House rejects debt limit increase

[h/t Mark]

House rejects bill to raise the debt limit. Is our country now doomed to have an economic collapse if something isn't done by August 2? Of course not. When your credit card company rejects raising your spending limit, what do you do? You stop spending and pay off some of your debt. 

Excerpt from Fox News:

"House Republicans dealt defeat to their own proposal for a $2.4 trillion increase in the nation's debt limit Tuesday, a political gambit designed to reinforce a demand for spending cuts to accompany any increase in government borrowing.

The vote was lopsided, with just 97 in favor of the measure and 318 against.

House Democrats accused the GOP of political demagoguery, while the Obama administration maneuvered to avoid taking sides -- or giving offense to majority Republicans.

The debate was brief, occasionally impassioned and set a standard of sorts for public theater, particularly at a time when private negotiations continue among the administration and key lawmakers on the deficit cuts Republicans have demanded.

The bill "will and must fail," said Rep. Dave Camp, R-Mich., the House Ways and Means Committee chairman who noted he had helped write the very measure he was criticizing.

I consider defeating an unconditional increase to be a success, because it sends a clear and critical message that the Congress has finally recognized we must immediately begin to rein in America's affection for deficit spending," he said.

But Rep. Sander Levin, D-Mich., accused Republicans of a "ploy so egregious that (they) have had to spend the last week pleading with Wall Street not to take it seriously and risk our economic recovery."

He and other Democrats added that Republicans were attempting to draw attention away from their controversial plan to turn Medicare into a program in which seniors purchase private insurance coverage.

The proceedings occurred roughly two months before the date Treasury Secretary Tim Geithner has said the debt limit must be raised. If no action is taken by Aug. 2, he has warned, the government could default on its obligations and risk turmoil that might plunge the nation into another recession or even an economic depression."

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Update
Check out this debate on "Will Not Raising the Debt Ceiling Lead to Armageddon?" click here.