"Irresponsible" and "Dangerous to Suggest Default is the Only Option

Washington D.C., October 9, 2013 – Rep. David Schweikert (R-AZ) sent a letter to U.S. Treasury Secretary Jack Lew urging the Obama Administration to abandon rhetoric centering on the potential for "default" and pursue alternative solutions such as H.R. 3052, the Debt Ceiling Alternative Act, to ensure the United States meet its existing and long-term financial and debt obligations.

Schweikert Wrote: 

"To say that the federal government would not have enough money incoming to the treasury to cover our debt expenses is irresponsible and disingenuous,"  "I want to offer some potential solutions to our current situation and bring your attention to some ideas that could help soften the long term impacts that our entitlement state will ultimately bring onto the United States.

"I recently introduced H.R. 3052, the Debt Ceiling Alternative Act in an effort to re-frame the debate Washington is having surrounding the Debt Ceiling. The country does possess a variety of options.  What if the United States could reach primary balance?  By combining assets sales from Fannie and Freddie, Mortgage Back Securities, Spectrum, Federal Real Property, and a sweeping of unobligated Appropriations balances, it is conceivable we could reach primary balance in FY2014."

Schweikert concluded, "Over the next couple of decades, America faces an almost incalculable explosion of debt.  In order to prevent the U.S. economy from being crushed under the weight of this debt, we in Congress and the Administration must begin looking at creative ways to ensure the financial stability of future generations of Americans.  I look forward to exploring these ideas further with you."

The federal government currently has more than $9 trillion in surplus assets on its books.  That includes $1.8 trillion in so-called "forgotten funds" that sit unused in the bank accounts of federal agencies and departments.

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Contact Maggie Zehring: margaret.zehring@mail.house.gov