No default expected on part of US govt.

American economist Paul Craig Roberts says he does not expect any default on the part of the US government amid the shutdown crisis.

œI don™t expect any default on the part of the government and I don™t expect Congress and the White House to push this matter so far that you have intervention by the Federal Reserve or by the president declaring a national emergency and simply seizing the power,” he told Press TV on Thursday.

He made the remarks after US Treasury Secretary Jack Lew said on Thursday a possible debt default would cause œirrevocable damage” to the country™s economy.

Testifying before the Senate Finance Committee on the 10th day of the federal government shutdown, Lew said the continued brinksmanship over the debt limit risks unforeseen consequences in the financial markets.

He added that Republicans are underestimating the dangers of a last minute deal and are triggering fear among investors that could quickly use up the remaining reserves.

Meanwhile, House Republicans said they would offer a plan to increase the debt limit through Nov. 22 to stave off a possible default.

The White House said US President Barack Obama welcomed the offer.

œThe president is happy that cooler heads at least seem to be prevailing in the House; that there at least seems to be a recognition that default is not an option,” White House spokesman Jay Carney said.

AGB/AGB