Sen. DeMint Is (Sort Of) Right About Something
This morning, Sen. Jim DeMint (R-SC) made an appearance on Glenn Beck's radio show — something that in itself speaks to the extremity of the congressman. While on with the supportive host, DeMint demonstrated his extreme perspective on economics as well, absurdly attempting to shift all the blame for dangers associated with the floundering debt ceiling negotiations onto Democrats. "You're going to see instability in the markets," he said, "and they're going try to blame it on Republicans who don't want to increase the debt."
BECK: I talked to you about this last week, Senator, and I said to you right away, I'm very skeptical, because I really believe the left will use— that we're in a lose-lose situation. We lose— If we raise the debt ceiling, we lose, the country is going to be lost. If we don't raise the debt ceiling, the left will use this, and I really think that people will try to scare the world into a crash because they'll say, "America's going to default on their debt." You say, "We're not going to default."
DEMINT: Yeah, Geithner knows it, the president knows it. We'll never default on our loans. We're going to pay the interest if it's the last penny we have. Other things may have to be cut as we move into the fall, if we don't raise the debt ceiling. But we should have been talking about, over the last few months, what do we need to cut to avoid increasing the debt limit? But instead we've been debating new spending— increasing programs. So, the administration is not serious about this plan and they will use scare tactics, and there will be a lot of fodder for it, because the economy is deteriorating, and you're going to see instability in the markets, and they're going try to blame it on Republicans who don't want to increase the debt.
This isn't something you'll see very often on Political Correction, but DeMint is entirely right. Republicans probably will be blamed for market instability, because their stubborn obstruction of efforts to address the debt limit is exactly what credit agencies like Moody's are warning will cause the very instability DeMint is brushing off as unrelated to the GOP's game of debt ceiling chicken.
Moreover, DeMint's casual insistence that "we'll never default on our loans" is no comfort to economists, who warn that even coming close to default through a refusal to raise the debt ceiling could cause economic catastrophe.