WASHINGTON – Echoing Minnesota’s other Republican presidential candidate, former Gov. Tim Pawlenty questioned whether a failure to raise the national borrowing limit would lead to a default.
According to Josh Marshall, publisher of the web site Talking Points Memo, when asked whether a default would have negative economic repercussions, Pawlenty reportedly said, “Maybe not … We don’t know.”
His remarks echo those Bachmann made Wednesday at a Capitol Hill press conference. She said then, “it is simply not true,” that failing to raise the debt ceiling would lead to a default.
As federal budget expert Stan Collender explained to MPR News yesterday, the consequences of missing the Aug. 2 deadline to raise the debt limit would make the 2008 financial crisis, “look like child’s play.”
Pawlenty even went a step further than Bachmann’s comments in his talk at the Bloomberg View event. When pressed by participants, the former governor reportedly said he would prefer a default to any increase in government revenue.
He was also quoted by Bloomberg News as saying that in the event of a default, outside creditors, including foreigners, should be repaid first, followed by the military.
Pawlenty condemned a compromise put forward by Senate Republican leader Mitch McConnell, that would allow a debt ceiling increase, calling it a “Band-Aid on a broken bone,” according to Bloomberg.