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Geithner: 'Of course' Congress will raise debt ceiling
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02/11/11 10:43 AM ET
The Obama administration doesn't have much doubt that Congress will raise the debt ceiling, Treasury Secretary Timothy Geithner said Friday.
Amid demands by Republicans in Congress that any agreement to raise the debt ceiling come with serious spending cuts attached, Geithner said it was "essential" for lawmakers to vote to allow the government to borrow more.
"It's absolutely essential they'll do it. And of course they'll do it. They've always done it in the past," Geithner said on CNBC. "There'll be a little political fear around that. But it's not something you play tough politics with. And it can't be used as a bargaining chip."
The debt ceiling is one of three votes Republicans in the House are looking to leverage this year to address budget and debt issues. The GOP will first vote on a continuing resolution to fund government for the remainder of the fiscal year, then present its budget, and then vote on the debt limit. The GOP views those measures as interlocking.
But some conservatives, particularly those lawmakers allied with the Tea Party movement, have said they won't vote to raise the debt ceiling under any circumstances. House Speaker John Boehner (R-Ohio) has said that defaulting on the debt isn't "a question that is even on the table," though Republican leaders found this past week that conservative and Tea Party members might be more unwieldy as a voting bloc.
As a way to stave off default if the Congress can't reach an agreement, Sen. Pat Toomey (R-Pa.) has proposed legislation that would force the Treasury to continue paying off debt.
Geithner dismissed such a proposal on Friday.
"Well, it just doesn't work," he said. "It still would amount to default. And it's just not a serious way, a responsible way, to help make sure we can get our obligation — you know, remember, this is the United States of America. We pay our bills. We meet our commitments. And we're looking forward to an important debate with Republicans and with Democrats on how to make sure we bring down our long-term deficits. That's where our focus should be on."
Amid demands by Republicans in Congress that any agreement to raise the debt ceiling come with serious spending cuts attached, Geithner said it was "essential" for lawmakers to vote to allow the government to borrow more.
"It's absolutely essential they'll do it. And of course they'll do it. They've always done it in the past," Geithner said on CNBC. "There'll be a little political fear around that. But it's not something you play tough politics with. And it can't be used as a bargaining chip."
The debt ceiling is one of three votes Republicans in the House are looking to leverage this year to address budget and debt issues. The GOP will first vote on a continuing resolution to fund government for the remainder of the fiscal year, then present its budget, and then vote on the debt limit. The GOP views those measures as interlocking.
But some conservatives, particularly those lawmakers allied with the Tea Party movement, have said they won't vote to raise the debt ceiling under any circumstances. House Speaker John Boehner (R-Ohio) has said that defaulting on the debt isn't "a question that is even on the table," though Republican leaders found this past week that conservative and Tea Party members might be more unwieldy as a voting bloc.
As a way to stave off default if the Congress can't reach an agreement, Sen. Pat Toomey (R-Pa.) has proposed legislation that would force the Treasury to continue paying off debt.
Geithner dismissed such a proposal on Friday.
"Well, it just doesn't work," he said. "It still would amount to default. And it's just not a serious way, a responsible way, to help make sure we can get our obligation — you know, remember, this is the United States of America. We pay our bills. We meet our commitments. And we're looking forward to an important debate with Republicans and with Democrats on how to make sure we bring down our long-term deficits. That's where our focus should be on."
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