Top Republicans in Congress are advancing the idea that allowing the U.S. to default on its debts for a short time will be fairly harmless, and is a far better option than lifting the debt ceiling without simultaneous, dramatic spending cuts.
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The new push comes just days after the country hit its statutory debt limit. In essence, the GOP is arming itself with a rationale to continue to oppose a debt ceiling hike, despite dire warning from economists, finance experts, and the Obama administration about the consequences of default.
At an event at the conservative American Enterprise Institute Wednesday morning, Sen. Pat Toomey (R-PA) laid out the case. "This problem is so urgent that there is -- an alternative school of thought has emerged recently," Toomey said. "The most high-profile advocate for this was Stanley Druckenmiller ... one of the world's most successful hedge-fund managers, extraordinarily wealthy from his knowledge of the markets, a big money manager now, and a big holder of Treasury securities -- and he has said that he would actually accept even a delay in interest payments on the Treasuries that he holds. And he would prefer that if it meant that the Congress would right this ship."