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Repeal the Debt Ceiling?

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    Rep. Jerry Nadler (D-NY) on his new legislation, which calls on Congress to repeal the debt ceiling.

  • Duration 4:55
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Showdown at some legislators say the best way to avoid -- -- battle is to repeal the debt ceiling itself congressman Jerry Nadler.

It's reducing -- legislation today and he joins me.

Now in full disclosure he is my congressmen and currencies do relevant job in your district were very happy with -- there thank you but I do have I set that up as a complement to criticize you because I I look at a debt ceiling which started at 101000000010.

Trillion dollars forgiving when the president came -- in office.

It's now sixteen.

Trillion dollars don't we need.

The restraint of a debt ceiling to prevent the spending from even going further.

No.

And it and it doesn't restrain spending at all.

Congress makes the decisions as to what to spend time what the level of taxation should be what the level of spending should be.

The debt ceiling is just there and send and and says you cannot.

Pay the bills that you voted to incur a year ago in two years ago three years ago and that's just wrong.

Now it used to be harmless and that the debt ceiling would be raised with a little demagoguing hearing that -- -- and -- -- -- the -- Seriously suggests not raising it was rates seven times.

During the bush in the second Bush Administration would -- -- -- great.

Debate.

But now it's being used as blackmail and could wreck the entire American congress -- there's -- all of -- percent because in 2000 to June 2002.

In November 2004 to 2006.

Guess who voted against raising that that's -- Jerry Nadler member of congress so.

So what's -- as I said why don't you are against why are -- in favor of keeping a restraint that debt ceiling restraint then that.

And not so now.

Because it was a meaningless gesture frankly.

When when you had the Dem -- Republican president Republican congress the minority.

-- -- -- vote against it knowing perfectly well it would test knowing ever seriously tried to have it not cast.

And when whenever we were in the majority we -- -- Democrats as we -- even in the Bush Administration.

Because you knew it had to pass now I don't want it and that's trying to make any.

Excuses.

For the damage to confirm -- political demagoguery in the past but the fact is what is new is that the Republicans now seem serious about not raising the debt ceiling.

And that could throw the economy into real real depression more cars -- what is really new is the degree of spending that we have in this country that we really haven't had before and you look at without the -- -- -- -- -- because -- a lot of people talk about numbers in the future the president says.

I'm for reducing spending by so much trillion dollars but let's just look at the numbers that have happened the numbers that we can put up from the department of treasury.

2008 we saw about three trillion dollars of spending we saw that jump in 2009 of course a lot of that was as a result of the stimulus.

But -- those numbers that 500 billion or more in spending that this president has brought on board has remained for the past four hour.

Physical -- years so we have this 20% increase in spending that's really different and that's one of the main reasons we've seen this debt jumped to sixteen trillion dollars.

First of -- there -- two separate issues which shouldn't be confused.

Issue number one is raising the debt ceiling which simply allows you to pay the bills that were already voted for.

And that was already voted for maybe they shouldn't have been to there was already voted for not to raise the debt ceiling would cause that of course the government to default that -- -- Interest rates it's finally got all the way we -- I can't allow that to go by congress -- because there's no guaranteed.

That that we would default as a result of of reaching that point I mean we have enough revenue come again to pay off our bond holders.

Well depends what you mean by default.

If you -- the bond holders.

At the expense of not paying Social Security checks to the salaries of the military of the salaries of the of the air traffic controllers the fact is we have 40% difference between the income coming in.

And the expenditures that were voted.

That would be regarded by the financial markets again.

As as a default -- -- -- and why we don't know -- it's kind of lessons today -- -- noted -- that territory there's no question because of -- because as you point out quite rightly.

Forty cents of every dollar that we spend is borrowed that's part of the problem inside the -- there's so much and they are quite low cost.

Wouldn't it make sense to -- to -- somehow.

The debt CEO this agreement on the debt ceiling to restrain a permanent restrained no spending.

No it does not because it ineffective saying -- restrain spending to the amount that we want.

Or we'll destroy the economy it's like it'll 1930s gangster movie -- equities saying tonight's economy get over -- pity that you happen to blow up if you don't -- -- today.

But it got -- -- -- forgive my congressman is from New York he he says it would that New York way of say -- And that's why we love men -- district thank you very much Jerry -- good to see it you're quite welcome pre.

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