Government Will Run Out Of Money In November, Treasury Secretary Warns

  

Halloween will be extra scary this year if the U.S. government runs out of money as Treasury Secretary predicts.

The U.S. government will exhaust the extraordinary measures it has taken to avoid a debt-ceiling breach “on or about Thursday, November 5,” according to a letter sent by Treasury Secretary Jack Lew to Congressional leaders.

The news sets the stage for another potentially costly battle over whether or not to raise the statutory limit on the amount of debt that can be legally borrowed by the Treasury Department. Congress and the President have tussled over the debt ceiling ever since the Republican Party took over the House of Representatives in 2010, and argued against raising the debt ceiling unless the President also agrees to commensurate spending cuts. The President (and most objective economists) take the view that the act of raising the debt ceiling is merely Congress agreeing to issue debt to pay for things that it has already decided to fund, and that using the debt ceiling as a negotiating tool is a reckless mistake.

Read more about it on Fortune

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