WASHINGTON, Sept 26 Failure by the United States
to pay some of its bills in the event Congress fails to raise
the $16.7 trillion debt limit by mid-October would be damaging
to the U.S. economy by eroding confidence, the head of the
Congressional Budget Office said on Thursday.
"Defaulting on any obligation of the U.S. government would
be a dangerous gamble. In a very uncertain world, the one thing
everyone has been able to count on is that the U.S. government
will pay its bills on time," CBO director Doug Elmendorf told
the House Budget Committee.
He added that this goes for any obligation, whether interest
on the federal debt or a social security payment, as it would be
difficult for markets to gauge differences between obligations.