approach the august 2nd deadline for a legislated increase in the borrowing authority of the united states treasury up to now, raising the debt ceiling has always been a routine legislative matter, never the stuff of presidential addresses, never a reason for the president to ask the networks for time to address the nation. but never before has one party seriously threatened to prevent an increase in the debt ceiling. the president will speak at 9:00 p.m. eastern from the east room of the white house, house speaker john boehner has requested response time from the networks. the duelling speeches come after two duelling plans emerged today. a plan from senate majority leader harry reid is everything the house republicans originally asked for, a $2.7 trillion cut in spending with no increase of any kind in tax revenue with the $2.7 trillion spending cut designed to match dollar-for-dollar, the amount of the increase in the debt ceiling. in effect, it is senator reid's way of callingç the house republicans' bluff. speaker boehnor's original position was a dollar-for-dollar match of spending cuts to t

united states government. its latest earnings report, a.m. reported $76 billion in cash reserves according to apple. the united states treasury department only ha $73 billion. it's one more example of the dire situation. >> in state jobs growth comes from new startups. >> reporter: at a meeting of high-tech ceos that focused on new job creation. >> we are going to hire those people in the united states or somewhere else? >> reporter: the underlying worry was about washington and the debt crisis which could put the brakes on what has been a silicon valley hiring binge. >> for companies who need loans and credit, it's a nightmare. >> reporter: he is the president and ceo of wyse technology a cash-rich company that provides information technology services to businesses. he says the debt crisis could cause interest rates to spike which could make it harder for businesses and consumers to borrow money. that could have a ripple effect through the economy from startups to mom and pops. >> for those companies who don't have cash who are raising money to pay bills to hire people the interest will go up so it's going to impact for sure

extensively practice torture is an embarrassment and perhaps more than about a summit to the united states treasury survivors and religious leaders in washington d.c. have come together to demand a full commission of inquiry into what they describe as torture practiced or enabled by the united states including in its own prisons like one time obey and by the cia when president bush says that he waterboarding and he would do it again. and said damn right that he had ordered it. so you know it's a very serious problem for the spirit soul of our country i think it's of how many prisoners were tortured by the united states are hard to find but survivors like hector's say the numbers don't tell a full story when someone gets torture you know only the person who's for store for us to deal with a big wouldn't because of those on the third it's also someone who has to be humanized themselves in order through the human eyes of the human being but a society that's forced or truth is going to pay a price a very big price as well killing ford artsy washington. as the u.s. intensifies its anti-terrorist focus i

probability of land as a result of the default in their states is increasing the demand for your united states treasuries because you is treasuries is the largest market for low risk that sue if you increase. taxes right you basically increase the risk of all in the overall system you all three many institutions which here require and by law do increase the number of us it's in the dark color. of the markets now while climbing for the first time in five days and that's on concerns of failure to reach a deal on raising the u.s. debt ceiling may cause the biggest consumer of crude to the fault might suite is losing eighty two cents this brant is just below one hundred eighteen dollars a barrel. gold prices have surged to record highs investors are seeking safe haven assets and the jitters of global exchanges gold is trading at almost sixteen hundred fifteen dollars per ounce silver for two dollars fifty nine cents. cross asia stocks are falling as investors fear the impasse in the u.s. debt talks will prompt a dramatic sell off on global exchanges both the nikkei and the hang saying other climbing point ei

high probability ran as a result of the default in their state's prison a demand for your united states treasuries because you is treasuries is the largest market for low risk that sue if you increase the risk for those houses right you basically increase their risk clavell in the overall system you all think many institutions we care require in via law who increase their number all for research in the dark color. so you look at the markets this is our oil is still declining it's the first day in five sets on concerns the failure to reach a deal on raising the u.s. debt ceiling may cause the biggest consumer to default serbo for light suites and brands are down more than three quarters of the dore. gold prices have surged to record highs as investors are seeking safe haven stops amid the jitters on global exchanges level we're seeing right now is gold it almost sixteen hundred and twenty dollars per ounce silver just below forty one dollars per ounce move to the stock markets jewishly we start with asian stocks though fall because of us as fear the impasse in the u.s. debt talks will prompt a dram

probability of land as a result of the default in their state's prison a demand from the united states treasury because you is treasuries. in the alliances market. low risk that sue if you increase their reefs close associates right you basically increase their risk in the overall system you all thing many institutions which are requiring by law do increase their number one reason i say it's in the dark color. of the markets now is declining this is the first time in five days on concerns of failure to reach a deal of brazing us that ceiling may cause the biggest consumer of crude to default the flight suite and burned down this hour that's just below one hundred eighteen dollars. gold prices however have surged to record highs in the setting records pretty much every hour buses are seeking safe haven from the dead jitters and global exchanges gold is trading at sixteen hundred and twenty dollars and even fifty cent. silver is up forty one dollars exactly. fifty yards now and it's showing slight slight of flat to negative picture right now bank stocks are leading european markets lower on monda

one week from today the united states treasury will hit the debt ceiling, meaning for the first time in history, the united states government will not be able to pay all of its debts. house speaker john boehner is going back to the drawing board tonight after the new plan he unveiled last night during his first nationally televised rebuttal to president obama turned out to be less than meets the eye, much less. the congressional budget office said today the boehner plan would fall well short of the $1.2 trillion in spending cuts boehner believed he had come up with. it turns out the boehner- specified cuts would be $300 billion less than what he thought. tea party republicans had already objected to the boehner plan as being too small a spending cut to be worthy of their support. that had provoked house majority leader eric cantor to call for unity around the boehner plan, telling house republicans to "quit grumbling and whining and call the president's bluff by passing the boehner plan." now that the boehner plan has turned out to be a mirage, the grumbling and whining among house re

he was mentioning the treasury department. ipod maker apple has more cash on hand than the united states treasurys of wednesday, the treasury's closing balance was $73.77 billion. compare that to the $76.16 billion in cash that apple recorded on its latest earnings report. but, you know what? even apple couldn't save us. the u.s. government spends more than 10 billion a day. at that rate, apple's cash would not last two weeks. continuing coverage now of the debt limit showdown in washington as we wait for the senate to take up a bill that has now passed in the house. a little more than an hour ago. we have an update on what they are doing down on the senate floor. you are taking a live look now. plus, it's been one week since a pair of deadly attacks in norway, killing 77 people. a memorial service for the victims. police once again question the confessed killer. are switching from tylenol to advil. here's one story. [ george ] my name is george. i switched to advil six months ago. i love golf. but i have knee pain, hip pain, back pain and pain in my hands. advil is definitely my pain reliever of

apple now has more cash than the united states treasury. the government's balance right now is $73 billion. compared to apple, which reports it has more than $76 billion on hand. unlike the computer giant the government has money coming in all the time in the form of income, corporate and other taxes, but the bills are quickly piling up. this is a list of the big payments due in the next few weeks. the biggest is social security which medicare close second. under the worse case scenario treasury officials say they have to decide which bills to pay and which not to pay. gerri from the fox business network is here. so, how close are we to running out of money, $73 billion? >> the treasury department has said we go broke august 2nd, the drop dead date according to them but the reality is over the course of august, we will have some $172 billion coming in, and it should be enough to pay interest on the debt of $29 billion and social security payments of $49 billion. but experts who watch this say you know what? the pedal will hit the metal augu

>>stuart: in the month of august $172 billion reportedly will come into the united states treasury. $172at is an accurate number, so social security, $49 billion goes out. and interest on the debt, $29 billion goes out and medicare $50 billion. that is stuff money coming in, to cover everything that has to go out. so i take your point about when the money comes in. but i think you would grow with me that there is an element of threat here, there is an element of intimidation when the president says, takes out social security and says very clearly he will not guarantee that goes out. that is negotiating in advance of a crisis using a throat to the most vulnerable people in our society. and using that threat for political gain, political advantage, using it to say you republicans, you are the people who are to blame here. i don't think a president should do that. >>guest: well, maybe so, but he was spending to a direct question and he gave what i believe was an honest answer. yes, he have been more expressive in the answer and said, you know, during the entire month of august enough money

the united states treasury has only $73 billion.t's one idea on how bad this got. >> job growth comes from new startups. >> reporter: at a meeting of high-tech ceos that focused on new job creation -- >> we are going to hire those people. in the united states or elsewhere? >> reporter: the underlying worry was about washington and the debt crisis which could put the brakes on what has been a silicon valley hiring binge. >> for companies who are investing and who need loans, who need credit it's going to be a nightmare. >> reporter: he is the president and ceo of wyse technology a cash-rich company that provides information technology services to businesses. he says the debt crisis could cause interest rates to spike which could make it harder for businesses and consumers to borrow money. that could have a ripple effect all through the economy from high-tech startups to mom and pops. >> for those companies who don't have cash right now, raise among any to pay bills to invest to hire people, the interest is going to go up. so it's goi

money to pay the bills at this moment because the debt limit was not raised back in may, the united states treasury has less cash on hand than apple computer. on wednesday the government will have $23 billion in social security checks to send out and not enough cash to cover them unless it doesn't send out a whole lot of other checks. now, earlier this evening after a string of delays the house narrowly passed speaker john boehner's version of a debt reduction bill. >> i stuck my neck out a mile to try this. to get an agreement with the president of the united states. i stuck my neck out a mile. and i put revenues on the table. in order to try this. to come to an agreement to avert us being where we are. a lot of people in this town can never say yes. a lot of people can never say yes. this house has acted. and it is time for the administration and time for our colleagues across the aisle, put something on the table! tell us where you are! [ cheers and applause ] >> well, the bill which had new language requiring congress to pass a balanced budget amendment before the debt ceiling is raised was qui

the moody's decision today reflecting a possible down grading of the united states treasury bills, would disaster, and pressure is building. financial pressure from wall street, from big business, from basically the sources of campaign money for the republican party. that's the issue. >> do you think that anybody comes out a winner in this whole thing. it feels like somebody is triangulating a weird political advantage in next year's race. i'm not sure either side can bet on this playing for them. >> no, i don't think anybody comes out a winner. i think the american public is disgusted with all this political maneuvering, want the debt ceiling raised to the extent most people are looking at the debt ceiling at all and want the budget dealt with. most people in the united states are not paying attention to any of this, paying attention to jobs and wages, worried about personal finances. they want the president and congress to come up with some sort of plan to create more jobs in the united states. >> i want to ask you about that. we are running a little bit short on time. you had a pretty

right rightly sort of norma's concerns about islamist groups of all shapes but even the united states and treasury to far so i think that's a that's a first you said you should be pointed in how do you know the majority we really don't know what the majority is i mean yes we have maybe a million people in tahrir square but each of these. huge countries but million people really the majority i mean we've seen historically bad notices the best organized political forces are the one to take over and as much as historical comparisons are not always the right thing to do iran is a great example of that so an organized force but it has a massive popular support that like the brotherhood can take over and one of those i think the brotherhood will i'm going to say let me tell you. this is one of the groups that are not organised one of the issues of this program is hijacking and rule what it will you that's why i want to do this program you see there's a fear that they and i'm not going to just focus on the brothers only but other groups that could hijack this because organization is very important you ca

. >> you're quite right in saying that there was a positive bias towards the united states of america towards treasury bills. that was the case historically. it was unheard of only six months ago to imagine that the united states could be under negative watch by the rating agencies. do we have? all four of us, together? 24. he's low fat, too, and has 5 grams of sugars. i'll believe it when i--- [ both ] oooooh... what's shakin'? [ female announcer ] as you get older, protein is an important part of staying active and strong. new ensure high protein... fifty percent of your daily value of protein. low fat and five grams of sugars. see? he's a good egg. [ major nutrition ] new ensure high protein. ensure! nutrition in charge! [ding] announcer: clean kitchen surfaces, utensils, and hands with soapy water. one in 6 americans will get sick from food poisoning this year. keep your family safer. check your steps at foodsafety.gov. >>> i'm freds rick ka whitfield. a check on our top story right now. there is new hope about a possible agreement to raise the u.s. debt ceiling. >> i think we're very close to bei

you're quite right, fareed, in saying that there are a positive bias towards the united states of america, towards treasuryally. i mean it was unheard of only six months ago to imagine that the united states could be on a negative watch by the rating agencies. ♪ you makes me happy ♪ when skies are grey ♪ you'll never know, dear ♪ how much i love you ♪ please don't take my sunshine away ♪ [ male announcer ] as long as there are babies, they'll be chevy's to bring them home. ♪ but afraid you can't afford it? well, look how much insurance many people can get through selectquote for less than a dollar a day. selectquote found, rich, 37, a $500,000 policy for under $18 a month. even though dave, 43, takes meds to control his blood pressure, selectquote got him a $500,000 policy for under $28 a month. ellen, 47, got a $250,000 policy for under $20 a month. all it takes is a phone call. your personal selectquote agent will answer all your questions ... and impartially shop the highly rated term life companies selectquote represents for your best rates. give your family the security it needs at a price you can aff

united states. that is simply not true. it's important to recognize that revenues continue to come in to the united states treasury. the president's obligation and the congress' to make sure that the interest is paid on the debt. >> fairly soon after that date, they would have to be significant cuts in social security, medicare, military pay, or some combination of those in order to avoid borrowing more money. if, in fact, we ended up defaulting on the debt, or even if we didn't, i think, you know, it's possible that simply defaulting on our obligations to our citizens might be enough to create a downgrade in credit ratings and higher interest rates for us which would be counterproductive, of course, since that makes the deficit worse. >> moody's is reviewing the u.s. aaa rating. republicans certainly under sense pressure to refuse new taxes as part of a deal to raise the nation's debt ceiling. lawmakers who give in risk the wrath of one of the most powerful men here in washington, a man most americans probably never heard of. we're talking about grover norquist. we asked lisa sylvester to join us right now. i'm go

united states. now, the irony here of course is that with all this uncertainty, the safest and most liquid investment in the world happens to be the united states treasuriesis that you still have people talking about that as the safest places to put your money. but merrill lynch coming out and saying that they don't see a deal getting done right now. they expect a partial government shutdown for about a week, they expect a ratings down grade. a lot of other people saying they expect a ratings downgrade because they just don't like what they're seeing in washington. >> and tell us about this gdp report. how concerned should we be? >> the gdp report was weak and it add as wrinkle to this whole thing because does it mean that you cannot messing up the debt ceiling and having an immediate cut back this government spending that would hurt a very weak economy and make it weaker? the first quarter of the year, we've learned that the economy only grew 0.4%. that is not good at all. there you can see a bar chart, shows you thedepths of the recession on the left. and the last two bars, 0.4% first quarter of the year, second bar, 1.3% was the growth in the second qu

well, want to turn now to the debt reduction talks and the potential of the default by the united states treasury. high-level talks at the white house today, president obama and congressional leaders from both parties. afterwards the president said the meeting was constructive and that they will meet again on sunday. joining us now from washington is senator ron johnson, republican of wisconsin. yeah, we all heard you right before this, and you said those closed-door meetings are disgusting. why? >> well, first of all, the fact that this president has not got engaged in the process until just a couple of weeks ago is very disappointing. let's face it. the president and the senate democrats have backed america up against a wall. it shouldn't have been that way. we should have had a very orderly process where we were looking at a serious proposal months ago, and now we've got what, 30 days before the hard deadline that treasury secretary geitner has laid out for us, and now we're finally kind of getting serious about this in the fact of the matter is i ran because we are bankrupting america, and i

the blanks of this debt reduction plan that could, one, avert the looming default of the united states treasury and, two, dramatically change the size and scope of the federal government as we know it. senator tom coburn, member of the so-called gang of 6, is standing by for me on capitol hill to answer some questions. first i need to get some news to you. i want to report that president obama has just summoned congressional democrats to aarr white house. to be clear, democrats only. we're also hearing the top two house republicans, john boehner and eric cantor are to meet with mr. obama at 5:00 p.m. eastern time. so clearly a busy afternoon shaping up at the white house. tell you what, i want to take you now straight to senator coburn who is live for me. sir, good to have you on the program. let me just begin with this. we mentioned these meetings at the white house. my question is, is the fact that there's a democrats only meeting happening now at the white house, does that, sir, signal to you that we have entered a new phase in these talks, these debt reduction talks that the president is no

a potential default of the united states treasury if congress will not approve more borrowing by thatugust 2. congressional republicans are asking for equal spending cuts of any dollar amount they would leetth let the government borrow. the white house is saying that would hurt the poor and the middle class and wouldn't cost the wealthy a dime. so the democrats are saying yes, we'll cut spending, but let's raise some tacks, too. jessica yellin, is there any give at all on either side's position here? >> both sides seem pretty locked down and increasingly so, brooke. for today's 4:00 p.m. meeting, staff on all sides were dispatched to come up with a list of detailed spending cuts that could help everybody get to the $1.5 trillion to $1.7 trillion that has been the working goal for the total spending cuts. there's been taxes and entitlement changes. treasury secretary tim geithner gave the group a warning about the catastrophic consequences of a default and we got varying accounts of the mood in there. yesterday, some said it was weary. some said they were tired of hearing each other's

united states will go into default. that is simply not true. it is important to recognize continue to come into the united states treasury. it is the president's obligation to make sure that the interest is paid on the debt. we are grateful the revenues are sufficient to pay the interest. let it be known and let us have a budget is slated direction that we do pay off the interest on the debt first -- let us have the budget to go in the direction that we do pay off the interest on the debt first appeared under no circumstances should the brave men and women of this country have their military pay be somehow suspended. the families of the military deserve far better than that. we must stand with our military and also with making sure that we stand to secure the faith and credit of the united states. i commend this team for trying to put the effort forward. we cannot go on scaring the american people. we need to be truthful. i call on the president and treasury secretary to tell the truth to the american people. this is what this effort is trying to do. thank you. >> i want to thank you for being here today. i am particularl

i agree with the united states treasury department, which is, if everyone in the united states would pay their fair share of taxes we would not be in this position today. and i suggest we all americans pay a fair share in the future. host: firstprimary -- and house rejects bids to halt funding of libyan mission. the house rejected a measure that would have withdrawn funding for military operations in libya. hot that is from "the washington post" this morning. at the next topic of on the legacy of the space shuttle on this, the final launch day. stopped pace from george washington university and scott matthews from "the orlando sentinel" and has been covering this. michigan, stephen is a republican. caller: good morning. i just wanted to say that this grand bargaining sounds like some kind of a -- i don't know -- deal made somewhere, i don't know. i am tired of this president giving up everything to please multimillionaires. this is enough. they don't want to pay for the war. they don't want to pay for anything. in this country, the largest economy in the world, i think we can afford

are people who are making decisions about investing hundreds of billions of dollars in the united states treasuryswhich we are going to need under any circumstance, the notion that people are going to have to guess how much money there is and whether it will be one week or two is simply unacceptable. this is playing fiscal russian roulette. nobody knows the consequences. there are already costs being paid. we should stop this and get on with dealing with issues that actually cut the budget, rather than playing games. host: about your colleague, david wu, he is going to resign. guest: wu was kind of melting down last year in the best republican year in decades, if he could still win by 11%, i think we're in very good shape. there are probably two or three people that i know well that are already working on the democratic side. i will bet money that we will have not just a strong democratic victory there, but we are going to have somebody who can really help carry the load. host: are they state and local people? guest: absolutely. there are people that are well known in oregon, established political

united states congress. i want to close by responding to an argument made by tim knee geithner, the secretary of the united states treasury. the argument he made was to the effect that we in congress are essentially mere surplus when it comes to the debt limit increase. he made the argument that ace understand it -- that as i understand it, section 4 authorizes the executive branch, programs the treasury serkts perhaps just the president, to somehow raise the debt limit without consulting congress, without an act of congress in place. that argument is not accurate. that argument is based on an improper reading of the 14th amendment. the language to which he refers reads in pertinent part as follows, "the validity of the public debt of the united states authorized by law shall not be questioned." adopted in the immediate aftermath of the civil war, this provision simply acknowledges the fact that we can't ignore our debt obligations, that when interest or principle come du due -- interest or principal come due on our national debt, those things have to be honored. you notice in the middle of it, set off by commas, is a phr

and it is important to note that what makes us so strong is we have something called the united states treasury bonds which have traditionally been one of the safest investments another country or investor could make. other couldn'tries and americans buy treasury bonds. our children are given treasury bonds. for foreign nations an investors purchasing a u.s. treasury bond meant they held something virtually as safe as cash. backed by the full faith and credit of the united states. let me say that again. the full faith and credit of the united states. that is constitutionally worded. and so my friends who are drawn to the tea party are suggesting that we go straight to the brink. but when you go to the brink as my colleague as has said, you begin to shake the -- has my colleague has said, you begin to shake the market and they shudder and the impact comes to the hardworking american who has been so fiscally responsible that they put away their children's college, savings for themselves if they retire, they've been dutiful, they've been respectful, but what we will do is force this market to get

treasury. we should keep in mind that his first boss is the president of the united states. so the things that come out of the mouth of the secretary of the treasury often reflect the best interests of the president and perhaps explicit or implied directive that comes from the president. and i happen to have this belief that when someone -- i happen to have this belief when someone goes to work for the president, their judgment becomes what they think the president would do if he happened to be doing their job. i have watched the transition of executive offices over the years in places like the governor's office in iowa where i come from, and serve in the iowa senate before i came here, i watched as the transition in the executive branch took place. i watched some of the people that survived the transition did so by accommodating their positions to that of their new chief executive officer, their new governor. . i watched as we transitioned from a george w. bush administration to a barack obama administration. i watched as some of the survivors of that transition accommodated

it should be a simple vote by all of us to allow the united states treasury to fund all of its programs and obligations and debts of the entire federal government that are already in the law. republicans in the house have already voted to support and pass a $9 trillion increase in the national debt and now again instead of working to create jobs and help our nation rise out of this great recession and depression for many, the republicans are really playing high stakes game of chicken with the safety net and with the security of every single american so that they can protect the massive and congressman scott and yourself talked about this $400 billion tax cut that congressman scott warned us we'd have to pay for sometime soon, it came sooner rather than later, congressman scott, and we lisped to you and those of white house voted no, you know, tried. we tried. but here we are with your prediction coming true. you know, here we're asking once again, those who have been hurt the most vulnerable to pay once again and that is just downright wrong. a failure to raise the debt limit would mean

half a trillion dollars from you if you have that much, just send that check over to the united states treasury. we don't do that. so i want the point to be made tonight that we're on the side of the angels because it is absolutely ludicrous to not see the difference in life span pre-1965, before linden johnson, a fellow texan, announced his desire in the great society to find a way to in essence respect the senior citizens, the elderly and at that time he was probably looking at individuals in their 60's because of the wear and tear and the lack of health care , to be able to give them an extra life line, to say that he was right and to make sure and i just want to add these points as i come to a close, to be able to suggest that the millions of seniors who now have access to guaranteed benefits are in jeopardy because of the games that are being played about the debt ceiling, a simple procedural vote if you will that allows the debt ceiling to be raised so that we can pay our bills, something that we've done if i may put in the record some 74 times since 1962 with no war he will whatsoever. a

treasury bonds and it goes to what's happened in the united states since the collapse of lemon brothers and the slow demise of america's reputation and strength as a global economic force, but also , certainly from australia, there's a mild embarrassment that local political theater is driving something that will impact not just the united states but the confidence that the rest of the world has and should have in the united states. >> we know, of course, that many other countries, particularly in europe, are struggling with their own debt problems. what effect is the u.s. situation likely to have on their battles? is it going to make it more difficult? >> well, in australia it's a very interesting situation. just a couple of days ago we had a much stronger than expected inflation reading and as your viewers probably know, australia has been leading the world in pushing interest rates higher since about september 2009. the cash rate in australia is now 4.75%. but expectations are growing that perhaps even next week when australia's reserve bank meets or maybe later in the year that inte

declined to the pre-macondo forecast, and as a result, royalty income is down as well to the united states treasury. i will try to get through questions quickly if i can. what do you say to the people affected by the actions to believe the government is in different to their economic well-being? i would like to get you to keep that to about 20 seconds if we can. >> it's not true. people are not adel in different. in fact, our largest office by far is in the gulf of mexico. and so they feel acutely every day through their neighbors and their families the economic impact that you are talking about. it's not people here in washington, d.c. who are making these decisions and to the additional safety checks over and above what used to be required. it's people who live in the gulf and so it's their neighbors it is affecting. as to suggest that there is any inference is completely in my judgment inaccurate. >> i would point you to your testimony and the section immediately in front of 2,012th on the discussions your hiring scientists to work in fields including environmental studies, review and envir

that doesn't mean what happens after august 2 won't be -- >> bond fault, united states treasury departmenteople who loan us money, right? they're going to make sure they do that. if they do that, that means there are other bills that they don't have cash on hand for. explain to me what is happening inside treasury and inside the minds of people who have to figure out how to triage what bills to pay. >> it's completely unprecedented. nothing like this has ever happened. we never passed the point where treasury didn't have enough money to pay the bills. i assume that the excellent career staff is making con contingency plans, will for some time and pay what they can pay out of cash. i hope we are not going to reach that point. it's kind of something we've never done before. it's something you can't get back once you lose it. i still have a lot of hope that we won't get there. >> august 3rd, there's got to be a big payment that goes out to social security recipients. and that's going to be billions and billions of dollars that has to be paid out. paying out more that week than we bring in. mi

united states. this is a misnomer that i believe that the president and the treasury secretary have been trying to pass off on the american people and it's this that if gong fails to raise the debt ceiling by $2.5 trillion, that somehow the united states will go into default and we will lose the full faith and credit of the united states. that is simply not true. it's important to recognize that revenues continue to come in to the united states treasury. the president's obligation and the congress' to make sure that the interest is paid on the debt. we are grateful that revenues are sufficient to be able to pay the interest on the debt. let it be known and let us have a legislative direction that we do pay off the interest on the debt first. that's what steve king is doing in this legislation. representative louie gohmert of texas also had a very good idea in april. he said, under no circumstances should the brave men and women in uniform who are fighting to protect the liberties of this nation while the united states is engaged in various conflicts should they have for a moment their military pay be s

this should be a straightforward vote to allow the united states treasury to fund all of the programs and obligations of the entire federal government that is already in law. very simple. republicans in the house have already passed a $9 trillion increase in the national debt. and now instead of working to fund the programs that they already voted to authorize, republicans are playing a high stakes game of chicken and the safety and security of every single american so they protect the massive tax breaks for the superrich, big oil and, of course, hedge funds. they've taken an ircreditably irresponsible position protecting tax breaks for the superrich and wall street is more important than protecting the united states government and main street from defaulting on our debt. and, again, congresswoman woolsey has been a leader in protecting social security. and i want to remind all of us today that social security and medicare did not create the national debt. and that is really unconscionable to ask our most vulnerable communities to be the ones who must bear the burden of balancing our

treasury securities has been e safests being thu assets and the world. we are already seeing the threats of downgrades from ratings agencies. this is a tremendous asset to the united states -- the quality and reputation of our treasury securities and real benefits from it with low interest rates. i would urge congress to take every step possible to avoid defaulting on the debt. or creating even any significant probability of defaulting on the debt. >> senator shelby. >>> mr. chairman, tell us why our economy is not moving. our jobs are not growing. unemployment is going in the wrong direction. 9.2% is the official unemployment rates now. -- right now. according to labor department, if you bring in people looking -- who have quit looking for a job, it is about 16%. that is very high. i think it does not bode well for the future to all of us. -- for all of us. why is all of this -- is it just the housing bubble? which is severe. is it the housing bubble and the reckless lending that puts a lot of our banks in jeopardy? tell us what it all is and how do we get out of it? is it reckless spending? all of this? >> that you have almost answered -- senator, you have almost answe

some piece of those penalties should he directed in a separate account within the united states treasury with the earnings of that account supporting a long-term gulf ecosystem monitoring and observation research program and with that said mr. chairman let the say that the science-based approach that i'm suggesting would work and the arctic as well and as you can see, it if science is missing in both applications, both in the preparedness and response and also in the restoration, congress should act now to establish a long-term scientific monitoring observation research program and ensure response capabilities are in place before offshore environment is exposed to widespread industrial activity in the arctic and the intended risks therein. finally, at a broader level mr. chairman although the senator snowe is not here let me mention that congress should ensure that the united states has the financial resources necessary to be an effective steward of its ocean and coastal ecosystems. the national endowment for oceans at cosponsored by ranking member snowe and other members of this committ

expiration of a continuing resolution or whether we hit the debt ceiling, the revenues in the united states treasury, and there will be plenty there for this, under all circumstances that we can envision, go first to pay the military, they're our number one line of defense, their lives are on the line, they should never have to wonder in a fox hole or on a ship or in the air or their families near the barracks or at home should ever have to wonder whether that paycheck is going to be electronically transfered into their bank account on time every time, that's our guarantee with the promises act. and the military should never be used as a pawn in a political discussion here on the floor of the house of representatives. . the second thing is we need to take care of the full faith and considered as read ift of the united states government. we have to pay the necessary interest and principal on the debt. we can do that with incoming revenues. those who say we can't are wrong. i don't care what their title is. we have $00 billion in anticipated -- $200 billion in anticipated revenue per month. it takes $

treasury. and this is not -- the moment that we send the signal that the united states government has ceased -- no longer has the ability to borrow money but has bills that for every dollar we have in a bill, we only have 60 cents to pay, you've created essentially a crisis situation, what we've described as an impossible situation that leads to horrendous choices about how we go about paying our bills and making choices about which bills to pay and which not. >> i'll follow up, in your answer to air discretionary spending cuts, and mechanisms to create a committee to allow for hopefully further reductions through entitlement reform and tax reform. we remain confident that as these hours churn on and the days go by that we will get to that point and that compromise will be reached. but it is -- it is -- we are not the only actor in this play. we need to make sure that others understand the stakes and are willing to reach that compromise. we're confident they will. >> finally, you say this is a matter of economics, not politics. you're wanting to avoid another vote on raising the debt limit arou

the first thing i looked at the indebtedness of the united states to the treasury. and onasury's we issue, august 4, we need to roll over $90.8 billion. august 15, $26.6 billion. let's say that for whatever reason, there is no solution to this issue through august and we are constantly in the market, as you know, trying to deal with the treasury situation. we have these that we have to rollover. what is the market reaction going to be just in terms of this? it seems to me that if i were a big trader in treasuries, i would want a better deal. i would want something from the united states government because all the sudden, there is an element of political risk that has been injected that maybe there won't be enough consensus to deal with this. >> you are absolutely right. i know what -- we know what our interest payments are going to be. but we have to roll over large amounts of treasuries and it could mean that if investors demand higher interest rates, it means that we will be short. the price that we will pay will be less than we need to borrow. that is another sou

is a new demand for united states dangerous because you is treasuries each is the largest market for low risk that sue even if you increase. right you basically increase the risk of all the overall system you will see many institutions we try to require and by law do increase the number. of us it's in the park. let's take a look at the markets now all is declining for the first time in five days concerning a failure to reach a deal on raising the u.s. debt ceiling may cause the biggest consumer of crude to befall both like sweden brands are losing gold prices have surged to record highs as investors are seeking safe heaven amid debt jitters on global exchanges gold is trading at one thousand six hundred sixteen dollars per ounce and silver at more than forty dollars. and in europe bank stocks leave markets lower the looming deadline to raise the u.s. debt ceiling and also a further downgrade of greece's rating for that market strong extending a four session winning streak barclay's dropping three and a half percent in london a pretty that we call down two point three percent in paris

the august 2 deadline passes without a deal, according to the bipartisan policy center, the united states treasury will still have enough revenue -- about $172 billion -- to pay for social security benefits, to pay for medicaid and medicare, to pay active duty military and other national priorities. let me repeat: the only reason senators -- excuse me, seniors and our troops will see their checks stop coming is if the obama administration decides to make other spending a priority, and if the obama administration chooses to hold our troops and seniors hostage, just so they can raise taxes. you know, this is another amazing display of cynicism or i guess the most charitable way i can say it short-term memory. the president himself said last december, the reason why we couldn't raise taxes -- or shouldn't raise taxes in a fragile economic recovery is because it would be bad for job creation. it would further discourage job creation at a time when we need jobs badly. well, mr. president, let me say just a word about tax increases and why this side of the aisle believes so strongly that tax increases a

kprushl talks on a potential default of the united states national treasury, the deadline, august 2.a keeler. who is, who was there? what are they arguing about? >> brook, this meeting wrapped up about 20 minutes ago, and this was president obama again with these top eight democrats and republican s in the house ad senate. two from each chamber. we knew going into this president obama told those in negotiations, i want you to come with specifics about what could be in an agreement, but there is no break through at this point, brooke. president obama, despite the fact that republicans ended up pulling out of at least the discussion point about a $4 trillion in deficit savings over ten years, they said, you know we're not going to go for that over the weekend. president obama saying he's still pushing for that. republicans and an aide to the speaker telling us what house republicans are really looking at now is a $2.4 trillion in deficit savings over the course of ten years, and the things we know generally they're discussing, of course, tax increases. democrats want some. republicans

treasury bond in nineteen seventy for every thirty five dollars you had the united states government promised to give you one ounce of gold and then you defaulted on that promise we told our creditors we're not going to give you any gold for your treasures and it was a catastrophic result that was a nine hundred seventy it was a runaway a stagflation the price of oil went up ten fold because we defaulted on that promise well here's my question to you now what would happen if we did default because people really don't know what would happen in this situation in this current economy and where the united states relies on people to buy u.s. treasuries here's i want to play a little bit of what the president said at the effect of the american people possibly today at a press conference i prefer that first if you said to the american people is it a good idea for the united states not to pay its bills and potentially create a nother recession. millions of more people out of work i feel pretty confident i can get a majority on my side on that one and that's the first. if we don't raise the d