What Is the Exact Default Deadline?

White House unclear when money runs out.
3:24 | 10/15/13

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Transcript for What Is the Exact Default Deadline?
What exactly is the -- That's going to call. Well those accused of different things as we didn't explicitly clear about on October 17 as the Treasury Secretary has noted many times. The United States runs out of borrowing authority. And beyond that point. We only have cash on hand available to pay our bills. Treasury Secretary has testified -- this on Capitol Hill and is obviously far more an expert and I so I would point two his testimony and public statements about. About that fact but as everyone knows in order to meet all of our obligations. As a country. The United States needs borrowing story. In order to make sure -- -- all of our bills are paid all of the obligations that congress has made all of the bills that congress has incurred. Will come due if we can only pay those bills with cash on hand. That is a problem and that is what. -- regular every hazard countdown clocks on the CB counting down at midnight. Tomorrow what is easy is it midnight tomorrow night calorie lists the seven perforated. I don't I don't I don't -- as much as I'd like to improve the quality of the countdown clocks I would have to. He -- treasury on the on the -- and yet our countdown to fox where does congress need to act why -- they need to pass something by tomorrow consulting pass on Thursday. -- sky -- doesn't pass on Friday way is that deadline they have got to produce well he's he's more. John the deadline for avoiding uncertainty has passed the deadline for. Not shutting the government down has long since passed so congress has already failed to act in a timely fashion. But we hope the congress will. Act quickly to resolve these issues now it's too late and trying to figure out you know I don't I'm not sure what that means that we -- they they need to act as soon as possible because. What is. Absolutely true is this everyday -- and shut down there is harm done -- Hundreds of thousands of Americans. And -- directly to many many more and there's direct harm done to our economy and every day. That we get closer to the point beyond which we've never been which is where the United States does not have borrowing authority. Creates more. Trouble for our economy and uncertainty global which has a negative impact on our economy obviously a lot of anxiety in the bond market because this can bondholders be reassured they'll still. I receive their interest after tomorrow Jon says are the kinds of questions that I think or best directed to the Treasury Department. What is. On question with the case is that when people talk about prior -- decisions they are talking about to fall by another name. When people talk about paying some bills but not others. They are talking about. Entering a realm that this country and this government has never been which is. Picking and choosing who gets paid and when they get paid and that has tremendous negative consequences for our economy not all of which are noble beyond the fact that we know -- -- No question but -- game plan I mean obviously this is no longer hypothetical -- a real possibility congress doesn't act. -- -- what exactly is. Do you do you have a game plan what to do well this is obviously something that the Treasury Department would have jurisdiction over so I would refer you to treasury.

This transcript has been automatically generated and may not be 100% accurate.

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