Valley financial expert: Politicians using debt deadline as scare tactic
PHOENIX -- Many economists and political leaders have said failing to meet the Oct. 17 deadline to pay America's debt could send the country into another recession, but News/Talk 92.3's Smart Investor Wayne Stutzer said the U.S. has plenty of money to cover the debt.
"The world isn't coming to an end," he said. "Revenue is still coming in and the deadline to file taxes for this year is next Tuesday and that's going to be a chunk of change so from our research we could go into November. We have the money and the argument is about how to spend it."
Stutzer doesn't believe another recession is in the offing if the debt deadline is crossed. But he said the world is watching closely and failing to get a deal done would put doubt in people's minds and that would be damaging.
"If we default on the debt, China gets hurt worse than us."
The government has racked up $17 trillion in debt and the current interest on that figure represents about 10 percent of the nation's revenue.
Jim Cross, Reporter