Pat Toomey: Hey, I've Got A Good Idea. Let's Not Raise the Debt Limit But Specify That Interest on Debt Must be Paid First, So We Don't Default.

Secondary benefit: Since our expenditures would be capped, but money would be directed to keep payments up, this would force reductions in government spending. Like, we've only got a thousand bucks, and we're not raising the limit up to 1200, but we've got 500 due in debt payments and 700 in planned spending. If we force the 500 in debt payments to come first, that 700 in planned spending must be reduced to 500 to stay under the $1000 cap.

Possible? Yes. Likely? Probably not, but it's a good option to have on the table, because the Tax and Spenders can't throw the "but we'll default and it will cause world financial chaos" line at us.

"I think it is a dreadful idea," Sen. Kent Conrad (D-ND) told National Journal.

I have a feeling that Kent Conrad calling it a dreadful idea counts as a virtue among readers here.

Conrad spins out the liberal rebuttal, that this plan is a "Pay China first" plan and what about the American people who need high-speed rail? Are you really so unamerican as to pay the Chinese first?

posted by Ace at 01:44 PM

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