White House says unclear whether U.S. could prioritize obligations

Reuters

WASHINGTON, Oct 11 (Reuters) - The White House said onFriday that even if it could pick and choose which bills to payshould it not have enough money to pay them all, a likely legalchallenge to such a plan would still hurt America'screditworthiness.

"Even if it was technically possible, which is still veryunclear, (it) would be economically horrible for tens ofmillions of people," said Gene Sperling, a senior advisor toPresident Barack Obama.

"There would be extraordinary litigation, massive litigationchallenging our system, challenging each payment," he told afinance conference.

"All of this would put a serious cloud over what has alwaysbeen the impeccable credit of the United States government."

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