WASHINGTON — Former House Speaker Newt Gingrich says House Republicans are making a mistake by using the issue of increasing the borrowing limit to challenge President Barack Obama on spending issues.
Gingrich tells CBS This Morning that’s a losing proposition. “In the end, it’s a threat they can’t sustain,” he says, because no one wants to see the country default on its debts.
OTTAWA – Canada welcomed Washington’s last-minute deal on the fiscal cliff on Wednesday, but warned that significant risks remained and urged more action to put the U.S. fiscal situation on a sustainable path.
“Canada welcomes the agreement reached between the (U.S. President Barack Obama) and the Congress that protects the U.S. economy in the short term,” Finance Minister Jim Flaherty said in a statement.
China and Japan, which together hold more than US$2.4 trillion in U.S. Treasuries, raised pressure on the U.S. to resolve a political impasse on its debt ceiling that threatens to destabilize global financial markets.
Japan must consider the impact of any default on its bond holdings, even as the U.S. will probably avoid a fiscal crisis, Japanese Finance Minister Taro Aso said Tuesday in Tokyo. Chinese Deputy Finance Minister Zhu Guangyao said Monday that the U.S. should prevent a default, the People’s Daily reported.
The looming prospect of a U.S. default on debt prompted China to call for the world to “de-Americanise” Sunday, amid warnings of a new global recession.
Xinhua, the official Chinese government news agency, said that as U.S. politicians continued to flounder over a deal to break the impasse, “it is perhaps a good time for the befuddled world to start considering building a de-Americanised world”.
Sen. Tom Coburn (R-Okla.) argued Wednesday that failing to raise the debt ceiling would not inflict economic disaster — he even said that the "managed catastrophe" of breaching the debt ceiling might be necessary." "The debt ceiling has never not been raised, so there is no debt ceiling," Coburn said on CNN's "New Day."