Debt ceiling: Countdown to default

capitol debt ceiling

Congress is sowing the seeds of a debt ceiling crisis: If lawmakers don’t raise the limit on federal borrowing soon, they will put the nation at risk of defaulting on some of its legal obligations.

When exactly? Much has been made of Oct. 17 as the drop-dead date. But that’s not quite right.

And here’s why.

The country reached the debt ceiling in May. Since then the Treasury Department has been using special accounting measures to keep borrowing just under the limit.

But Treasury Secretary Jack Lew has said those will run out no later than Oct. 17.

That means the “extraordinary measures” could dry up on Oct. 12 or Oct. 15, or some other date. Just no later than Oct. 17.


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8 years ago

There is plenty of cash coming in to service the DEBT -- SO NO DEFAULT -- FALSE PREMISE TO SCARE FOLKS . . SAME WITH SS CHECKS AND MILITARY THE ONLY THINGS NOT FUNDED WOULD BE THE PART FINANCED BY THE VISA CARD = DEFICIT ITEMS. humm maybe just keep it closed . . no new spending and no deficits.

My bet is he walks this backwards . .

A good compromise, a good piece of legislation, is like a good sentence; or a good piece of music. Everybody can recognize it. They say, ‘Huh. It works. It makes sense.’

Barack Obama

8 years ago

The standard progressive attack method…blame, blame, inflict damage,blame some more, and all the while hope that the “consistency” of your blame message convinces voters that you are really the one telling the truth. Fortunately, many Americans have awakened to this strategy, primarily due to it’s excessive use by this administration. Once awakened, voters have little tolerance for this strategy, because the quickly see how often they have been duped by it in the past… the tables will indeed turn on those using it. What they will do next is the big question?