From USA Today:
Treasury Secretary Henry Paulson told Congress on Wednesday that the federal government will hit the current debt ceiling on Oct. 1.
He urged quick action to increase the limit, saying it was essential to protect the "full faith and credit" of the country, especially at a time of financial market turmoil.
The current debt limit is $8.965 trillion. Unless Congress votes to raise that ceiling, the country would be unable to borrow more money to keep the government operating and to pay debt obligations coming due. The United States has never defaulted on a debt payment but the decision on whether to raise the debt ceiling often sparks a prolonged political battle in Congress.
The Senate Finance Committee earlier this month approved increasing the limit on the national debt to $9.82 trillion. That boost of $850 billion would be the fifth increase in the government's borrowing limit since President Bush took office in 2001.
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2 comments:
Our Government's spending is WAY out of control. To me, the sad thing is that we are in over our heads and it wasn't even our choice. Hopefully the next administration to take office (whether Elephant or Donkey) will show more fiscal restraint.
Good comment, Brian. I am completely baffled as to what happened to fiscal discipline. Most of our elected officials from both parties seem to lack it. And, frankly, most Americans ignore the issue, acting like no one will ever have to pay down this debt and that there will never be any negative consequences because of it.
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