administration officials say that is when the united states would start to default on it's its loans without a deal. >> failure isn't an option much the request he is how good a deal it'll be. . >> reporter: even the head of the monetary fund can't imagine the united states defaulting but should they. >> nasty consequences, not just for the united states but for the entire global economy because the united states is such a big player. >> reporter: with so much at stake the president and leaders will reportedly be back for more talks on monday. >> starting tomorrow the state highway patrol will step up enforcing the move over law. it requires drivers to slow down and move out of the lane next to caltrans or emergency workers. add wills run on tv and on highway billboards, violaters can face fines topping $200. >>> and drivers not getting as much of a break at the gas pump. after months of decline the prices went up to $3.87 in san francisco. in oakland. it's now $3.77 and in san jose it's $3.78. it may reach four dollars in the next few weeks. >>> at milestone for the shuttle. tonight

failure to raise the debt ceiling and a default would be a global financial armageddon but some say that this is just a scare tactic some argue the united states wouldn't really default and others say that the u.s. needs to stop adding to its debt no matter what the cost and in reality it seems that no one really knows what would happen to the world's risk free asset mind you that is u.s. government bonds are considered the risk free asset no one really knows what would happen if the u.s. didn't agree to pay all of its creditors now there's a psychological aspect to markets and some say ratings agencies have historically gotten it wrong so there's just a lot of factors here and a big huge question mark that ends this debate that we're having so the big question also to becomes why the political circus over something that could be so detrimental to everyone and that we don't actually know what will happen joining me now to help me make some sense of it as leslie a poll. he is the economist and author of this book the looting of america thank you so much for being with us so you know we have some reports that are saying that the failure to raise

. >> in the united states defaults it's likely that the conner with a credit card with a va, riable ratesee it go up between one and 5% . >> reporter: a 15,000-dollar balance, it would cost more than $25,000 to pay off. if the rate rising to 20% a new 10 you this dollar balance would cost more than $45,000. for christina that is the incentive to avoid the mall. >> i won't use my credit card. >> reporter: you won't? >> no. >> reporter: if there is a default and if interest rates go up the higher rates would apply only to future purchases so that would be a good time to keep the adjust about rate cards in the wallet. >> california is bucking the trend on the foreclosures, but that's not a good thing. while most of the nation's metro areas see age drop our state has seven of the top ten areas with the largest amount of homes in foreclosure, among them modesto, number three in the nation. that's one out of 30 homes. stockton is 4th. the vallejo fairfield area is at six with 3.1% of homes in foreclosure. the sacramento roseville area is 10th. >> alex trebek comes to san francisco and leaves n

help us get out of this predicament we've got where we've got a couple of days before the united states defaults. everything the senator has said is worthy of inquiry, but isn't it true that if we could get -- i mean, part of the reid proposal and the boehner proposal proposes a joint committee that will be structured somewhat like a base closing commission that will require the senate and the house to vote in expeditious fashion on these kinds of proposals, whatever the joint committee proposes, and if the joint committee doesn't succeed in proposing something, then hopefully either the gang of six or the simpson-bowles commission. so isn't it key now to resolving this crisis and not defaulting our ability to be able to come together on a sufficient trigger or some sufficient mechanism that guarantees we're actually going to deal with the things similar to what the senator is raising? mr. coburn: well, i would not disagree that those negotiations are going on as we speak. i'm not a party to them. i don't know if you are. i suspect the -- the -- the president pro tempore is, and we're not going

look what is going on in europe with countries defaulting. >> take a look at the united states as we face this potential default. >> it comes down to taxes if you spear the speaker come down about it. and that the back and forth negotiations have to do with this attempt by the president to achieve some balance. if there are big spending cuts, there has to be revenue increase as well. there is talk about speaker boehner not being tough enough to stand up to his own republican caucus where there are the likes of leader cantor an others, you know, vying for the speakership. and that he won't bend it that because there are members of his caucus, conservatives, who won't vote on any tax increase period. at the same time democrats worry about the size of the entitlements. this is washington not working. >> david, i heard the president clearly say that of which he was putting forth was more generous than that. so so-called gang of six. then you hear the speaker say, the white house wanted it raise taxes and were not serious about spending cuts. the american public able to follow along and co

. >> never in our history has the united states defaulted on its debt. the debt ceiling should not be something that uses a gun against the heads of the american people to extract tax breaks for corporate jet owners or oil and gas companies that are making billions of dollars because the price of oil -- gasoline has gone up so high. the notion that the u.s. is going to default on its debt is just irresponsible, and my expectation is that over the next week to two weeks, that congress, working with the white house, comes up with a deal that solves our deficit, solves our debt problems, and makes sure that our full faith and credit is protected. >> joining me now is gene sperling, the director of the economic council, gene, thanks so much. you were in the white house in 1995, the last time there was a democratic president in a republican-led house. what do you think has changed, what strikes you as different this time around? >> well, truthfully, what we have inherited is much worse. obviously, in '95 we were fighting to bring the deficit down, but we pass

the united states defaulting? sounds unheard of. and newspapers from around the world online. i see what they're saying about us. and other people discussing it. we can't do our own finances, it's rather humiliating. >> greta: don't start on the s and p. >> i don't want to go back to that. >> greta: don't start me on that. i can't imagine any of that. seems impossible. when i listen to members of congress and look at the different plans and see the vast difference and along the lines of politics, and they said i don't know where they compromise, then now they're in a position they've done their deals and now they've got to save face. >> i see a compromise taking shape. i mean we're -- speaker boehner troin dused a bill cutting deficit by $3 trillion. leader reid, his was 2.7. they both have a commission. and what we're -- here is what we're going to have a down payment then we're going to have a part two of this. and the argument now is over what is the down payment on the down payment? and then, we're going to have a part two. then an election on this thing. >> sean: the hous

session, find out how much time has the government has to raise the debt ceiling before the united states defaults. >> here is a check on weather and traffic. a cool down on the way after one more hot day.

the united states defaulting? sounds unheard of. and newspapers from around the world online. i see what they're saying about us. and other people discussing it. we can't do our own finances, it's rather humiliating. >> greta: don't start on the s and p. >> i don't want to go back to that. >> greta: don't start me on that. i can't imagine any of that. seems impossible. when i listen to members of congress and look at the different plans and see the vast difference and along the lines of politics, and they said i don't know where they compromise, then now they're in a position they've done their deals and now they've got to save face. >> i see a compromise taking shape. i mean we're -- speaker boehner troin dused a bill cutting deficit by $3 trillion. leader reid, his was 2.7. they both have a commission. and what we're -- here is what we're going to have a down payment then we're going to have a part two of this. and the argument now is over what is the down payment on the down payment? and then, we're going to have a part two. then an election on this thing. >> sean: the hous

the treasury secretary says that is the date by which the united states will default on its obligation. they're going to have to start prioritizing. it's possible social security checks could start going out. interest rates are going to go up. they're calling it a catastrophe. not just confined to this country, but worldwide. a lot of people don't believe it. the speaker of the house says it's an arbitrary date. they say these arguments by president obama about corporate jets, gas revenues, these are straw. he's demagoguing. we're talking about a $14.3 trillion deficit. of course, congress is going to have to vote before august 2nd to raise that. senator dan coates is the republican from indiana, a snard. he had the response to obama this morning. >> unfortunately, the president's plan of spending and borrowing has failed. now is the time for decisive leadership from this president. it's time to cast aside the false safety of political denial and re-election hopes and put the future of our country above all else. >> and demagoguing or not, the president's attacks on republicans had the

. >>> up next, what would actually happen if the unthinkable happened and the united states defaultedn its debt? introducing the schwab mobile app. it's schwab at your fingertips wherever, whenever you want. one log in lets you monitor all of your balances and transfer between accounts, so your money can move as fast as you do. check out your portfolio, track the market with live updates. and execute trades anywhere and anytime the inspiration hits you. even deposit checks right from your phone. just take a picture, hit deposit and you're done. open an account today and put schwab mobile to work for you. i love this slide ! i love knowing coppertone protects across 100% of the uva/uvb spectrum. i trust it. and pediatricians recommend it most. i love this nose. coppertone. embrace the sun. >>> if republicans do not get their way and they fail to raise the debt ceiling, president obama would be forced to pick which of the roughly 80 million monthly payments the treasury pays and does not pay. according to an independent report led by jay powell, a republican former treasury official, in

leaders -- all the congressional leaders have reiterated the desire to make sure that the united states does not default on our obligations and that the full faith and credit of the united states is preserved. that is a good thing. we should not even be this close to a deadline on this issue. this should have been taken care of earlier, but it is encouraging that everybody believes this is something that has to be addressed. for the general public, i have said this before but i just want to reiterate, this is not some abstract issue. these are obligations that the united states has taken on in the past. congress has run up the credit card and we now have an obligation to pay our bills. if we do not, it could have a whole set of adverse consequences. we could end up in a situation where interest rates rise for everybody all throughout the country. effectively, a tax increase on everybody, because suddenly, whether you are using your credit cards or trying to get a loan for a car or student loan, businesses that are trying to make payroll, all of them could end up being impacted as a consequence of defaul

the dollar that's exactly right so if you know if there's a debt ceiling collapse if the united states defaults on its credit eric cantor. who makes a pile of money we found out that darrell ice the chairman of the house government oversight committee was actually buying all sorts of goldman stock at a time when he was trying to block an investigation into goldman sachs you know this is really right and rampant in the g.o.p. caucus brian baird is no longer a congressman he used to be a congressman from vancouver. washington southern washington i used to do a radio show important right across the river and he would come over and do the show in the studio with god and get on personally you know get to know him pretty well as a as a guest and as a congressman and i remember the day it was maybe four years ago three four years ago when he came in and he said on the air that he just discovered the most amazing thing and that was that in the republican majority leader's office in the house of representatives the staff were doing day trading and they were doing it with inside information that they had

. >> never in our history has the united states defaulted on its debt. >> a deal is within reach. negotiations continued at the white house as he says that with top leaders in congress. >> we have had a difficult time trying to get a clear proposal out of the president and his people. maybe he can begin by telling us what he has in mind. >> the white house wants a combination of cuts along with new revenue. >> i think the american people are on my side. we need to have a balanced approach where everything is on the table. >> democrats want the solution to have tax increases. >> i am proud the democrats are standing up for america's middle class. >> republicans will only agree to a deal that is completely free of tax hike. >> jobs are not being created in the country. what is the right medicine to treat to a? to add more taxes? >> eric cantor signaled closing some of the tax loopholes for business this is something republicans are willing to consider. kate amara, wbal-tv 11 news. >> what else did representative kacantor have to say? >> any revenues raised should be offset by tax cu

that if congress fails to raise the debt ceiling by $2.5 trillion that somehow the united states will go into default we'll lose the full faith and credit of the united states. that is simply not true. >> okay. joining me is rick newman chief business correspondent for "u.s. news and world report". good morning to you. let's get through some of the clarity of these issues in our fact or fiction. all right. august 2nd comes to pass. will the united states default on that date? >> probably not. we have to make a distinction between if the debt ceiling stays in place, u.s. government can no longer borrow money. still going have about 60% of utes revenue coming in through taxes and other ways. it means it has to cut spending by about 40%. default means it stops paying interest on its debt. that only accounts for about 5% of the federal budget right now. the u.s. government can still pay the interest on the debt so it will not default but have to cut 40% of its spending. >> might default on some of those items. >> it won't default p.m. have to stop sending out checks to certain people. that's what the gov

agencies downgrade our debt, because recession would be a bigger worry than default, because ultimately i don't think the united states, however crazy this moment might seem, will default on its obligations. and it's a mixed picture right now. today we got some very good news on the employment front. jobless claims fell below 400,000 for the first time in many, many weeks and that's good news which may be one reason why the stock market's holding up reasonably well. but there is going to be this balancing act about worries about slower growth and the debt rating that could lead to higher interest rates. in event, if you get a rise in interest rates, you get smaller bond growth. higher rates or a recession that causes lower rates, i know that sounds complicated, but it's pretty crazy. >> ron, just the tone on wall street in general right now is what? >> everybody's had it. it doesn't matter if you are on main street or wall street, it's unconscionable, it doesn't matter where you are. analysts traveling overseas are embarrassed, they are hearing from overseas contacts that it's wildly inappropriate for the world's larg

reaffirmed that august second is the deadline to raise it that is the drop dead date before the united states defaults on its debts now politicians despite this are still playing chicken with the debt ceiling making investors like the chinese nervous getting ratings agencies warning about the u.s. credit rating as we've seen all three do and all of this on the part of politicians is to try to get a deal done on deficit cutting that at the end of the day appears largely politically driven obama we heard this week blast lawmakers saying this. malia and sasha. generally finish their homework a day ahead of time. molly is thirteen sasha's ten. it is impressive that they don't wait until the night before they're not pulling all nighters. they're that. they're thirteen and ten. you know congress can do the same thing if you know you've got to do something just do it now we've seen lawmakers retorts back some critics today say obama is hypocritical because he plans to have her vacation at camp david this weekend now we also in this whole debate seen u.s. officials make some very ironic comments about greece

. >> never in our history has the united states defaulted on its debt. >> president obama is convinced a deal to reduce the deficit and raise the debt ceiling is within reach. negotiations continue at the white house today as he sits down with the top democratic and republican leaders in congress. >> we have had a difficult time trying to get a clear proposal out of the president and his people. maybe he could begin by telling us what he has in mind. >> the white house wants a combination of cuts to defense, domestic, and entitlement programs, along with new revenue. >> i think the american people are on my side on this. we need to have a balanced approach where everything is on the table. >> democrats want the solution to include tax increases through closing loopholes for oil and gas companies and corporate jet owners. >> i am proud that democrats are standing up for america's middle class -- middle class families, so the richest of the rich. >> republicans say they will only agree to a deal that is completely free of tax hikes. >> jobs are not being created in the country. what is t

that if congress fails to raise the debt ceiling by $2.5 trillion that somehow the united states will go into defaultwill lose the full faith and credit of the united states. that is simply not true. >> who is right? >> chairman bernanke, i think it's pretty clear, he's got it right. if we go down that very dark path and don't raise the debt ceiling by august 2nd, we are going to pay a very serious price. so i really don't think there's any question here. >> part of this conversation as to whether we get a deal is republicans say with 9.2% unemployment, a very fragile recovery, the last thing you want to do is have any tax increases. are they right or can this deal have some modest tax increases that cannot affect what republicans worry about in job creation? >> they're right. there should be no tax increases this year. i would advocate no tax increases in 2012. the recovery is too fragile. but this economy can digest tax revenue increases. my preference would be not to raise tax rates but to reduce or eliminate the tax credits and deductions in the tax code, broaden the tax base, raise more tax reve

with the right the biggest are going to be this concert reputation in the back of the united states has never defaulted on its debt is something that it's something that is the reason people are attracted to buy u.s. debt in the first place and it's what's enabled to the united states to deficit spend good decades now because there's a insatiable appetite for its debt defecting i would say that would be like i said it would be the third strike against the u.s. in three years it would make it look we're responsible it's going to be harder for the united states to go to china and say you need to. allow your currency to appreciate china or to say well you know maybe you should not have developed about your debt it's sort of like throwing stones and we're going to grass out as the saying goes once the united states step back it's pretty hard to look at other countries and say you need to fix your own problems. write it down your mcdowell from the university of virginia thank you very much indeed for you all right thank you. well beyond our financial crisis for some is an opportunity for others with money i

see things and know what's going to happen, they don't know what's going to happen if the united states defaultsey don't know what's going to happen in the united states is downgraded. i think that's what's most dangerous here. sill wish people would take that more seriously. >> i've just come back from europe, there's a disparages disbelief. last thursday there was a big meeting about the euro zone crisis. whatever you think of the plan they come up, however, they all came together, came up with a plafç to avert crisis. looking at washington's politicians and thinking, hey, hang on a minute, they're as -- >> didn't you run a bureau -- >> i was in italy last week in fact. the analogy is apt. the difference is the market shook italy two weeks ago into doing something. they pass add 40 billion euro austerity plan, because the market freaked out. >> and in england as well. we held that deficit reduction, because we were worried about the market. here? >> i want to go back to jonathan's point, and this is -- i think people are trying to understand the implications. because america is the reserve cur

the country and telling the american people and investors around the world that the united states may have 0 default on its debt. that's creating the sense of panic that we have been talking about, that puts america in a more precarious situation. and i think tim geithner should be doing the opposite. no matter what happens on august 2nd there will not be a default. they will pay the creditors and full faith and credit of the u.s. government will be in fact and he's doing the opposite for political gain. i think the issue whether the rating agencies downgrade or not is beside the point. the worry that i have, stuart, is that if we pass a debt ceiling negotiation, that is not something that the-- international investors believe is serious about bringing this debt down, i think that's what could trigger a run on the dollar, an increase in the price of gold and an increase in

in order to avoid the a disaster that would occur august 2 if the united states defaulted on its debt for the first time in its history, we are being told we have to cut back on government spending and by cutting back on spending, we may also have a negative impact on our economy. i'm afraid this dilemma is not going 0 srve our purposes very well. i'm not sure this is clear thinking. i think in many respects it is ideological thinking. the republican point of view has always been reduce the size of government at any cost to the economy. they believe in their heart of hearts, in the pre-keynesian view of the world that the market will work this all out if we just get out of the way. that may be possible, but it's going to be very costly experience and a costly experiment as people find themselves struggling through this recession without a helping hand. for example, will we extend unemployment benefits as part of this conversation about what we'll do with the economy for the next year and a half? i, for one, would argue we should. my understanding is they expire at the end of the this

and hong kong slipped over concerns of the united states defaulting on their debt. >>> check in on ourbers, as expected, a bit of a drop yesterday. more nor the dow. our blue chip stocks dropped the most with the dow slipping 91 and a half points and the nasdaq and. down slightly. -- nasdaq and the s&p 500 down slightly. we'll get a better indication with the opening bell in about an hour. >>> the company that owns baskin robbins ice cream wants to expand. dunkin donuts set the opening price at $19 a share. that is higher than the forecasted price change. and it will change under dnkn. >> got it. i have to tell you about a california man that tried to perform surgery on himself. what he used to do the surgery. and how he tried to close up the wound. >>> and the nfl lockout is over. football fans are not holding any grudges. wait till you hear about the sales records set. >>> good morning. if you're driving on interstate 680 anytime soon to fremont, it should be a decent drive for you. we'll tell you more about the morning drive coming up. >>> good morning. patchy fog will give way to s

the president saying something must be done to prevent the united states from defaulting on its obligationsssica is our chief white house correspondent and was there with the president. i don't remember a time that i have seen this president of the united states as angry and frustrated as he has been over these past 35 minutes since he came to the podium. >> absolutely agree with you. he sounded frustrated and fed up. the white house no doubt keenly aware of the fact that in democrats, this is the third time republicans walked away from what would be a partial deal in the debt negotiations. the president is saying now that republicans don't know how to take yes for an answer. that's his view here tonight. the president laid out as you heard what he thought was the outlines of a deal that he said was more friendly and welcoming to republicans than to democrats. we reported all day yesterday on how he was fighting with his own party over it. he seemed stymied that republicans couldn't accept a deal that his own party, the democrats felt was an outrage to them. now he is up against the wall, f

united states getting ready to address the nation, indeed, the world from the white house. momentarily, we'll hear from president obama. he'll make the case on how the united states can avoid default. there are some democrats suggesting the united states right now is in imminent threat of default one week from today. the country will not have enough money to pay all of its bills. tough decision also have to be made. the stakes right now are enormous. the president will lay out his case within a minute or so. two minutes after the president features -- finishes what's expected to be about a 15-minute speech to the nation, two minutes after that, we'll hear a separate speech from the house speaker boehner. he's up on capitol hill. he'll make his case why the president right now is wrong. why the republicans are right. both of them presumably will say the stakes for the united states are enormous right now and the country must do everything possible. everything possible to avoid default. they've been negotiating publicly and privately now for weeks and weeks and weeks. and unfortunately, for the country and indeed, for much of the world, unfortunately, the negotiations collapsed over

people are from standard & poor's and they are acquainting everybody with what happens if the united states defaults. there is an efforts now, and republican leaders tell the rank and file exactly what will happen. it was very telling today, during john boehner's press conference, he said, look, if we default interest rates will spike. every interest rate in the country will go up. >>neil: does that noon they are -- mean they are trying to apply pressure? >>guest: that is part of it. they are saying to republicans, look, if we don't cut a deal and we do default we pass the ryan budget, this could add another $1 trillion to the deficit. if you are a fiscal conservative this may not be what you want but there is a way to get at this and there was strategy going on. they are waiting for the senate to move the cut, cap and balance plan. no one is going do agree do a deal or say there is a deal until they move that through the senate. that is one reason they decided to senator the house of representatives home this weekend so they can talk to their constituents. yes they will hear from tea party people b

default. it is unthinkable, i believe for the united states not not to pay its obligation. so i think most people who are involved in this including the president and the leaders in congress understand that and they will come up with something. i'm not sure what they're going to come up with. i know what they should come up with, which is i believe a grand bargain, everybody compromises, we do need to restrain entitlements. we neeee to cut over spending, defense and xhesic. and we need to reform the tax system in a way that will raise some revenues. that's a clear solution and we ought to be there. >> so, charlie, grand bargain. you have seen the president and george's pointed out -- everybody pointed out that the president has had to move to this idea of cutting because of the republicans and so he's moved. >> right. it depends on the cuts, you know. we don't know exactly what they are. >> do you think that t t republicans are meeting him halfway? >> um -- to a certain -- here's the thing. we have a divided government. when you have a divided government you will have these

. >> and what they would all presumably love is if the united states avoids default and the america's aaa credit rating doesn't become aa or single-a for that matter. that would be a significant gain for everyone. >> that's right. but with one of these -- and they'll all get blamed if there's no deal here. but the problem with one of these kinds of deals is they get formed and then they have to be run by the caucuses, they have to have input into it. so there is no deal until it's all out there together because they have to kind of manage this. so it's interesting that we had mitch mcconnell this morning talking tact outlines of a deal before the democrats had really, really signed onto it. >> what a situation unfolding. we're standing by, getting ready for that final roll call. they are trying to break a filibuster on the floor of the united states senate right now. harry reid's proposal needs 60 votes right now in order to avoid that filibuster. doesn't look like they're going to get the 60 votes. having said that, it will still enable this process to go forward. i think they're sti

. >> do you honestly believe that the united states could default on its debt? >> reporter: in washington today, the head of standard & poors, told congress his rating agency is worried about more than just raising the debt ceiling. >> to me the more important issue is really the long-term growth rate of the debt. >> reporter: now at more than $14 trillion and rising, u.s. debt as a percentage of g.d.p. ranks fifth highest in the world. even if a deal emerges to raise the debt ceiling, it may not be enough for the ratings agencies. is there still a risk the u.s. credit may get downgraded anyway? >> well, it looks like that. >> reporter: but larry kantor, chief of research at barclay's capital, believes the world will still want to invest in the u.s. >> even if they downgraded, people still believe the u.s. will pay its debts. >> reporter: but a cut in the credit rating could still have expensive consequences, says economist michael darded. >> the risk will be that a downgrade would push up interest rates. >> reporter: that could add as much as $100 billion to th

. >> the president: never in our history has the united states defaulted on its debt.ling should not be something that is used as a gun against the heads of the american people to extract tax breaks for corporate jet owners. >> sean: class warfare again. here's the first point trippi. he voted as senator not to raise the debt ceiling he said it is irresponsible. we have to live within our means. hypocrisy number one. number two is rhetoric. number three f we get to the point this is the -- fourth occasion we are at this deadline the full, faith and credit argument, we're gonna pay our debts first. he's not being honest with the american people, number three. >> look, i think all those are points, fair points. the bigger point is he's not on jobs. there's an opportunity to create some jobs with this thing. debt is a big problem with the american people. but it is economy, it is the jobs that aren't happening. eric cantor opened the door by putting loopholes on the take. you can do tax credits that would create a million jobs, build schools, it is happening in virginia.

. >> never in our history has the united states defaulted on its debt.t ceiling should not be something that is used as a gun against the heads of the american people to extract tax breaks for corporate jet owners. >> how interesting it got. one of the questions posed was from a tweet by house speaker john boehner. the republicans should be asking themselves where are the jobs. >> there's some areas where the republicans have been more resistant in cooperating, even though most objective observers think it's the right thing to do. i'll give you a specific example. it's estimated that we have about $2 trillion worth of infrastructure that needs to be rebuilt. we haven't gotten the kind of cooperation that i'd like to see on some of those ideas and initiatives, i'm going to keep on trying and eventually i'm sure the speaker will see the light. >> mr. president that is soft talking in the arena of rigidness and record number of filibusters. i don't get your position. while the speaker and other republican leaders pretend the party is united in opposing new

mcconnell, i disagree with them on a lot of things, they understand that you can't let the united states default. you can't fail to raise the debt limit, which ronald reagan did 18 times. now, we are going to get to an agreement, i don't know whether it's going to be the mcconnell agreement or whether there is some chance for a grand bargain, but it's going to only happen with democratic votes in the house. i don't think boehner can deliver his full caucus. i think nancy pelosi will have to deliver a lot of votes and i think she will. >> how many votes does john boehner have to deliver to be able to continue and be an effective speaker and hold on to his speakership? >> i mean, i have to say, i disagree with this sort of entire premise. right now, where the speaker is, he has the full support of his entire conference. i have to also disagree with bob, having been in a lot of meetings with eric cantor and john boehner, they are getting along extraordinarily well as the whole leadership team is. this is just sort of a red herring, people are putting out there to create some sort of artificial figh

state governments have to. >> congressman you were focussing on trying to oi vad default. if the unitedault on its obligations would that be catastrophic? >> i certainly think it's problematic. catastrophic i don't think anybody really knows. it's going to depend on how the bond markets and world markets view us. certainly it's something that i would like to avoid. that's why we're saying to the president listen, we'll solve the impasse. we'll go ahead and raise the debt limit if you'll let us put restraints on future congressing going forward that would keep us with historical norms. >> i want to get your response. >> sure. >> this is a misnomer that i believe that the president is trying to pass off on the american people. if congress 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. >> your response? >> well, i think the representative she has her opinion, i have mine. i think it's a bigger deal than what she's talking about. >> you disagree? >>

default. it's hard to compare the united states to other countries that defaulted in the past.o option to raise outside money or increase revenue. unlike the u.s., they can raise the debt ceiling. >> you cannot put in argentina or ukraine or rush o russia in the same category as the united states. nobody trusted the russian government to even a small degree to which they trust the u.s. government. that's just severally accepted. a default for the united states is just as secretary geitner said, unthinkable in the literal sense. markets have not thought it possible to this day. >> what will it mean if the u.s. government actually defaults? it will make it more expensive to borrow money and tlod a loss of jobs and cost more for credit cards and lower values as well as reduce savings. it's a hard scenario to imagine, but it will have a catastrophic effect not just in the united states, but around the world. pushing up interest rates and possibly triggering a global recession. international economists say even if the u.s. doesn't raise the debt ceiling, they will have a lot of mone

the united states can't default on its debt obligations. the jobs of two many -- too many americans are at steak. the american will not accept an increase in the debt limit without cuts and reforms. over the last six months we have done our best to convince the president to do something dramatic to change our country. something that will boost confidence in the economy, renew a measure of faith in the government and help small businesses get back on track. last week the house passed such a plan. it's called the cut, cap and balance act. cuts and caps government spending and paves the way for a budget amendment which we believe is the best way to stop washington from spending money it doesn't have. before we pass the bill in the house the president said he would veto it. i made an effort to work with the president to identify a path fordward in a manner that could security support and be signed into law. the president would not take yes for an answer. even when we thought we might be close the president's demands changed. the president said

we cannot allow the united states to default on its obligations.equire compromise. that's what harry reid's bill does. it hits the $2.4 trillion in deficit reduction our republican colleagues said they want. it lifts the cloud over the economy so we're not in the same fix six months down the road and protects medicare and social security. may believe our colleagues don't appreciate that, but that's an important part from the democratic perspective. >> so if the bill makes it to the house, do you think here, congressman, there might be a possibility, do you see this as a possibility that speaker boehner might reach out to you and others? >> well, i would certainly hope so. i hope that we would be willing in the interest of the country and of our economy to reach across the aisle, because the proposal that he put on the floor the other day didn't get a single democratic vote. that's because it was so extreme, so far to the right. again, a part of their plan to end the medicare guaranty, slash medicaid, slash education, and yet protect the special int

the united states cannot default on its debt obligations.jobs and savings of too many americans are at stake. we told the president in january, the american people will not accept an increase in the debt limit without significant spending cuts and reforms. over the last six months we've done our best to convince the president to partner with us to do something dramatic to change the fiscal trajectory of our country. something that will boost confidence if our economy. help businesses get back on track. last week the house passed such a plan. with bipartisan support. it is called the cut, cap and balance act. it cuts and caps government spending. and paves the way for a balanced budget amendment to the constitution, which we believe is the best way to stop washington from spending money it didn't have. before we passed the bill in the house, the president said he would veto it. i made a sincere effort to work with the president to identify a path forward that would implement the principles of cut, cap and balance in a manner that could secure

the united states cannot default on its debt obligations.jobs and savings of too many americans are at stake. we told the president in january, the american people will not accept an increase in the debt limit without significant spending cuts and reforms. over the last six months we've done our best to convince the president to partner with us to do something dramatic to change the fiscal trajectory of our country. something that will boost confidence if our economy. help businesses get back on track. last week the house passed such a plan. with bipartisan support. it is called the cut, cap and balance act. it cuts and caps government spending. and paves the way for a balanced budget amendment to the constitution, which we believe is the best way to stop washington from spending money it didn't have. before we passed the bill in the house, the president said he would veto it. i made a sincere effort to work with the president to identify a path forward that would implement the principles of cut, cap and balance in a manner that could secure

if the united states defaults on its debt, though, as a result of too many no votes ultimately, won't every man, woman, and child be affected by that and paying more for things? >> indeed they will be affected. indeed. no question about it. but under what's being proposed, they will suffer anyway. and so you wonder, then, why are we tying all of this to the debt ceiling? it should not be. it has no connection whatsoever. we have never tied any other president's hands on any of this, even when you disagree with everything that he's doing. we've always been able to do our best. and has never been tied, string holding, all of the working people. >> it should not be clearly, it is. and with 48 hours plus, maybe 60 hours total to get this thing done, do you have any hope that it will be done to your liking? >> well, nothing that is done will be totally to my liking. i understand that. i will compromise. my record shows that. there's a point where you have to make people accountable to the people of this nation. we cannot continue to put our feet and stomp the working people of this nation

. >>> still no deal to keep the united states from defaulting on its debt. there's a rush to have it settled by tomorrow afternoon. >>> evidence that the norway massacre may have been motivated by politics. the death toll is at 89. most people in the shooting rampage that were killed that lasted an hour-and-a-half. >> reporter: this killing picture from the air shows the accused gunman in the middle of his deadly mission and the attorney says his client has confessed to what he calls the factual circumstances and the facts the authorities say that man dressed in a preliminary's uniform traveled to the island to kill young people attending a political rally. witnesses say the shooting gathered hundreds of teenagers by saying he was there for routine terror drills. >> every time they screamed. >> some hid and some ran and others tried to swim away. adrian described the terror. >> to hear bullets flying and seeing people and getting hit by bullets and it was scary. >> the police say it took more than half an hour to get to the island and by then the gunmen had