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De Omnibus Dubitandum - Lux Veritas

Thursday, September 5, 2013

What happens if the debt ceiling isn't raised?

By JOSEPH LAWLER SEPTEMBER 3, 2013 AT 8:57 AM
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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