The Obama administration said on Wednesday that the nation would hit the legal limit on its debt near the year's end, although it can tap emergency measures to stave off a default and keep the government running into early 2013.
As of Monday, the U.S. Treasury was $235 billion below the $16.4 trillion statutory ceiling on the amount it can borrow. That gives the government enough funds to pay its bills, including interest on its debt and retirement health benefits, until the end of the year, the Treasury said, reiterating a forecast it made in August.
If Congress fails to raise the debt limit, analysts expect the Treasury will run out of options to avoid a default some time in the latter half of February. However, the forecast could change dramatically depending on how the administration and Congress deal with the massive tax increases and spending cuts due to go into effect at year-end.
After Tuesday's presidential and congressional elections, Washington will have less than two months to find a solution to the so-called fiscal cliff - the $600 billion in tax increases and budget cuts that could fuel a fresh recession.
Treasury officials, briefing reporters on debt sale plans, said it was urgent that Congress act to increase the nation's borrowing authority.
Wednesday, October 31, 2012
Obama Debt to Hit Default By Year's End
This is the biggest reason to throw this jackass out of office six days from today:
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