House Financial Services Chairman Patrick McHenry says U.S. won't default this year - "The Takeout"

The U.S. will not default on its debt obligations this year, says GOP Congressman Patrick McHenry, chairman of the House Financial Services Committee; he is attempting to broker a deal between the White House and hardline conservatives to increase the government's borrowing limit.  

Treasury Secretary Janet Yellen wrote in a letter Thursday the U.S. had reached its congressionally imposed $31.4 trillion debt ceiling and payments to certain federal employee retirement funds would be restricted or suspended to buy time for Congress to act. Severe global economic consequences could hit in late spring if the limit is not raised.  

Conservatives in Congress are seeking spending cuts to Medicare, Medicaid and Social Security in exchange for increasing the nation's borrowing capacity. "The American people are sick of it. They want some responsibility used when it comes to spending their hard-earned money," Republican Rep. Scott Perry of Pennsylvania told CBS News.