Asked what the administration could do if GOP leaders hold to that posture, Clinton replied: “First the White House could blink. I hope that won’t happen. I don’t think they should blink.”

If Republicans will not accept revenues in a package to lift the debt ceiling by August 2, Clinton said, Obama should pursue a short-term agreement based on the spending reductions both sides have already accepted.

“There are some spending cuts they agree on… and he can take those and [get] an extension of the debt ceiling for six or eight months,” Clinton said.

“I don’t think you can agree to some mega-deal on their terms. And so I think as they get closer I believe they will agree on a more modest package of cuts and the Republicans, if I were in their position, I would say this only counts for six months or eight months or whatever but we don’t want to let the American people’s credit go under, let our credit get downgraded.”