Stuart Varney Wants to Raise the Roof...or the Debt Ceiling. It's Confusing.

It’s never surprising to hear Imus begin an interview as he did Stuart Varney’s this morning. “Thank you for accepting my apology for my acting like an ass,” Imus told his guest. “It was very gracious of you to do so.”
 
Varney, the host of Fox Business Network’s Varney & Co., was eager to feel the I-Mn’s love again. “I’ve missed it something rotten,” he said, as only a British man could.
 
As the romance between Imus and Varney rekindled, Varney waxed poetic about next week’s royal nuptials between Prince William and Kate Middleton, an event he called “a wonderful, romantic affair” despite Bernard’s protests to the contrary.
 
“I suppose Bernard is all bent out of shape because William is not going to wear a wedding ring?” Varney said. Not exactly.
 
“I’m kinda cool with that,” Bernard admitted. “He don’t need no stinkin’ ring.”
 
He was less freewheeling about whether Kate should wear a white dress, as is customary, given that she and William have been living in sin for a while now. Also, there remains the possibility that the Manchester United soccer team could show up “as part of her ex-boyfriend entourage,” Bernard said.
 
Since Varney preaches fiscal austerity here in the U.S., Bernard and Imus found his support of this lavish, public event very curious. “The British make a profit on the Monarchy,” he insisted, but was accused of providing “fuzzy math.”
 
Varney’s conclusion? “That Bernard guy is such a killjoy.”
 
So is any discussion about whether Congress should raise the debt ceiling, an action that would allow the U.S. to continue borrowing vast amount of money from anybody who will lend it.
 
“You’ve got to do this,” Varney said, sternly. “If you don’t raise the debt ceiling, then you can’t borrow anymore money, so you can’t finance ongoing government operations, and you default.”
 
Even if Congress authorizes raising the debt ceiling, Varney noted that lenders from around the world are increasingly hesitant to lend to America, where the debt will reach $1.6 trillion this year alone. To make clear the implications of raising the debt ceiling, Congress can attach strings to the authorization.
 
“The Republicans are likely to say, ‘Yes, you can borrow some more money, if you, Mr. President, have a firm plan to reign in spending down the road,’” Varney said. “That gives them leverage over future actions with our country’s finances.”
 
Though Republicans and Democrats alike want to raise the debt ceiling, Democrats want “a clean bill,” Varney said, meaning they want no strings attached.
 
The Tea Party has been calling for the government to stop borrowing money, and to live on the $200 billion it brings in every month in tax revenue and other fees. Varney believes the country would make it to July, at best, if it adhered the Tea Party’s demands.
 
“At that point, you default on your debt,” he said. “You say to the world, ‘We, Uncle Sam, can’t pay our bills.’ At that point, the dollar literally collapses.”
 
His vote would be to raise the debt ceiling, but to insert language demanding Obama control spending.  Ever the optimist, Imus sighed and said, “I never see that happening.”
 
-Julie Kanfer