U.S. Debt Default Looms as Talks Stall on Deficit Reduction: “We Are Playing With Fire”

Discussion on a deficit reduction deal has stalled after five consecutive days of negotiations between Republicans and Democrats. In order to borrow beyond August 2, the United States must raise its $14.3 trillion debt ceiling. This week, Standard & Poor’s became the second of the major credit rating agencies to place U.S. debt under review, citing an increasing risk of a payment default. Republicans are pushing for massive spending cuts, many of which Obama has agreed to, even as Democrats say they want to raise taxes on corporations and wealthy households. We speak with Jeff Madrick, director of policy research at the Schwartz Center for Economic Policy Analysis at The New School and author of "Age of Greed: The Triumph of Finance and the Decline of America, 1970 to the Present."

Video
Source: Democracy Now!