“Failure to increase the debt ceiling would cause serious economic and financial disruption”
Jan. 14, 2013
WASHINGTON, D.C. — Steve Bell, senior director for economic policy at the Bipartisan Policy Center, issued the following statement today on the debt ceiling:
”The statutory debt ceiling of the United States should be raised. Failure to increase the debt ceiling would cause serious economic and financial disruption, as Federal Reserve Board Chairman Ben Bernanke has noted on several occasions.
“As we laid out in our recent debt ceiling analysis, and Treasury Secretary Timothy Geithner confirmed today, the federal government will exhaust its borrowing authority between mid-February and early March.
“It is up to elected policymakers to determine how the debt ceiling will be increased and to also determine what policy changes should accompany the extension. We still believe that the framework developed by the Bipartisan Policy Center to compel the 113th Congress to use ‘accelerated regular order’ to enact fundamental tax and entitlement reforms to reduce future indebtedness can be relevant to fiscal negotiations.
“For the reserve currency nation to fail to meet its obligations and not pay its bills on time and in full would dramatically alter global economic growth and lead to a chaotic global financial market.”
Click here to read the Bipartisan Policy Center’s latest debt ceiling analysis.
Economic Policy Project