Time has come for the White House to start rallying proverbial troops to begin to look at ways to stop the scare that is the fast-approaching deadline for the nation’s borrowing limit cap. The failure to do so could mean that a first-ever default for American debt history, and thus a fall in global economics.
However, now it is being said by some Republicans are now downplaying the entire situation. “Nobody thinks we’re going to default on Oct. 17th,” said Rep. Tim Huelskamp.
Within interviews more than a dozen GOP lawmakers, a tally of Republicans have now rejected the whole notions of fear over the borrowing increase. For the United States to actually hit the default it would take the Treasury Department would needed to not pay interested. That, to the GOP is impossible.
“There’s always revenue coming into the Treasury, certainly enough revenue to pay interest,” said Rep. Justin Amash, R-Mich. “Democrats have a different definition of ‘default’ than what we understand it to be. What I hear from them is, ‘If you’re not paying everything on time that’s a default.’ And that’s not the traditionally understood definition.”
“It’s just unthinkable,” said Sen. Angus King, an independent from Maine. “We don’t have to speculate about this; just go back and look at 2011. See what happened when we even flirted with it. Markets went down. Jobs went down. The economy contracted.”
Republicans aren’t interested in disputing the worry that should come with October 17, but they are more interested in correlating the misconception of what constitutes the actual national debt default.
“We’re not going to default; there is no default,” said Rep. Mick Mulvaney, R-S.C. “There’s an [Office of Management and Budget] directive from the 1980s, the last time we got fairly close to not raising the debt ceiling, that clearly lays out the process by which the Treasury secretary prioritizes interest payments. Tim Geithner understood that, because the last weekend in July of 2011 he was in New York City telling the primary dealers that we were not going to default on our debt.”
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