Need to Know
December 27, 2012 4:22 AM
US to hit debt ceiling Monday
Posted by Staff
Washington Post reports:

The U.S. government will hit the $16.4 trillion federal debt limit Monday and turn to “extraordinary measures” to continue borrowing, the Treasury Department said Wednesday, beginning a countdown until Congress either passes legislation to allow for more borrowing or the government defaults on its debt.

In a letter to Congress, Treasury Secretary Timothy F. Geithner said that although the debt ceiling would be reached Dec. 31, the government could buy roughly two months’ more time before it would be unable to meet all its obligations.

The debate over the debt ceiling is likely to be another flash point in the capital’s tumultuous negotiations over taxes and spending — even if lawmakers are able to pass a measure to avoid a series of deep spending cuts and sharp tax increases set to take effect at the end of the year. Facebook Fark Furl
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