U.S. Debt Ceiling Deadline Missed

Treasury Department beginning “extraordinary measures.”

Congress limits how much money the government can borrow, and once the debt limit is reached, legislators must raise or suspend the debt ceiling. The debt limit suspension expired on July 31.

On Monday, the Treasury Department began carrying out extraordinary emergency steps to conserve cash in order to avoid busting the federal borrowing limit or risking a government default.

The measures will permit the Treasury to pay off the government’s bills without floating new debt for only about two to three months or the United States will risk defaulting on its obligations.  Experts warn that if the federal government does default, which has never happened, there would be disastrous effects on the economy, including a sharp increase in borrowing rates.

Treasury Secretary Janet Yellen recently warned members of Congress in a letter that if the debt ceiling was not raised, it will “risk irreparable harm to the U.S. economy and the livelihoods of all Americans.”

As the Lord Leads, Pray with Us…

  • For Congress as legislators determine whether or not to increase the nation’s debt limit or to suspend some programs and spending.
  • For Secretary Yellen and others at the Treasury Department strategies are developed to prevent default by the government.

Sources: CNN, Daily Caller, NSNBC


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