In a statement issued Wednesday, Congressman Jerrold Nadler (D-NY) said he plans to introduce legislation to repeal the federal debt ceiling.
Nadler blasted Republicans for their position on the recent debt ceiling debate, calling it a “dangerous game of chicken Republican radicals played.”
Nadler also took aim at Standard and Poor’s for downgrading the credit rating of the U.S., saying it should not have been done because Congress raised the debt ceiling on time. He also said Standard and Poor’s “has no credible standing to downgrade anything and was itself complicit in creating the current meltdown by enthusiastically bestowing high ratings on risky mortgage-backed securities.”
As to why the Congressman wants to repeal the debt ceiling, he said it’s because it has nothing to do with the federal deficit. Nadler said, “The debt ceiling is truly arbitrary and has nothing to do with the deficit. The debt ceiling does not prevent the United States from incurring new debts. That occurs when Congress decides to authorize more spending than revenues. The debt ceiling prevents the President from borrowing money to pay those debts when they come due.”
Nadler noted that raising it has never been a problem in the past, but as mentioned previously, it was the “game of chicken the Republican radicals played with the full faith and credit of the United States” that caused the problem in the first place.
So there you have it. The debt ceiling is insignificant, and if the Congressman has his way, it will no longer get in the way of Congress to conduct its business.
There is no indication at this point that the legislation, if introduced in the House, is likely to become law, but we will keep readers informed of any future developments.