Robert Rubin: Creating a crisis over the debt limit is dangerous and irresponsible.
Former Treasury Secretary Robert Rubin, author of the new book "The Yellow Pad," and, perhaps most important, veteran of the debt ceiling wars, offers a commentary about this past week's debt ceiling showdown in Washington:
By Robert Rubin
As Treasury Secretary during the 1995 debt-ceiling standoff, Robert Rubin examines the recurring pattern of debt-ceiling crises in American politics, comparing his experience during the 1995 standoff to the recent challenges faced by the nation. Bob emphasizes a crucial distinction that often gets lost in these debates: raising the debt limit simply allows the Treasury to pay for existing obligations, rather than authorizing new spending.
Through his analysis, Bob warns of the severe economic consequences that could result from a default on U.S. debt obligations. While the nation narrowly avoided such a crisis in the most recent confrontation, he argues that continued brinksmanship over the debt ceiling increases the risk of catastrophic economic damage. Instead of using the threat of default as a political tool, he advocates for addressing fiscal concerns through the established Congressional budget process, ensuring America's economic stability while maintaining its global financial credibility.
