Message from Todd Rokita

Rep. Todd Rokita

Rep. Todd Rokita (Photo credit: Wikipedia)

Message from Todd Rokita, Congressman from Indiana‘s fourth district. He believes that we will not default even if the debt ceiling is not raised. It is thinking like this on the part of the TEA Party GOP that is causing the present disaster in Washington, DC.

“As you probably know, the United States is rapidly approaching its borrowing limit.  There has been a lot of talk in the media that the sky is falling and the United States will default unless we raise the debt ceiling, borrow billions more from China and others, and leave the tab for our children and grandchildren.

“This is not true.  According to estimates from the Department of Treasury, the Congressional Budget Office, and the Bipartisan Policy Center, the truth is that the federal government makes somewhere in the neighborhood of $18 and $20 billion dollars in interest payments to our creditors every month.    The federal government takes in around $200 billion in revenue every month.   Given this cash flow, the United States will not default on its creditors.   What we cannot afford to do is continue to spend money we do not have.

“The credit rating agency Moody’s—one of the agencies that rates the creditworthiness of the United States and other governments—said recently that, “We believe the government would continue to pay interest and principal on its debt  even if the debt limit is not raised, leaving its creditworthiness intact.” 

“Failing to raise the debt ceiling would lead to sudden spending cuts and economic disruption.  I am opposed to balancing our budget in such a sudden and thoughtless way.  But continuing to pile debt on to the $17 trillion we already owe is dangerous and will lead to the same potential for economic upheaval as we have seen in nations like Greece.”

If the US follows Greece’s lead, it will because Todd Rokita’s brand of politics gets us there.

Advertisements