We are now finding out that the Debt Ceiling will be hit no later than May 16. The Government is just 63 Billion shy of hitting it the Debt Limit. Basically the government is spending 30 billion a week. That puts that 67 billion in cuts in perspective. Our Government has cut spending enough for a mere two weeks of operation. From where this writer is standing, that is a Total joke. The Right wants to cut across the board, but won’t raise taxes even on those making 5 million or more and the left can’t find a program that could be cut with out crisis turning into catastrophe . Basically grid lock will cause the demise of this great country.
The Treasury Department is expected this week to update its outlook for when the government might hit its borrowing limit. As of April 28, the government had $14.231 trillion in debt outstanding, giving it just $63 billion in wiggleroom under the ceiling.
Treasury officials had previously estimated that the government could hit the $14.294 trillion cap no later than May 16. They estimated that by July 8 the government would run out of emergency measures and could potentially begin defaulting on some of its obligations.
Once the government hits the debt ceiling, Treasury will find it very difficult to issue new debt to fund the country’s operations and pay interest on the existing debt. The White House has pleaded with Congress to raise the ceiling as soon as possible, but many lawmakers have said they will only do so in exchange for significant moves to reduce the federal budget deficit.
via Washington Wire – WSJ.
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