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U.S. may default on its debt half a month earlier than expected, new analysis shows

Posted By admin On January 8, 2013 @ 10:22 am In Money Watch | Comments Disabled

Zachary A. Goldfarb
Washington Post [1]
Jan 8, 2013

The U.S. government may default on its debt as soon as Feb. 15, half a month earlier than widely expected, according to a new analysis [2] adding urgency to the debate over how to raise the federal debt ceiling.

The analysis, by the Bipartisan Policy Center, says that the government will be unable to pay all its bills starting sometime between Feb. 15 and March 1.

The government hit the $16.4 trillion statutory debt limit on Dec. 31 , but the Treasury Department is able to undertake a number of accounting schemes to delay when the government runs into funding problems.

The Treasury has said that the accounting schemes, known as “extraordinary measures,” ordinarily would forestall default for about the first two months of the year, though officials were clear that they could not pinpoint a precise date because of an unusual amount of uncertainty around federal finances.

Full article here [1]

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URLs in this post:

[1] Washington Post: http://www.washingtonpost.com/business/fiscal-cliff/us-may-default-on-its-debt-a-half-month-earlier-than-expected-new-analysis-shows/2013/01/07/6c3b3b26-590a-11e2-9fa9-5fbdc9530eb9_story.html

[2] new analysis: http://bipartisanpolicy.org/library/staff-paper/debt-limit

[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] Default ‘Off the Table,’ Debt Deal Will Be Struck: Geithner: http://www.prisonplanet.com/default-off-the-table-debt-deal-will-be-struck-geithner.html

[5] The Market is Now Pricing In the Genuine Possibility that the US will Default on Its Debt: http://www.prisonplanet.com/the-market-is-now-pricing-in-the-genuine-possibility-that-the-us-will-default-on-its-debt.html

[6] As Adjusted Monetary Base Rises By Half A Trillion In 2011, Treasury Runs Out Of Debt Ceiling Delay Measures: http://www.prisonplanet.com/as-adjusted-monetary-base-rises-by-half-a-trillion-in-2011-treasury-runs-out-of-debt-ceiling-delay-measures.html

[7] Krugman: We’re Going To Have To Default On Our Debt One Way Or Another: http://www.prisonplanet.com/krugman-were-going-to-have-to-default-on-our-debt-one-way-or-another.html

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