U.S. Hits Borrowing Limit

[TNHermit]

Wait till this fight starts

U.S. Hits Borrowing Limit

By Niraj Chokshi // December 31, 2012 | 6:20 p.m.
Updated: December 31, 2012 | 7:11 p.m.
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The federal government reached its borrowing limit on Monday, Treasury Secretary Timothy Geithner wrote in a letter to congressional leadership.
While the government has reached it's debt limit, Geithner will be able to use so-called "extraordinary measures" to delay a default by as much as two months. An accurate estimate, however, is hard to come by due to uncertainty surrounding the tax hikes due to go into effect on Tuesday and drastic spending cuts slated for Wednesday, Geithner told lawmakers last week.
The debt limit has reared it's head in discussions to avert the tax hikes and spending cuts, known collectively as the fiscal cliff, though President Obama has vowed not to allow it to be used as a bargaining chip.
The debt limit represents the GOP's best hope for getting Democrats to agree to major spending cuts, though it could backfire. The last debt ceiling fight, in the summer of 2011, led Standard and Poor's to downgrade the nation's credit rating, with much of the blame falling on Republicans.
The federal government reached its borrowing limit on Monday, Treasury Secretary Timothy Geithner wrote in a letter to congressional leaders.
Hitting the ceiling does not mean the government faces a debt default. Geithner will be able to use so-called "extraordinary measures" to manage the country's payments for two more months, but a default will loom as a threat in early 2013 unless Congress takes action to lift the debt limit. Geithner has said that the precise deadline for avoiding a default is unclear because of uncertainty surrounding tax increases and automatic spending cuts that will take effect this week if lawmakers can't reach a deal to avert the "fiscal cliff."
The debt limit has reared its head in discussions to keep the country from going over the cliff, though President Obama has vowed not to allow it to be used as a bargaining chip in the budget talks.


http://nationaljournal.com/blogs/inf...owing-limit-31

[InvalidID]

Let's default and see who's big enough to collect...

[TNHermit]

Originally Posted by InvalidID

Let's default and see who's big enough to collect...

Lets Roll, More fun than a Chinese fire drill

[InvalidID]

The downside is they owe you and me money too, and I know we ain't big enough to collect...

[TNHermit]

Originally Posted by InvalidID

The downside is they owe you and me money too, and I know we ain't big enough to collect...

That fecal product is gone. Just get it on and lets get through and whoever survives gets the marbles

[||Downhome||]

sort of wonder how they will be making those foreign aid payments?

[terri9630]

Originally Posted by ||Downhome||

sort of wonder how they will be making those foreign aid payments?

Those should be the first to go.

[Awnry Abe]

I think they should make the new ceiling 16,394 trillion AND A PENNY. It would be just as meaningless as any other move they make. The statutory debt limit reminds me of the jail cell "bars" in Support Your Local Sheriff.