Sen. Tester Warns of Federal Shut Down

After a U.S. Senate vote Monday failed to increase the federal debt ceiling, Senator Jon Tester (D-MT) said he is concerned of a potential government shutdown. He also condemned his colleagues across the aisle for blocking a continuing resolution that would fund the government beyond Sept. 30 and avoid defaulting on America's bills.

Tester was the only member of Montana's Congressional delegation to vote in favor of the resolution.

Republicans "are playing with fire," Tester told The Courier over the phone. "The truth is... this money has already been spent. This is just paying our bills. It is equivalent to going to grocery stores and buying some food and putting it on your credit card. When the bill comes in, they [are saying] 'we are not paying for it.' That is exactly what this is. This debt was created as a matter of fact, and I don't want to be political about this, but it was created with a Republican House, a Republican Senate, a Republican president. And now, the Republicans are saying 'no, we aren't going to pay the bill."

Tester said neither party has been "innocent" when it comes to increasing the national debt.

"I have been here long enough to see both sides be pretty irresponsible when it comes to the debt. In the end, if we don't pay for the debt, if we don't pay the bills, which is what the debt ceiling increase does, that influences our treasury notes and will drive up the interest rate on the debt we currently have, nearly $29 trillion."

That likely would effect the interest rates for average citizens as well, Tester said.

"All of our credit cards, our car loans, our mortgages, are pegged to the treasury. If they go up, all those other ones that effect family households go up to. This is not a dance we should be doing. We should be moving forward with meeting our obligations on debt."

Tester said continued inaction on the part of fellow senators would lead to higher unemployment.

"I guarantee it will rise the unemployment rate. It will send our economy into a tail spin. I know there are certain people that say, 'well, if you don't increase that debt ceiling, then the debt will stop.' No. Just the opposite will occur. The debt will accrue much more quickly, and it will be very negative on our economy. Everything is going to be upside down and trying to right that ship would be real tough. It is catastrophe with a capital 'C.'"

Sequestration Possible

If the government shuts down, federal employees may face furloughs, similar to what happened in 2014.

"One week ago, I would have said [sequestration was] unlikely," Tester said. "But I tell you what, I am not sure it is not going to happen, which is another thing that drives me insane. Number one, we don't have the appropriations bills done, and they should have been done. I will tell you, on my committee [the Committee on Appropriations], we have got the bill written. We just need a number and we can plug those numbers in and have the bill out within a week. Then, we are going to shut it down?"

Such a shutdown also likely would benefit China, Tester said.

"China is doing things that will put them as the leader economically in this world. People might say, well, who cares? I will tell you, the business on this earth flows through this country because we have the reserve currency. If china gets reserve currency and actions like not funding the government and not [expanding] the debt limit ... will start giving them an economic advantage in the world, and the world will start looking at them, going 'well, these are the folks that are predictable, not the United States anymore.' If that happens -- and we will never get it back, by the way -- then they become where all the business flows through in the world. This is serious, serious, serious business."