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Sen. Rand Paul: U.S. Won't Default If Debt Ceiling Is Not Raised

ERIN BURNETT: Now, Senator, one final question. You just heard Harry Reid when he was asked by the reporters there, from that meeting, do you feel that the debt ceiling will be broached. And of course, the debt ceiling breached, I'm sorry, is that is the big thing. That is much bigger than this government shutdown, at least as pertains in the United States economy. And he seemed to indicate that from that meeting, yes. He thinks that it will be.

But, you know, Lloyd Blankfein, CEO of Goldman Sachs also met with the president today and he said we are the most important economy in the world. We are the reserve currency of the world. Payments have to go out to people. If money doesn't flow in, money doesn't flow out. Are you to let the debt ceiling to be to not expand it?

SENATOR RAND PAUL: I'm for taking default completely off the table. I'm promising to the American people and to the markets to Wall Street that we will always pay the interest on the debt as a priority. Do you know how we do that? We bring in $250 billion in tax revenue every month. The debt payment is about 30 billion. We just promise we will always pay it. What's going on is interestingly the Democrats are scaring people and saying, we might not pay it because Republicans don't want to raise the debt ceiling. If you don't raise the debt ceiling, what that means is you have a balanced budget. It doesn't mean you wouldn't pay your bills. We should pay the interest and we should never scare the markets. So, if I were in-charge, I would say, absolutely, we will never default. I would pass a law saying that the first revenue every month, the first revenue, has to go to pay interest.

BURNETT: But it is still defaulting if you laid on Social Security payments or anything, anything like that.

PAUL: Why would you be late on your Social Security payments? We have a bill that is called the full faith and credit bill. And we passed in the House before. We have introduced it in the Senate. And it say you pay Social Security, you pay Medicare, you pay your soldiers' salaries and you pay with interest on the debt. We have money for all of that.

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