The Treasury has been up against the debt ceiling since
May 19. But Secretary Jack Lew warned last week that his ability to
create headroom under the $16.7 trillion limit will run out in mid-October. The
threat facing the Treasury, and the nation, is what happens then if
Congress doesn’t raise the limit.
In the worst-case scenario, the government fails to make
payments on the interest on its debt, an outcome that could create a global
financial crisis.
Yet Congress is not close to lifting the limit. With just
a few weeks to go, House Speaker John
Boehner, R-Ohio, is demanding spending cuts in return for the House
voting to raise the ceiling, while President
Obama is saying he won’t negotiate over the government paying its
debts….To Read More…..
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