Tuesday morning, I had the opportunity to co-host WMAL’s “Morning Majority” show with Brian Nehman.
During our interview with economist and CNBC host Larry Kudlow, the topic of the debt ceiling came up. Kudlow said it would be a “catastrophe” if we failed to raise the debt ceiling — and noted that he was “very worried” about it.
When I noted that some don’t think failing to raise the debt ceiling would be a big deal, he said:
Those people would be wrong. I just want to tell you; the idea that we can’t sell bonds to pay the interest on our debt is an utter disaster, Matt. Trust me on this, my friend. This is much different than the government shutdown.
The government shutdown you know, we go on until tomorrow. We furlough unessential workers, but the social security checks get paid, right? If you can’t sell more bonds after the ceiling is reached, the social security checks don not get paid, okay — nothing gets paid.
… That is a default. That is the United States doing something that Argentina does. So this is very important. And would roil markets like you’ve never seen. I will tell you that.
… It could drive interest rates sky high.
(Emphasis mine).
Kudlow went on to say that he’s all for using this as an opportunity for conservatives to insist on spending cuts and spending reforms — but he also noted that the stakes are high.
You can listen to the full interview here: