Well, somebody was working today.
Treasury Secretary Timothy Geithner sent a letter to Senate Majority Leader Reid (D-NV) advising that the U.S. will hit its debt limit on December 31, 2012. As a result, the Treasury is recommending “extraordinary measures” which could include:
- suspending sales of State and Local Government Series Treasury securities;
- determining that a “debt issuance suspension period” exists, which permits the redemption of existing, and the suspension of new, investments of the Civil Service Retirement and Disability Fund and the Postal Service Retirees Health Benefit Fund;
- suspending reinvestment of the Government Securities Investment Fund; and
- suspending reinvestment of the Exchange Stabilization Fund.
Taking these measures is meant to free up to $200 billion in headroom which sounds like a lot except for this bombshell from Geithner: “the public debt of the United States is increasing by approximately $100 billion per month.” So yeah, that would buy us two months.
Secretary Geithner makes it sound all very dire – as if Congress has no alternative. Except, of course, they could pass a freaking budget (sorry Mom, but someone had to say it).
You can read the whole letter here.
