Happy New Year! U.S. to hit debt ceiling on New Year’s Eve
It’s almost 2013, and even before it starts the country is going to hit the latest debt ceiling. The scary thing is that tax cheat Tim Geithner claims that the Treasure Department will use what they call ‘extraordinary measures’ to prevent government borrowing from exceeding the legal limit.
Such measures include suspending the reinvestment of federal workers’ retirement account contributions in short-term government bonds.
On Monday, debt subject to the limit was just $95 billion below the $16.394 trillion debt ceiling.
All told, the extraordinary measures can create about $200 billion of headroom under the limit — normally about two months worth of borrowing.