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.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.
"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.