Chuck Schumer: GOP Risking, 'God Forbid.. A Depression' With Budget Antics

WASHINGTON -- Senator Chuck Schumer (D-N.Y.) warned on Sunday that if House Republicans, in an effort to flex their fiscal conservative muscles, held up passage of a budget this coming March, it could send the United States into a deep recession and possibly a depression.

The New York Democrat, appearing on CNN's "State of the Union," said that the GOP was "playing with fire" by threatening either to not fund the government or not raise the debt ceiling unless they were first placated with deep spending cuts.

"On March 4 the government-funding resolution expires and it seems that a lot of Republicans in the House want to risk a shutdown of the government if they don't absolutely get their way," said Schumer. "That was a mistake when [former House Speaker] Newt Gingrich tried it in 1995. It would be a bigger mistake now. It is really playing with fire.... you can risk the credit markets really losing some confidence in the United States Treasury and that could create a deeper recession than we had over the last several years or, god forbid, even a depression."

"It is playing with fire to risk the shutting down of the government just as it is playing with fire to risk not paying the debt ceiling," he added.

The raising of the rhetoric and associated stakes surrounding the budget and debt ceiling debate is something Democrats have been doing for weeks. Austan Goolsbee, the chairman of the Council of Economic Advisers, set the trend when he called the idea of a self-imposed default "insanity."

To a certain extent, the tack has worked, with GOP leadership showing little of the willingness for a political showdown that the younger, predominantly Tea Party members exhibit.

"That would be a financial disaster not only for our country but for the worldwide economy," House Speaker John Boehner (R-Ohio), said of a U.S. default on its debt, during an appearance on Fox News Sunday. "Remember, the American people on Election Day said, we want to cut spending and we want to create jobs. You can't create jobs if you default on the federal debt. Listen, there has been a spending spree going on in Washington these last couple of years beyond control and the president is going to ask us to increase the debt limit then he has got to be willing to cut up the credit cards. We have got to work together by listening to the American people and reducing these obligations that we have."

"I don't think [defaulting] is a question that is even on the table," he added.

Comments

[StCyrlyMe2]

03:39 AM on 02/09/2011

If the Republicans can find a way to blame their outrageous actions on the POTUS They will be more then happy to do exactly that
They have become so foolish in their thinking, that they really believe all their blockage of needed legislation is a win for them
It never occurs to them, the American people are focused like a lazier on them and everything they do
They continue to have these false aspirations of the 2012 election working to their benefit, not realizing that it is a Presidential election & 2 yrs after having to put up with them
People will be coming out of the toilets to vote and it wont be for them!

[rickthepainter]

03:58 PM on 02/03/2011

In your household,the fastest way to get out of debt is to increase income,not turn off the electricity.The best way to pay down debt, is increase revenues,The fastest way to increase revenues, is have a larger economy,the best way to grow the economy is to create living wage Jobs,creating more qualified buyers creates demand,which creates more jobs,which creates more revenue to get out of debt with.Efficiency in Government, Yes, slashing good programs justs put more people out of work ,and reduces revenue.Jobs Today,Efficiency Today,Deficits Tomorrow.

[rickthepainter]

03:37 PM on 02/03/2011

Two thirds of Corporations don't pay taxes ?ie.,GE,none, etc.Tax all Corp.s 30% whether from here or from over seas profits,pay down debt.Corporations sitting on two trillion,Tax it away if they don't create American Jobs, pay down debt.Tax breaks for the wealthy?by definition they don't need it,if they don't create good paying American Jobs,tax it, pay down debt.No more unfunded Wars,Cut waste and fraud in Defense.Remove redundancy from Government and inefficiency ,pay down debt.Rebuild infrastructure,create jobs, increase revenues, pay down debt. Jobs Today,Deficits Tomorrow

[rickthepainter]

03:13 PM on 02/03/2011

To, The President and Disinterested Members of Congress,60 million homes have mortgages,25% are upside down,H.A.M.P. is failing in its purpose.Mortgage Banks write off losses from short sales and foreclosures,(no skin,no motivation), home owners out in the street,this further reduces neighborhood home values,and property tax revenues.Solution,remove those write offs and replace with write offs for principal reductions.15 million home owners back to zero,instead of upside down,Banks still get to write off losses,stops continued home value decline.Until Banks have motivation to help ,they wont.(For the greater good) Last years record of foreclosures set to be broken this yr.PS.Jobs today,Deficits tomorrow.

[MoreFreedom]

08:39 PM on 01/31/2011

Schumer said we need to get our debt under control http://www.youtube.com/watch?v=fG0Jpu9geWY&feature=player_embedded and to do that he wants to raise the limit on the US credit card. How much sense does that make?

[MoreFreedom]

08:32 PM on 01/31/2011

See Schumer's statement that the 3 branches of government are the house, the senate and the president at http://www.youtube.com/watch?v=fG0Jpu9geWY&feature=player_embedded

[MoreFreedom]

08:31 PM on 01/31/2011

Why did Stein leave out Schumer's comment that "we have 3 branches of government, the house the senate and the president"???? So as not to show the ignorance of Schumer that our 3 branches are the executive, legislative and judicial?

If Schumer thinks the Supreme Court and its subsidiary courts are not a branch of government, perhaps it's because the Supreme Court is mostly a rubber stamp for the statists in the other 2 branches.

Schumer also said we have to get our debt under control, so why does he want to borrow more by raising the debt limit? Shouldn't our legislators plan to live within a budget with limits? Or is he acting like a child that doesn't want any limits on his behavior?

[puffhostess]

08:14 PM on 01/31/2011

This balloon head is the same one that thinks the three branches of government are the house, senate, and presidency. How does NY continue to elect this fool?

[fugmo]

03:41 PM on 01/31/2011

Cut Defense in half over the next 20 years. Implement Medicaid for all and set(control) the prices in the healthcare industry. If everyone is covered by Medicare, then doctors will take Medicaid patients regardless of how miniscule the profit margin. Being a doctor may not automatically qualify someone to be a millionaire but they will still make a good living and still help the sick.

[MoreFreedom]

08:33 PM on 01/31/2011

Given that we have 5% of the world's population, and spend as much on the military as the rest of the world combined, would suggest that our military spending is 10X larger than it should be.

[ScapeGoat]

02:10 PM on 01/31/2011

For those who think this is a joke:

Educate yourself:

http://capitalgainsandgames.com/blog/bruce-bartlett/2090/very-real-threat-us-debt-default

ignorance may be bliss but stupidity is dangerous.

[ScapeGoat]

01:58 PM on 01/31/2011

Unfortunately, the only way to wake some of these people up, would be to go into a full blown depression. The generation that went through the depression is fading away but if you know someone who lived through it, you should educate yourself by takling to them and get an idea what it was like to got through it.

It would be a disaster if we were to go through another republican great depression but it appears that with the repus in charge of the house, it is a real possibility.

[ShineaLight2665]

01:55 PM on 01/31/2011

Gee thanks for another big scare and a way-out reason by the republicans to blame President Obama for something again Schumer.

[samtee]

01:28 PM on 01/31/2011

http://www.youtube.com/watch?v=fG0Jpu9geWY&feature=player_embedded

[gman87]

01:26 PM on 01/31/2011

Chuck is probably still stinging from Harry Reid's victory. "I coulda had class. I coulda been Senate Majority Leader. I coulda been somebody, instead of a bum..."

[MoreFreedom]

08:35 PM on 01/31/2011

Given Schumer's knowledge of the federal government (where he said we have 3 branches: the house, the senate and the president - but it's the legislative, executive and judicial) I'm surprised he even got elected. What a dunce.

[ta8ersalid]

01:06 PM on 01/31/2011

At this point, with the current situation in Govment.

I am willing to risk anything to kick all these bumbs out of office and start over.

Here is what needs to happen:
1. Close the Federal Reserve and take control of the money supply.
2. All Lobbyists Banned from politician contact, no donations.
3. Public funding of all campaigns, no private donations.
4. Law to force congress to balance the budget.
5. Stop gross speculation in commodities on Wall Street.
6. Tax imports from China.

etc.

The biggest problem is politicians being on the take to pass legislation.

[MoreFreedom]

08:36 PM on 01/31/2011

Isn't public funding of elections like telling politicians, "You don't have to raise money from the people, you can take it from them via the force of government instead." Isn't this a little like giving a kid the car keys and a bottle of whisky?