September 20, 2011 Hearing: "What is the Real Debt Limit?"

"When the Joint Economic Committee must hold a hearing on what the real debt limit is, the American people know instinctively that theif federal government is borrowing too much. One does not really want to contemplate the grave consequences if creditors were to lose faith in the federal government to repay its debts.

The United States supplies the world’s primary reserve currency; has the world’s largest economy; and is source of much of the world’s technological progress and economic development. The federal government should never violate its real debt limit because the consequences of exceeding it would be calamitous not just for the United States but indeed the entire world.

Nevertheless, the JEC must hold this hearing because the question now is asked: What is the real debt limit? Amazingly there are some that do not believe the U.S. has a serious debt problem. Given the anemic recovery, these individuals argue that President Obama’s deficit spending splurge should continue. "Don’t worry because interest rates on Treasuries remain low, and the federal government can print more money to pay all its debts," they say...."


Opening Statement
Rep. Kevin Brady
Vice Chairman
Joint Economic Committee

See Complete Opening Statement and Witness testimonies Here

See additional video of the Hearing here at the JEC youtube webstie