House Speaker John Boehner calls consequences of U.S. default "a crapshoot"

UPDATED 5:09 p.m. ET

House Speaker John Boehner

President Obama's latest offer on cutting the deficit over time will not pass the House of Representatives, House Speaker John Boehner said on Wednesday, adding that he does not know what would happen if Congress does not raise the legal amount the U.S. can borrow by August 2.

"What the president is asking us to do just won't pass," Boehner told a small group of reporters at his office, including CBS News White House Correspondent Chip Reid.

Asked what would happen if the United States defaulted on its debt obligations for the first time because Republicans and Democrats could not come to an agreement before the deadline, Boehner said: "Nobody wants to go there, because nobody knows what's going to happen. It's a crapshoot."

Lawmakers from both parties want to use the threat of the debt ceiling deadline to work out a broader package on long-term deficit reduction, with Republicans looking to cut trillions of dollars in federal spending, while Democrats are pushing for a more "balanced approach," which would include both spending cuts and increased revenue through taxes.

Boehner said he and his Republican colleagues would remain steadfast in their opposition to higher taxes in order to reduce the deficit.

"The American people want us to hang tough," Boehner said.

Federal Reserve Board Chairman Ben Bernanke suggested on Wednesday the United States would prioritize payments, first paying creditors, including China, if the two sides do not make a deal to raise the debt ceiling from the current $14.3 trillion by Aug. 2. That could mean checks do not go out to retirees receiving benefits from the Social Security program.

"The assumption is that as long as possible, the Treasury would want to try to make payments on the principal and interest to the government debt, because failure to do that would certainly throw the financial system into enormous disarray and have major impacts on the global economy," Bernanke told lawmakers on Capitol Hill Wednesday.

President Obama caused a stir Tuesday when he told the CBS Evening News he "cannot guarantee" the 27 million Social Security checks due out on August 3rd would be mailed as scheduled if Congress did not first reach a deal, though White House spokesman Jay Carney on Wednesday expressed confidence it would not come to that.

White House hopeful Michele Bachmann called Mr. Obama's remarks "dangerous" and called on the president to "tell the truth."

"We cannot go on scaring the American people, we need to be truthful. And I call on the president and the Treasury Secretary (Timothy Geithner) to tell the truth to the American people," the Minnesota Republican lawmaker told reporters on Capitol Hill.

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The debt limit fight: A primer

[antoniof123]

House Speaker John Boehner calls consequences of U.S. default "a crapshoot"

Fine don't raise the debt celling if the country goes down the tub we know who to blame.

Idiot these people in DC you too John caused this mess and now you want to fix it by helping your buddies and destorying the rest of us.

Time for a change in the house it coming.

[RobAla]

So, if the President will not cease to insist on tax increases (which the House rightfully will not agree to), then it is all John Boehner's fault? Wow!

I guess you are OK with American jobs at risk because of President Obama's consuming desire to grow the already bloated federal government via more sacrifice on the American taxpayer.

[ajvw]

antonio - you're forgeting the Republican controlled House passed a budget. The Democratic controlled Senate has proposed nothing. The Democratic controlled Senate voted down the president's proposed budget 97-0.

Blaming this problem on Boehner...that dog don't hunt.

[misands]

brianbwb2015 -
Sounds like liberal scare tactics and nonsense to me. We don't need to rest of the world because we are the strongest on earth, but we won't be if we raise the debt limit and let China take us over. Stand up to liberal fear mongering like this poster is doing. Contact your representative and Senator and tell them no to raising the debt limit because falling into further debt is what the true crisis is.

[lasvegasteacher]

It's a crapshoot.
Mr Boehner think about what you are doing. Are you really willing to take a crapshoot with the US economy?
Your responsibility is with maintaining the US Government.

[secretsquare12]

""What the president is asking us to do just won't pass," Boehner told a small group of reporters at his office, "

Mr. Boehner, Obama has exactly no ability whatsoever to introduce legislation in any way. Just like Senator McConnell, you seem eager to hand all your legislative duties over to President Obama so you can concentrate on your role as full-time critic.

If you want to have a bill passed, introduce a bill that will pass. Until you do that, you're no more a leader than Obama.

[stuwerb]

"I have met the enemy and it is us" -- Pogo. [China, you're off the hook this time.]

[shurch4truth]

How "News of the World" was managed was a reflection of its owners - Murdocks

Murdocks own Fox

Fox network was the only network allowed to be on in the Bush White House

The Republican Party is promoted by Murdock's Fox Network

[secretsquare12]

It's friggin' Murdoch. If you're going to make these wild conspiratorial claims maybe you should at least have done enough research to spell the guy's name right.

[retm-w]

Murdock Murdoch no difference still a criminal.

[curse914]

by bc-1948 July 13, 2011 8:01 PM EDT
Taxes are at a 30 year low - surely you can't be blind to that - Go look at how many jobs were created during the GWB years - when rates became an alltime low. Boy, the 2000 years must have been really booming on jobs (not).

I believe in a balanced approach - 3Trillion in reduced spending, $1Trillion in revenue - what should be hard about that.

=====================

Nope, we should take the chance of a default so the upper 2 percent will not have their taxes raised from their record low.


For a history refresher, Dwight (the commie) Eisenhower had the capital gains tax rate at 91 percent and the same for marginal income. That is how he balanced the budget; on the backs of those who have taken full advantage of this nations resources.

[chrobrego-2009]

Bachman tells the President "to tell the truth."

I love the irony of that. I really laughed.

[medas2005]

Truth to Bachman: The earth is 6,000 years old. Gays are barbarian and can be retrained to be straight. Global warming is a hoax. Obama spent $2B a day in SE Asia. A little default won't hurt our country because we can pay interest, not seniors. But please don't scare us!

[goat5691]

Does anyone really take that woman seriously? She does the "Ali" rope a dope around questions she refuses to answer. One thing she is very schooled in is the Republican "avoid the question".

[997rsr]

Is anybody in there right mind believe that Bachmann knows anything about economics or how world financial markets work? The woman is a complete idiot.

[arthanyel]

Only people in their "far right" mind.

As queen of "pants on fire" statements, Michelle Bachmann is not to be listened to about anything.

[retm-w]

She knows all about getting subsidies.

[DebbieCorona]

Since the GOP is the majority in the House it will be the burden of the House GOP representatives if the US defaults. So far not seeing any real negotiations other than the GOP say no raise in taxes and the DEMS say don't cut SS/Medicare. In the end the question will be will voters stand with which side. I'm betting on the wealthy voting GOP while Grandma and the poor siding with the Dems.

[bc-1948]

Obviously Boehner is nothing more than a figurehead in his position. He and the Republican party should be ashamed. Never in the history of the US have we had such a party - not even enough guts to reach to the middle -