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Treasury Secretary testifies damage that could happen if debt ceiling isn't raised before deadline

Updated: Thursday, October 10 2013, 03:19 PM CDT
WASHINGTON   --   Treasury Secretary Jack Lew is testifying before the Senate Finance Committee and is stressing the damage that will be caused if the debt limit isn't raised before next week.
   
It's hoped that there may be a breakthrough today, at least on the debt limit, but re-opening the government doesn't appear likely.

Just seven days before the United States reaches it's debt limit, Treasury Secretary Jack Lew, testifying on Capitol Hill this morning, gave a dire
assessment of what a government default would look like:

Lew: If Congress fails to meet its responsibilities it could deeply damage financial markets, the ongoing economic recovery and the jobs and savings of millions of Americans."

Lew's warning comes as Republican leaders in the House are presenting a plan to rank and file members this morning to extend the debt limit for 6 weeks.
 
The plan would not end the shutdown but it would put off the threat of default until December, allowing time for negotiations on a broader budget
deal.

President Obama has said he would accept a short-term debt ceiling increase.
Obama: "Extend the debt ceiling. If they can't do it for a long time, do it for a period of time in which these negotiations are taking place."

But Obama and other top Democrats have also said they would not negotiate until Republicans end the shutdown and remove the threat of default.

Pelosi: "Our emphasis is to solve the problem, open government"
President Obama is meeting later today with 18 members of the Republican leadership. He had invited all 233 members but Republicans declined the larger invitation. Still, it's a small step where there has been very little common ground.

Treasury Secretary testifies damage that could happen if debt ceiling isn't raised before deadline


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