McCaul warns against defaulting on debt ceiling, citing China as a potential enemy.

Daily Wire NewsMay 15, 2023

Rep. Michael McCaul Warns of Catastrophic Consequences if U.S. Defaults on Debt

During an interview on ABC News’ “This Week,” Rep. Michael McCaul (R-TX), chairman of the Foreign Affairs Committee, issued a warning that America’s enemies would love to see the U.S. default on its debt. This comes after former President Donald Trump endorsed the idea of defaulting on the debt if the White House does not agree to spending cuts.

“Well, this is always a game we play, every Congress, you know, in daring each other to jump off the cliff,” McCaul said. “It’s a dangerous game. I think defaulting on our full faith and credit, any financial person would tell you, that’s very catastrophic.”

Adversaries are Watching

Host Jonathan Karl played a clip from General Mark Milley, chairman of the Joint Chiefs of Staff, who recently said, “China, right now, describes us, in their open speeches, et cetera, as a declining power. Defaulting on the debt will only reinforce that thought and embolden China and increase risk to the United States.”

When asked if he was worried about the national security implications of defaulting, McCaul said, “Sure, right, our adversaries look at this very closely.”

“They look at when we’re divided, too, as a nation,” he said. “I think they would love nothing more, particularly China, to see us default, you know, on our full faith and credit under the Constitution. I took an oath to the Constitution. I think defaulting is not the right path to go down.”

Disastrous Consequences

McCaul emphasized that it would be “disastrous” for the U.S. to default on its debt. “And I think any financial investor will tell you that. I think any economist will tell you that,” he said. “And I agree with the Chairman of the Joint Chiefs that our adversaries are looking at this, and we have to be very careful what we do. I’m optimistic we will get to a place where we can avoid that situation.”