Sunday, July 13, 2014

Casey, Barletta warn of default fallout

October 14. 2013 11:38PM

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SCRANTON — U.S. Sen. Bob Casey says a default on our nation's obligations would have dire consequences for Pennsylvania's economy and jobs.
“A default would be an entirely self-inflicted wound that should be avoided,” Casey, D-Scranton, said Monday. “Both Republican and Democratic economists agree on the urgent need to avoid default. Tea Party Republicans in the House should immediately take this disastrous option off the table.”
He cited warnings from economists across the political spectrum about the grave consequences of a debt default that could lead to a recession.
The senator's statement came after the Senate's vote on its clean debt ceiling bill, which was rejected when the 60-vote threshold failed at 53-45.
“Economists from both sides of the aisle agree that a default would have a disastrous impact on the economy and jobs,” Casey said. “A default would threaten middle-class Pennsylvanians' retirement plans, Social Security checks and Medicare payments. We need to end the Tea Party shutdown and prevent a Tea Party default.”
U.S. Rep. Lou Barletta, R-Hazleton, doesn't want America to default on its obligations, just as he never wanted the government to partially shut down. Barletta said negotiations are continuing on both fronts.
“Which is a good sign since the Senate had previously refused to talk at all,” Barletta said.
He said there is talk that the Treasury and the Obama Administration could prioritize its payments if there is no deal reached so that we don't default on bills coming due.
“Even so, there is a risk of a bad reaction from the markets if that were to be the case,” he said. “In the end, the best option is to come to an agreement before the deadline.”
Barletta said he will wait to see what proposal comes to the floor, but he does not want to give the president a blank check with the debt-limit increase.
“There have to be some concessions to control spending,” Barletta said. “I have always opposed Obamacare and want to end it, or at least roll back some of the more unfair parts. Reopening the government and avoiding default are reachable goals, if everyone negotiates in good faith.”

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