This week, House Republicans are once again putting the U.S. at risk of defaulting on its obligations, and another downgrade of our credit rating. The “Pay China First” bill that Republicans are bringing to the House Floor this week is not a real solution to our nation’s fiscal situation. In fact, it is planning for a default, and would have disastrous economic consequences. The Republican bill would require paying debts to foreign creditors before paying for other obligations, including pay for active-duty military, veterans’ benefits, Medicare or Medicaid payments, or payments owed to small businesses. By paying China first, this Republican bill creates enormous uncertainty for businesses, world markets, and our economy, and it puts our nation’s creditworthiness at risk. Republican game-playing with the debt limit resulted in the first-ever credit downgrade for the United States in August 2011. House Republicans have previously said they will provide legislation to avoid another default of the country’s credit rating: House Majority Leader Eric Cantor: “[Republicans] will bring a bill forward that will ensure that we don’t go into default.” Ways and Means Committee Chairman Dave Camp: “By requiring Treasury to issue debt to make these payments, this legislation provides an ironclad plan [...]
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