Debt Ceiling: What Happens on August 2?
The President is peeved--OK, maybe downright mad. Evidently, President Obama told congressional leaders, who are wrangling over a debt ceiling compromise, that "enough's enough."
I talked about the deficit (which is like your family's annual cash flow), the national debt (like your family's credit card balance) and the debt ceiling (the country's credit card limit) with CBS television stations this morning:
If we get to August 2nd without a deal, here's what's likely to occur:
- US government bondholders will be paid
- Social Security checks could be delayed
- Non-essential government services will be shut-down
- Non-essential government workers will be furloughed
- US economy would grind to a halt, increasing the odds for a double-dip recession
