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Economic News, Data and Analysis

Debt ceiling to be hit soon

It looks like the debt ceiling will be hit soon – late september/early october unless congress and the president act to raise the ceiling.
It does sound like there are some accounting gimmicks that could be used to extend until mid november.
A good journalist (hint, hint) should track down what those gimicks might be and to make sure people know what’s going on in case congress fails to act…

Treasury formally asks to have U.S. debt ceiling raised – Aug. 2, 2004
Snow seeks hike in U.S. debt ceiling
Treasury Secretary says the U.S. debt will hit its $7.384 trillion limit by late Sept., early Oct.
August 2, 2004: 5:37 PM EDT
WASHINGTON (Reuters) – Treasury Secretary John Snow on Monday put the ball squarely in Congress’ court on the debt ceiling issue, warning lawmakers that the U.S. government cannot not be financed past November unless they raise the limit.
In a letter sent to Capitol Hill leaders, Snow said the debt subject to the $7.384 trillion limit will be hit “between late September 2004 and early October 2004.” Even if the government takes certain accounting maneuvers to stay beneath the ceiling, as it has done in the past, Snow said, “we can finance government operations no longer than mid-to-late November 2004.”

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