Study – October 18th is Potential Day for US Default
September 18, 2013
According to a study released by the Bipartisan Policy Center, the U.S. Government could default on its debt obligations as early as October 18th. Default by the Government would mean missed payments on items such as Social Security checks, national security spending, and interest on current debt. Similarly, in August, Secretary of the Treasury Jacob Lew announced that the Government would run out of money to meets its expenditures in mid-October.
Early in 2013, House Republicans brokers a deal with President Barack Obama and Senate Majority Leader Harry Reid to increase the nation’s borrowing limit to $16.7 trillion. That increase came with a corresponding amount of cuts to discretionary Government spending.
However, Obama recently stated that he is not interested in negotiating over the debt limit, and is seeking an increase with no-strings attached. In contrast, many House Republicans are seeking to tie a debt limit increase to the repeal of Obamacare. This is another non-starter with the President and a majority of the Senate. Watch for brinkmanship and harsh rhetoric to continue as the deadline for a debt limit increase rapidly approaches.