Durbin, Kirk: Eliminating Debt Ceiling Is A Bad Idea
WASHINGTON (CBS) -- Ratings agency Moody's believes if the U.S. eliminates the debt ceiling, it would reduce the uncertainty amongst bond holders.
But U.S. Senators Mark Kirk (R-Ill.) and Dick Durbin (D-Ill.) both say the suggestion would do major damage to the economy.
LISTEN: Newsradio 780's Mary Frances Bragiel reports
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As WBBM Newsradio 780's Mary Frances Bragiel reports, the argument behind Moody's suggestion, according to an analyst, is that a limit on the debt ceiling raises periodic uncertainty, and an elimination could possibly end that problem.
Kirk says the idea is nonsense, because the U.S. already needs more spending control, not less. He points to the economic collapse in Ireland, and the fact that other countries stopped lending money.
"Interest rates went up so fast, so quickly, that 40 percent of family mortgages in Ireland disappeared over a weekend," he said.
Durbin, who believes raising the debt ceiling is the only alternative, says he doesn't know how it could be eliminated.
"To just declare that it's over and to ignore it is to ignore the reality – you need to borrow more money," he said.
