Obama: There's No Silver Bullet on Debt Limit

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Oct. 8 (Bloomberg) -- President Barack Obama responds to a question from Bloomberg's Julianna Goldman about the U.S. government shutdown and potential default. (Source: Bloomberg)

Consequences of default.

If we were to get to that point, would you prioritize to maintain a semblance of credit rather than social security recipients?

How would you go ahead and make that determination?

I'm going to continue to be very hopeful that congress does not put us in that position.

I think people understand what the consequences are, they will accept a potential scenario aside.

I do know that there have been some who said that if we just pay the bond holders and people who bought treasury bills that we really will not be in default because those interest payments will be made.

To them what i have to remind them is that we have a lot of other obligations.

We have senior citizens who are counting on their social security checks arriving on time.

They have payrolls of they have to meet.

If they do not pay on time they may have to lay off workers.

All those folks are potentially affected if we are not able to pay all of our bills on time.

This will affect our credit worthiness even if some people are being paid on time.

If you have a mortgage, a car note, and a student loan, and you say i'm going to make sure i pay my mortgage but not my student loan or my car note, it will still have an impact on your credit.

This is true for the federal government.

We are exploring all contingencies.

There is no silver bullet.

This chaos could result it for the first time in our history we do not pay her bills on time.

When i hear people trying to downplay the consequences of that i think that is really a responsible.

I'm happy to any of them individually and walked them through exactly why it is a responsible.

It is particularly funny coming from republicans who claim to be champions of business.

There is no business person out here who thinks this would not be a big deal.

Not one.

They will tell you this is a big deal.

It would hurt.

It is unnecessary.

That is the worst part.

This is not a complicated piece of business.

There is no reason why if in fact republicans are serious about wanting to negotiate,

This text has been automatically generated. It may not be 100% accurate.

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