NBR: What happens if debt ceiling agreement missed deadline? Gov't have to cut federal spending by 40%

Here is a partial transcript from last night's show Nightly Business Report.  Susie Gharib interviewed reporter Darren Gersh on the debt ceiling agreement and the consequences if the agreement misses the deadline of Aug. 2:

GHARIB: And it might not come to a deal on August 2nd. If that happens, can you explain what would be the real economic impact for the average American person?


GERSH: Well, the Bipartisan Policy Center did a study. And basically they said in August, if we don't get an agreement, they'd have to cut federal spending by 40 percent. What does that mean? That's $134 billion, about 10 percent of the economy in the month of August that would disappear.

On top of that, we have to roll over $500 billion of debt. Now how you're going to do that in a market where you don't have an agreement on the debt limit? That's a scary thought.

So what happens to checks like Social Security, disability, etc. and checks for the troops?
Mr. Obama told Pelley “this is not just a matter of Social Security checks. These are veterans checks, these are folks on disability and their checks. There are about 70 million checks that go out.”

The interview will air Tuesday evening on the CBS Evening News with Scott Pelley.
Watch Obama’s interview on CBS Evening news tonight: