Federal Government to Hit Debt Limit by October 17th

Running out of ways to avoid it

Reason

The partial federal government shutdown's just the start of the feds' fiscal management problems. The Treasury Secretary again warned the government would hit the statutory debt limit in just over two weeks, and will not be able to borrow the money it wants to spend.

From Politico:

The Treasury Department has begun using the last set of accounting maneuvers at its disposal to allow the government to keep paying its bills until Congress raises the country's borrowing limit, Treasury Secretary Jack Lew told congressional leaders Tuesday night.

In a letter, Lew reiterated that if the debt ceiling is not raised by Oct. 17 the government will not be able to meet all its financial commitments, such as making payments to U.S. debt holders, government contractors and Social Security recipients.

The US Postal Office already defaulted on a $5.6 billion payment for retiree health benefits this week. The feds, meanwhile, are busy spending money they're running out of throwing up barricades in front of open (federal!) spaces. 

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Comments

[Mike M.]

The US Postal Office already defaulted on a $5.6 billion payment for retiree health benefits this week.

Don't worry though, everything else in the system is great!

[Pro Libertate]

"No, fuck you, cut spending."

The Litany Against Spending:

I must not spend.
Spending is the thrift-killer.
Spending is the huge-debt that brings total obliteration.
I will pace my spending.
I will permit it to pass over me and through me.
And when it has gone past I will turn the inner eye to see its path.
Where the spending has gone there will be nothing.
Only the economy will remain.

[Auric Demonocles]

Tax, or spend not. There is no borrow.

[Pro Libertate]

Nice. Pithy. I endorse.

[Scruffy Nerfherder]

If only there was a box that Congress creatures had to stick their hand in.

[Pro Libertate]

Ah, you refer to the Gon Tufar? The Kwittheshitz Hadenough can provide.

[Gray Ghost]

"O you who know what we suffer here, do not forget us in your prayers."

Then there's, "Let us not rail about justice as long as we have arms and the freedom to use them."

[Dr. Frankenstien]

Neither a borrower nor a lender be, For loan oft loses both itself and friend, And borrowing dulls the edge of husbandry

[Pro Libertate]

Okay, I admit, I'm singing this in my head. You know, from the Hamlet musical.

[Dr. Frankenstien]

There's a musical? I'll have to look into it.

[Pro Libertate]

Here's why I hated to admit that: It's a bit from Gilligan's Island. But it was pretty good, if you ask me.

[Auric Demonocles]

Lew reiterated that if the debt ceiling is not raised by Oct. 17 the government will not be able to meet all its financial commitments, such as making payments to U.S. debt holders, government contractors and Social Security recipients.

The feds bring in plenty of money (about $3 trillion this year) to pay their obligations. The only way default would possibly happen is if they specifically choose to do so, rather than cut 700-800 billion from things that aren't paying debt holders.

[Scruffy Nerfherder]

if they specifically choose to do so

A politician/bureaucrat will not miss an opportunity to let you know how much you need them.

[Sevo]

Exactly.
The "you made me hold my breath!" whine.

[Raven Nation]

Since the debt ceiling always gets raised, is there any practical reason to keep it? Not talking about morality, etc., but it seems to have become political theater.

[CE]

It's like a promise to yourself to start eating less and working out more... starting next year.

Someday they'll balance the budget, so a debt ceiling law is a way to push that day of reckoning off for a year or two, then just raise the ceiling to push it further out.

[Fatty Bolger]

It's amazing (not really) that you rarely see that reported in the OMG SHUTDOWN! reporting. It's not like the government has no cash flow, quite the opposite. I think people imagine the government going broke and everything coming to a complete halt, though.

[Sevo]

Knowing this in advance, we could, for instance, bring troops home and discharge them.

[DJF]

So Oct 17 is the day the zombies are let loose?

I need to know so I can buy my Joe Biden approved shotgun so I can be ready to shoot them through the door when they arrive.

[Sevo]

Oh, and there's help right there!
Off to the right, I'm getting "Drowning in credit card debt"? "Call Consolidated Debt Counseling Service"
Damn, no phone number, but I'm sure someone in the government can do a search to find them
They'll know what to do, including STOP BORROWING, YOU IDIOT!

[CE]

I love how they call it a "statutory debt limit". Guys, it's the law. If they're about to hit it, it's time to stop borrowing, and cut spending down to what taxes are bringing in in spoils, er, revenue. We already know 20 percent of the government is non-essential. Cut that and we should be good.

[DesigNate]

But those government employees add to the GDP!!!