Secret Fed Docs Show Obama Misled Congress, Public During Debt Limit Crises

Federal Reserve Bank of New York officials secretly conducted real-time exercises during the 2011 and 2013 debt-limit crisis that demonstrated the federal government could function during a temporary shutdown by prioritizing spending, even as Treasury Secretary Jack Lew publicly claimed many times that such efforts were “unworkable,” according to a new report by the House Financial Services Committee obtained by The Daily Caller News Foundation.

The staff report, to be released Tuesday, charges that Lew and other Obama administration officials deliberately misled Congress and the public during the federal budget and debt limit showdowns in both years. The committee will convene a public hearing on the report Feb. 2.


The report also states that the Obama administration crafted actual contingency plans to pay for Social Security and veterans benefits, as well as principal and interest on the national debt if the government was temporarily unable to borrow more money. The Committee concludes that over the last two years the Treasury Department has “obstructed” congressional efforts to get to the bottom of the administration’s real-time policy during the two showdowns.

The Constitution stipulates that only Congress can determine how much money the federal government can borrow. Presidents thus cannot unilaterally spend beyond congressional debt ceiling limits set. The committee — chaired by Republican Rep. Jeb Hensarling of Texas — charged that during both confrontations, the Obama administration held the country’s creditworthiness “hostage” by claiming default was the only possibility if the debit ceiling was not raised. (Read more from “Secret Fed Docs Show Obama Misled Congress, Public During Debt Limit Crises” HERE)

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  • Charles

    Who is surprised ??????

  • Mark

    “…The Constitution stipulates that only Congress can determine how much money the federal government can borrow. Presidents thus cannot unilaterally spend beyond congressional debt ceiling limits set…”.
    Do we care about what the Constitution stipulates? Do we care what Congress can and can not do? Do we care if Presidential powers are limited or not? Does anybody really know?

    • Red Fred

      We care. Getting justice under the lawless administration is like pissing into the wind.

  • Barbaree

    What has to happen before Congress takes action?! What?!

  • Paul

    It is easier to state ANY truth Obummer has said in the past than to name the never ending lies that comes out of his mouth. The problem is, I don’t know of any truths he has spoken. Oh yeah, he did say once it was cloudy outside and I think he was right but I didn’t bother to verify.

  • Free Market Filly

    Really? You mean Obama lied? No! Now if we had a real education system, people would have been taught how our government works and no one would have bought the BS emanating from the White House. Instead the ignorant media continuously blasted that we would default on our debt (not legal under the Constitution) and scared everyone….and it would all be the Republicans’ fault of course.