Who will blink first?
Senator Pat Toomey (R-Pa.) Came to Washington, just a month ago, but he did not waste the challenge of the Democrats Senate to the central economic issue: the ceiling of debt. Politicspa announced Last month, for Tomey’s efforts for the argument of the basis for eye -catching debt, and on Wednesday, Toomey presented his first legal act in the 112th Congress: Ful Faith and Credit Act, submitted as an amendment to the Act on re -authorization of FAA.
Expanding before The Wall Street JournalThe Tomeya Act would require the Department of State Treasury to service debt using current government income, even if the Senate does not raise the debt ceiling, in accordance with the press message provided by its office. Toomey hopes that by removing the spectrum of non -performance of the obligation, Republicans will be able to operate the deficit reduction and reduce federal expenses against the democratic majority and the White House.
According to Toomey, “the lack of raising the debt ceiling is not a desirable situation and it would be destructive, but the worst thing we can do is simply continue the irresponsible expenses for the deficit that threatens our economic future.”
Of course it can be wrong.
Like the Senate Democrats and the Obama administration he was arguingIf the United States will not raise the debt ceiling soon, the government will not accept its debt and risk a “worse financial crisis than anything we saw in 2008”.
Even Tomey admits that the possibility of failing to perform the obligation can be catastrophic, which is why he hopes to avoid such a disaster by calming debt obligations through its provisions. “Even a threat for failure to perform a liability on our debt can cause the costs of consumer loans and small companies through the roof,” wrote Tomey in a letter to the secretary of Treasury Tim Geithner.
Ultimately, Tomey is trying to convince moderate Republicans and some centrician democrats that raising the debt ceiling will not cause a second financial crash. This would give the Republicans a lever needed to win enormous wins at the level of government expenditure.
While the draft toomey act does not seem likely that the Senate, the Act, won 18 Republican components. More importantly, Tomey lends his financial knowledge to a republican club and positions himself as a leading fiscal conservative in the Chamber in the coming years.
