Is there another raising of the DEBT CEILING about to happen in america? Looks like it is in the works
Bennet asks Bernanke, Geithner for specifics on debt limitBy Vicki Needham - 03/16/11 06:06 PM ET
Sen. Michael Bennet (D-Colo.) sent letters on Wednesday to the Federal Reserve and Treasury Department requesting estimates of the nation's economic and fiscal consequences if Congress doesn't raise the federal debt ceiling.
The letters ask for specific quantitative projections of how default would affect gross domestic product, the unemployment rate, interest rates and the federal government’s current deficit and the national debt.
Bennet said projections from the agencies would "assist Congress as it deliberates a future extension of the debt limit and a broader deficit reduction package."
"I believe that specific data detailing the consequences of a default would help inform Congress' deliberations about the issue," Bennet wrote in letters to Fed Chairman Ben Bernanke and Treasury Secretary Timothy Geithner.
"Playing politics with the debt limit could have disastrous effects on our economy and would likely make our deficit even larger,” he said. “When discussing this critical issue, Congress should have an informed debate over the realities of the debt limit and fully understand the consequences of failing to extend it.”
Treasury has estimated that the U.S. will hit its debt ceiling between April 15 and May 31.
Geithner has urged lawmakers to raise the ceiling without asking for other budgetary compromises in return, and he and Bernanke have warned that failure to raise the limit would have dire economic consequences.
Senate and House Republicans are expected to push for a balanced budget amendment to the Constitution along as part of an agreement to raise the debt limit, which has eclipsed $14 trillion.
Bernanke said at a recent hearing on Capitol Hill that failure to extend the debt limit would be “extremely dangerous” and “very likely a recovery ending event” that would "almost certainly create a new financial crisis," Bennet wrote.
http://thehill.com/blogs/on-the-money/budget/150275-bennet-asks-bernanke-geithner-for-specifics-on-debt-limit
