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Ceiling suspended: US takes on $300bn in new debt after hitting $16.7 trillion

Posted By yihan On May 20, 2013 @ 11:17 am In Money Watch | Comments Disabled

RT [1]
May 20, 2013

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.

“It will not be until at least after Labor Day” when Washington will have reached their full borrowing capacity, Treasury Secretary Jacob Lew, told CNBC television on May 10th.

 

Ceiling suspended: US takes on $300bn in new debt after hitting $16.7 trillion 000 was7481322

US Secretary of Treasury Jack Lew. (AFP Photo / Saul Loeb)

 

Until then, the Treasury will borrow money to mend any gaps between government spending and revenues, adding to the already $16.7 trillion debt.

On Friday, the Treasury Department announced it will suspend sales of State and Local Government Series loans (SLGS) until further notice. The suspension applies to demand deposit and time deposit securities.

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.

Full story here. [1]

 


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[1] RT: http://rt.com/business/us-debt-ceiling-suspended--510/

[2] Senate Attempt To Block Debt Ceiling Increase Fails: Debt Target Is Now $15.2 Trillion, Or Over 100% Of GDP: http://www.prisonplanet.com/senate-attempt-to-block-debt-ceiling-increase-fails-debt-target-is-now-15-2-trillion-or-over-100-of-gdp.html

[3] US Closes 2011 With Record $15.22 Trillion In Debt, Officially At 100.3% Debt/GDP, $14 Billion From Breaching Debt Ceiling: http://www.prisonplanet.com/us-closes-2011-with-record-15-22-trillion-in-debt-officially-at-100-3-debtgdp-14-billion-from-breaching-debt-ceiling.html

[4] New White House Petition Demands That Obama Mint A Trillion Dollar Coin To Avert A Debt Ceiling Crisis: http://www.prisonplanet.com/new-white-house-petition-demands-that-obama-mint-a-trillion-dollar-coin-to-avert-a-debt-ceiling-crisis.html

[5] Total US Debt Hits $14.195 Trillion, $99 Billion Away From Debt Ceiling; Treasury Revises Breach Date To As Soon As April 15: http://www.prisonplanet.com/total-us-debt-hits-14-195-trillion-99-billion-away-from-debt-ceiling-treasury-revises-breach-date-to-as-soon-as-april-15.html

[6] Debt Ceiling Tragicomedy Resumes: On Today’s Symbolic, And Doomed, $2.4 Trillion Debt Ceiling Vote: http://www.prisonplanet.com/debt-ceiling-tragicomedy-resumes-on-todays-symbolic-and-doomed-2-4-trillion-debt-ceiling-vote.html

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