July 25th, 2011, Fairfax, VA—Americans for Limited Government President Bill Wilson today urged Congress to avert a credit downgrade by enacting legislation that will slash borrowing by trillions:
"A solution is not the same thing as a deal, and today America needs a solution to the debt crisis. S&P has warned that a credit downgrade of the nation's Triple-A rating is imminent within 90 days if action is not taken to slash borrowing by trillions of dollars. A downgrade will cause interest rates to soar, as annual interest owed rises to over $1.3 trillion by 2021. Soon, the debt will become so large it cannot be refinanced, making a catastrophic default more likely down the road.
"Before that occurs, the House needs to pass a short-term debt ceiling increase with more than double the spending cuts, providing the time needed for a long-term solution to be enacted that adheres to the principles of 'Cut, Cap, and Balance'. It must also take Obama's loaded gun — the threat of default — off the table by instructing the Treasury to prioritize the payment of creditors in the event the debt ceiling is reached.
"If Barack Obama chooses to oppose real deficit reduction, let him veto legislation."
"Obama's Loaded Gun," By ALG President Bill Wilson, July 25th, 2011 at http://blog.getliberty.org/default.asp?Display=3525 .