Republican Congressman Says U.S. Should Declare Bankruptcy
Rep. Ted Yoho of Florida says the United States should declare bankruptcy, telling Business Insider:
If we address our problems, and we say, ‘Brett, I owe you money — you know I owe you money, and I’m going to pay you. I’m going to pay you with interest. But we just need a little breathing room here to reorganize our debt.’ I don’t know if you’ve ever been in business with people who have owed you money…
And if you had someone that owed you money, and if they were to call you up and tell you that — instead of just trying to hunt them down, you’re not going to feel better about that?
So, Yoho is proposing a restructuring of U.S. debts along the lines of a Chapter 13 bankruptcy. What he’s describing — going to your creditors, saying “we just need a little breathing room,” and getting new terms on your debt that allow you to pay — is the bankruptcy process.