U.S. Already Hitting Debt Ceiling on Monday?

Warner Todd Huston | December 31, 2012

U.S. Treasury Secretary Timothy Geithner is warning Congress that the U.S. is on the cusp of hitting the debt ceiling yet again, maybe as soon as Monday.

Geithner said that the Treasury Dept. will be taking some “extraordinary measures” to prevent borrowing from exceeding the previous debt ceiling limit, measures such as a temporary halt of the reinvestment of federal workers’ retirement account contributions.

This, along with other measures might save the government $200 billion as the debt limit approaches to just under $95 billion below the $16.394 trillion debt ceiling limit.

A major problem with these “extraordinary measures” is that no one knows what effects the fiscal cliff may have on them. The biggest unknown is what effect new tax rules will have on the situation.

“If left unresolved, the expiring tax provisions and automatic spending cuts, as well as the attendant delays in filing of tax returns, would have the effect of adding some additional time to the duration of the extraordinary measures,” Geithner wrote.

This seems like even worse planning than we thought. The fiscal cliff is coming now, not next month. Or is this just a negotiating tactic? One might suspect a bit of both.

Whatever the true situation we are right at the precipice. Will Obama lead us back from the edge?

Contributor's website: http://thenma.org/blogs/index.php/huston

Filed Under Barack Obama, Conservative Musings, National Debt

Content posted by users from other sites is posted for commentary and news purposes under fair use and each author is responsible for their own postings and a particular posting should not be construed as being endorsed by this site or its owner.

Please Note: The comments section is for both the registered users of this web site as well as non-registered users. All wishing to post comments must comply with our Commenting Rules or risk having their comments stricken. Comments do not necessarily reflect the views of the ownership of this site and should not be taken as such just because they are visible and posted here.

One Response to “U.S. Already Hitting Debt Ceiling on Monday?”

Stuart Shepherd on January 1st, 2013 9:31 am

No, Obama will not pull us back- the Manchurian, imposter, America-hating “President” will shove us right over it so he can be the “savior” with his socialism and totalitarianism.

Leave a Reply