U.S. Senator from Colorado Michael Bennet, this week asked Treasury Secretary Timothy Geithner what would happen if Congress failed to raise the debt limit
“„Some Republicans have questioned whether the Treasury would allow a default to occur, but Mr. Geithner said in the letter that “failure to raise the debt limit would force the U.S. to default on these obligations, such as payments to our service members, citizens, investors, and businesses.”
“„“This would be an unprecedented event in American history,” he wrote. “A default would inflict catastrophic, far-reaching damage on our Nation’s economy, significantly reducing growth, and increasing unemployment.”
“„Republicans leaders have said they want to raise the debt ceiling but only if the White House agrees to accompany its major spending cuts. House Speaker John Boehner (R., Ohio) has said it would be “irresponsible” to let the U.S. default, but “it would be more irresponsible to raise the debt ceiling without simultaneously taking dramatic steps to reduce spending and reform the budget process.”