Top Democrats laud GOP debt-limit move; Fed chief warns of ‘calamity’ if U.S. defaults

Source: The Washington Post

Democratic congressional leaders responded positively Wednesday to a top Republican’s “backup plan” for raising the federal debt ceiling amid a new warning from the nation’s central banker that failure to do so could trigger “a huge financial calamity.”

But the proposal, put forward Tuesday by Senate Minority Leader Mitch McConnell (R-Ky.), was rejected Wednesday by a key House GOP leader and other Republican lawmakers.

Commenting separately on McConnell’s plan, House Minority Leader Nancy Pelosi (D-Calif.) and Senate Majority Leader Harry M. Reid (D-Nev.) described it as a step in the right direction.

Federal Reserve Chairman Ben S. Bernanke warned lawmakers Wednesday of fiscal catastrophe if they fail to increase the federal borrowing limit. But conservative House Republicans accused President Obama of “scare tactics” on the issue.

Read more: http://www.washingtonpost.com/business/economy/bernanke-warns-of-calamity-if-us-defaults-republicans-decry-scare-tactics/2011/07/13/gIQAMbycCI_singlePage.html

Constitutional responsibility to have the power of the purse and control the budget, the President gets yet more power for the Executive Branch that has everyone from Jefferson to Coolidge spinning in their graves, the Democrats and Obama get to take Medicaid, Medicare, and Social Security cuts off the table, and the Republicans get to accuse Obama of being a dictator next year after giving him dictatorial power.

And Wall Street doesn't take a hit. All the ruling class wins!

And the rest of us really don't get shit.