Skip to main content

This is unbelievable.  

According to NPR, some House Republicans

have been denying that there is a risk of default if the debt ceiling isn't raised . . .  "There is not going to be a default unless the president of the United States chooses," said Republican Rep. Tim Huelskamp of Kansas. "He is threatening folks with a very empty threat.". . .

 What they're arguing is that the president and Treasury will have to set priorities . . .
"I think it's an incredible lever that should be used," he [Huelskamp]  says. "I mean, we have a spending problem. The debt ceiling is a great indicator we've got a spending problem. But default is not going to happen. It's not about default. It's about pressuring the White House to come to the table with some actual spending reductions."



http://www.npr.org/...

According to some Republicans, the interest on the national debt would the priority, and then everything else would get lower priority for payment.  This would include things like social security benefits and pay to federal government workers.

So in effect they would be forcing spending cuts by requiring the President of the United States to choose which bills to pay with the limited money that is available.  And without the ability to borrow more, some people and businesses would not receive the checks from the federal government that they are relying on.

Can you imagine the damage that will be caused if citizens who are relying on a federal government check in order to pay for things like food, medicine and rent  suddenly did not receive these checks because these were given low priority?  And how many businesses would have to shut their doors and lay off workers if the checks they were relying on to fund their businesses did not arrive?  

And seeing how the U.S. Government would be required to pick and choose which bills to pay, creditors would be less likely to lend the U.S. money, and those who did would charge a higher rate.

If this is where some members of the Republican party are coming from, I hope that the Administration will seriously reconsider its position on the 14th Amendment and/or the platinum coin.

Otherwise, in February or March, if these Republicans get their way, a default could be a very real possibility.  

EMAIL TO A FRIEND X
Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags

?

More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site