Frosh Rep. Mulvaney: ‘Struggling’ with Boehner Plan; Default is ‘Red Herring’

By Eliza

Jul 26, 2011 4:19pm

ABC News’ Rick Klein (@rickklein) reports:

Notwithstanding the sense of urgency around reaching a debt deal before August 2, some freshmen members of Congress say they still don’t believe the risk of default being discussed by the Treasury Department is real.

On ABC’s “Top Line” today, freshman Rep. Mick Mulvaney, R-S.C., said he’s “struggling” over whether to support House Speaker John Boehner’s deficit plan, saying that he’s skeptical that another bipartisan commission would produce anything productive.

“I've got some questions about it. I'm struggling with it,” Mulvaney said. “The best question is, should you hold out for something that actually works? … If it doesn't [work], should you hold out for something that does work? I'm not interested in doing a deal for the sake of doing a deal.”

Mulvaney said he doesn’t believe the US is actually in danger of defaulting on its debt.

“There won't be a default. It's one of those red herrings you hear about. The Treasury is going to pay the interest on the debt. There really is no concern — real concern about a default,” he said. “That August 2 deadline I think has been played up for political reasons more than anything else.”

Regarding the public outcry over the past 24 hours, Mulvaney’s Website is among those that have been crashed by the traffic. Mulvaney called the feedback “encouraging.”

“We're getting a handful of folks who call and say raise taxes, a handful of folks who call and say don't do anything with the debt ceiling. But most folks are in the middle, and I've been surprised candidly with the number of folks who are calling to ask for information – ‘Mr. Mulvaney, what happens on August 2? Mr. Mulvaney, why are you taking this position? Mr. Mulvaney, what's in the bill?’ ”

Mulvaney said he doesn’t think Wall Street will overreact to the current stand-off.

“I'm not too concerned about volatility in the market,” he said. “I think that most people recognize that there won't be a default and the interest will get paid. … [Treasury Secretary] Timothy Geithner can come out in five minutes and say, ‘I'm going to pay the interest on the debt,’ and then all the volatility in the markets goes away and we can focus on the real issue underlying the problem which is the spending.”

Watch the full interview with Rep. Mick Mulvaney HERE.

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