treasury secretary jack lu is here. mr. secretary, thank you so much for coming in. >> thank you. >> if i can just sort of sum up what you've been saying,en that is come october 17th, you have run out of tricks. hopefully you don't use that word. but ways you can massage the numbers so you don't go over the debt ceiling. you need a new debt ceiling by october 17th. what happens on october 18th if you don't get it? >> well, that's a very good question. and just to be clear, we crossed the debt limit in may. we've been creating room to borrow using extraordinary measures. they've been used so many times. they're not as extraordinary as they used to be. tuesday i said that i used the last extraordinary measures. i have no more. that means on october 17th we'll run out of the ability to borrow. we'll be left with cash on hand. i told congress it will be roughly $30 billion. and $30 billion is a lot of money. but when you think about the cash flow of the government of the united states, we have individual days when our negative

secretary jack lu said that there's no reason to take that chance. it's territory that has never been traded before. and there would be serious consequences at home and around the nation. >> the fact that speaker boehner is going to be holding this news conference, does that mean that the republicans blinked? >> we're going to see exactly what the speaker is going to propose. until today, he insisted that any raising of the debt ceiling by the house of representatives would have to be bined by action on reducing the nation's debt. doing something about long-term deficit financing. the president has said that he wants a clean debt ceiling raise. so we think that speaker boehner is trying to sell members of his caucus on the debt ceiling, and not opening the government until something is added to it, by the affordable care act or other budgetary measures. >> and randall, it appears that the affordable care act, all of that may not be a thing of the pastas the news conference is being set up. >> we're hearing the hardliners talking about at least needin

. >> jack lu is speaking out about the deal that put an end to the government shutdown and raise the goin debt ceiling. >> it was a close call. >> there was a faction that took control of the direction of this tediedebate. i would look at what republican lieders have said to themselves. i think the message that we have to send going forward this was a tunnel ee turnina -- turning poy night. and it won't happen again. it can't happen again. >> it was a turning point for the country that won't be allowed to happen again. >> same sex marriage is legal in new jersey. the supreme court rejected a request. the state's newly elected senator has been officiating same sex marriages since 1 12:stloi 1. 12:01. >> i wouldn't officiate marriages gay and les lesbian americans were second class citizens and they didn't have equal rights and equality under the law. now we do. this is a day of rejoicing. >> it's the law for now. it could be thrown out. in january the high court will here appeals against same sex marriage in new jersey. >> in egypt police and students clashed over the weekend. ththey

the president in september went to africa and jack lu at that time was the director. i tried to get ahold of him and said look, we need to sit down and the president and i and whoever is involved need to sit down and come to an agreement and we don't want to be stuck the first of august because we don't have an agreement. he said look, the president is in africa and can't get ahold of him. i kept banging him. i said at 10:00 tomorrow morning the president will be in turkey and if you go through the white house switchboard, we can get the president and he'll be in a limousin limousine. so here i am in washington d.c. and the president in turkey, 10 thousand miles apart and i get the president on the phone and the president hey, how are you doing and i said mr. president i understand you had a great trip to africa and he said we did this and he said what can i do for you? i said we have the budget coming up. i said i think we ought to do a 1% across the board cut to get us down to our target, and we can -- he said that 1% that's pretty high. you know -- i said what do y

. >>> earlier today, jack lu testified in front of the finance committee saying failing to raise the government's borrowing limit would be deeply damaging to financial markets, threatening american's jobs and savings. he urged congress to expand the debt ceiling as long as possible. >> this economy would benefit from more certainty so the longer the period of time is, the better for the economy. it's really congress' decision how often it wants to vote on the debt limit. >> our guest tonight is skeptical about a debt limit and the stock market rally. he's chief u.s. strategist. hi, david, what is worrying you? is it this short-term six-week deal or something else? >> i think the latest news suggestions we won't get a deal tomorrow or even by monday, so this is already disappointment to a market that got hopeful during the afternoon. i think the market sales off 30, 40 points on the s&p 500 tomorrow. but the good news is investors didn't want the six-week deal. they want a longer-term deal that has more compromise and structure reform to it, so disappointment to the short term but we

. >>> earlier today, jack lu testified in front of the finance committee saying failing to raise the government's borrowing limit would be deeply damaging to financial markets, threatening american's jobs and savings. he urged congress to expand the debt ceiling as long as possible. >> this economy would benefit from more certainty so the longer the period of time is, the better for the economy. it's really congress' decision how often it wants to vote on the debt limit. >> our guest tonight is skeptical about a debt limit and the stock market rally. he's chief u.s. strategist. hi, david, what is worrying you? is it this short-term six-week deal or something else? >> i think the latest news suggestions we won't get a deal tomorrow or even by monday, so this is already disappointment to a market that got hopeful during the afternoon. i think the market sales off 30, 40 points on the s&p 500 tomorrow. but the good news is investors didn't want the six-week deal. they want a longer-term deal that has more compromise and structure reform to it, so disappointment to the short term but we

sending something we'll look at something sources expect the proposal to come up for a vote tomorrow, jack lu told a senate hearing of the dire circumstances of a default. >> we won't have money to pay our troop or veterans benefits in full. >> white house spokesman jay carney vig sig naled the president would be open to a short term extension, he says the white house prefers a long term solution that also reopens the government. >> government shut down led to a spike in unemployment. number of people applying for benefits jumped by 66,000 last week. labor department says companies cut jobs because of a shut down. numbers don't include federal workers temporarily laid off bit shut down >> federal workers held a ticket in richmond this morning. they're being ordered to come into work but not drawing a paycheck. >> we have to come to work and we're not getting paid. we have no money. we need money, now. stop holding federal employees hostage. >> some tell abc 7 news impact means some of that will be looking for second jobs soon to pay bills. >> toys for tots warns the shut down could spell trou

jack lu talked about the crisis raising the debt ceiling. >> would it be catastrophic? >> chris, i am telling you that i know the direction, i know the direction is bad. there are a range of how bad. it is not responsible, it is irresponsible, it is reckless to take that chance. >> tax revenue would continue to pour into the government alouing it to take creditors although the president has no negotiating stance on both the shut down and the debt limit. john boehner says there are no talks taking place with the administration. >> the american people in washington during a crisis like this they can sit down and have a conversation. i told may members there may be a bad room somewhere but there's nobody in it. >> don't expect any back room deals at this point. about 350,000 a civilian defense employees are expected to return to work today a result of one law that congress kwo agrcould agree only. >> doug luzader live for us this weeke morning. >> amber alert. it was taken off-line because of the government shut down. it has been placed with one simple line due to the lack

republicans met with the president, president obama, vice president biden and treasury secretary jack lu at the white house. john boehner had nothing to say after that meeting. >> mr. speaker -- >> boehner released some of his lesser known republican members to take the new house republican message to the nation. >> no one here wants to default on our nation's debt. and so that's why -- the republicans in the house have suggested let's just get that off the table. >> opening the government is a negotiation that will happen tonight. and in the, in the hours ahead, and we hope to have it open by -- you know, monday morning. >> and boehner left questions about the details of any possible deal where those questions belong, the chairman of the powerful appropriations committee. >> we agreed to -- fry to find the -- one digss for the cr -- conditions for the cr. >> part of the debt ceiling bill now? >> and we'll get back with each other tonight. >> so the conditions for dealing with the cr would be part of the six-week debt bill is that what you are saying? >> well -- let me stay away from tho

is, in fact, you are right that a default is not automatically triggered by october 17th that is jack lu and the treasury could prioritize interest payments on the debts but it would mean cutting dramatically everything else the government owes to social security recipients, to medicare recipients. in other words, millions of people would be jeopardized even though creditors would get their money. only by a couple days. >> to larry. >> any priorization will take care of the entitlement payments, medicaid, medicare, social security. robert is wrong. trying to scare people. >> what is not prioritized? >> we will -- we are going through a debate in this country about the size and scope of government, and that includes some of the lesser programs. do we need everything we have? that's part of this debate. and i think you're going to see, as this debate continues, and obama is going to be part of this finally, he'll get involved. there will be decisions made and you know what? we don't need everything we have in our government. and you know what? we don't need the crazy complex tax system tha

president obama is scheduled to meet with treasury secretary, jack lu tomorrow afternoon.oday the ratings agency, fitch, put the united states triple a credit rating on a negative watch. although fitch continues to believe that the debt ceiling will be raised soon, the political brinksmanship and reduced financing flexibility could increase the risk of a u.s. default. the u.s. risks being forced to incur widespread delays of payments to suppliers and employees as well as social security payments to -- to citizens all of which would damage the perception of u.s. sovereign credit worthiness and the economy. in an interview with wabc in new york city, president obama described how he seize tes the problem. >> the problem we have got. for speaker boehner for example, him negotiating with me, isn't necessarily good for -- the extreme faction in his caucus. it weakens him. so there have been repeated situations where we have agreements. then he goes back and it turns out that, he can't control his caucus. the challenge here is can you deliver on agreements that are made. are you

jack lu has used measures to pay our bills over the last several months. but those powers run out. and the clock is ticking. and i do worry that republican ares but also some democrats may think that we have a bunch of other rabbits in our hat. there comes a point where the treasury, we do not have enough money coming into pay our bills on time. if it is straight forward and i know there has been discussion about my powers under the 14th amendment to ignore the debt ceiling law setting aside the legal analysis. if you start having a situation in which there is legal controversy about the u.s. treasury's authority to issue debt. the damage low pressuwill have . it will be tied up in litigation for a long time. the strategies that the people have thought. or you know he can resort to some other constitutional measure, people ignore that what matters is what are the people who are buying treasury bills thing? again, i'll boil it down in personal terms. if you are buying a house and you are not sure whether the seller had title to the house, you are going to be nervous about buying it.

a live look at the white house where president obama and the treasury secretary jack lu have been meetinge get word of a possible break through in the budget battle in dc. today senate leaders announced a last minute deal that would raise the debt ceiling and end the two-week government shutdown. sources are telling fox news the senate will vote first. possibly just a couple of hours from now. the white house says lawmakers need to move and fast. >> the president applauds leader reid and minority leader mcconnell for working together to forge this compromise and encourages the congress to act swiftly to end this shutdown and protect the full faith and credit of the united states of america. >> house republican leaders began meeting just about a half an hour ago and fox news has now learned that the house expects to vote tonight as well. ed henry is leif for us at the white house. what's the thinking about whether the president is all right with sitting back and watching what happens on the hill here? >> shep, i want to get to that but just a moment ago as you were coming to me. we finally

candy crowley will be talking with the treasury secretary jack lu and this exclusive with the man manytrong words from members of his own party and democrats from across the aisle, texas senator ted cruz. "state of the union" at the top of the hour. >>> those two military raids nearly 3,000 miles apart are raising a lot of new questions about how and why military operatives conducted two raids in the same weekend, really in the same 24-hour period. >> to discuss the military strategy, colonel rick francona is joining us live over the phone from eugene, oregon. he's a military analyst. colonel, it's good to have you with us. how significant, just big picture, how significant is it that both raids happened within maybe 24, 36 hours of one another? >> yeah. i mean it looks like it was a coordinated raid. i don't want to put too much emphasis on that. the targeted presented themselves and the seals were put into action based on each individual target. so the fact that they happened simultaneously or on the same day i think is more coincidental. when we run the operations, you have to go wh

treasury secretary jack lu, again, warned congress if it doesn't raise the u.s.'s ability to pay its debt, it will default october 17th. gop leaders blame democrats for refusing to sit down and negotiate. >> my goodness, they won't even sit down and have a discussion. >> reporter: president obama said his signature program isn't up for discussion. >> the affordable care act is still open for business and it is here to stay. >> reporter: frustrated taxpayers made sure their voices were heard, too. >> people are tired of a congress that can't govern this country. you guys are worthless! >> reporter: and this shutdown now, we have just learned impacting president obama's scheduled foreign trip. he was supposed to leave on saturday for a four-stop trip in asia. we've learned from the white house, chris and kate, that at least two of those stops have been canceled. that would have been obviously to the philippines as well as to malaysia. he also was scheduled to go to indonesia and brunei. we will be waiting to see if those remain on the schedule. but as of right new,

treasury secretary jack lu, republican senator ted cruz are the guests. i 9:00 a.m.sunday, of course, here on cnn. kate, over to you. >>> a terrifying car chase on capitol hill leaves a woman dead and eyewitnesses shocked. ohio senator brown was outside the capitol during the chase and the gunfire, we're going to get his take on what happened. >>> also ahead, police arette gooding close to finding the suspect they say is responsible for beating a man who drove through a pack of bikers in new york city. more on that, ahead. ♪ ♪ [ male announcer ] build anything with the new toyota tundra. toyota. let's go places. with the new toyota tundra. make my mark i wawith pride.ork. create moments of value. build character through quality. and earn the right to be called a classic. the lands' end no iron dress shirt. starting at 49 dollars. ♪ we built this city on rock 'n' roll ♪ >> announcer: you're watching "new day" with chris cuomo, kate bolduan and michaela pereira. >>> welcome back to "new day," everyone. friday, thank goodness, october 4th. coming up in the show, we've a

we may be hearing more of that as the president visits with jack lu this morning. >> those warnings sure haven't worked yet. we'll see if they have a different impact on capitol hill this time around. jim, thank you so much. we'll talk with you so much more. let's talk about where things stand and where things could possibly go from here with john king joining me. great to see you. >> welcome back. wish the circumstances were better. remember the home of dysfunction. >> it's the home of dysfunction. beautiful view. what goes on inside we can't say for sure. things completely unraveled yesterday. i think we can easily say that. is a deal assured in the senate? >> a deal is only a deal when you see somebody holding it in their hands and they file it in the senate. there was talk it might come last night. it didn't come last night. there's two things they're working on, number one to put it on paper finally and number two, to try to issue a join the statement between leaders reed and mcconnell before the markets open, some sort of statement from the leadership saying we have something, we'r

jack lew. the other deadline is raising the debt limit. the president talked about that today in the rose garden. and in a letter or three secretary lu sent to members of the defaultt month, of the federal government is a possibility. that is the next deadline. in light of the government shutdown, day two of the shutdown gets underway tomorrow. meanwhile, this headline this evening from the washington post , as washington braces for a prolonged government shutdown. on our twitter page, there is this comment from one of our viewers. the next caller is renÉ, from south dakota, on the democratic line. >> i just wanted to say that i think it is really pathetic that the republicans continue to aca, rather than spending this precious time passing a clean cr. this is not the way to repeal the aca. also, this is the affordable care act, not the chief health insurance act. people might be paying more. but look at what you get for it. if a loved one get cancer or catastrophic illness, you do not have to worry about losing your house and everything you work for your entire life. that is worth paying a little extra for. i know a lot of people ha