US will hit $16.4 trillion debt limit on New Year’s Eve
The United States will reach its $16.4 trillion borrowing limit on Dec. 31 and undertake “extraordinary measures” to avoid default, the Treasury Department informed congressional leaders in a letter on Wednesday
Source : https://www.marocafrik.com/english/US-will-hit-16-...
The Treasury Secretary Timothy Geithner, facing the second debt-ceiling breach of his tenure, said the government has $200 billion worth of “extraordinary” actions it can employ to prevent default, typically by shifting funds from various nonessential purposes to essential government functions,The New York Times(NYT) reports
In 2011 Geithner was able to delay the deadline and a deal to avoid going over the fiscal cliff was worked out was worked out,however this time the Treasury Secretary said that it was not possible this time to say how long the measures could buy more time for a deal to be struck because Republicans and Democrats cannot agree onb aset of proposals and the Republicans want to cut back America's debt. In 2001 they agreed a debt ceiling of US$ 16.4 trillion. If the United States government goes over the fiscal cliff it could plunge the country's economy back into recession and could also serously affect the world economy.The increasingly bitter partisan battle in Congress is making it more difficult for President Obama to direct policy. America has the largest external debt in the world and it is cont5inuing to grow.
The White House announced that the President and Congressonal leaders would meet for talks on the fiscal cliff on Friday.
In 2011 Geithner was able to delay the deadline and a deal to avoid going over the fiscal cliff was worked out was worked out,however this time the Treasury Secretary said that it was not possible this time to say how long the measures could buy more time for a deal to be struck because Republicans and Democrats cannot agree onb aset of proposals and the Republicans want to cut back America's debt. In 2001 they agreed a debt ceiling of US$ 16.4 trillion. If the United States government goes over the fiscal cliff it could plunge the country's economy back into recession and could also serously affect the world economy.The increasingly bitter partisan battle in Congress is making it more difficult for President Obama to direct policy. America has the largest external debt in the world and it is cont5inuing to grow.
The White House announced that the President and Congressonal leaders would meet for talks on the fiscal cliff on Friday.
Source : https://www.marocafrik.com/english/US-will-hit-16-...