America’s ticking debt bomb has been reset. Washington has suspended the debt ceiling, setting a date, and not a concrete dollar sum as a deadline, an unprecedented first in US history.
Citing ‘extraordinary measures’, the US Treasury has further
delayed tackling America’s debt, and will wait until Labor Day,
September 2nd, to revisit the burgeoning crisis. The ceiling has
been lifted, and the Treasury has promised it will keep cash
pumping into government spending programs beyond the debt limit
through a series of emergency cash tools.
Until then, the Treasury will borrow money to mend any gaps
between government spending and revenues, adding to the already
$16.7 trillion debt.
In the last four months, the US has accumulated $300 billion in
debt. The Congressional Budget Office forecasts that the federal
deficit will be $642 billion in FY13.
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