Approaching Another Big Hurdle
On Tuesday, we said that Congress will remain deadlocked until there is a comprehensive debt-reduction deal. The reason is the debt ceiling. The statutory limit on public debt has not gone away. It's the third big speed bump that Congress faces. House Republicans won't vote to raise it without some credible program to rein in deficit spending. Nor do we believe most Democrats will either.
Technically, the government ran out of borrowing authority on Dec. 31, according to Treasury Department calculations, but the Treasury has been able to maintain cash flows by dipping into various trust funds that it manages. But doing so can sustain the government for only about two months, and that time is just about up....324 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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