US Government urges Congress to raise debt limit

WASHINGTON (AFP) - The US government appealed to Congress to raise the national debt limit by the end of this week or face a potential shutdown of federal operations for lack of cash.

"It's really the week this must be done because the Congress will be out of session at the end of this week," Treasury spokesman Tony Fratto told reporters.

Treasury Secretary
John Snow has issued increasingly urgent warnings to Congress that the statutory debt limit of 8.184 trillion dollars is fast-approaching, and that the government will then lose its borrowing power.

Last week, Snow said new issues of federal debt instruments would only raise enough cash to keep government operations financed until mid-March.

"I must advise you that the Treasury has now taken all prudent and legal actions to avoid reaching the statutory debt limit," Snow wrote in a letter to senior Republican and Democratic members of Congress.

"I therefore strongly urge Congress to pass a debt limit increase immediately."(full text by clicking title)

So, what happens if the debt limit isn't raised? All non-essential federal government operations will have to shut down. So, no Social Security, no HUD, you get the picture.

Just how out of control is this? The U.S. Federal Debt was around $5.5 trillion in 1997 and remained virtually unchanged through September of 2001.(Source) Then we went on an unprecedented spending spree while at the same time cutting taxes. For a little more perspective the Federal debt increased $3.1 trillion from 1980 - 1992. It has increased more than that in the last 5 years, going from $5.6 trillion to $8.8+ trillion.

Yes, there is some evidence here that it has to do with the party in control of the White House but it goes deeper than that. We as citizens have to call on our leaders to have a plan. Currently the plan is cut taxes and hope that the economy goes through the roof to pay the bills. Sounds nice. However, you can't spend money like a drunken sailor in the process. (No offense meant to our fine men and women in the U.S. Navy.) You have a chance to speak in November.