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The Blast: Phelan defends record, Cruz wants more crypto [1]

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Date: 2023-01 

ARRINGTON SAYS U.S. CAN’T DEFAULT ON DEBTS

U.S. Rep. Jodey Arrington, R-Lubbock, does not think the federal government will default on its debts, even if Congress fails to raise the debt ceiling. Speaking with Punchbowl News, Arrington said there is a constitutional argument that the federal government must pay back its debt and will never default. How exactly that happens without finding alternative revenue sources or borrowing more money to make payments is still unclear, but it would likely mean major cuts to mandatory government spending.



“Many believe, even constitutionally, that we have to pay the principal and interest on our debt. We have to pay our creditors. Like, you can’t not do that,” Arrington told Punchbowl. “Now that’s a debate. I’ve heard both sides of it, and we haven’t seen it play out. But I think there are many smart people with tremendous historic context and experience who believe that we are constitutionally obligated.”



Congress continues to deliberate on its path forward to raising the debt ceiling in order to find enough money to pay for spending it has already approved. Both parties agree on the need to raise the debt ceiling, noting the catastrophic blow to confidence in the U.S. economy if it were to run out of money. Republicans are using the potential economic catastrophe to wean concessions out of Democrats to rein in future spending. The United States has never defaulted on its debt, and its bonds are considered some of the safety assets in the global economy. — Matthew Choi

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[1] Url: https://mailchi.mp/texastribune/the-blast-phelan-defends-record-cruz-wants-more-crypto

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