GOP: How To Stop Worrying and Love Government Default
Posted on Tue Oct 08, 2013 at 08:56:22 AM EST
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It's that time of year again, what to do in the face of Republican threats to push the country into default! Oh, and this time, Republicans have a primer on How To Stop Worrying And Love Default:
Q: [T]he Treasury Department came out with [a report] that said that if the US does not raise the debt ceiling in time that there would be a catastrophic effect on the economy[.]
[Sen. RON JOHNSON (Tea Party Republican Wiscosin]: I think that’s – I think that’s highly irresponsible for the Treasury Department to be issuing those kinds of, I mean scare-mongering reports. The Treasury Department, I think the Secretary of the Treasury, I think the President of the United States ought to be trying to calm the markets, rather than scare them. The President really ought to be leading here. [. . .] There is absolutely no reason at all for this type of government to default even if we don’t increase the debt ceiling. So I think it’s highly irresponsible of this Administration to be doing the type of scare-mongering they’re doing on this issue.
Wall Street is sanguine and thinks the absurdities of Ron Johnson and Ted Yoho do not matter, but I think they may be wrong, and I worry that President Obama is not setting the stage for the actions he may have to take in response.
The issues are practical, default would be catastrophic for the nation, and constitutional, the 14th Amendment prohibits federal government default. But the President's men have taken the unusual (and imo, wrong) position that his hands are tied. I'l explain why they are wrong on the flip.
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