–Senate Majority Leader Cites Bernanke Warning On Debt Ceiling
–‘Day of Reckoning’ If U.S. Fails To Raise Debt Ceiling
–Must Not Play ‘Political Games’ On Debt Ceiling
By John Shaw
WASHINGTON (MNI) – Senate Majority Leader Harry Reid Monday said
lawmakers “would be out of our minds” not to pass legislation soon to
increase the statutory debt ceiling.
In remarks on the Senate floor, Reid said it is important for
Congress to “avert” a crisis and pass debt ceiling legislation.
Reid said that Congress should heed the warning of Federal Reserve
Board Chairman Ben Bernanke that failure to increase the debt ceiling
would be catastrophic.”
Reid said failure to hike the debt ceiling would be “disastrous.”
He said some lawmakers are willing to “risk the strength of our
economy to make a political point” on the debt ceiling.
“We can’t afford to play these political games and trigger a
default crisis that will lead to a catastrophe. We can’t afford to make
unrealistic demands or hold hostage policies that affect real people,”
he said.
Reid noted that the U.S. has reached the $14.294 trillion debt
ceiling Monday and called it a “milestone, but it isn’t one that anyone
is celebrating.”
Reid did not refer directly to House Speaker John Boehner’s
insistence that a large package of spending cuts and budget reforms be
linked to debt ceiling legislation.
Boehner repeated Monday in a statement that the size of spending
cuts should be larger than the debt ceiling increase.
“Once we avert this crisis, we can have another important adult
conversation, a conversation about saving,” Reid said.
At a briefing several weeks ago, Reid said he is open to coupling
this summer’s debt ceiling increase with aggressive steps to cut the
budget deficit.
But he added that he would prefer not attaching deficit cut
measures to the debt ceiling increase bill.
“We can do that separately,” he said, referring to a deficit
reduction package.
** Market News International Washington Bureau: (202) 371-2121 **
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