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Treasury Quietly Warns: 'Expect Debt Limit to Be Reached Near End of 2012'
CNS News ^ | November 6, 2012 | Terence P. Jeffrey

Posted on 11/07/2012 5:40:51 AM PST by george76

The U.S. Treasury quietly warned at the end of a statement issued last Wednesday that it expects the federal government to hit its legal debt limit before the end of this year--which means before the new Congress is seated--and that "extraordinary measures" will be needed before then to keep the government fully funded into the early part of 2013.

On Aug. 2, 2011, President Obama signed a deal he had negotiated with congressional leaders to increase the debt limit of the federal government by $2.4 trillion. But, now, after only 15 months, almost all of that additional borrowing authority has been exhausted.

Although Treasury revealed in its statement on Wednesday that it was likely to hit the debt limit by the end of the year, Treasury Secretary Geithner failed to respond to a letter that Senate Finance Ranking Member Orrin Hatch and Senate Budget Ranking Member Jeff Sessions sent to him on Oct. 15 demanding that he notify them by Nov. 1 what he believes to be the exact date Treasury will hit the debt limit and the date he expects to begin using "extraordinary measures" to avoid it.

(Excerpt) Read more at cnsnews.com ...


TOPICS: Crime/Corruption; Front Page News; Government; News/Current Events; Politics/Elections; US: Alabama; US: District of Columbia; US: Utah
KEYWORDS: broke; debt; debtlimit; taxes

1 posted on 11/07/2012 5:40:56 AM PST by george76
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To: george76

That was part of the Treasury Refunding statement. It was anything but quiet.


2 posted on 11/07/2012 5:44:31 AM PST by billthecat (Ack! Ack!)
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To: george76

If the GOP caves on this again, the party will wither away. It’s already on life support, and they are just about out of bullets. Give in now, and we are Europe.


3 posted on 11/07/2012 5:51:37 AM PST by Repealthe17thAmendment (Is this field required?)
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To: george76

I no longer care about this anymore. If they cave, which they will, they have nothing much to lose anymore.


4 posted on 11/07/2012 5:54:34 AM PST by dforest
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To: george76

And so expect the screams for a tax increase to start any minute, along with some vague promises to cut spending a little even though spending has ramped up to a historic 24% of GDP and should be chopped significantly. I give up too. Let’s have a tax increase but not the kind the moochers want. Let’s have a tax increase on EVERYONE. A huge MIDDLE CLASS tax increase to share the pain with everyone. That is the only thing that is going to get suburban voters to actually think before they vote. No more free ride on the backs of the “rich.” Oh, and there should be a tax on the poor too. No more BS where half the country is off the tax rolls. Every single perosn should pay at least a certain percentage of their income as an income tax in addition to the payroll tax.


5 posted on 11/07/2012 5:57:54 AM PST by Opinionated Blowhard ("When the people find they can vote themselves money, that will herald the end of the republic.")
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To: Opinionated Blowhard

Agreed. Just let the Bush Tax Cuts expire for everyone.


6 posted on 11/07/2012 6:13:21 AM PST by RonnG
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To: george76

....And NOW the shit begins oozing out from under the rug. (just wait until we find out what’s under the bed and stuffed into the closets)

Folks, it’s about to get very ugly out there, and probably sooner rather than later. They have done a LOT to keep this wreck afloat during the past 3 years. Massive federal spending, Bernanke printing money like there’s no tomorrow...ect...ect. All to acheive what we saw happen yesterday. Well, that has come and gone now....”Mission Accomplished”. They are probably about out of tricks to keep the mess going anyway, and when the music stops, it ain’t gonna be pretty.

Prepare accordingly....


7 posted on 11/07/2012 6:13:35 AM PST by KoRn (Department of Homeland Security, Certified - "Right Wing Extremist")
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To: george76

“The U.S. Treasury quietly warned at the end of a statement issued last Wednesday that it expects the federal government to hit its legal debt limit before the end of this year ...”

So what, just authorize another 10, 20, how about 100 Trillion ... whats the difference?

Can anyone tell me here at FR why we now should bother arguing weather we should raise the limit or not?

Let it go up 1 quad-drillion for all I care, it will never be paid back.

The sooner the economic meltdown occurs the better. The sooner the laws of econimics and reality come crashing in, the better.


8 posted on 11/07/2012 6:19:12 AM PST by CapnJack
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To: KoRn

We need a new leader in the House.


9 posted on 11/07/2012 6:19:12 AM PST by Oldexpat
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To: george76

BFD. Let it crash.


10 posted on 11/07/2012 6:22:04 AM PST by ScottinVA (Pray hard!)
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To: ScottinVA

Yep, who cares anymore? The voters want to go Greece, so let’s go Greece.


11 posted on 11/07/2012 6:27:14 AM PST by kevao (Hey, Obama: The 1930s called, they want their economic policy back.)
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To: george76

But hey, they will have free birth control and marriage equality, so who cares!! /s


12 posted on 11/07/2012 7:00:22 AM PST by USMCWife6869
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To: george76

We need to use Cloward-Piven against the administration and establishment. Anarchy is better than a Leftist tyranny. Perhaps a free market strongman will take its place as in imperial Rome. Constitutional Republic, are you joking, dead as a doornail.


13 posted on 11/07/2012 7:29:21 AM PST by grumpygresh (Democrats delenda est; zero sera dans l'enfer bientot)
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To: george76
From the article:So TurboTax says FU to two sitting Senators. These bastards threw decorum out the window some time ago.

Now whatcha gonna do?

14 posted on 11/07/2012 7:31:07 AM PST by upchuck (Our margin of victory this November 6th MUST BE greater than their margin of fraud.)
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To: USMCWife6869

and pot so they haven’t a care in the world


15 posted on 11/07/2012 7:35:55 AM PST by knak (The only thing necessary for the triumph of evil is for good men to do nothing)
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To: george76

Hopefully we don’t allow the ceiling to be raised. I don’t even care what happens after that.


16 posted on 11/07/2012 12:02:41 PM PST by Diggity
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