Treasury Will Run Out of Borrowed Money by October 17
October 6th, 2013“Or maybe it’s just a date in a video game”:
The Last of Us
😉
Via: USA Today:
The United States will run out of borrowed money “no later than Oct. 17” unless Congress raises the $16.7 trillion debt limit, Treasury Secretary Jacob Lew said in a letter to Congress Wednesday.
Lew’s letter marks the first time he has given a date certain for when the government would hit the debt ceiling and comes as Congress is at another impasse on how to keep the government running and pay its past bills.
STORY: Senate votes to avert government shutdown
It’s not a coincidence that Oct. 17 is a Thursday, said Steve Bell, economic policy director for the Bipartisan Policy Center.
That’s because the Treasury typically rolls over $100 billion in debt every Thursday, as old bonds mature and most investors simply use the proceeds to buy new bonds. Some bond holders may park their money elsewhere. Others may demand higher yields. “But at what price? That;s the big imponderable,” Bell said.
