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On Friday, America’s debt limit extension expires and Congress is expected to renew its legal $16.7 trillion debt cap. If the debt limit isn’t raised, the US could burn through its cash as soon as February 28, Secretary Treasurer Jacob Lew warns.
“Time is short. Congress needs to act to extend the nation’s borrowing authority, and it needs to act now,” Lew told an audience at the Bipartisan Policy Center, a Washington DC think tank.
On Friday, February 7, Congress will vote to increase the statutory debt limit, which will enable the government to pay for spending bills it has already passed.
"Without borrowing authority, at some point very soon, it would not be possible to meet all of the obligations of the federal government," Lew said.
I wonder if it being tax season will have any effect on this?
President Barack Obama signed into law on Friday a $1.1 trillion spending bill that will fund the government through the end of September.
reply to post by 727Sky
Reminds me of the Aerosmith song - it's the same old story, same old song and dance my friend.
There'll be a whole lot of partisan bickering, with each side blaming the other for ruining the country. Then after enough mud has been slung they'll compromise on how to best screw over the American public, the debt ceiling will be raised, stocks will go up, and another manufactured crisis will be averted.
Then it'll be back to business as usual.
reply to post by 727Sky
Looking in from the outside, it seems like a pretty dumb way to run one of the most historically respected currencies ever devised.
What I really do not understand, is why the only options being seriously discussed, are increasing the debt ceiling again, and again, or defaulting on some payments and debts. This seems ridiculous to me. Surely reducing every thing in the defense budget, bar those monies reserved for equipment and personnel, would help pay something off, surely finding the 2.3 trillion that the pentagon cannot account for would help?
If the US is anything like the UK, there are savings which could be made from its budgets, which have nothing to do with people being made redundant, but to do with re-negotiating badly written contracts, to favour government, and by extension the people of the United States of America! I cannot believe that the entire US is being left with a choice between getting ANOTHER loan, or default. It is utterly impossible that NO other options are available, so why the hell are alternatives not on the table by now? The US benefits from having some of the foremost mathematicians, economists, and market jockeys on the planet, working and living in it. Surely these human resources need putting to better use!