U.S. Default Will Never Happen: Stockman

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Oct. 1 (Bloomberg) -- Former Office of Management and Budget Director David Stockman discusses U.S. debt and the budget with Tom Keene and Michael McKee on Bloomberg Television's "Bloomberg Surveillance." (Source: Bloomberg)

Opens our check, the money goes into an account -- we have a bank account at the government and that money runs out so they cannot cut the check november 1 or whenever.

How do omb people look at this?

Is there really no money in the account?

That's not really true but the idea of default, literally, like you don't make the bond payment, is a red herring.

It will never happen.

The reason for it is even if we get past october 16, there is 250 billion dollars of revenue coming in every month to cover the checks.

That money can be prioritized.

There is nothing that will stop the treasury secretary in an urgent situation to say i am paying $30 billion per month out of the 250 all you and dollars of interest.

He can easily cover the interest and he will.

He is paying $70 billion out of the in plover social security which is easy.

What about all the alarm bells?

Because it's a lot of political maneuvering to try to blame the other side for the fact that we don't have a budget, we don't have a fiscal process and washington is being run by irresponsible people.

I don't agree with david, with all due respect.

The inspector general of the treasury department is asked last year to look into this and the look that's a treasury planning.

Prioritization probably doesn't work or they process almost 100 billion bills per month.

It may be possible for them to pull out interest payments but to prioritize any other bills would be impossible.

We have never done it before.

I just don't buy it.

You could easily make interest payments and a few transactions.

You could easily make the social security payments.

They are already programmed.

This is pure propaganda coming from the treasury, trying to leverage the congress to do the bidding of the sanctimonious man in the white house.

This is just not true and we will find out when the debt ceiling expires that they have

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


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