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Former Treasury Department advisor Susan Ochs on the debt ceiling’s impact on the fiscal cliff negotiations.
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-- that you hook.
And the fiscal cliff is almost here but -- is another government uncertainty.
The over sixteen trillion dollar debt ceiling is looming and with this payment deadline on Monday Susan Cox a former -- and treasury advisor it's so great to have you -- This very.
Important day for the markets for -- for the government for everyone really.
I what is about strategy.
I was on air Wednesday afternoon 430.
-- Geithner comes on and and just puts out the statement by the way we're gonna run into the debt ceiling on Monday and and that's it.
Why did he do that what -- stand to gain what pressures -- putting on.
Well he could not tell us right in the they -- he has an obligation what is this new information.
The December 31 was new information okay we all knew was coming he'd been saying for months look we think we're gonna hit by the end of the year but saying Harden hard number of December 31 was new information and so.
He had an obligation to tell congress I think the actually waited -- so last minute because they didn't I want -- comes right right and really wanted to become part of the other fiscal -- negotiations because it does complicate things a little but it does kind of create.
A -- that the Republicans can use against President Obama that they will we have this other thing we wanna get out of this deal as well.
But didn't secretary Geithner sample to answer come -- say hold the deadline surprise December 31 and then also said but there's some stuff we can do acting director -- yeah.
-- a few hundred billion here and there so wasn't he really truly trying to turn up the pressure on Republicans.
He expect that he did have an obligation to tell congress so he did you know there's an official letter that he sent to the leadership of both houses to say this is what's happening now.
If you responsible Treasury Secretary he also -- we -- takes an extraordinary measures they have fewer and fewer available this time than they did the last round.
He hasn't this sort of accounting gimmicks it's not really anything permit that it will Biden and about another 200 billion dollars of what he calls had room underneath the limit which gives you about another two months.
But he's not precise numbers and anybody that's telling you how we can tell you to the -- exactly -- -- hit it as is lying or they're just misinformed because.
We never know what the tax receipts are gonna look like when they're coming and you know what the levels will be.
You don't actually ever really precisely know what it is -- -- talk about strategy again is it too ambitious to tackle this debt ceiling issue -- we -- fiscal cliff talks today.
-- there they sound like they're related and they are and -- -- the longer term strategy in the short term the fiscal cliff is dealing with the budget and of course the debt ceiling as a remember.
Is money that congress has already voted to spend this is not new it is leverage that one side has at the end of it absolutely it is and what an interesting plan that's come actually from senator McConnell the minority leader in the senate Republican leader.
Had said.
You may be we can do what we did last time which is bailout congress -- To vote against debt but it's still actually went forward so.
Normally congress has to approve the debt ceiling going forward and senator McConnell saying OK let me let it go forward -- let's congress votes against -- we don't think a majority will vote against it can -- asked people to get on the record saying at a little like.
This -- vote against it because they know will pass to their core they don't have to be irresponsible by defaulting on debt.
Now -- President Obama moved to start -- -- -- -- let's take this out of congress and let me have sole authority this lift the debt the borrowing authority anytime I want.
That's not gonna fly isn't.
Well -- been a lot of shenanigans around us in the past and that the truth is the -- the time to have the conversation around debt is when we're doing the spending right when we're passing appropriations bills that's the time to say.
Should we spend this money or not so what they're doing it they're designed to spend the money and now they just don't wanna pay the bills and that's not only the right kind of have this conversation it's not good for anyone and household -- -- certainly not good for the government -- Susan -- thank you very much have a happy new -- you keep.
Aren't well it.
