Federal Government to Hit Debt Limit by October 17th
Running out of ways to avoid it
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.
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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