Sen. Rand Paul plans to introduce legislation that would prevent the federal government from defaulting if it fails to raise the debt ceiling.
President Barack Obama and Congress are once again tussling over increasing the nation’s debt limit. The president says he won’t negotiate the issue, while the GOP wants to tie any change to spending cuts.
If an agreement isn’t reached, the U.S. will be unable to pay its bills. Paul says his legislation will force the president pay debt interest, entitlements and the military before using remaining funds.
“Why would we ever try to scare the markets by saying, ‘Oh, if you don’t raise the debt ceiling we’ll default,’” he said. “We bring in over $200 billion every month and the interest payment is $30 billion.”
The nation will hit its debt ceiling in the next few months. And the senator says the president is asking for too high a ceiling.
“Incurred about $16 trillion, plus or minus, they need a little incrementally more. He wants $2 trillion more, what’s that a blank check, a credit card,” he says.