Congresswoman Waters: Debt Ceiling is Non-Negotiable
With only 13 days until the nation reaches its debt limit, and in the aftermath of the Department of Treasury's report on the impact of defaulting on our debt, Congresswoman Maxine Waters (D-CA) today called on Republicans to stop threatening the nation's economy to move their ideological priorities. She released the following statement:
"As if the consequences of a government shutdown are not bad enough, Republicans are now threatening to hold the full faith and credit of the United States hostage to advance their ideological agenda.
"A default on our obligations would be unprecedented – and could cause catastrophic damage to our financial markets and the economic security of all Americans. The ramifications of breaching the debt limit will affect the underpinnings of the entire financial system, with the possibility of triggering a financial crisis reminiscent of the days following the failure of Lehman Brothers. If the U.S. defaults on its debt, lending, the lifeblood of our economy, would dry up. The dollar's value could drop and we could see dramatic increases in interest rates on everything from mortgages, auto loans, and credit cards. Unemployment rates would dramatically rise, just as we are beginning to recover. Worst of all, we could see another dramatic loss of wealth for working Americans.
"Though we know the cost to American families will be significant, no one knows with certainty the full extent of the damage to the economy should the U.S. default on its debts. And I don't want to find out. What we do know is that everyone from Wall Street CEOs and the U.S. Chamber of Commerce to small business owners and prominent conservative economists are concerned with the significant damage that could result from a debt ceiling standoff.
"The American people have been through enough. This Republican-manufactured crisis is nothing more than a reckless attempt to push extremist ideology. For those who think the consequences of Republican brinksmanship are bad now, this has the potential to get much, much worse."