Tagged: debt

A CBS poll on Monday shows 66% of Americans want an approach to balancing the federal budget that includes both spending cuts and tax increases.

Michigan Democratic Congressman Hansen Clarke talks about his concerns regarding the battle in Washington DC over the debt ceiling and budget negotiations. He says consumer debt is the real problem.

In the interview Clarke says:

"It's the personal debt that's crushing Americans and preventing our economy from rebounding."

State officials want Feds to pass Balanced Budget Amendment

Republican state House Speaker Jase Bolger wants Congress to approve an amendment to the U.S. Constitution that would require the federal government to pass a balanced budget every year. 

Bolger sent a letter encouraging approval of the Balanced Budget Amendment so states could work to ratify the amendment as well.

Three-quarters of states would have to approve the amendment to get it into the constitution.

Bolger says lawmakers in the federal government need to be fiscally responsible.  

“I hope they understand what the citizens of our state want, and that is that responsibility.”

Bolger says Michigan approves a balanced budget every year.

“As we’ve shown, it’s possible to balance a budget by facing fiscal reality, and our own government needs to face reality. I’m very concerned about the future of our kids, grandkids, and with the way our federal government is going, even our great-grandkids, and the debt that’s being passed onto them that they’ll be saddled with.”

Bolger says he thinks he could persuade Democrats in the state to ratify the amendment, which would require supermajorities. But Democratic Senate Minority Leader Gretchen Whitmer says Bolger is using a partisan issue to flirt with a run to unseat U-S Senator Debbie Stabenow.

Bolger denies any interest in leaving Lansing for Washington D.C.

Negotiations over the debt ceiling and federal budget continue in Washington D. C. 

Here in Michigan the still fragile state economy seems to be slowly improving with a recent uptick in job growth. But if the nation defaults on its debt, how is Michigan affected? Economically and politically?

In our weekly political conversation we talk with Susan Demas, political analyst for Michigan Information and Research Service and Ken Sikkema, former Senate Majority Leader and senior policy fellow for Public Sector Consultants.

As the clock ticks down to the Aug. 2 deadline to raise the debt ceiling, Moody's Investor Service became the first of the big-three rating agencies to put the United States' Aaa credit rating on review for possible downgrade.

Reuters reports:

In a statement, Moody's said it sees a "rising possibility that the statutory debt limit will not be raised on a timely basis, leading to a default on U.S. Treasury debt obligations."

Michigan Senator Carl Levin wants all sides to give up trying to tie increasing the federal debt ceiling to a major cut in federal spending. The budget talks have stalled as President Obama and Congressional Republicans have been unable to agree on closing tax loopholes.

Levin says tying budget cuts to increasing the debt ceiling has been a bad idea.  

“Frankly never should have been combined.  We have no choice but to raise the debt ceiling.  We ought to reduce the deficit.  And we will.   But, whether we can do that in time to avoid a real calamity here which will occur if out debt ceiling is not raised is just anybody’s guess.”  

Congress has until August 2nd to agree to increase the federal government’s debt ceiling. After that, the government could possibly risk going into default.

Officials with AARP Michigan are expecting to get a lot of telephone calls from concerned senior citizens, now with the president saying that their August Social Security checks might be delayed by federal budget talks. President Obama says without a budget deal the government may not send out social security, veterans and disability checks early next month.

Mark Hornbeck is the associate state director of AARP Michigan.    He says that could affect nearly 2 million Michiganders.

As many political pundits predicted, the debate over the federal debt ceiling is reaching a new level.

President Obama said in a news conference today that if Republicans refuse to budge in budget negotiations, then a debt ceiling deal probably won't be reached.