Lyons: failure to reach agreement on debt ceiling could be disastrous

Time is running short for a deal on deficit cutting and increasing the government’s borrowing authority. President Barack Obama and Congressional leaders held another meeting Monday but no breakthroughs are in sight.Utah State University Political Science department chairman Mike Lyons says both sides are trying to slash the deficit as the price for permitting the government to borrow more than $2 trillion by August 2 to pay its bills.On KVNU’s Crosstalk show last week, Lyons was asked what would happen if the deadline is not met.”So the only other option is to meet your obligations to bondholders,” Lyons said, “and stop mailing paychecks out to federal employees, stop mailing social security checks out, lay off federal workers, shut parts of the national government down.”He says you would not shut down emergency operations but it would be serious and would almost certainly be somewhere between problematic and disastrous to the nation’s economy.

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