tv President Biden Meets With Business Leaders on Debt Ceiling CSPAN October 6, 2021 3:54pm-4:18pm EDT
to suspend the debt ceiling and the treasury department has said that it will run out of money to pay the government spills in the middle of the month which would cause a default on government debt payments unless congress takes action to extend the debt ceiling and when the senate is back in session, live coverage on "c-span2". >> c-span is your unfiltered view of government, and by these television companies and more read including cox. and is committed to providing eligible families to access to affordable internet predict in the digital divide in engaging. cox, support c-span as a public service, along with these other television dividers getting a front row seat to democracy. >> the treasury department said that it will run out of money to pay the government spills in the
middle of the month which would cause a defaulting government debt payments unless congress takes action to expand the debt ceiling today president biden met with business leaders and ceos the discuss the debt ceiling in they urged republicans not to block an extension of the debt limit morning of the economic damage it would cause. >> well folks, i want to thank, you can take these off while we are speaking. i want to thank those on zoom and those here and this is to
state the obvious, the importance and i am going to make a brief comment, maybe ask a few questions. then we will yield and go down the road here and maybe we can all of us both virtually as well as in person, we can hopefully make progress. i want to thank the secretary of treasury and secretary yelling, and i see her on the screen here, good to see you and the leaders of some of the americans most important businesses and institutions. the american association of retired persons, the aarp, bank of america, citibank, intel, j.p. morgan, nasdaq, the national association of realtors, and others. and for joining me today to talk about the need to raise the
limit and we haven't failed to do that pretty we need to act, these leaders know we need to act in the united states pays his bills
and it's who we are in bed and we will continue to be god willing and that is what is called the full state and credit of the united states. the me be clear, raising the debt limit is paying our old debts. nothing to do with new spending our becoming this year or other years, nothing to do with my plans on infrastructure building back better. both of which are paid for but they're not even in the queue right now it is about paying for what we owe in preventing the catastrophic events occurring in our economy. i'm glad these leaders are here to talk about the real world impact this would have on people and on our position in the world. today's discussion will not be partisan, it should not be, raising the debt limit is
usually part of a bipartisan. the me speak for myself here pretty want to be clear that the american people understand what is going on. there's a said about today to raise the debt limit traditionally, it's only 50 votes and we were informed by our republican friends, that they had to be all democrat votes because they were not going to help rated okay, will provide 50 votes in the definition it in the democrats, we have the votes. the democrats are willing to step up and stop this economic and the senate republicans if they will just get out of the white. that are senate republican friends are planning to block the vote to raise the debt limit by using a procedural power called the filibuster. to say that in plain english it means that you have have 60 votes when there is a fill of us. the super majority instead of 50 to get this done. and it's not right, and is
dangerous. and the reason they haven't raise the debt limit in part, because of the policies of previous administration which incurred nearly $8 trillion in bills in four years some of which democrats voted for brady more than one quarter of all of the debt now outstanding, we had raise the debt limit three times when donald trump was president and republicans moved raise it each time anytime the democrats supported the effort to raise the debt. but now republicans will not raise the debt limits despite them being responsible for what the debt limit has to be raised because their bills are outstanding they will raise enough, if not we will default on a debt that would lead to self-inflicted wounds at risk for market taking and wiping out retirement savings and costing jobs. defiling on the debt, for the secretary yelling has said that is habited and a day after
october 18th, we run out of money. it means that social security will stop, salaries to service members. rated benefits to veterans. and much more. the failure to raise the debt limit will undermine the safety of the united states treasury securities. and it will present the reserve status of the dollar is that world currency that the world relies on predict ... ... it cost america 700,000 lives buspar and we are still battling. our markets are rattled from america's savings on the line,
the american people, your savings and pocketbook directly impacted by this stunt. it doesn't have to be this way. my republican friends he to stop playing russian roulette with the economy. they don't want to do the job, get out of the race. we'll take the heat, we'll do it. let's do it. let the democrats vote to raise the debt limit without obstruction or further delay. house democrats have already passed a bill that would do that some of raise the debt limit and keep the government functioning forget it in the u.s. senate right now. democrats with no help from publicans have the focus today to pass the debt limit. the path republicans offer would take us right to the brink and cause irreparable damage, in my view so let's vote and and best. it's the only way
to eliminate uncertainty and risk for our economy.
more than 200 years, america has built was hard earned reputation of the
strongest, safest and most secure investment in the world and that's why the united states, the financial rock the world and trust. in one cynical partisan boy, ploy republican friends teetering on the brink writing to boot the ball away. a meteor headed to crash into our economy, we should all want to stop it, stop immediately. this shouldn't be partisan but i'm bankrupt for the leaders who shared the urgency on why we need to act now. not next week, now. forward to their perspectives and will now get the meeting started with my colleagues
permission. i'd like to start, if i may with a question for the ceo -- by the way, congrats on your work. your one of the largest banks in america and it impacts, what you think you will see from this obstruction? what does it mean for everyday people? >> thank you, mr. president for inviting us to talk about this portal issue. as the head of the fight, i don't have insight what the right solution is but i can tell you from an economic perspective, we need to resolve this very quickly. every day of delay right now comes with an increase in price is we've begun to see the markets already starting last friday. america cannot default on the debt because the u.s. treasury market is the bedrock of our
financial system must and globally it's going to cause lasting damage to the credibility of the united states with investors financial markets around the world. as you say ratifications are not limited to the market. it's already beginning to cause damage in the economy. it will hurt consumers and small businesses it's not an exaggeration to say even small distortions in the treasury market and cost taxpayers tens of billions of dollars over many years. consumers can be burned with higher borrowing costs putting something on a credit card or getting a mortgage for small businesses recovering from the pandemic and it comes at a critical time. we just can't wait until last minute to resolve this.
simply put, we are playing with fire right now in our country has suffered greatly last few years, the human and economic costs of the pandemic has been wrenching and we don't need catastrophe of our own making to undermine the process underway so we urged the administration and congress to do what's necessary to result resolve the situation the good of our economy and our country. >> you make some good points that god willing, i think we are beginning to turn the corner on the pandemic. a lot of small businesses, tens of thousands have acquired significant debt and significant relief as well. an incredibly complicated feature. with your permission, i'd like to ask dena friedman, ceo of
nasdaq whether she be willing to give her soft and thank you for taking the time to talk to us. >> thank you very much for the opportunity to address the current situation. we are starting to experience volatility in the market that can be attribute it to uncertainty by the delay approving the debt limit. we'd expect continued delay further destabilizing the market and what we consider the broader economic cost of uncertainty default, we would have consumers and businesses as well as delays major programs such as social security and medicare so when we look at this, these united state
action as quickly as possible so thank you. >> let me ask you a question, if we default even a day or two, what is the impact on the market? >> investors don't handle uncertainty while and as we know, there are hundreds of millions of investors involved in the markets today and hard earned savings into the market and we'd expect the markets will react very negatively if we actually get to this type of situation.
>> what does this due to retirement accounts? >> we have to realize well over half of adult americans have money in the stock market directly or indirectly so saving accounts and pensions a short drop in the values which makes them feel less certain about their ability and their savings and plan for retirement. >> well, thank you. [laughter] thank you for explaining watching us. j.p. morgan, excuse me for calling you jamie, mr. ceo, good to see you. why, from your perspective we need to raise the debt limit
immediately before october 18? >> you can call me jamie, that is fine. appreciate you having us here. anyway, there are five points i want to make, number one is morality points, we teach our children we are supposed to be meeting obligations, i don't think the nation should be any different. we should never even get this close, there huge economic costs borne by companies and lawyers trying to figure out what this means is something like this
ever happens, it's already affecting the stock market. we should get rid of the debt ceiling, we don't need this every couple of years. number four, the actual default would be unprecedented, the things we know it would do are very bad and it could potentially far worse, the effects would be cascading, it could go anywhere from recession
to complete catastrophe for the global economy, i don't know anyone who would take a chance like that. number five, america's role is essential, we are the bedrock american treasury is the bedrock from our credibility we are being watched by our allies right now and unfortunately, our enemies. our credibility is essential in the u.s. dollar in financial system is critical to the world economy and eventually world peace so the time we should show american conference, not american incompetence we met i'm glad you race the last points because when i got back from the seven and subsequently virtual meetings with my colleagues and heads of state, i know brian knows about this as well, we are not only being measured in terms of strength and reliability
based upon the size of our military and/or strength we possess is whether or not in function. there's a great debate going on, i'm not exaggerating internationally, a great debate whether or not the 21st century and second quarter of the 21st century democracy function with things moving so rapidly? i could tell you a couple of the folks i've had spent a lot of time with mr. putin and xi jinping, they believe autocracy is the only way forward because they can act weakly and decisively. it's not a joke and we are seeing effects of this around the world and i don't know, it's understandable why average american wouldn't understand the consequences of this for american security and willingness of other countries to follow our lead.
with boys like the world not just by the example of our power but the power of our example and that's going to be called into severe question for real. it has consequences on real. what does further delay mean? or company like yours? even if we just go on after the break. >> we start monday, we will review contracts and meet collateral requirements and people selling treasury, interest rates will go up and worse close to the brink as you said, it will hurt, don't worry about that. we worry about the average american and we don't want that. >> like you, we are going to get to everybody but i'm going to yield to the public engagement
form and chairman the black caucus. >> i will quickly yield to your great treasury secretary is an expert on this for comments on what she thinks the ramifications are and where we are headed. >> thank you. we think the business and community leaders who have joined us here today. i wish we could meet to discuss another topic, finding solutions to climate change or to better invest in the future of our economy. the urgency of the situation demands immediate attention and i want to be clear about my decision. first, is an urgent matter and must be resolved immediately. treasury will exhaust extraordinary measures congress is not acted to raise that by
october 18. after that, treasury would be left limited cash depleted quickly received the past and for script dose even delaying action and cause harm to business consumer confidence inspiring costs raised, disrupt financial market and cause a downgrade of u.s. credit rating. this was catastrophic outcome in this would occur on two dimensions. the financial system and macroeconomy. if congress does not take action to raise the debt limit cash balance will reach insufficient bubble to "face the nation"'s bills. america would default for the first time in history. default will call into question the credit of the united states.
our country would likely face financial crisis caused interest rates to rise quickly restricting access to credit. fragile recovery would be thrown into reverse. which likely experience a recession, millions of jobs would be lost it will pass a resolution crisis. second catastrophe be by all the americans who directly receive any sort of payment from the federal government. every social security beneficiary, every family receiving child tax credit, every military family waiting for a paycheck for small business owners receiving a federal loan at risk. feelings are without sufficient savings to forefront and expected households and businesses, the impact would be
devastating to take a heartbreaking example, feelings of seniors who depend on social security with their support would have to make awful choices such as deciding whether to pay rent or buy groceries the same for parents of young kids expecting a child tax payment. hopefully it goes without saying, this is not only back for people, it's equally devastating for american companies. for decades, our country has earned a reputation for being welcoming and a reliable place to do business. we respect the rule of law and we honor our debt. this reputation has benefited us in many ways including the ability to keep interest rates low and service the world currency. these benefits help the world economy and become a world
prosperous nation. we are staring into what we surrender hard earned reputation and forced the american people american industry turmoil and hardship that comes with default. it's unnecessary and must be avoided at all costs. on christmas address debt limit immediately. thanks and i look forward to the opposition. >> but committee chair bernie sanders commented on the budget reconciliation negotiations today and here's what he has to say.