U.S. To Hit Debt Ceiling December 31stSubmitted by Peace Gold Love on Wed, 12/26/2012 - 23:04
WASHINGTON (MarketWatch) — The Treasury Department soon will begin making accounting moves so that the United States can put off hitting its debt ceiling at the end of the month, Treasury Secretary Timothy Geithner said Wednesday.
In a letter to congressional leaders, Geithner said the government would hit the $16.4 trillion debt ceiling on Dec. 31 unless he authorized the extraordinary measures.
The temporary moves would create $200 billion in “headroom,” according to Geithner. Under normal circumstances, that amount of headroom would last approximately two months.
However, it was unclear how long such measures would last, because tax and spending policies for 2013 are still under negotiation as part of the talks to avert the fiscal cliff, he said.
President Barack Obama and Senate leaders are returning to Washington seeking to avert the spending cuts and tax increases that are set to take effect in the new year.
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