October 29, 2013

Could this be the solution to the debt ceiling fight?

You're not the only one who's sick of the debates on increasing the U.S. debt ceiling. Some in Congress are, too.

In an effort to keep the threat of default from continuing to serve as a political tool, a group of three Democratic senators has introduced a bill that would change the way negotiations over the country's borrowing limit are conducted. 

Under the measure, the president would have to request a debt limit increase when submitting annual budget proposals to Congress each year. Congress then would have to quickly reject the increase or let it take effect.

Under the current system, Congress has to approve debt ceiling increases prior to the U.S. reaching its debt ceiling, an approach that has in recent years made it an increasingly popular bargaining tool on Capitol Hill.

“The way it works right now, the debt ceiling is like a ticking time bomb that threatens massive economic destruction. This bill would defuse it,” New York Sen. Charles Schumer said in a statement introducing the legislation.

Schumer envisions the bill as a way to reduce the world's anxieties over the possibility of the U.S.defaulting on its debt. 

Hawaii Sen. Mazie Hirono, a co-sponsor of the legislation, said it will keep the debt limit from being used as a "political football." The bill would "make sure we meet our obligations and prevent the kind of brinksmanship that the American people are sick and tired of seeing in Washington,” she said in a statement. 

Read the entire piece here: http://www.denverpost.com/business/ci_24410785/could-this-be-solution-debt-ceiling-fight

By:  Meena Thiruvengadam
Source: Denver Post