U.S. Hits Borrowing Limit, Moves to Avoid Default

U.S. hits borrowing limit, moves to avoid defaultWASHINGTON (AP) - The U.S. government is running up against its $16.4 trillion borrowing limit and is taking steps to avoid default.

Reaching the limit Monday sets up another dispute between the White House and Congress over taxes and spending in the new year.

Treasury Secretary Timothy Geithner says the government will take a series of accounting measures to avoid defaulting on its debt. On Monday, it suspended the issuance of new debt for two government retirement funds.

Last week, Geithner said the measures would save about $200 billion and avoid default for about two months.

Geithner said it is difficult to predict how long default can be avoided because of ongoing negotiations over tax and budget policies.

The debt limit is the amount the government can borrow to help finance its operations.

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intlhhgman

Shut the government down. A step in the right direction since they cannot control the finances anyway.

January 02 2013 at 8:46 AM Report abuse -1 rate up rate down Reply
mccoy

Well the sheeple voted him in which was the start of the fall of America.

January 02 2013 at 1:13 AM Report abuse rate up rate down Reply
flfisherjc

Stop borrowing.

January 02 2013 at 12:38 AM Report abuse +1 rate up rate down Reply
stevemontani

who cares it just paper.

January 01 2013 at 7:26 PM Report abuse -3 rate up rate down Reply
1 reply to stevemontani's comment
icantgetnosatisfaction

Soon you will poke your fingers through it when you wipe.

January 01 2013 at 7:33 PM Report abuse +3 rate up rate down Reply
Ol Bob

More than 50% of the voters on some sort of government dole. The downfall of democracy is when the mullets find they can vote themselves something for nothing. Have to keep giving them free lunch until the handbasket gets close enough to spontaneously combust.

January 01 2013 at 6:39 PM Report abuse +3 rate up rate down Reply
paddleman1928

if the us wants to avoid default it should just pay off the debt

January 01 2013 at 6:33 PM Report abuse +3 rate up rate down Reply
1 reply to paddleman1928's comment
icantgetnosatisfaction

Obama says your grandchildren, and great grandchildren, and great great grandchildren can do that.

January 01 2013 at 6:46 PM Report abuse +1 rate up rate down Reply
td145

another case of obamanomics and he just want to spend, spend, and spend more money we don,t have

January 01 2013 at 5:08 PM Report abuse +6 rate up rate down Reply
Workhark

I wish I could do that. My debt is to its limit and I have to sell my home to pay the debt off. Boy it imust be nice when you can use other peoples money to pay off your bad decisions and debts. Wish I could do that.

January 01 2013 at 5:06 PM Report abuse +7 rate up rate down Reply
1 reply to Workhark's comment
icantgetnosatisfaction

Become a politician, or a political panderer, lobbiest, or just forget all the red tape and become a welfare recipient, like Obama wants.

January 01 2013 at 6:48 PM Report abuse -1 rate up rate down Reply
bach

It really dont matter a hill of beans because we have a government that is totally dysfunctional and now with Americans getting ready to lose on average 300 dollars a month because the House is holding us hostage will send us into a depression. Families already live paycheck to paycheck so credit cards wont get paid, more default, more bankruptcies because these idiots in our government are going to destroy us. If they could act like adults and work together we could avoid this but we are heading for a fall. I literally HATE democrats and repuiblicans. So now I will have to get a third job to make up for what they are gonna steal from us. The US Government is now just a bunch of DO NOTHIN BLOODSUCKERS. Worthless bunch of creeps.

January 01 2013 at 4:42 PM Report abuse +1 rate up rate down Reply
begeology

A tax cheat moves to avoid default. What a joke. Maybe he can use the same arguments he used in not paying his taxes, until he was nominated by Obama to lead the Treasury.

January 01 2013 at 3:18 PM Report abuse +8 rate up rate down Reply