Bachmann says U.S. won't default

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URBANDALE, Iowa, July 10 (UPI) -- Republican presidential candidate Michelle Bachmann says warnings of financial disaster if the federal debt ceiling isn't raised are bogus.

The Minnesota congresswoman told supporters at the grand opening of her Iowa campaign headquarters in Urbandale Saturday she will continue to vote against increasing the debt ceiling, now at $14.3 trillion, The Des Moines Register reported.

"And don't let them scare you by telling you that the country's going to fall apart and that we're going to default on our debt," Bachmann said. "The fact is we aren't, because revenue continues to come into Washington, D.C.

"It's a very small percentage that we have to end up paying on that interest so that we don't fall into default."

President Barack Obama, a Democrat, disagrees with her assessment. He said Wednesday it could hurt the country's credit rating, sending interest rates "drastically up, and it could cause a whole new spiral into a second recession or worse."

But Bachmann said the country can't afford to let its debt load go higher.

"It's time for tough love," she said, eliciting applause.