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on this debate before it's too late. and a disturbing new study revealing a widening gap between minorities and the wealthiest americans in the wake of a devastating recession. i'm wolf blitzer here in the situation room. first to what many say is shaping up to be an economic disaster of nearly unprecedented proportions if congress doesn't break the deadlock and agree on a deal to raise the debt ceiling only six days from now. the white house warning today there's no more wiggle room and beyond that date, quote, we lose our capacity to borrow. if that happens, interest rates could go...

First, didn't they? anyway, will the president get in the boat with both feet today and how likely is his vision to produce real reforms in fiscal policy? he was head of the congressional budget under a republican administration back during the house in the early part of this decade. and william golston was domestic policy adviser to president bill clint clinton. they both join us now. doug, the easy part in washington is to come up with a plan. i'm up to four plans, right? the president's going to have one. we have the ryan plan. we have the debt commission plan. we have the gang of six plan ...

Could follow, spain and others. if this becomes a european problem it becomes an american problem as well, does it not? >> there is no doubt about it. it's a world problem. we'll be the last one to fall, because we have the dollar and people still think the dollar will save everybody. the dollar will have to bail out california and so many other problems we have here. but that will make the whole world vulnerable. it's a debt explosion has occurred for 40 years. we have known it has been building. we knew of it couldn't last and we knew it we are in the midst of a currency crisis. megyn: it's ...

Inability or unwillingness to tackle this debt explosion. if they would decide not to continue to loan us the money, we would then be in a very tough situation. we would either have to raise interest rates dramatically or cut spending sharply or raise taxes dramatically. >> this is what debt does. it constrains you and puts you in a position where you're not going to be able to respond to crisises that may confront future generations. >> if we stay on our present course, estimated spending levels will be twice as large as projected revenues, and debt held by the public will exceed 200% of gdp....

Tackle this debt explosion. if they would decide to not continue to loan us the money, we would be in a very tough situation. we would either have to raise interest rates dramatically or cut spending sharply or raise taxes dramatically. >> this is what debt does. it constrains you and puts you in a position where you're not going to be able to respond to crises that may confront future generations. >> if we stay on our present course, estimated spending levels will be twice as large as projected revenues, and debt held by the public will exceed 200% of gdp. life in america, especially for youn...