Coburn: U.S. Won't Default if There Is No Debt-Limit Increase
Tom Coburn tamped down concerns that not raising the debt ceiling would force the United States to default on its debt.
“I would dispel the rumor that is going around that you hear on every newscast that if we don’t raise the debt ceiling we will default on our debt,” the Oklahoma Republican said on This Morning on Monday. “We won’t.”
Ultimately, Coburn argued, the debt limit and the continuing budget resolution are essentially “the same thing.” “There is no such thing as a debt ceiling in this country because it’s never been not increased, and that’s why we’re $17 trillion in debt,” he said.
Coburn said that the U.S. government would continue to pay its interest as well as redeem old bonds and issue new ones in order to service the debt.
On Meet the Press on Sunday, Rand Paul made the same point that not raising the debt ceiling would not lead to a default because the government’s monthly tax revenue is higher than its interest payments. Paul called the Obama administration’s claims of default “irresponsible.”