Lindsey Graham: Failure To Raise Debt Ceiling Would Cause 'Collapse & Calamity Throughout The World'

Sen. Lindsey Graham (R-S.C.) set himself apart from a number of his Republican colleagues Thursday by taking a stand in favor of raising the federal government's debt ceiling and acknowledging the possible consequences of not doing so.

"Let me tell you what's involved if we don't lift the debt ceiling: financial collapse and calamity throughout the world. That's not lost upon me," Graham said on CNN, according to ThinkProgress.

The South Carolina Republican made similar comments Sunday on NBC's "Meet the Press," saying that it "would be very bad for the position of the United States in the world at large" for the nation to default on its debts.

He did, however, go on to argue on CNN that the debt needs to be brought under control to limit the need for similar actions in the future, since "we've done this 93 times, and if we keep doing the same old thing, then that is insanity to the nth degree."

Graham expressed strong support for a GOP initiative to slash spending, a plan that has been criticized by some Tea Partyers as not ambitious enough.

"We're going to have calamity of a different fashion if we don't get our spending under control," he said. "So what I said is the House is going to go back to 2008 spending levels. I would like to see the Senate mirror what the House does. Now that means tightening our belt, but name somebody in America who hasn't had to tighten their belt."

Key administration officials such as Council of Economic Advisers Chairman Austan Goolsbee and Treasury Secretary Timothy Geithner have recently urged lawmakers to vote in favor of a resolution to raise the debt ceiling, predicted to come this spring. A failure to increase the limit, they say, could cause national and even global catastrophe.

Some legislators have vowed to oppose an increase. Freshman Rep. Mick Mulvaney (R-S.C.) and freshman Sen. Mike Lee (R-Utah), and others have discounted the potential effects of voting no on the measure, even if it would prompt a government shutdown.

Graham, for his part, appears at least somewhat willing to compromise. He may, however, try to win concessions on cuts to Social Security and elsewhere in exchange for his vote, which some on the left consider an unfavorable trade.

WATCH (via ThinkProgress):

Comments

[dlbnext]

03:35 PM on 01/16/2011

The GDP is 14.2 trillion and they want to raise the debt ceiling to 15.5 trillion. I have not seen any math101 graduates post on Huffington Post lately, but there must be a least one such graduate that can tell us what's wrong with this picture. Hint: consider we tax the entire GDP at 100% tax rate (for you tax the rich crowd). Now consider 15.5 minus 14.2 equals 1.3 trillion in new debt. And worse, USA Today the front page story was the new format for American Idol show, for the dumbed down america crowd. From history: "they fiddled while Rome burned"

[stevedowell]

02:57 PM on 01/14/2011

Why don't we all get a hundred thousand of unsecured debt and go into bankruptcy? That MUST help the government? Or if you're not that brave take the http://debtsettlement.com route....

Just watched this very inspirational video: http://www.youtube.com/watch?v=ZPWH5TlbloU
Seen it already?

[roberto8ag]

10:06 AM on 01/09/2011

From Senator Obama’s Floor Speech, March 20, 2006:

"The fact that we are here today to debate raising America's debt limit is a sign of leadership failure. It is a sign that the U.S. Government can't pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Governments reckless fiscal policies. ... Increasing America's debt weakens us domestically and internationally. Leadership means that "the buck stops here." Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better."

http://rpc.senate.gov/public/_files/alternativestothedebtlimitincreasev20.pdf

[roberto8ag]

10:21 AM on 01/09/2011

President Obama voted AGAINST raising the debt limit in 2006:

Vote 54: H J RES 47: H.J.Res.47; Increased Public Debt resolution

http://projects.washingtonpost.com/congress/members/o000167/votes/page9/

I understand (I'm not sure) he didn't show up to vote to raise the debt ceiling the following two years.

[SirCoolBreeze]

12:49 PM on 01/09/2011

Yes, you "understand, but you're not sure" so you go ahead and slam the President anyway. Stooge would be the proper term for a Democrat who does that, no? Republican STOOGE is the call. No?

[SirCoolBreeze]

12:46 PM on 01/09/2011

So? Ancient history. That was then, this is now. What's next? Something from 1999 to "prove" some point that's only available inside your own mind?

[roberto8ag]

09:34 PM on 01/09/2011

SirCoolBreeze,

President Obama, along with a democratic majority, voted against increasing the debt limit in 2006:

http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=109&session=2&vote=00054


The majority of republicans voted in favor:

http://projects.washingtonpost.com/congress/109/senate/2/votes/54/


Obama didn't bother to vote for the same measure in 2007:

http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=110&session=1&vote=00354

(I can't confirm Obama's vote in 2008, but it seems he didn't show up to vote.)


Now, 2011, democrats are in favor to increase the debt limit, some republicans today are against it.

As usual, plenty of hypocrisy to go around in politics.

[duxguts]

11:13 PM on 01/08/2011

Closet door must be still jammed.

[Clevelandinwi]

10:03 PM on 01/08/2011

graham's standard message: Be Afraid, Be Very Afraid.

[bluntobject]

09:34 PM on 01/08/2011

You just never know what to expect out of this guy anymore -- he is getting to be as bad as McCain. Graham has demonstrated such bigotry lately, and lack of humanity toward minorities, coupled with a completely warped sense of what human rights are all about. I have no respect for him  anymore on anything he says.
 
But by all means, let the right wing voters of SC keep reelecting this charmer....or perhaps they can withdraw from the Union instead?  

[Clevelandinwi]

10:04 PM on 01/08/2011

He IS mccain!!

[Gatormouth]

08:58 PM on 01/08/2011

Graham warns of "Collapse And Calamity Throughout The World'. But that is exactly what the financial backers of his party are trying to achieve. Prostate Nations are extremely vulnerable to crises takeover by Post National corporations. These wish to change the status of once "Nations" to that of Corporate colonies.

[hopeisalive]

07:43 PM on 01/08/2011

Mr. Graham is in his element as he can preach about fear on a different topic. He can use all his old speeches and just change words like "President Obama" and put in "world financial institutions". Must be a nice thing for his speech writers as they can save a lot of time. Be nice if he could add something to the process of making laws, but that's a hard thing for a card carrying member of the Party of No.

[TheIndependenceParty]

05:57 PM on 01/08/2011

Don't waste your time telling the public, Graham. Tell your boss, McConnell, and your patrons on Wall Street. They are the ones who invited the loonies to your party.

Take your whine to them.

[Vikingdave]

03:25 PM on 01/08/2011

Play chicken with the debt ceiling? Risk the Government defaulting? Shutting down the government,,,,,,,,,,,,,,,again? What could possibly go wrong.
http://www.politicalcartoons.com/cartoon/98f91c1b-1203-49e7-be31-b9be7d671f8f.html

[muck-raker]

08:14 PM on 01/08/2011

Vikingdave F&F...the US now owes the Federal Reserve 14.9 TRILLION...I do not think the Fed would mind raising the limit UNLESS they are worried about getting paid back, In 1913 The USA pledged all of its people AND all of the Gold in Ft Knox(about 800 billion) against this debt. http://video.google.com/videoplay?docid=6076118677860424204#

Most Americans have no clue who the Fed actually are, this video will come as a shock

[Vikingdave]

11:27 PM on 01/08/2011

To the right honorable Muck-raker.1st. F&F in return. 2nd.@ the video. Holy S#!t. 3rd, If you would be good enough to put your left hand on yer puter moniter, and raise your right hand, you too can be a member of Congress right here over the internet tubes.

[patman77]

02:34 PM on 01/08/2011

ooo..im scared, come out come out whereever you are.

[Gary Crum]

01:17 PM on 01/08/2011

opps, just found a "not" in my post re:Graham...second sentence....missed it when editing it..sorry

[Gary Crum]

01:15 PM on 01/08/2011

Help!!! I just found myself agreeing with Lindsay Graham!! In fact, we're not so addicted to deficity spending and an increasing national debt that we simply can end it "Cold Turkey". We've spent the last thirty years (since Ronnie was prez) drifting further and further into debt (only exception under Clinton) that we're as trapped as a nation as the millions of Americans with their personal debt. The only rational way out will likely require a) additional taxes and b) an end to our military adventurism in the Middle East......you don't need an MBA to figure out that tax cuts and trillions in military spending got us here. Yet, the same people whining about the debt ceiling are also the flag-waving advocates of endlessly increasing military spending and tax cuts. Sorry folks, it just doesn't "pencil out"......stop by here on Planet Earch sometime and we can talk about it....

[dlbnext]

03:45 PM on 01/16/2011

another zero math wizard posting here

The GDP is 14.2 trillion and they want to raise the debt ceiling to 15.5 trillion. I have not seen any math101 graduates post on Huffington Post lately, but there must be a least one somewhere. Consider we tax the entire GDP at 100% tax rate (for you tax the rich crowd). Now consider 15.5 minus 14.2 equals 1.3 trillion in new debt.

Now the stupid question: If you taxed the whole GDP at 100%, and you still spent more than you made, is the problem spending?

[American hobo]

12:30 PM on 01/08/2011

I don't get it. Just by saying our debt limit is X is somehow going to save the world? Just so long as the US changes some virtual figure the whole world will be calmed in knowing we will be happy to take on even more debt.

[gnomic]

03:14 PM on 01/08/2011

Unless the debt limit is rased, the US won't be able to pay its bills. The "full faith and credit" will be reduced to zero, and foreign investment will flee as well as domestic investment as it trys to outrun the collapse to retain as much value as possible.. Out economy will collapse and so will most of the world's. Yes, it will be that bad. There are precedents around the world in history.

EU countries have propped up Greece, Ireland, and other countries with trillions to prevent collapse of countries with economies the size of states in the USA. The US propped up Mexico's economy in the 90's. The collapse of a $5T economy with $12T of debt will result in a complete and unprecedented meltdown.

Unbelievable - yes - but not in the way you believe. Money and economies are based on faith and that is earned through performance. Defaulting for no good reason is worse that defaulting for cause. Why would anyone trust our government ever again?

[mrpossumtail]

05:31 PM on 01/08/2011

Are we not just postponing the inevitable by raising the debt ceiling? If our trade deficit trajectory will not improve due to poor consumer choices, I guess we will get what we have coming. It is a matter of sooner or later, not if.

[Raccoon1]

06:45 PM on 01/08/2011

It means we will continue to meet our obligations. It isn't about not borrowing so much as it is about paying the people we owe.

[SisterAnn]

12:26 PM on 01/08/2011

We should means test our elected officials and their appointees. Why should we pay George Bush a half million dollar pension with him being a millionaire?

We could IQ test them occasionally too.

[bcunnin679]

01:48 PM on 01/08/2011

And the same with Bill Clinton and Jimmy Carter

[SisterAnn]

04:33 PM on 01/08/2011

Fine with me.