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It's not -- -- financial services forum CEO president rob -- emphasizing that.
Obviously it's important they get a deal done but you say and your group is saying today from the US chamber that it's gonna affect mortgages auto loans credit cards and student that is -- going to be that battle August 2 if we don't get a deal done.
Yes Cheryl thank you for having me it's critically important we get this done the impacts to the capital markets to -- to economic growth.
To drop creation and even the deficit itself what would what would grow and become larger if we fail to reach the debt ceiling and I'll explain how that will happen.
-- that the ratings agencies have said if we if we were to default on our debt we would be downgraded from AAA to at least double -- That would -- -- following that of course interest rates would climb maybe a hundred basis points.
The hundred basis points client would create a huge dragon dragon economic growth and job creation the Federal Reserve did a study recently.
That -- for every 100 basis points in an interest rate increase that would impact potentially take one percentage.
Point -- GDP growth which many economists Mark Zandi Christy Romer and many many others have suggested would would knock out and destroy.
Out a million jobs American people and obviously as we saw last week with -- very soft jobs number of the last thing we ought to do with -- With the last thing we should we we should do would be dude takes into an -- or fail to take an action that would that would destroy more jobs so we today we sell letter.
Myself and another 470.
CEOs sent a letter to the president and every member of cars urging them to come to a deal and urging so that we failed to default on the debt which.
And rob article last questions for you -- -- rob you know isn't.
Isn't this like the biggest poker game in the world that they're just playing off each other and trying to scare the public in and have this jawboning going on.
It's usually see and get as much television time is possible or is there a solution.
Or are we'd like Greece and Italy in and now I hear the Ivory Coast campaign there -- their -- I just heard that this morning that they're looking for a bail out are we in the same camp has always other countries even though we're not part of the Euro.
We need to -- I just got back down from Europe and met with several European regulators and supervisors were we talked about this precise issue.
And they were just incredulous that there's actually talk about on the part of some policy makers here about default.
I take your point I agree with you that we need to this needs to be a time where.
We're both parties come together default is not an option.
And obviously there's been some rhetoric on both sides over the last you know over the last several days it's been becoming elevated it's our hope.
And part of what we emphasized in the letters we need to we -- -- that -- rhetoric received we need to have.
You know very thoughtful leadership here the stakes are too high the economy is already very fragile the last thing we need of course is is a default which would -- Very severe very painful negative economic consequences.
And as as Peter -- said in the segment a moment ago surely can't this idea of just picking and choosing some of our bills.
Would also be wildly disruptive and painful and that's something we shouldn't we shouldn't strive for either.
-- and understand the position have you know the Republicans that are saying that they want some compromise here too because they feel that we need to make some pretty severe -- Even looking at and economists looking it's a scary looking and that it all -- they say everything has to be on the table he can't continue responsibly to.
Raise the debt ceiling what's the point of having it that's saying if you just keep raising it without making significant tax.
Well that that's correct obviously if you look at the fourteen trillion dollars in debt therefore that that our nation has therefore drivers of that debt.
And -- Social Security.
Medicare Medicaid and interest on the debt those are the four big drivers so if we're really talking about getting our nation on -- fiscal and sustainable path right which we have to do.
Those have to be on the table that has to be part of the focus in the conversation.
Rob Nichols financial services -- CM presenter rob thank you very much and we --
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