US Treasury Secretary Says Congres is Playing With Fire
Monday, October 7th, 2013 -- 9:00 AM
-The United States moved closer to the possibility of the first-ever default on the government's debt Sunday as Speaker John Boehner adamantly ruled out a House vote on a straightforward bill to boost the borrowing authority without concessions from President Barack Obama.With no resolution in sight, Treasury Secretary Jack Lew warned that Congress is "playing with fire" as he called on lawmakers to quickly pass legislation re-opening the government and a measure increasing the nation's $16.7 trillion debt limit.
The government shutdown precipitated by the budget brinkmanship entered its sixth day with hundreds of thousands of federal employees furloughed, national parks closed and an array of government services on hold.
Treasury issued a report on Thursday detailing in stark terms what could happen if the government actually defaulted on its obligations to service the national debt.
"A default would be unprecedented and has the potential to be catastrophic," the Treasury report said. "Credit markets could freeze, the value of the dollar could plummet, U.S. interest rates could skyrocket, and the negative spillovers could reverberate around the world."
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