Treasury Secretary Timothy Geithner says that if Republicans insist on passage of their budget plan as a condition for approving an increase in the nation's borrowing limit, they will be responsible for the consequences.
Speaking to a New York audience, Geithner said that Republicans would bear the responsibility for the first debt default in the nation's history. He said such a default would have a devastating impact on the economy.
Geithner noted that the country reached the current borrowing limit of $14.3 trillion on Monday and he is deploying a series of extraordinary measures to keep from defaulting on the debt. He called on lawmakers to work with the administration on a credible deficit-cutting plan that could be accepted by both Republicans and Democrats.