Remarks By Boehner, Cantor on the Temporary Debt Limit Increase and Spending Cuts - Distressed Volatility


Friday, January 18, 2013

Remarks By Boehner, Cantor on the Temporary Debt Limit Increase and Spending Cuts

Here is House Speaker John Boehner's statement on the long-term debt limit and spending cuts (via Spending cuts = bad for the economy and stock market (1, 2).

"WILLIAMSBURG, VA - Following are excerpts of House Speaker John Boehner’s (R-OH) closing remarks as at the House Republican members retreat today, as prepared:

“Before there is any long-term debt limit increase, a budget should be passed that cuts spending. The Democratic-controlled Senate has failed to pass a budget for four years. That is a shameful run that needs to end, this year.

“We are going to pursue strategies that will obligate the Senate to finally join the House in confronting the government’s spending problem. The principle is simple: no budget, no pay. ...

“A long-term increase in the debt limit that is not preceded by meaningful and responsible reductions in government spending might avert a default, but it would also invite a downgrade of our nation’s credit that damages our economy, hurts families and small businesses, and destroys jobs.”

# # # # #

House Majority Leader Eric Cantor said the House will vote next week to "authorize a three month temporary debt limit increase" (via

The full text of Majority Leader Cantor's statement is below:

"It was great to spend time with all the members of our conference and their families. We heard some inspiring stories from some incredible people, like Erik Weihenmayer who was the first blind person to summit Mt. Everest.

"We spent a great deal of time discussing how we can help restore a healthy economy and stop piling debt onto our children and grandchildren. It's common sense that we cannot afford to stay on the same borrowing and spending path we are on.

"Fitch Ratings agency recently said, if the debt limit is raised without substantive deficit reduction, our nation's credit rating could be downgraded. The President's plan to simply borrow more money without any reform in Washington puts us all at risk.

"The first step to fixing this problem is to pass a budget that reduces spending. The House has done so, and will again. The Democratic Senate has not passed a budget in almost four years, which is unfair to hardworking taxpayers who expect more from their representatives. That ends this year.

"We must pay our bills and responsibly budget for our future. Next week, we will authorize a three month temporary debt limit increase to give the Senate and House time to pass a budget. Furthermore, if the Senate or House fails to pass a budget in that time, Members of Congress will not be paid by the American people for failing to do their job. No budget, no pay.

"This is the first step to get on the right track, reduce our deficit and get focused on creating better living conditions for our families and children. It's time to come together and get to work."

(emphasis mine)