Bachmann Says She's Not Worried About Default
INDIANOLA, Iowa (AP) -- Presidential candidate Michele Bachmann dismissed worries Monday that the nation would default if the debt ceiling isn't increased.
Speaking with reporters after an event in Indianola, the Republican congresswoman from Minnesota said the nation could avoid a default but still not raise the $14.3 trillion limit ceiling by an Aug. 2 deadline.
"Of course we don't want to default the full faith and credit of the United States of America, but it's clear we don't have to do that," Bachmann said.
"We've got revenues coming in that are sufficient to pay for the interest on the debt."
Bachmann has been strongly opposed to raising the debt limit, and she refused to budge from her position despite claims by the White House and others that not taking action would endanger the economy.
Bachmann, who took questions from reporters after speaking to about 50 workers at the cement-machinery manufacturing company Cemen Tech, said some members of Congress have proposed measures that would avoid a default without raising the debt limit.
"It would first of all pay for the interest on the debt so we wouldn't have to default," Bachmann said. "That would take that issue off the table."
She said others have proposed measures that would ensure members of the military continue to be paid, regardless of what happens to the debt limit.
Bachmann said the nation would have to make sacrifices to reduce its spending, but the tea party favorite argued that raising the limit would only enable "politicians to continue spending more of our money that we don't have."
"It's not just about letting them do that, it's about a tax increase," Bachmann said. "If we let them increase the debt ceiling they've got to pay for it. Government doesn't have a money tree in the back yard so where do they go? They go to you. They go into your pocket."
She said those higher taxes "will guarantee a substantially reduced standard of living for all Americans."
President Barack Obama has said he supports linking a debt ceiling increase to passage of a deficit-reduction plan, which would include spending cuts and increasing taxes by closing what he calls tax loopholes and returning to earlier, and higher, tax rates for the wealthy.
Bachmann said Obama has misread the mood of the people.
"The American people don't want a tax increase, they want an end to the Obama spending spree that has failed to reduce unemployment," Bachmann said.
(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)
