Former Treasury Secretary Paulson: Suggests the U.S. develop an emergency plan to "break the glass" on U.S. debt.

Former US Treasury Secretary Henry Paulson suggested that US authorities prepare a contingency plan to prevent a collapse in demand for US debt in the future due to concerns about the burden of federal debt. Paulson warned that a collapse in the US Treasury market would be different from the financial crises he had dealt with before, and the consequences would be "severe". He stated that addressing the fiscal deficit would require increasing revenue, adjusting taxes, and managing expenditures, but he pointed out that mobilizing lawmakers to support such actions would be a challenge.