TODAY   |  October 08, 2013

Cramer on default: 'No one knows what will happen'

CNBC's Jim Cramer, host of “Mad Money,” tells TODAY’s Savannah Guthrie that it would be a "calamity" if the United States defaulted on its debt, and gives advice for regular citizens on how best to weather the financial storm.

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This content comes from Closed Captioning that was broadcast along with this program.

>> let's turn to jim cramer . that's the day america can't borrow anymore but do we default that same day?

>> no, there's some money but we're not sure how much. but by november 1st there's not enough money.

>> on november 1st we could default. what effect will have that. a lot will tell you it will be a calamity.

>> that's true. i imagine what they'll do is pay the interest on the debt so therefore there's not a real default. but, yes it would be a calamity because almost everything in the world is priced off the treasury. meaning this is the most important single piece of paper in the world and no one knows what will happen.

>> to break this down further we owe a certain amount of money, interest on the debt every single month. even if we don't reach the debt ceiling there would still be that money to pay it but the question is what other bills do you pay? is that what has the economic consequence.

>> exactly. the government can't pay every deal without getting more debt.

>> what do you think you should do if you're a regular citizen sitting at home watching this unfold in washington? are you in the stock market or bond market or out of it.

>> we're a rich country . if you try to get out now and get back in, i think you'll fail. this is not a crisis involving our country being bankrupt. we have the money to pay. it's just political.

>> always good to get your