Palin: America 'on a road to ruin'

sarah_palin.gi.top.jpgSarah Palin appeared at a question and answer session on Long Island. By Charles Riley, staff reporter


NEW YORK (CNNMoney) -- Sarah Palin delivered a harsh critique of President Obama's budget proposal during a rare Q-and-A session Thursday, and urged lawmakers to resist raising the nation's debt ceiling.

Palin warned that Obama's budget fails to address the "$14 trillion dollar debt that will bring America to her knees."

The former vice presidential nominee's comments on the nation's fiscal state were delivered during a luncheon hosted by the Long Island Association, which bills itself as as the largest business organization in New York.

Many of the questions were focused on the economy and fiscal policy, and provided a glimpse into the thinking of the possible 2012 presidential candidate.

Palin was quick to criticize the spending levels in Obama's fiscal 2012 budget, and took the president to task for failing to propose entitlement reform.

"What President Obama is doing and what this administration is supporting is America being on a road to ruin, unless we do take seriously this monumental debt," she said.

Palin also said she is thankful for lawmakers who are prepared to vote against raising the nation's debt limit, which is a cap set by Congress on the amount of debt the federal government can legally borrow.

"To me, all that is going to do is create this allowance for more big spenders to get in there and say 'more debt ceiling, OK we are going to keep spending then up to that ceiling,' " Palin said.

Actually, raising the debt ceiling is not an agreement to spend more money. The need to raise the debt ceiling reflects prior legislative decisions that both Democrats and Republicans made to spend more.

Palin said a failure to increase the debt ceiling would not necessarily result in a government shutdown. She noted that the government would continue to collect revenue that can be used to service the nation's debt.

"There are a lot of people though who are saying shut her down, if that's what it takes," Palin said. "Let it be for a week or two there this message that is sent to our politicians who are so tone deaf to what the people of America are saying."

If lawmakers fail to authorize an increase in the debt limit, the Treasury Department can raise funds for a limited time to meet federal obligations without exceeding the debt ceiling.

But Treasury Sec. Tim Geithner has warned lawmakers that even a short-term breach of the ceiling could have devastating implications.

"Even a very short-term or limited default would have catastrophic economic consequences that would last for decades," Geithner wrote earlier this year in a letter to lawmakers.

At a minimum, a default could pummel U.S. bonds, the dollar and U.S. investors' portfolios. And that, in turn, could create a debt crisis for the United States that would likely be even harder to combat than the financial crisis of 2008, Geithner said.

Borrowing costs would rise across the board -- for federal, state and local governments, and for businesses and consumers, he said. Millions of jobs could be lost and stock prices, home values and retirement savings would suffer, Geithner added. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,674.75 2.15 0.01%
Nasdaq 4,770.44 12.56 0.26%
S&P 500 2,056.72 4.90 0.24%
Treasuries 1.83 0.01 0.61%
Data as of 3:58pm ET
Company Price Change % Change
Bank of America Corp... 15.83 0.10 0.64%
Apple Inc 112.86 -0.12 -0.10%
General Electric Co 24.56 0.07 0.31%
Microsoft Corp 46.82 -0.37 -0.77%
Intel Corp 35.79 -0.66 -1.80%
Data as of 3:45pm ET

Sections

Apple Pay will barely move the needle in Apple's quarterly financial statement on Tuesday. More

Severe winter storms cost airlines a ton of money -- but they actually hit passengers harder. More

Amazon Studio boss Roy Price has two big reasons why Amazon is going into the movie business. More

First introduced in 2007 as way of sifting through Twitter's newsfeed, the hashtag has since spawned new tech businesses and become a pop culture phenom that retailers are cashing in on. More

Identity thieves are stealing people's Social Security numbers and other key pieces of personal information in order to file a fraudulent tax return and claim a refund, the IRS warned Monday. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2015 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2015. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2015 and/or its affiliates.