host: we are back with jerome powell. is there a crisis on august 3 if the debt ceiling is not raised on august 2? guest: our estimates show that on the morning of august 3, the day after the government runs short of cash, we would expect inflows of around $12 billion from tax receipts, and the government would face obligations to pay about $32 billion. the biggest piece of that, by far, is the first social security payment of the month, which falls on the third of the month, because it is a weekday. you would have the possibility there would be not enough cash to make that payment. i would not label that a crisis, but i would say it would be an extraordinary event, and the first time in our history department has failed to make any payment as a consequence of the debt limit impasse. host: what does it mean to default on the debt? guest: i do believe, and i want to believe strongly that this whole episode will not involve a default on our debt. there are several reasons. there is always enough incoming cash flow to pay in

. >> reporter: jerome powell, former undersecretary of the treasury for finance under president george w. bush has been explaining to members of congress what this scenario might mean.. >> if you decide, for example, to make all the safety net payments, we're going to stand up for the elderly, the sick, the poor and the disabled, we're going to make all those payments, what's left unpaid is the entire defense department. not a dollar. active duty military pay, not a dollar. >> reporter: and diane, a lot of people on wall street, of course, around the country, are very nervous about this. 20 officials of the biggest banks will have an opportunity to talk to treasury department officials tomorrow when they meet at the federal reserve bank in new york. diane? >> again, another day passes. thank you, jake tapper at the white house. >>> and now, we move on to a blustery but welcome visitor to texas. a big tropical storm named don. the lone star state is in the throes of an historic drought and cannot wait for don to arrive. the storm is moving through the gulf of mexico, as you can see, exp

. >> reporter: jerome powell, former undersecretary of the treasury for finance under formerresidenteen explaining to members of congress what this scenario might mean. >> if you decide, for example, to make all the safety net payments, we're going to stand up for the elderly, the sick, the poor, the disabled. we're going to make all those payments. what's left unpaid is the entire defense department. not a dollar. active duty military pay, not a dollar. >> reporter: executives of the 20 largest banksks will have an opportunity to ask about doomsday when they meet with treasury depav q't officials later in the day on friday at the federal reserve bank in new york. jake tapper, abc news, the white house. >> the scary part of all this is you listen to the reporters, to the politicians, all the analysts, and no one knows how this is going to end. and we're, what, three days out. tuesday is the big deadline and no one knows how this thing is going to come to a head. >> it's going to be a tense meeting with those bank heads. i'd like to be a fly on the wall in that meeting. >> now some ar

jerome powell, thank you for your time. that does it for today appenzell -- for today's "washington journal." thank you for watching. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2011] >> we discuss the supreme court cases of the past term as well as look forward to the next term. i want to remind you to turn off or silence all cell phones. and if you could please -- if you're interested in asking questions, if you could go to speaker@heritage.org. to begin we will have moderating our first panel mr. edwin meese. he's also the 75th attorney general of the united states. mr. meese. [applause] >> well, thank you, rachel, and thank you, ladies and gentlemen. i join with rachel in welcoming you on behalf of heritage. that's specifically our center of legal and judicial studies. we're jointly presenting this program today on our annual scholars and scribes review of the supreme court term. well, of course, the most looked for event at the end of every supreme court te