It should be inconceivable for the United States to default on its debt , Larry Summers told CNBC on Tuesday, stressing that the country's creditworthiness must not be held hostage by budgetary wrangling.
"It should be unthinkable to default on debt in the United States… after 200 years the thought that the full faith in credit of the U.S could be called into question is unthinkable," Laurence Summers, former treasury secretary, said.
Summers said the 2008 financial crisis offered a lesson in what happens when base safe assets are put at risk, and said the country should "never experiment" as it did back then.
"Everybody should be for meeting the debt obligations of the U.S. and then there needs to be a very vigorous an active discussion around what is a very real problem; the sustainability over the long term of the U.S.financial position which surely needs to be addressed in a balanced way with both measures on the expenditure side and measures on the revenue side,"Summers said.
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