John BoehnerLast week, we noted that Republican leaders hope to use the coming showdown over the debt ceiling to push through major spending cuts. Now the GOP is beginning to put its strategy into action.
Here's how it works: In March, the federal government is scheduled to eclipse the amount it can legally borrow. The Obama administration has suggested failing to raise the ceiling before then would lead to a catastrophic U.S. default on its debt, badly weakening the dollar and roiling world financial markets (though many observers say that's not necessarily the case). But raising the ceiling will require GOP support. And many rank-and-file Republican lawmakers, rebuffed on a pledge to control spending, are deeply reluctant to provide it.
So, Republican leaders have signaled that they'll ultimately agree to raise the debt ceiling -- but they'll insist on major spending cuts as their price.Read More »from GOP using debt-ceiling debate as leverage for spending cuts