S&P Head: Default Not Necessarily Imminent if Debt Ceiling Reached

In an interview with CNBC’s Larry Kudlow, S&P head David Beers said a failure to raise the $14.294 trillion debt ceiling “would not be default so long as the government is continuing to pay its debt as it matures and its interest payments.”

“The head of S&P has reminded America that rating agencies merely rate the ability of a country or company to repay its debt. And he refused to say that a U.S. default is imminent based on Obama’s arbitrary August 2nd deadline,” ALG President Bill Wilson said.

Wilson concluded, “Default would be a choice by Obama. Not the result of any action by Congress. As the Executive, it is Obama’s responsibility to choose which bills to pay. To ensure Obama doesn’t choose to default, Congress needs to take action immediately in support of Representative Trey Gowdy’s push to put a credit prioritization bill on Obama’s desk that would instruct the Treasury to pay interest and refinance debt up to the limit, as well as pay Social Security, Medicare, and the military.”


“Obama’s Loaded Gun,” By ALG President Bill Wilson, July 25th, 2011 at http://blog.getliberty.org/default.asp?Display=3525.

Interview Availability: Please contact Rebekah Rast at (703) 383-0880 or at rrast@getliberty.org to arrange an interview with ALG President Bill Wilson.