Monday, May 16, 2011

Debt Limit Reached

Armageddon! or not so much. It is a problem that has the potential to turn into a catastrophe, but a clean bill raising the debt ceiling could be even worse. The government must cut back spending and stop piling on the debt or the eventual raise will just delay the inevitable and make the ultimate crash that much worse.

"The U.S. government is expected to hit the $14.294 trillion debt ceiling Monday, setting in motion an uncertain, 11-week political scramble to avoid a default.

The Treasury Department said Monday it will stop issuing and reinvesting government securities in certain government pension plans, part of a series of steps designed to delay a default until Aug. 2.

The Treasury's moves buy time for the White House and congressional leaders to reach a deficit-reduction agreement that could clear the way for enough lawmakers to vote to raise the amount of money Congress allows the nation to borrow.

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