Saturday, February 8, 2014

Breached!! U.S. Surpassed the Debt Ceiling Today

Well, it’s official now: The U.S. government on Friday breached the current debt ceiling. Congress probably has until the end of February to raise the cap before the Treasury begins to default on its borrowing for the first time ever. 
The government’s borrowing cap of $16.69 trillion was suspended last October as part of a bipartisan budget deal that ended the 16-day government shutdown and gave Congress until early this year to pass a new budget and get the government’s fiscal house in order. Today was the deadline for reinstituting the old debt ceiling unless lawmakers and the White House could agree on a new, higher borrowing level. 
But with House Speaker John Boehner and his Republican members at odds over whether to demand concessions from President Obama – such as approving the Keystone XL pipeline or rescinding recent cuts in benefits for some military retirees – in return for voting to raise the debt ceiling, the government has officially exceeded its current borrowing authority by about $590 billion. As of this morning, the national debt stood at $17.285 trillion.

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