Wednesday, July 20, 2011

Downplaying the Risk of Default

Republicans are downplaying the consequences of default if Congress fails to authorize more debt. The News Journal reports that Glen Urquhart thinks the U.S. government can get by without raising the debt ceiling:
Glen Urquhart, a Republican who lost the 2010 U.S. House race, said Democrats like Markell, Coons and Obama are trying to scare the public in order to secure higher taxes to pay down the debt.

"Those are great DNC talking points, but they're just not the truth," said Urquhart, a businessman from Rehoboth Beach. "The United States is still the safest place to invest. Nothing is going to happen."

Urquhart suggested the U.S. Treasury sell bonds on the proceeds of the Social Security Trust Fund to get by until a resolution can be reached on the debt ceiling.
Urquhart should go back to school for remedial finance. Selling bonds is the way the government finances debt. Bonds cannot be sold unless and until Congress authorizes the government to borrow the money.


Anonymous donviti said...

Joan Walsh of Salon said it well in an article she had yesterday. The people in favor of us crashing into the debt ceiling and not paying our bills are wishing for some serious pain to happen to this country. Their thinking it's the only way to save the country.

I'd like to add, this is also the TEA Parties way of getting back at the TARP program. In their view it is. I'm not saying its' right, it's just what they are doing.

but, it their myopia they have no clue who this really impacts

10:10 AM, July 20, 2011  
Anonymous donviti said...

Ok, one other comment here.

Did the NJ actively seek out Urquhart and his position? I mean, do you expect a tea bagger to really say anything different.

Perhaps asking, you know, an elected official would be more appropriate in this case.

Hell even asking Mike Castle would be at least more interesting

8:46 AM, July 21, 2011  
Blogger Tom Noyes said...

I too would be interested in what Mike Castle has to say on the subject. What I'd really like to know is if Chad Livengood spat out his coffee when he heard Urquhart's comment about borrowing money to circumvent the debt ceiling.

8:57 AM, July 21, 2011  

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