The U.S. will hit the $16.7 trillion debt ceiling in mid-October, Treasury Secretary Jacob J. Lew said in a letter urging Congress to raise the limit “as soon as possible.”
“Extraordinary measures are projected to be exhausted in the middle of October,” Lew said in the letter today to House Speaker John Boehner and other lawmakers.
“At that point, the United States will have reached the limit of its borrowing authority, and Treasury would be left to fund the government with only the cash we have on hand on any given day,” he said. The cash balance at that time is forecast to be about $50 billion, “insufficient to cover net expenditures for an extended period of time,” according to Lew.
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6 comments:
I think it should be 5 cents.
shut it down
There are a lot of things starting to converge all at once:
1. Debt limit in mid-October
2. Obamacare on the horizon
3. Syria - US talking-up war rhetoric.
4. US bond buying tapering - or (diminishing)
5. Moody's downgrade of 6 major US banks.
Anyone of the above could shake the stock market into a major correction.
I heard on MSNBC Money show yesterday that Larry Kudlow thinks we might be starting into another recession. Feds will probably lower interest rates by as much as 60 basis points when they start to taper to keep things from panic mode - but I do not buy into this economy. Also - the colleges are churning out class after class and there are no decent jobs like there was before the recession. All businesses are so lean that they will hire PT before hiring at all.
Bottom line - things do not look good.
How convenient for this to come out when the budget is coming due and the gop has said they will not fund Obama care package. It is already becoming a political tug of war. I just hope the gop has enough gonads to stand up to the senate and the worthless president we have and let it shut down.....
SHUT IT DOWN!
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