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Proposal to ensure US averts defaulting on debt

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  • Description

    One senator's plan to legally prioritize spending

  • Duration 2:47
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This transcript is automatically generated

Mike thank you sticking now with the debt and deficit issues lawmakers on both sides of the -- talking about want to do.

In a worst case scenario the government not having enough money to pay its bills.

Chief political correspondent Carl Cameron reports on a possible short term solution.

That's getting a long look by some people.

With a White House refusing to negotiate spending cuts and the Democrat controlled senate unlikely to pass a budget as part of a long term deal to raise the federal debt ceiling.

Republican senator Pat Toomey of Pennsylvania is re introducing legislation he says will avert the US from defaulting on its debt personal.

We'll prioritize three categories of finds one would be debt service interest on our -- so that we wouldn't have a default.

A second would be Social Security payments to our seniors so they don't have story about whether their check is coming or not.

And the third would be pay for active duty military personnel.

The White House is not interested let's be.

Real here.

There is no.

Off -- there is no.

Way to mitigate the horrific economic consequences of default President Obama warned Republicans this week that their refusal to raise the debt ceiling unconditionally.

So we'll make them responsible for a laundry list of dire consequence.

Thanks -- food inspectors air traffic controllers.

Specialists who track down lose nuclear materials wouldn't get their paychecks.

Investors around the world won't ask if the United States of America is in fact -- -- Markets could go haywire.

He will suggest every kind of cataclysm on that will occur if he doesn't get its way but frankly.

That's not gonna happen if you were really concerned about that he'd support my bill which would guarantee that we not have a default.

To -- has about two dozen priorities agent co sponsors that first clash with the administration and 2011.

When treasury said quote.

Legislation to prioritize payments would simply represent -- by another name.

It would therefore bring about the same catastrophic economic consequences.

-- idealists.

Dismissed by the administration it was derided it was self castigated it was described as reckless and irresponsible and unworkable.

This week the chairman of the Senate Budget Committee that -- priority is nation remains quote an absolute non starter in the senate.

But Paul Ryan the powerful chairman of the House Budget Committee and former GOP vice presidential nominee said all options including priority as -- remain on the table number.

Ryan also suggested that given divided government and gridlock at the long term deal is ever achievable it'll take more time to negotiated.

And failing that both to me and Ryan has suggested prior position is really the only responsible course right is it tough is it tough to do if you have the law in place is tough is bunch of folks.

To actually implement it very very tough and no president's gonna wanna give up flexibility and Republicans are hesitant to do in some quarters because they wanna get the White House back and they don't -- -- have their hands tied by congress when the she's a little -- okay Carl thank you.

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