July 14, 2011
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Senator Reid today warned that if Republicans aren't willing to work with Democrats to negotiate a deal and avoid a default, then the consequences would be very real for Nevadans and all Americans.
Reid said that "default won’t just roil the financial markets, push interest rates higher and tank the stock markets. It will affect every American’s wallet as well. Here is what will happen.
"Social Security checks and veterans benefits and paychecks to our troops could stop. Some of the most vulnerable Americans would be placed at risk. Our promise to the men and women who protected this nation so bravely – and those who protect it today – would be broken.
"Payments on our national debt would stop. American investments and retirement accounts could be decimated. Millions of Americans could lose their jobs.
"Interest rates would rise, not only for the government, but for ordinary Americans as well. Those Americans will pay more for their mortgages. They will pay more to use a credit card or buy a car or finance a university education.
"They’ll even pay more for their electric bills, groceries and gas. The spike in interest rates and the damage to the U.S. dollar alone could cost the average American family more than $1,500.
"It would be the most serious financial crisis this country has ever faced. And it would come at a time when our economy can least afford it."