With the August 2nd deadline to raise the debt ceiling just eleven days away, efforts to avoid a potential U.S. default have entered a critical phase.
Many fear that failing to raise the debt ceiling would send shock waves through the underpinnings of the financial system, adding urgency to the negotiations between President Barack Obama and top lawmakers as they continue to try to strike a sweeping deficit-reduction deal.
Today on American Morning, Jay Powell, Treasury Under Secretary under President George H.W. Bush, tells Ali Velshi what he thinks will happen if a deal isn't reached within the next few days and explains what the consequences will be for the average American if the debt ceiling isn't raised.