Government Default: What Does It Mean? – Part II

    It's the dreaded "D" word - default - that has Washington buzzing as the debt talks drag on.

    FOX News Radio White House Correspondent Mike Majchrowitz looks at what that default means in Part Two of a special series: "Government Default: What Does It Mean?"...

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    The word default, not paying the government's bills, conjures Doomsday predictions.  Federal Reserve Chairman Ben Bernanke says it would...

    "Throw shockwaves through the entire global financial system."

    Default may not be automatic.  Money will still be coming in, just not enough.  Former FED Monetary Affairs Director Vincent Reinhardt says Treasury could prioritize payments...

    "Would that be sustainable? No.  Would it generate incredible political controversy? Yes."

    University of Maryland Economist Peter Morici dismisses default talk, saying the Treasury and FED have tools to keep making essential payments for months...

    "One way or another, we will not default on our bonds unless the President of the United States chooses to do that."

    Although Treasury officials insist they've exhausted their options.

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    In his next installment, FOX News Radio's Mike Majchrowitz looks at what would happen to Social Security recipients and some other Government beneficiaries.

    You can listen to Part I of our special series, "Government Default: What Does It Mean?" HERE.