Congressman: America’s Creditors Would Prefer For Us To Default On Our Debt

[alp227]

As Republicans squabble over shutting down the government and raising the nation’s borrowing limit, at least one conservative Congressman is suggesting that the U.S. would be better off by defaulting on its debt.

Speaking at a town hall in Orange Park, Florida, Rep. Ted Yoho (R-FL) — who recently made headlines for suggesting that the Affordable Care Act’s tanning tax is racist and questioning President Obama’s place of birth — argued that America’s credit rating would actually improve if the country refused to pay its bills and underwent a “major reset”:

I say, You know what, I know we need the money, and I’m gonna pay it, I’m just not paying you today, and we’ll pay you with interest, but we need to do a major reset and look at us internally, and say we can’t afford this …

… And so they say that would rock the market, capital would leave, the stock market would crash, interest rates would go up. I said, “Let me give you my feeling: Interest rates are gonna go up anyways. They went up the last time they raised the debt ceiling, interest rates went up … because we’re not dealing with the problem. We’re putting another Tylenol to the problem. And that’s not (an ad) for Tylenol.” So let’s just address the problem, and I think if we address it, I think the creditors that we owe money to around the world would say, “you know what, they’re getting their house in order.” And I think our credit rating would do better, if we did that than face the mass (sic) program we’ve been up to … There are several of us that we’re not raising the debt ceiling; don’t ask us. We don’t have a money problem, we have a spending problem.

full: http://thinkprogress.org/economy/2013/08/08/2438621/congressman-americas-creditors-would-prefer-for-us-to-default-on-our-debt/

Gainesville Sun editorial calls Yoho's remarks "off-base".

[msongs]

1. we do have a spending problem - welfare for our corporate enemies and the MIC nt

[1awake]

2. That must be the most ridiculous

and more importantly... dangerous thing I have heard an official say on this issue. If we did that, our situation would make Greece's situation look like a walk in the park. See what happens when the world stops using the Dollar as the standard... that alone will cripple us and it's coming. I need a beer.

[exboyfil]

3. The man is a complete idiot

We saw what happened when a single brick was removed (Lehman Bros. bankruptcy). The bloodbath with a US default would be unprecedented. The problem is that we keep spending money on stupid things and we do not collect enough taxes from higher earners.

[1awake]

4. agreed, but we need to cut spending, and not by

a little bit. Major spending cuts need to take place. I know that's not a popular statement around here but it is completely accurate. And it needs done well before the global standard switches from the dollar. Where those cuts come from can be debated... personally, since we as a country out spend almost every other country combined on defense, I'd like to start there.

[Bandit]

6. No we just need to spend in the right places

Capitalism does not require Government subsidies for major corporations. We do not need to spend more on Defense than the next ten largest countries COMBINED. We need to invest in our nation and jobs would be created which would mean more revenues from taxes and if we spent a larger portion on Health Care we would see great dividends as we would if we spent more on alternative energy sources. Spending is not our problem. It is how we spend and who benefits..

[1awake]

8. I'm with you in spirit, but no

We need to cut spending. Putting aside where the money is going, we spend several times over what we bring in. No matter where it is going, it's still over spending. Now on the subject of where it's being spent... I'm with you 100%.

[SomethingFishy]

5. Ah the old party of "personal responsibility"

wants to default on our loans. Predictable.

Guess when the public figured out that the debt ceiling was actually to pay for money we had already spent they had to come up with a new strategy.. and that new strategy is.... Fuck it.

[KamaAina]

7. I understand the name was originally "Yahoo"

but it got changed at Ellis Island.

[RobertEarl]

9. Default?

That man is a nut. Of course he would lower taxes on the rich and pay our soldiers less. Allow BP to drill but put a woman in jail because she took control of her own body.

These republicans are going nuts. You know why? Because they own the voting machines and they know they will get reelected. They can afford to go nuts. And were sitting here letting it happen not even asking for an audit. We're fucked.