06.29.11 09:01 PM
Representative Michele Bachmann (R-Minn.) said those warning of economic disaster if the debt ceiling is not raised are using “scare tactics.”
The Congresswoman, who recently announced her intention to seek the Republican nomination for the Presidency, said that if the United States paid down the interest on its debt, it could avoid defaulting on its obligations. However, Treasury Secretary Timothy Geithner told the House Small Business Committee that such a solution is “unworkable.”
Some government officials say that if the debt ceiling is not raised beyond its current standing at $14.3 trillion by Aug. 2, the economic consequences of an American default could be profound.
However, Bachmann said on CBS’ Face the Nation
that such claims were false.
“It isn’t true that the government would default on its debt.” The Representative later said, “It is scare tactics.”
Republicans and Democrats have reached an impasse in their negotiations as the GOP balked at the White House’s suggestion that tax hikes might be necessary to solve the budget issue.
“Throwing more tax revenue into the mix is simply not going to produce a desirable result, and it won’t pass,” Senator Mitch McConnell (R-Ky.) told CNNMoney