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Stutzman 'Biggest Fear' Is Credit V16, N43 Thursday, July 28, 2011 Stutzman ‘biggest fear’ is credit hit Rokita expects ‘TARP-like’ 11th hour convulsions By MARK SCHOEFF JR. WASHINGTON - Lawmakers likely will not raise the federal debt- limit ceiling limit until the 11th hour – whether that witching time occurs on Aug. 2 or several days later. The Washington Post reported this morning: Senior aides predict there will be a final vote in the late afternoon or early evening. House Republicans are holding a conference at 9 a.m. Then Boehner’s leadership team has scheduled a news conference at 1:30 p.m. The two hours of debate on the bill are not expected to begin until after the news confer- U.S. Rep. Marlin Stutzman, shown here at a Statehouse Tea Party rally in 2010, is moving ence. Under this timeline, the final toward Speaker Boehner on the debt ceiling. “My biggest fear is a downgrade in our credit vote would be a dinnertime affair. rating,” he said. (HPI Photo by A. Walker Shaw) Republicans are increasingly op- timistic they could win a majority ing strongly in the leadership’s favor. for the bill. Prominent conservatives such as Reps. Darrell But Club for Growth President Chris Chocola, while Issa (R-Calif.) and and Mike Pence (R-Ind.) have said good things about the measure. The freshmen seem to be break- Continued on page 3 Daniels warns of default By BRIAN A. HOWEY WEST BADEN, Ind. - Indiana Gov. Mitch Daniels cited President Obama’s “intransigence” as the biggest problem in the gathering debt ceil- “Get your ass in line. I can’t do ing crisis facing Congress this week. But the former White House budget this job unless you’re behind director painted a dire scenario if the United States were to default on its me.” obligations, as some members of his - House Speaker John Boehner, own Republican Party from Indiana are advocating. to the GOP caucus The remarks were among his most detailed on the emerg- ing crisis since he bowed out of the HOWEY Politics Indiana Page 2 Weekly Briefing on Indiana Politics Thursday, July 28, 2011 Republican presidential race in June. for tomorrow. And so this elephant is Many Republicans believe that Daniels going to have to be eaten one bite at would have been a leading voice in the a time. The first bite would be some- nation’s budget deficits and debt crises thing that demonstrates to Americans, www.HoweyPolitics.com that he described as the “red menace” and by the way, the markets, that we when he addressed CPAC in February. don’t intend to spend and borrow our The former OMB director has written a way over a cliff.” Howey Politics book about the American fiscal house, Daniels added that “you’re Indiana due for release in September. never going to solve this problem In February, Daniels told CPAC in one great step. It’s going to take is a non-partisan newsletter in Washington, “We cannot deter it; actually years of steps if you look at based in Indianapolis. It was there is no countervailing danger we the arithmetic. Therefore, don’t let the founded in 1994 in Fort Wayne. can pose. We cannot negotiate with it, perfect be enemy of the good. If you any more than with an iceberg can get, as they’ve been close to with Brian A. Howey, Publisher or a Great White. I refer, of course, to the debts our na- Mark Schoeff Jr., Washington tion has amassed for itself Jack E. Howey, editor over decades of indulgence. Beverly K. Phillips, associate It is the new Red Menace, editor this time consisting of ink. We can debate its origins end- lessly and search for villains Subscriptions on ideological grounds, but $350 annually HPI Weekly the reality is pure arithmetic. $550 annually HPI Weekly and No enterprise, small or large, HPI Daily Wire. public or private, can remain self-governing, let alone suc- 'Call 317.627.6746 cessful, so deeply in hock to others as we are about to Contact HPI be.” Howey Politics Indiana Daniels spoke of a “morbidly obese” American govern- the President, if they can get a mean- 6255 N. Evanston Ave. ment in need of “bariatric surgery.” ingful first step on spending – and Indianapolis, IN 46220 On Tuesday, Daniels stayed of course you have to raise the debt www.howeypolitics.com true to this line of thought. ceiling at some point – they ought to [email protected] “Far and away the biggest do that and the next morning start 'Howey’s cell: 317.506.0883 problems are the intransigence of discussing step two.” the President and his allies,” Daniels Asked if allowing a default 'Washington: 703.248.0909 said at a Statehouse news conference would be a good thing, as U.S. Rep. 'Business Office: 317.627.6746 Tuesday morning. Asked by Howey Todd Rokita, Indiana Treasurer Rich- Politics Indiana what his perspective ard Mourdock, and U.S. Rep. Michele © 2011, Howey Politics Indiana. on the crisis is, Daniels responded, Bachmann, who is seeking the GOP All rights reserved. Photocopy- “Everybody who honestly approaches presidential nomination, have advo- this subject knows we have a huge cated, Daniels said, “I disagree with ing, Internet forwarding, fax- problem. We cannot possibly gener- that. Their intentions are good but I ing or reproducing in any form, ate the revenues to pay for it and go don’t think they’ve thought through whole or part, is a violation of on borrowing 40 cents on every dollar the potential consequences to the federal law without permission like we’ve been doing. So the starting country.” Mourdock is challenging U.S. from the publisher. v point, not the ending point, should be Sen. Dick Lugar in the Republican some meaningful step to reduce the primary. On May 16, Mourdock said blow-out levels of spending we’re at on his campaign website, “Negotiat- today and start reducing the unaf- ing a deal across the political aisle to fordable commitments we’ve made simply cut spending at any level is a HOWEY Politics Indiana Page 3 Weekly Briefing on Indiana Politics Thursday, July 28, 2011 folly. Numerous times in the past such deals were agreed a temporary government default. “As we do, we need to to, but once the debt limit was raised there were no serious stay prepared – almost uniquely – with money in reserve. efforts at reducing spending. If it had worked in the past, Hypothetically if the federal government really did have a we wouldn’t be in this current mess. Many in government temporary collapse of its activities, we could cover if Medic- again want to raise the limit on its credit card but we must aid checks didn’t come. Other states would be up a creek.” say no!” Daniels’ remarks will likely bring a wistful response And what would those consequences be? Daniels, from Hoosier Republicans and others who wanted him who served as OMB director from 2001 to 2003 under Pres- to seek the GOP presidential nomination in 2012. Many, ident George W. Bush, said, “A giant leap in the interest including key aide Mark Lubbers, believed that Daniels was rate. Probably an end to investment in the country, which well positioned to win the nomination. The events of July probably leads to more lost jobs. You’d probably have a big – with a deadlocked showdown in Washington between run up of commodity prices like gasoline because the world President Obama and both congressional Republicans and would assume that instead of doing what’s right, starting Democrats – would have played into Daniels’ wheelhouse, to limit our spending, we’re just going to print money. The where he would have presented a message of tough love, first thing you’d see is $5 or $6 (a gallon) gas. Followed by and a road map to the future that would feature arduous a big increase in the interest rate for the money you’ve bor- fiscal discipline and entitlement reform. rowed.” With most of the Republican presidential field Daniels did give some cover for Republican fresh- watching the crisis from a distance, Daniels’ comments on men, noting that they weren’t there to vote for the spend- Tuesday give us a look at what might have been. v ing that got the U.S. in this dilemma. And the governor said that Indiana could survive Rep. Todd Rokita, R-4th CD. Debt ceiling, from page 1 The stakes will be high. A default could create chaos in global financial markets. A debt downgrade could studying the Boehner plan, warned Members on ABC News catalyze interest rate spikes. Wednesday of their own constituents. “We will score the “We’re in a situation where something has to hap- vote, we will put it in their scorecard, and make decisions pen,” said Rep. Marlin Stutzman, R-3rd CD. “My biggest on our actions in primaries and general elections based on fear is a downgrade in our credit rating. We can’t afford our scorecards,” said Chocola, a former Indiana congress- higher interest rates.” man. So, should incumbents worry about being targeted But as of late Wednesday afternoon, Stutzman and for defeat by this well-funded interest group? “I don’t know his Hoosier GOP freshmen colleagues were unsure of the that they should fear the Club for Growth as much as they direction they would take on the issue. should fear their own constituents,” said Chocola. After months of negotiations between Vice Presi- When the moment does arrive for what will be one dent Joe Biden and congressional leaders and weeks of of the biggest votes of their careers, it could feature some talks between President Barack Obama and House Speaker lurches that characterized congressional action surrounding John Boehner, actual plans to raise the debt ceiling were the bank bailout bill that was approved at the advent of the finally committed paper to earlier this week.
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