Source:  PRESS RELEASE, 7/14/11

         U.S. Rep. Howard Coble (R-NC) joined with 56 other members of Congress today in sending a letter to President Obama urging him to clarify for the American people that even if a debt ceiling agreement is not reached, the United States will not default on its monthly interest payments, or be unable to pay our military and seniors.

         “I am disappointed that President Obama has been using the tired old political tactics by spreading fear among our senior citizens,” Rep. Coble stated.  “The president knows that the federal government has the necessary funds to guarantee that senior citizens receive their Social Security or Medicare checks come August 3, even if talks on extending the debt ceiling have not concluded.  This letter is urging President Obama to stop scaring seniors and our military families by using empty political posturing.”

         Congressman Coble said he signed onto a letter drafted by Rep. Robert Aderholt (R-AL).  Congressman Aderholt said a total of 57 House members signed the letter.  “There may be tough decisions ahead, however, the American people deserve the whole truth about this issue,” said Aderholt.  “Neither Democrats nor Republicans should mislead the public in regards to this issue.  To believe the United States will be unable make our debt payments and not continue to pay our military or scaring seniors is wrong and unnecessary.”  

Below is the text of the letter:
Dear Mr. President:
We remain hopeful that an agreement will be reached in the near future regarding spending levels and the debt ceiling. We write to you today, however, to express strong concern about recent comments by Treasury Secretary Geithner. We ask that you clarify for the American people that the Treasury will in fact continue making the monthly interest payments owed on our national debt, even if the debt ceiling is reached.  

As you are aware, the revenue projection for FY11 by the Congressional Budget Office (CBO) is $2,230 billion.  The total estimated interest payment for FY11 is $213 billion.  For FY12, CBO estimates revenues of $2,558 billion and interest payments totaling $257 billion.

Statements by Secretary Geithner have led many Americans to believe that reaching the debt ceiling will cause the United States government to go into default on its interest payments August 2nd if the debt ceiling is reached.  

Clearly, that is not the case, as the figures above indicate.   Additionally, many Americans believe making Social Security payments (CBO estimates: FY11: $727 billion; FY12: $760 billion), Medicare payments (CBO estimates: FY11: $563 billion; FY12: $560 billion) and ensuring the pay of our military personnel (DOD estimates: FY11 $157 billion; FY12: $160 billion) should be the Administration’s next priorities.  Allowing statements to the contrary jeopardizes the good faith and credit of the United States.   
We ask that you make an immediate, clear and unequivocal public commitment that your Administration will continue to make all interest payments on time, as well as ensuring the pay of our military personnel, and making Social Security and Medicare payments in full.  

We look forward to your reply.

         Congressman Coble said that he will not support any increase in the debt ceiling that does not include a corresponding cut in federal spending that is at least as large – if not larger – than the increase in borrowing authority.