The Herald Bulletin

Overnight Update

Breaking News

October 10, 2013

Boehner offers debt extension; White House says likely OK

(Continued)

WASHINGTON —

"The United States should not be put in a position of making such perilous choices for our economy and our citizens," the secretary said. "There is no way of knowing the irrevocable damage such an approach would have on our economy and financial markets."

The game of Washington chicken over increasing the debt limit — required so Treasury can borrow more money to pay the government's bills in full and on time — already has sent the stock market south, spiked the interest rate for one-month Treasury bills and prompted Fidelity Investments, the nation's largest manager of money market mutual funds, to sell federal debt that comes due around the time the nation could hit its borrowing limit.

At the Finance committee hearing, Lew met a buzz saw of incredulity from Republicans, who said the bigger problem was the soaring costs of benefit programs like Social Security and Medicare and the long-term budget deficits the country faces. Many expressed doubt about Lew's description of the consequences of default.

The senior Republican on the panel, Sen. Orrin Hatch of Utah, accused the Obama administration of "an apparent effort to whip up uncertainty in the markets." And veteran Sen. Mike Enzi, R-Wyoming, said, "I think this is 11th time I've been through this discussion about the sky is falling and the earth will erupt. Wyoming families aren't buying these arguments."

Replied Lew, "After they run up their credit card, they don't get to ignore it."

Lew also rejected GOP suggestions that in the event federal borrowing authority expires, the government could use the dwindling cash it has to make payments to debt holders and other high priority needs. He said federal payment systems are not designed to prioritize and said he didn't believe such an approach was technically possible.

Text Only
Breaking News
Featured Ads
More Resources from The Herald Bulletin
AP Video
Renewed Violence Taking Toll on Gaza Residents 2 Americans Detained in North Korea Seek Help US Employers Add 209K Jobs, Rate 6.2 Pct House GOP Optimistic About New Border Bill Gaza Truce Unravels; Israel, Hamas Trade Blame Raw: Tunisia Closes Borders With Libya Four Rescued From Crashed Plane Couple Channel Grief Into Soldiers' Retreat WWI Aviation Still Alive at Aerodrome in NY Raw: Rescuers at Taiwan Explosion Scene Raw: Woman Who Faced Death Over Faith in N.H. Clinton Before 9-11: Could Have Killed Bin Laden Netanyahu Vows to Destroy Hamas Tunnels Obama Slams Republicans Over Lawsuit House Leaders Trade Blame for Inaction
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Helium debate
Helium
Front page
Poll

How many Dan Patch races have you attended?

None
1-2
3 or more
All 20
     View Results