15 June 2011

Bernanke noted that inaction may “cause serious doubts about the creditworthiness of the United States”. Moreover, “it can damage the significant role of the dollar and Treasury securities in global markets”.
That’s why the Treasury Department has already warned the Congress, that if debt limit isn’t increased by August 2, it will start defaulting on its obligations.
President Barack Obama’s reply to this was the following: “We understand that a wrong decision in this situation can cause another financial crisis. So we’re going be working very hard over the next month”.