt sometime in April or May, requiring Congress to approve a higher limit so the Treasury could issue more debt -- or risk default.
The Obama administration wants prompt action by Congress to raise the government's borrowing authority to an unspecified new limit. But some conservative Republicans are balking at increasing borrowing authority until serious steps are taken to reduce spending.
"if Congress fails to approve increased federal borrowing authority"
"Ifs" are not a good thing when it comes to credit. The CBO has stated that even the notion of failing to increase the debt ceiling may result in higher interest rates that increase the national debt even further.