Contact Us

Will The Country Run Out of Money to Pay Bills? [AUDIO]

As the government shutdown begins its second week, a dangerous new deadline is on the horizon.

Joe Raedle, Getty Images

Unless Congress raised the debt ceiling by the middle of next week, the United States government won’t have enough money to pay all its bills, and it will go into default.

“The situation is certainly faced with unknowns, because we’ve never faced this situation before. If the default happens, some bill are going to go unpaid, with all the economic ramifications of that. But what will also happen is the image of the US around the world will be tarnished, and interest rates may go up,” says Rutgers economist James Hughes.

He says a default would mean a whole host of federal contractors that wouldn’t be paid, money may not flow into transportation projects, “and research funding to universities and the like could be put in jeopardy.”

“We have a whole range of economic activities that are supported by federal expenditures and all those would be negatively impacted.”

Hughes adds such a scenario would also damage the U.S. financial markets, possibly sending them into a panic, “and an economy could falter very easily with a shock of this nature.”

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your points and personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account with your Facebook account, just click on the account activation button below. You will maintain your existing profile and VIP program points. After you do this, you will be able to always log in to http://wobm.com using your Facebook account.

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

Register on 92.7 WOBM quickly by logging in with your Facebook account. It's just as secure, and no password to remember!

Not a Member? Sign Up Here.

Sign up for an account to comment, share your thoughts, and earn points to get great prizes.

Register on 92.7 WOBM quickly by logging in with your Facebook account. It's just as secure, and no password to remember!