Ron Kind: “This unquestionably is one of the most dangerous bills that we will be considering in this session of Congress because…”

“This unquestionably is one of the most dangerous bills that we will be considering in this session of Congress because this gives this body permission, for the very first time in our Nation's history, to default on our financial obligations. They claim that they are splitting the baby here by paying bondholders only. One of the largest bondholders we have, of course, is China, so this is a pay China first bill. I have a feeling that the financial markets, the investors, and the credit rating agencies will view this for what it is however: a default is a default is a default. A great nation like the United States of America should pay our bills. We should pay our bills. Now, no one can stand here or sit here today with complete certainty and tell us what the market reaction would be if we start defaulting on any financial obligations we have as a nation, and that is really the point. Why would we even take that chance? Why would we take a chance of a downgrade to our credit, of an increase in interest rates which would impact everyone, from small businesses to families to farmers? It would drive up borrowing costs, which would act as a brake on economic activity and the job growth we have right now because we have never done this before. That is the danger that this legislation sets up.…”