The president on raising the debt ceiling

"The bill would continue the authority of the United States Government to borrow funds which we must do to avoid the default on our obligations. . . for the first time in our 200-year history. . . .

"Unfortunately, Congress consistently brings the Government to the edge of default before facing its responsibility. This brinkmanship threatens the holders of government bonds and those who rely on Social Security and veterans benefits. Interest rates would skyrocket, instability would occur in financial markets, and the Federal deficit would soar. The United States has a special responsibility to itself and the world to meet its obligations. It means we have a well-earned reputation for reliability and credibility — two things that set us apart from much of the world."

Spoken by President Ronald Reagen, September 26, 1987 in a radio address to the nation on why he was signing a bill that raised the federal debt ceiling even though it included other measures on the federal budget that he opposed. The debt ceiling was raised 17 times while Reagan was president, and 11 times the packages included some increase in taxes.

He was quoted as saying, on another occasion:

"The full consequences of a default, or even the serious prospect of a default, by the United States are impossible to predict and awesome to contemplate. Denigration of the full faith and credit of the United States would have substantial effects on the domestic financial markets and the value of the dollar in exchange markets. The nation can ill afford to allow such a result."

Ronald Reagen would probably not be welcomed by the Tea Party crowd in the House. He was far too liberal for them.

Ralph