White House warns of economic fallout if US defaults

THE White House warned yesterday of a future of tumbling stocks and spiking unemployment if the United States defaults on its debt payments, a looming possibility as Democrats and Republicans fight over national spending.

The president’s Council of Economic Advisers, a top federal consultative body, warned that if the US government stops meeting its financial obligations, the resulting economic shocks could cause eight million job losses this summer and a 6% drop in GDP.