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."
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.