treasury department. if the debt ceiling isn't raised by august 3, the treasury department will be the ones who have to decide who gets paid, and who doesn't. in the month of august, here's what the treasury finances looked like. they have about $306 billion worth of bills to pay. but only $172 billion with which to pay those bills. since they won't have the authority to borrow any more money, that means some bills get paid, and others don't. every single month, the treasury department writes, get this, $80 million different checks. for everything from big ticket items like social security, veterans benefits, and nondefense contracts, to smaller payouts, to folks who are, for example, victims of black lung disease, or people who are railroad retirement board pensioneers. it's 80 million checks every single month. and, again, only about half the money they'll need to make good on all of those payments. so what does treasury do? who gets paid? who doesn't? laid out a possible scenario in which the treasury

which returned the funds to the bank, which sent the money back to the treasury department which gun returned the funds to the bank. -- which again returned the money to the bank. >> chase bank bought washington mutual and nobody could find his money. >> i said let's try 7 on your side. >> we contacted chase bank and they said washington mutual bank issued a check two years ago but no one ever cashed it. so chase issued a new check and finally nathaniel has his tax refund. chase bank says this was complicated involving several third parties but we're glad we resolved the situation to the customers zblafgs i was about to go crazy. i'm glad he got his money. >> 7 on your side was really helpful in getting the process started. >> it shows how important it is to look at a bank's policy before making a deposit. many banks do not accept checks written to a third party. i'm michael finney, 7 on your side. >> 25 years ago, there were very few support groups fighting cancer in the east bay. one of the first celebrated a major milestone. cecilia vega reports the women's cancer research center

. >> is it possible that timothy geithner might decide to leave the treasury department? >> i think those news reports seem like they were a little ahead of where secretary geithner is, but if he were to step down, it would be hard for

it's a federal agency. >> are you aware of the position that the treasury department department's taking. >> i understand that the treasury department did violate public comment on the occ's opposition. i think having a comment on the record is probably the most appropriate way to express those views. ultimately, i think it's incumbent upon the occ to maintain its independence as a bank regulatory agency and to remain free from any undue influence from any external source. >> mr. gruenberg, a report by the government accountability office we call gao as you all know that prompt corrective action has not prevented losses to the insurance fund. the gao found every bank that underwent prompt corrective action because of capital deficiencies and failed since 2008 has produced a loss to the deposit insurance fund. the gao also found that the -- and i'll quote, the presence and time limits of enforcement actions were inconsistent, their words. for example, more than 80% of the banks that failed were on the regulatory watch-list that you alluded to earlier for more than a year on average before

. >> so according to the treasury department, the u.s.nment only collects taxes after the person flies. so anyone who bought a ticket before july 22 and is flying while the taxes are no longer in place deserves a refund. >> so, how do you get your money? well the treasury department says taxpayers don't need to do anything and that the irs will be providing information about this in the future. good luck. >>> mcdonald's is lightning up the fast food chain, making its happy meals into healthier meals. they are going to be cutting back on french fries and replacing some of them with apples. >> mcdonald's is putting the happy meal on a diet, but some of its biggest fans are not thrilled. >> why not. >> i don't like it. >> parents might be, starting in september. apples and a smaller serving of french fries will be standard fair in every happy meal. right now, happy meals average 503-calories. the new meal cuts that 20% to 400 calories. >> we have actually been looking at this and testing it in various formats over the last two years. we thin

. >> so according to the treasury department, the u.s.overnment collects taxes after the person flies. so anyone who bought a ticket before july 22 and is flying while the taxes are no longer in place, deserves a refund. >> so, how do you get your money? well, the treasury department says taxpayers don't need to do a thing and that the irs will be providing information in the near future about all that. so just hold your breath. we'll be right back. house and his train ride to philadel >>> tim lincecum caught the flu somewhere between the white house and his train ride to philadelphia. bottom line, barry zito started in his place tonight against the phillies. zito pitched like he had the flu. already down 5-1 in the 6th. chase utley tagged him deep center. no chance for andres torres. the ball rolls back to d.c. utley is going to try for an inside the park home run. the tag by eli whiteside safe. giants lose the series opener 7- 2. matsui's resurgence continues for the a's tonight. where was this guy in the first 70 games? 17 doubles this

>> listen, at the appropriate point, the treasury department will obviously lay out for the american people how this is going to operate. our focus right now is solving this problem. if we're not able to reach a deal, then treasury's going to have to report to the american people exactly how this is going to happen. >> chairman mullen is in afghanistan. he told our troops fighting there he didn't know the answer to when and where they would get paid. will the president insist that if there's a default, the troops will get paid? >> again, the treasury department -- by the way, whatever admiral mullen talked about, it's outrageous that here we are, 60 hours away from the united states of america potentially defaulting for the first time. and the reason we're here is that, particularly republicans in the house, but republicans generally had been unwilling to compromise. so, at the appropriate point, if we get to that point, the treasury department will lay out clearly for the american people, most importantly for investors, folks around the world, exactly what would happen if we default.

today the treasury department outlines what will happen at its meeting in new york with 20 of the largest banks which often buy government bonds. bloomberg reports if there is a default, treasury will give priority to making interest payments to bond holders. the u.s. debt crisis is again weighing on asian markets thth morning. tokyo's nikkei average lost 68 points today. hong kong's hang seng is down 81. in london the ftse opened higher. on wall street, the dow fell 62 points yesterday. the nasdaq index rose 1 1/2 points. >>> well, ford can't make enough of its focus to make demand, the problem, not being able to make the dashboards. ford is flying in parts from europe but it's not enough. the focus was the company's top-selling passenger vehicle last month, and there are waiting lists for the car. >>> traffic at starbucks is back up to prerecession levels as its customers who tend to be a little more affluent visit more often. the company reported a big jump in profits yesterday. other food companies that cater to the well-to-do are reporting similar results. >>> you've heard about all

. >> so according to the treasury department, the u.s. government only collects taxes after the person flies. so anyone who bought a ticket before july 22nd and is flying while the taxes are no lockner place deserves a refund. >> that would be me. the treasury department says taxpayers don't need do anything and that the irs will be providing information in the near future about that. >>> all right, folks. around the bay area today we are headed back to normal something we haven't been able to say for a while. dense fog near the coastline, patchy fog inside the bay and some of the fog making its way into the valleys this morning. 50s and 60s to begin the day. by the afternoon, warmer temperatures beginning to show up as high pressure is building in overhead. warm to hot in some spots inland maybe low 90s interior valleys. sun and clouds at the coast. more sun than we have seen at the beaches. sun for most, still a little fog at the coast, high pressure squeezing a trough to the north. not fog-free but still patchy fog in the morning hours

bills and to the treasury department redeem them say here give me the cash and the and the and the and the treasury department has no cash so it wouldn't be able to pay the so security fund it so those security fund couldn't be passing out the money the real reason that social security is on the table though and this is the really important issue the real reason why social security is on the table is because of lobbying from wall street bankers two point seven trillion dollars two billion seven. it's a two point seven i came to do the math it's millions times millions you know it's a trillion dollars a trillion dollars a pound. billion a billion is a thousand million point seven trillion of the wall street bankers are looking at that money gone off we have this money and we could be churning this money and we could just skim a little off the top and so they try to do a pinochet did in chile like forty years ago or thereabouts and privatized social security and the bankers will make out like bandits and so they're leaning on the republicans and their loony on the democra

the treasury department has set a deadline of august 2 to get it done. is there a possibility that they won't? >> oh, no. i can't imagine that. we have a better sense of what could happen if there is a default. is abstract notion of a foreign bond holder not getting payments on time is one thing. now it turns out they may have to lay off up to 800,000 federal workers, not fund the department of education for a month. they would have to be furlowed at a minimum, not paid on time. this is serious stuff a lot of people can relate to. the white house as tried not to sugarcoat this thing. as the details become more clear as we get closer to the brink i think people will realize a deal has to be done. >> president obama seems to be in a no win situation. no matter who he appeases he'll anger somebody. what does he do in this situation? >> he is in a box of sorts and so are the republicans. the good news is that leaders in both parties agree now that we cannot go into default. that was in question. both sides are now committed to a deal. it appears tonight they

many say the treasury department will go with foreign governments and other bondholders first.nd how bills will be paid, the treasury department has been putting together a payment plan. one possibility in that plan perhaps, do what president eisenhower did when the debt ceiling was not raised in 1953 he had the treasury department issue gold certificates to federal reserves across the country and got cash back to keep the government humming along. alex, there's some 100 million checks issued by the government every month, and in three days the unsavory job of payment triage begins, choosing grandma or governments. >> an unenviable task to be sure. >>> coming up we'll have more on the debt ceiling crisis and president obama's role in it. we're going to speak with pat buchanan and morris reid about that. >>> a caribbean airlines plane with 140 people on board crashed earlier today in guyana. the crash occurred at the country's main airport just south of george town. it broke in two, but remarkably looking at these pictures, no one was killed. there are several injuries, though,

we asked the treasury department to provide numbers. >> jack lue said august 2. >> the treasury department has the number. i don't want to argue about that. the point being we need a long-term solution. it is not about just raising the debt ceiling. it is a long term solution. and when we're borrowing 42 cents out of every dollar we spend, it is a major, major problem. i'm glad washington is looking at the problem. a spending problem and hopefully we'll pass something. >> here's the question. you have six days left. you know how washington works. nothing will get done that's big. will you be amenable to passing something shorter, say, for a weak work the weeks, a month, whatever, getting you through so you can come to a larger deal? would you vote for a short term increase? >> i think the house has done its work. it has cut cap that balance. i would consider something like that if harry reid would let senators be senators and have a debate on that. that's the problem. i go home and people say have you passed something? yeah. we've passed two budgets this year. >> it is not just you. it is

next door to the white house on the third floor conference room at the treasury department, secretary tim geithner and a dozen others have been preparing a secret plan for doomsday. for months, they've been planning a world where congress has instructed the federal government t tcontinue to pay its bills but as of next tuesday, has not given it a way to pay them. >> what happens then is that we no longer have the ability to borrow money. >> reporter: tax revenue will continue to flow into the treasury, but not nearly enough. $178 billion in august to cover $308 billion in bills. so, tough choices will have to be made. who gets paid? who does not? abc news has learned a top priority will be paying the interest on the existing debt. that's at least $38 billion this month, so the u.s. government does not, for the first time in its history, default, perhaps causing markets to plummet. that leaves the government roughly $140 billion to pay for such critical items as medicare, medicaid, payments to u.s. troops. $130 billion short. >> we assume that debt related bills have to be paid. there'

ipod maker apple has more cash on hand than the united states treasury department.ay, 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 choice. it

. >>> and the treasury department sends congress another warning on the looming debt deadline. i'm danielle nottingham on ,,,,, >>> welcome back to eyewitness news saturday morning. a live look over baltimore city, getting ready for the 4th of july holiday weekend. good morning i'm gigi barnett. >> and i'm tim williams. temperatures in the 60s. these nights are going to start to change their feel over the next few, because our temperatures and humidity levels are going up, dew points are going up. going to feel more summer like and maybe not quite as comfortable for some as had has been. code orange air quality alerts until about sundown or so, which is just around 8:30. in the meantime, we'll see temperatures going up. starting in the 60s, daytime high just around 90 degrees, overnight lows back around 70. >>> thank you tim. now here's what people are talking about. more than $1 billion, that is how much a jury ordered continue to pay families in one baltimore county community. it is punishment for a large gas leak that crippled the town of jacksonville. mike sat down with som

it just seems inconceivable that the treasury department would not pay on our debt. that would create all kinds of havoc financially here and globally. so i don't think they'll do that. >> ifill: let me ask you a question in addition to that on friday night people said when the markets open on monday morning there is going to be a big effect because of the deal that fell apart on friday night. yet we didn't see that much of an effect. why is that? >> well, i think a lot of people are second-guessing how financial investors and financial markets are going to react. and they've been wrong and wrong again. most of the markets are a little jittery, a little nervous, but they're not panicked yet. i think the heat will get turned up, as it were, as we head closer to august 2. but right now i would say markets are nervous but not panicked. >> ifill: nervous but not panicked. let's talk about the stakes, because a lot of this trickles down in interesting ways beyond what is happening in washington. and beyond what's happening on wall street. are there states who are bracing

the treasury department says the deadline is august 2nd. after that, the u.s.nment will not be able to borrow any more money which in turn means it will not be able to pay for federal programs. it also means that we could see higher interest rates on all types of lending from home loans to credit cards. also, foreign investors could lose confidence in america's economy which could lead to a negative impact on global economy. here is what is being done about the nation's debt. i >> with the clock ticking on the deadline to raise the nation's debt limit, president obama held another white house meeting with key congressional players. earlier, the president told reporters that he would not leave the negotiating table until both sides come to their resolution, even if that meant sacrificing some of each party's key points. >> i am prepared to take on significant heat from my party to get something done. i expect that the other side should be doing the same thing if they mean what they say. >> democrats are worried about too many cuts to an entitlement programs like

the treasury department has been putting together a payment plan.ibility in that plan, do what president eisenhower did when the debt ceiling was not raised back in 1953. he had the treasury department issue gold certificates to federal reserve banks across the country and got cash back to keep the government humming along. alex, as some 100 million checks are issued by the government every month and in three days, the unsavory job of payment triage begins choosing grandma or governments. sflichlt we want to bach about that. the dell ceiling has some american soldiers worried. one service member asked will we get paid? the chairman said, on i "actually don't know the answer to that yes. i have confidence that in at some point in time, whatever compensation you are owed, you will be given." it is possible military pay could be delayed as well in addition to everything richard lui was just reporting about. >>> meantime, the air campaign in the battle for libya aims at on air targets. three television transmitters were disabled overnight. the plan was

it's going to be the treasury department in the end that's going to have to prioritize what bill gets paid, who gets their checks. we've been told as we get closer to that date we may get some idea more of what the treasury department's plans are. the white house maintains we're not going to get to that point. we heard the president say in his weekly address today and yesterday in the comments he made, that they don't believe the two parties are really all that far apart. there's still room, many different ways to resolve this problem and to come together on compromise. they still maintain that we're not going to have to worry about what happens on august 2nd because there's going to be a deal by august 2nd. i'll tell you, t.j., i wouldn't put any bets on when exactly that deal will be struck. >> we have learned, haven't we? athena, john, good to have you here on a cnn saturday morning. we'll be checking in with you two plenty throughout the morning. coming up next hour we're still looking deeper into this debate with a couple favorites on cnn saturday morning, strategists along to br

. >> according to the treasury department the drop dead deadline is august 7 but the white house would like to see a deal before then. president obama heads for r and r this weekend but the white house is not taking a break from debt talks. >> we will continue having conversations through the weekend and if we don't make progress everyone will find themselves locked in a room. >> the treasury department confirmed august 2 is the deadline to raise the borrowing limit or the government won't be able to pay its bills. >> just like when a family doesn't pay their mortgage or car bill the creditors come calling. >> to make sure that doesn't happen the director said the administration would like to is he a debt deal by mid july. >> congress has to begin now to have this done up on the hill and voted on before august 2. >> under the previous order the senate stands adjourned. >> when congress returns next week after canceling holiday recess it is unclear if either party will give up ground. >> chances are they are not going to get it done next week. >> a fiscal watcher says the standoff could

. >> the treasury department continues to revise the exact date. that got a sharp response from officials. >> whether it is august 1 or august 2, we are up against a wall. it is not at all reasonable to play chicken with the full faith and credit of the united states government. >> a warning from muammar gaddafi. see what he is saying will happen if the nato airstrikes against his country continue. >> in maryland, the children of illegal immigrants were expected to get a break when it came to college tuition >>> you are watching abc 7 news at 6:00 with gordon peterson and maureen bunyan. this is abc 7 news at 6:00, on your side. >>> leon panetta is now officially the new secretary of defense. he says members of the military and the families are his top priority. he has a full schedule in the coming months. >>> disturbing morning from walmart gaddafi. he is -- a disturbing warning from the muammar gaddafi. >> he made this announcement to thousands of people in tripoli. he warned that offices and families in europe would become a legitimate military

the treasury department says that the default is coming. they seem to think that it is imperative that they reach a deal. >> it seems like a broken record. they have been saying that for months. what will be different? >> they are building of the best position. they're waiting for the best possible moment. republicans do not want to commit to any tax increase, any type of revenue raising. they're saying to cut spending. democrats say that we have to raise taxes do something different. they're still a good distance apart. but president obama is getting involved in these negotiations personally. they could maybe be some movement. >> could obama by press -- could obama bypass congress? >> not really. there has been speculation that the the debt ceiling is unconstitutional. it has not been delegated. it is not a fallback position. so they have gone ahead knowing that we need to pass legislation. >> we had bill clinton stepping in on this one, telling president obama not to blink request he said to force the the republicans to go one a tax incre

the treasury department has sold its remaining 98,000 chrysler shares to italian auto maker fiat for $560 million. in order to get the deal done, though, the treasury department had to eat the remaining $1.3 billion from the $12.5 billion bail-out of the company. officials say taxpayers should not expect to get that money back. chrysler earned a net income of $116 million in the first quarter alone and is forecasting a half billion dollars in earnings next year. >>> back and forth between the fellow lawmakers democrat debbie wasserman schultz and republican allen west is not showing signs of stopping. this west this week fired off angry e-mail to wasserman schultz for questioning his stance on medicare. and west called her vile, unprofessional and despicable but insists he is not apologizing. >> i stand by what i said. she was the one who publicly released it out to the media. i had no intention of that happening. >> bret: earlier west tweeted u.s. is in crisis and everyone wants to talk about congressional members not getting along. it's insummitting to americans to waste airtime on

economists have estimated that the treasury department would respond to that by swiftly raising the yieldond offerings by about half a percentage point. why? because uncle sam has suddenly been stamped on the forehead as a riskier borrower. he has to make bond offerings more attractive for investors with a higher yield. the banks see that they want to prevent customers taking their pho*pb out of the bank and putting it in higher yield treasury bonds. the banks are going to pass that cost onto borrowers. let's say you need a car loan, your interest rate is going to jump, well that is a home loan we want to go back to our car loan you glitchee little board there. let's say the interest on your car loan jumps half a percentage point. your monthly payment will go up by about 2 thrarz a month. not so bad, this projection is based on the median car loan in the united states which is $10,000. lots of people borrow more than that for their car, they will pay more per month. how about your home loan? the median debt on a home in this country is $165,000. it's much higher here in the nation's capit

treasury department says a deal must be reached by august 2nd or the government may be forced to default on its bills for the first time ever. >> mike nicco is looking ahead at the forecast and weekend is here. >> weekend is here but before the cooling trend we have warmer weather for today. clouds are along the coast. get used to that and you may see some drizzle and temperatures may be falling below average. >>> we started hot and normal and below normal. >> it may take a while to get back. >> take a look outside, downward slope will be much longer than the climb up to the warmer temperatures we had earlier this week. let's talk about the fog and how it's rolling across san francisco right now punching through the golden gate bridge. you can't even see it looking northwest from sutro tower, here is looking east from the berkeley hills back towards mount diablo and a little bit of haze, clouds will be more prevalent in your morning forecast, cooling is one day away from your neighborhood. take a look at the satellite and clearing taking place to the north while the clouds still hug t

how much money does the treasury department actually have heading into august? ury gets billions of dollar from tax receipts. money is coming in all the time. of course, more money is going out all the time and trying to assess how much cash is on hand, the bipartisan party says there's probably enough cash on hand coming into this period, and there's a lot of checks that go out, of course, in the first week of august, that you could stretch it until august 10th to pay off all of our obligations but there is money coming in -- don't forget, ali, we are the biggest economy in the world. the u.s. economy accounts for 26% of all the global output. we have a lot of money coming in. we have a lot going out. all of this is a day-by-day kind of thing but according to the bipartisan center, we have enough money in theory probably to pay bills in fug until august 10th. and, of course, as you know, the treasury department continues to say, no, august 2nd is our hard deadline here. we know there's enough for august 2nd. that's the only certainty. >> we shouldn't be talking

the treasury department says it has $73 billion in cash, apple is sitting at a cash reserve of $76 billion according to the latest earning's report. >> economy slowed in the first six months to the weakest pace since the recession ended. commerce department said that americans had to drastically cut back on spending. we want to know how the economic downturn has changed your life and you can record a testimonial on your cellphone or camera and upload it to ureport. >> in san jose lieutenant governor gavin newsom is meeting with executives that will jumpstart job growth in the state of california. there be one state office of economic development headed by a jobs czar. it also focuses on boosting manufacturing and exports. they want to boost presence in foreign markets with a private office in china. and also forming economic strike teams to quickly gather necessary permits and navigate local rules for expansion. california has the second highest unemployment rate in the nation. >> amendment services are underway for a deputy killed while trying to resolve a domestic violence situation. he

and now the treasury department issued 200 million electronic payments last month. and now live from washington, hello. >> the government sends out 80 million checks each month just from the treasury and over all the number is higher. in the month of june the government issued 211 million electronic payments or checks. these are the top five categories: medicare, 100 million payments and 70 percent of that to doctors and the rest to other providers like hospitals and laboratories. second is the category we hear the most about, 56 million checks for social security. that is what everyone wants to make sure will keep coming. what is third on the list? food stamps n one in they totaled $21 million. fourth on the solicit a subcategory of medicare, or social security, excuse me, disability, and there you go, more than eight million checks or payments when out if that category. rounding that out we go do military, active duty and retired defense personnel more than six million payments of some kind went out. i talked with an expert with the treasury department for 22 years

on august 1st, 2001, the associated press reported the treasury department was taking $51 billion in credit to cover the first round of bush tax cuts. it only got worse. look at this chart of public debt. the big yellow area represents the bush tax cuts. those cuts are causing more debt than the recession and the two wars combined. ten years ago, the treasury department was planning on actually retiring part of the national debt, but it was forced to change its plan once the bush tax cuts were enacted. so happy birthday tax cuts, for the good of the nation, we hope you do not have any more to come. challenge that with olay regenerist night elixir. its gentle glycolic formula resurfaces at night for the smooth skin of a light chemical peel. sleep tight. regenerist, from olay. >>> welcome back to the ed show, allen west of florida sent a scathing e-mail to debbie wasserman-schultz. he sent it to her personal e-mail account. here's part of what he said. >> you are the most vile, unprofessional and despicable member of the united states house of representatives. you have proven repeatedl

the treasury department says if the deal is not done by august 2nd, the u.s. may not be able to pay their bills. >>> a mosque attack on a u.s. embassy. ahead, the reason behind it. >>> and steve paulson is up next to tell you about -- about what he calls the unusual weather for the bay area. >>> and parking rates, while some are going down, while others are going up. empty nest, new kitchen, new us? who are we? chic, modern, daring dinner-party hosts. that sounds dangerous, maybe we're more the tradiotional sunday brunch set? i'll expect slippers and a cocktail to be ready when i get home from work. point taken. how about... peaceful, quiet cottage in the country folk? now that's us. save up to 20% on every kitchen style, now until august 21st at ikea, the life improvement store. >>> counties around california may receive a flood of inmates. starting this fall, thousands of nonviolent, low-level offenders will be shipped to county jails. others will be montherred and take -- monitored and take other takes work release programs. >>> about four hours from now, a

. >>> the treasury department says congress only has one month left to raise the nation's borrowing limit or the government will default on its debt. the u.s. reached is $14.3 trillion limit back in may. higher revenue and accounting maneuvers have allowed the government to keep paying bills, but the treasury department says come august 2nd, it will default. default. >>> the pentagon has a brand- new leader. leon panetta's first day on the job. the former cia director sworn in this morning. he spent much of the day speaking to top brass. he said, despite fiscal challenges here at home, they will not be a hollow force on his watch. >>> developing in new mexico tonight, a massive wildfire burning at a close alamos nuclear facility has back the largest in the state's history. more than 100,000 acres have been charred, and fire officials say only a fraction of the fire is officially contained, but crews believe they have successfully stopped the flames from advancing toward the nuclear facility and the town of los alamos. officials say air quality tests have showed no radiation or other conta

treasury department says a deal must be reached by august 2nd or the government may be forced to default on its bills for the first time ever. >> mike nicco is looking ahead at the forecast and weekend is here. >> weekend is here but before the cooling trend we have warmer weather for today. clouds are along the coast. get used to that and you may see some drizzle and temperatures may be falling below average. you can see >>> we started hot and normal and below normal. >> it may take a while to get back. >> take a look outside, downward slope will be much longer than the climb up to the warmer temperatures we had earlier this week. let's talk about the fog and how it's rolling across san francisco right now punching through the golden gate bridge. you can't even see it looking northwest from sutro tower, here is looking east from the berkeley hills back towards mount diablo and a little bit of haze, clouds will be more prevalent in your morning forecast, cooling is one day away from your neighborhood. take a look at the satellite and clearing taking place to the north while the clouds st

the treasury department says it has $73 billion in cash, apple is sitting at a cash reserve of $76 billion according to the latest earning's report. >> economy slowed in the first six months to the weakest pace since the recession ended. commerce department said that americans had to drastically cut back on spending. we want to know how the economic downturn has changed your life and you can record a testimonial on your cellphone or camera and upload it to ureport. >> in san jose lieutenant governor gavin newsom is meeting with executives that will jumpstart job growth in the state of california. there be one state office of economic development headed by a jobs czar. it also focuses on boosting manufacturing and exports. they want to boost presence in foreign markets with a private office in china. and also forming economic strike teams to quickly gather necessary permits and navigate local rules for expansion. california has the second highest unemployment rate in the nation. >> amendment services are underway for a deputy killed while trying to resolve a domestic violence situation. he

>> bret: jennifer, on a separate issue, i understand the treasury department announced sanctions todayeveral individuals in iran, accused of aiding al-qaeda. >> that's right. the treasury sanctioned six members of an al-qaeda network based in iran, and headed by a syrian who leaces with the iranian government. this network serves as the core pipeline through which al-qaeda moves money, facilitators and operatives across the middle east. the unusual public criticism from the administration comes on the heels of much public criticism by military commanders accusing iran of supplying weapons to shiah groups in iraq, as well as in afghanistan. >> pretty significant. jennifer live at the pentagon, thank you. >>> a libyan opposition official in britain says any proposal aimed at allowing muammar qaddafi to day this libya after stepping down is unworkable. hundreds of libyan rebels have launched an offensive against government forces in the west. a rebel spokesman says she seized two towns and advanced on others. and late today we learned the head of the libyan rebels armed forces and two of

my understanding is that the treasury department, the general counsel from the treasury department is to send a letter to "the new york times" correcting what they feel is geithner being misquoted. when he was rechbsing the 14th amendment he wasn't trauking about the powers of the presidency. he was talking about the obligation of the congress of the united states of america to actually stand up and ensure that we don't have this kind of crisis. i think that's going to get corrected. look, president obama is a constitutional lawyer and scholar. i think he of all people has a pretty good handle on sor of the where his constitutional responsibilities begin and end. >> on that subject we have some more sound from speaker boehner what he said. take a listen. >> while some think that we couldn't go past august 2nd, i frankly think it puts us in an awful lot of jeopardy. >> jeopardy. he's putting that date out there. when we take a look at this, we add to that with senator grassly saying it is an option. michele bachmann saying august 2nd is not the hard and fast deadline. we're hearing dif

the treasury department is not going to be announcing today how it's going to pay the bills. with us, steve israel, pennsylvania republican senator and jim kramer from cnbc. with we're going to be talking to bill burton, former deputy white house press secretary, david gregory, and we're going to be talking to chuck todd as well as the rest of our team. >>> good day, i'm andrea mitchell here in washington. as we sit here today jay carney is starting the white house briefing. let's go to jay and find out the latest from the white house. >> we are continuing to have conversations as we wait for the house to finish this business. >> two quick questions, is the president concerned the united states has already suffered lasting damage to its reputation with international investors? >> i would say that we are concerned because there is certainly evidence that the economy has suffered. because of the uncertainty created around this debate and the circus atmosphere of our politics around what should be a serious matter. we're talking about the thing that matters most to americans whi