Sen. Toomey: "Zero Chance" U.S. Defaults On Its Debt

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MIKA BRZEZINSKI: So what's the best way to end this thing without raising the debt ceiling, without defaulting, how do we do that?

SEN. PAT TOOMEY (R-PA): First of all, there is zero chance that the U.S. government is going to default on its debt. It's unfortunate that people have conflated this idea of not raising the debt ceiling immediately on October 17 with somehow defaulting on our debt. We bring in in tax revenue about 12 times as much money as it takes to pay our interest on our debt. There is no way that any Treasury secretary or administration would willfully choose to have the catastrophic results that would occur if we actually defaulted on our debt when it's not necessary. So this is pretty well understood in financial circles. You see Treasury prices have barely moved through this entire episode. But I've got legislation that would simply codify and formalize the obligation to make sure that under no circumstances we would default on our debt. Interestingly, the White House doesn't want that legislation. They've threatened to veto it precisely because they want to be able to hold the specter of a catastrophe in front of Republicans to cow us and intimidate us into giving the president what he wants, which is a whole lot of additional borrowing authority with no reforms whatsoever, and I think that's irresponsible.

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