Tuesday, July 12, 2011

A Worst-Case Scenario In The Event Of No Deal On Raising The U.S. Debt Ceiling














US Military Could Suffer If No Debt Deal: Bush Aide -- CNBC

There's be no money for U.S. defense as of Aug. 3 if there is no deal on the debt under a worst-case scenario, former Treasury undersecretary Jay Powell told CNBC Monday.

Powell, who worked in the George H.W. Bush administration and is now a visiting scholar at the Bipartisan Policy Center, thinks the "odds are good" Congress and the Obama administration will reach a deal to raise the debt ceiling by Aug. 2.

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My Comment: Yeah sure .... not paying American soldiers while they are fighting a war in Afghanistan (and elsewhere) .... if that happens the outcry will be so loud that the White House and Congress will never be able to recover. But on the flip side .... if the fiscal mess continues .... the worse case scenario will eventually happen.

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