U.S. To Hit Debt Ceiling In Five Days

The United States will hit its borrowing limit on December 31st, according to a just-released letter from Treasury Secretary Timothy Geithner. As a result, Congress must vote to raise the debt ceiling in the next five days or “extraordinary measures” will have to be taken to avoid defaulting on our debt, but this would only buy two months. Geithner’s letter also notes that if the so-called “fiscal cliff” is not avoided, the resulting spending cuts and tax increases would add a bit more wiggle room before hitting the debt limit. Last time the country faced a fight over raising the debt ceiling, the Tea Party’s intransigence and willingness to risk the full faith and credit of the United States caused our national credit rating to be downgraded.