Former Treasury Secretary Paulson: Suggests U.S. Develop Emergency Plan to "Break the Glass" on U.S. Treasuries

Former U.S. Treasury Secretary Henry Paulson has advised U.S. authorities to prepare a contingency plan to prevent a future collapse in demand for U.S. Treasuries driven by concerns over the federal debt burden. Paulson warned that a collapse in the U.S. Treasury market would differ in nature from the financial crises he has previously managed, with consequences that would be "devastating." He stated that addressing the U.S. Fiscal Deficit requires increasing revenue, adjusting taxes, and managing spending (including reforms to Social Security and healthcare programs), but noted that mobilizing legislators to support such actions will be challenging. (Bloomberg Television)