Monday, April 18, 2011
Republican/Teabaggers getting their "come to Jesus" moment
And it is the business and financial heavyweights who bought them that are delivering those moments in velvet words that cover the steel fist underneath.
Financial industry executives, business leaders and Treasury Department officials are visiting the freshmen in their offices, briefing them in small groups and even cornering them at dinner parties. It’s all part of a behind-the-scenes campaign to school congressional newcomers in the economic stakes of Washington’s next big fiscal fight: over the debt ceiling...The Teabaggers may kick in their stalls but it is difficult to believe they aren't learning the facts of DC life, close up.
Industry officials said they have been warning lawmakers that a failure to act would reverberate not only through the bond markets, but across America. The government would no longer be able to pay for its commitments, such as Medicare and Social Security.
The officials said they try to make clear to lawmakers that raising the debt limit does not spur new spending. Instead, it enables the government to pay off maturing debt, or spending obligations already made.
And, they point out, if the nation goes into default, its borrowing costs would spike.
“We say: ‘Guys, if we breach it, if we default on our debt, it would make it even harder to pay it back because of the interest costs. And we know that’s not your goal, so just FYI,’ ” said one financial industry executive who, like some others interviewed, spoke on the condition of anonymity to recall private conversations with lawmakers.
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