Sometime in the next 30 to 60 days the federal government will
reach the legal limit on its ability to borrow, setting up the next
potential budget crisis in Washington. The debt is currently $16.4
trillion, technically in excess of the statutory limit, and the
Treasury Department has been using “extraordinary
measures,” such as delaying payments to federal retirement
programs, in order to push back the final day of reckoning.
But Treasury’s ability to push off the deadline is almost spent, and unless Congress authorizes an increase in the debt limit, we will face yet another financial cliff. With Republicans in Congress calling for spending reductions as the price for increasing the debt limit, and President Obama insisting that he will not negotiate on the issue, we may soon be looking back on the fiscal-cliff deal as a model of relative comity.
Read more: http://www.cato.org/publications/commentary/overrated-debt-ceiling
But Treasury’s ability to push off the deadline is almost spent, and unless Congress authorizes an increase in the debt limit, we will face yet another financial cliff. With Republicans in Congress calling for spending reductions as the price for increasing the debt limit, and President Obama insisting that he will not negotiate on the issue, we may soon be looking back on the fiscal-cliff deal as a model of relative comity.
Read more: http://www.cato.org/publications/commentary/overrated-debt-ceiling
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