Posted Tuesday, Jan. 25, 2011, at 5:41 PM
I missed it last week, but Sen. Pat Toomey (R-Penn.) responded to panic over what will happen if there's no rise in the debt ceiling with a
Wall Street Journal op-ed
promising to fix that. He introduced his legislation, the "Full Faith and Credit Act," today, and has fifteen Republican co-sponsors, including new senators Ron Johnson, Mike Lee, and Rand Paul.
To require that the Government prioritize all obligations on the debt held by the public in the event that the debt limit is reached.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ''Full Faith and Credit Act’’.
SEC. 2. PRIORITIZE OBLIGATIONS ON THE DEBT HELD BY THE PUBLIC.
In the event that the debt of the United States Government, as defined in section 3101 of title 31, United States Code, reaches the statutory limit, the authority of the Department of the Treasury provided in section 3123 of title 31, United States Code, to pay with legal tender the principal and interest on debt held by the public shall take priority over all other obligations incurred by the Government of the United States.