In an appearance on CNBC Tuesday, Rep. Paul Ryan claimed that holders of US government debt would accept missing payments “for a day or two or three or four” if they thought doing so would lead to a long-term spending or budget deal. Ryan also downplayed the likelihood of an imminent deal, noting that he didn’t “think we’re going to solve 40 years of ideological differences between the two parties by August.”
Aren’t there any adults left in the Republican Party who could tell Paul Ryan that it is never acceptable for a chairman of the House Budget Committee to talk like this? Such crazy talk from somebody in such position has the potential to plunge the country into a recession. Fortunately, the markets seemed not to take Rep. Ryan seriously. Next time we may not be so lucky.