- (Photo: Reuters/Jonathan Ernst)
Sarah Palin has said she believes Congress will agree to raise the $14.3 trillion debt ceiling, however, she does not believe the severe consequences of not doing so being touted by Treasury Secretary Timothy Geithner and Obama administration officials.
Palin told Fox News on Sunday: “I don't believe Tim Geithner as he cries wolf for the fourth time now, telling us that there is a drop-dead date and crisis will ensue, and economic woes will befall us even greater than they already are if we don't increase the debt limit.”
She explained that she believed the debt ceiling would be raised “whether I want it to be raised or not”.
However, she urged those voting for the raise to ensure that they got something back out of it for “We the People”.
Palin told Fox News: “They better get a balanced budget. They better get commensurate cuts in federal spending that equate to that increase in debt, because they're going to keep incurring more and more.”
Treasury Secretary Timothy Geithner has said that the U.S. government would begin accounting procedures for the government to pay its bills through August 2. However, from that time the risk of default arises. Numerous commentators have said that would have unthinkable consequences for the financial systems in the U.S., and Moody's Investor Service has already warned that the U.S. could face a downgrade in its credit rating.
Palin, however, told Fox News that she would be voting no on raising the debt ceiling, saying “it's just going to allow the big spenders another tool to continue to increase debt.”