Bill Clinton Warns Policymakers About Using Debt Ceiling For Political Gain

Using the debt ceiling fight as a political strategy to reduce government spending is “disastrous,” former Democratic President Bill Clinton said Thursday.

Policymakers have long used budget fights as an opportunity to call attention to another issue they care about, Clinton said. “That’s fine, but to do it as a strategy to actually stop from paying America’s bills is disastrous.”

Clinton, who served two terms from 1993 to 2001, presided over two government shutdowns. Appearing on “Closing Bell,” he said a government shutdown would be a “significant negative” today, though, because economic conditions were much better in the ’90s and “it was still bad.”
“This is coming not at a time like in ’96 when the economy is picking up and the deficit’s going down and people think we’re going in the right direction anyway,” he said. “We managed our way through it, but it’s a lousy way to run a railroad.”

The threat of a government shutdown looms as lawmakers debate whether to raise the $16.7 trillion debt limit and pass a spending bill to keep the government funded beyond Oct. 1, when the new fiscal year starts. Clinton suggested the problem is uniquely American.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza