Childish Republican games over debt ceiling cost U.S Treasury, US taxpayers – $1.3 billion

The bitter partisan fight over raising the U.S. debt ceiling last year pushed up the U.S. Treasury’s borrowing costs by $1.3 billion, congressional auditors said on Monday…

Delays in raising the debt limit created uncertainty in the Treasury market and led to higher borrowing costs, according to a report from the Government Accountability Office (GAO), an investigative arm of Congress.

In addition to the $1.3 trillion in higher interest rates for fiscal 2011, GAO said multi-year Treasury securities issued last year also will continue to accrue higher interest costs for years to come.

Republican lawmakers had refused to raise the debt ceiling — the legal amount the U.S. Treasury is allowed to borrow — without concessions from Democrats to reduce massive budget deficits, which have exceeded $1 trillion since President Barack Obama took office.

The fight eventually brought the U.S. government to the brink of a debt default and cost the United States its top-tier, triple-A credit rating from Standard and Poor’s…

The U.S. Treasury is on track to hit the $16.4 trillion debt ceiling before the end of the year, though emergency tools will allow the department to push the deadline into 2013…Here we go, again!

I dearly wish there was some administrative way to tie Congressional paychecks to failures like this. I realize there always are sufficient dimwit chickenhawks in government to shove our nation into a war with anyone. Congressional ignoranuses are always willing and able to allow our idiot invasions to proceed with no provision made for the cost of invasion, the cost of processing one of our wars to its bitter end, the cost of trying to rebuild our target nation back to a semblance of life before The Leader of the Free World decided to stage-manage their lives. But, the money chickens always come home to roost.

Yes, their paychecks don’t matter as much as the payoffs, kickbacks, silly jobs as imitation lobbyists provided to aid corporate crooks in manipulating tax law and subsidies. But, cutting one small corner from their pants pockets would be a positive start.

Sorting out debt limits is dependent on how and when – more than how much. Trying to drag our economy back from the most crushing disaster since World War 2 demands thought, enterprise and honesty. What we’re getting from Congressional Republicans and the Kool Aid Party is hypocrisy grounded in their contempt for people who work for a living.

7 comments

  1. kip

    It really is all Obama’s fault. If McCain had won, Republicans would have acted more responsibly, and no matter what, Democrats are always in compromise mode.

    • god

      I presume irony.

      As much as Dems are spineless, Republicans seem bent on matching all records bending over for the Kool Aid Party.

  2. Michelle Meaders

    The headline and one quote say $1.3 Billion. Another quote says $1.3 Trillion. Am I missing something?

    • eideard

      Reuters misses another chance at clarity. Both numbers are correct and dealing with separate topics.

      The reporting should only bother folks who read and expect consistency, logic. Which is why I didn’t notice anything. :)

    • moss

      I get to debate enough bears during the day, but – read more history, history of American economics, instead of Republican and bearsville agitprop. The time to address deficits and deficit spending, debt and income, is when the economy is growing. Austerity in the bowels of a recession is only counterproductive – as our kin in the EU are proving all over again.

      An equitable and progressive tax structure – minus loopholes so beloved of our tax code – is a start. Electing courageous reformers from the Left is a start – not rightwing Kool Aid nutballs who believe that removing oversight and regulation will solve a damned thing. Take a stand for historic reason not myth.

      Our deficit, for example, hasn’t had a single component added by SSA – but, the ideologues would privatize and hand it over to corporations running 13-40% management costs – while our government makes do with <3%. Remove the cap on the tax and we're covered through the demographics of the next century.

      Same holds true for Medicare. Remove the stricture put in by Republicans and Blue Dogs and let Medicare become the sort of single payer system the Pentagon has – with negotiated fixed prices for services and products. All we're doing now is continuing subsidies for corporations with no need for subsidy at all.

      Timing is everything. But, it all requires the courage to step away from believing the clown show running the TweedleDeeDum parties we're allowed.

      • keaneo

        Cripes, Moss – here it is Friday and you’re hardly grumpy. That Apple dividend, yesterday, must have felt good.

        Now, if Sunderland can just knock off Arsenal, tomorrow…?

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