Treasury: Default Could Be Catastrophic


department-of-treasuryWhether or not the U.S. actually defaults on its debt, just getting dangerously close to the debt ceiling is certain to have a grave economic impact, according to a new report by the Treasury Department.

The report, released today, suggests a default might lead to “a financial crisis and recession that could echo the events of 2008 or worse.”

But, in a statement to lawmakers, Treasury Secretary Jacob Lew noted that simply “postponing a debt ceiling increase to the very last minute is exactly what our economy does not need-a self-inflicted wound harming families and businesses.”

The report urges members of Congress to remember the impact that 2011’s debt-limit standoff had on the confidence of small businesses, consumers, and stock market investors. 

{Andy Newscenter}


  1. It’s too late. World opinion has already decided that the US can’t be relied on any more. I’ve been reading the international press, and it makes me want to cry. People say they don’t trust us any more. What’s worse, a lot of people are laughing at us. We claim to be “exceptional,” but in the eyes of the rest of the world we’ve become a bad joke. You think this doesn’t matter? If nothing else, it reduces the US’ ability to support Israel.

  2. It is a complete red herring to say there will be a default.

    here will never will be a time in which there is not enough cash to pay the interest. Daily, the U.S. Treasury takes in more money than it spends.

    Obama is the “SHAKRAN-IN-CHIEF”