Debt Limit Rise May Not Be Needed Until June, CBO Says

[alp227]

Source: Bloomberg News

The U.S. may be able to delay a debt-limit increase until as late as June 2014, the Congressional Budget Office said today.

Under an agreement reached last month, Congress suspended the debt limit through Feb. 7, 2014. After that, the Treasury Department will be able to use so-called extraordinary measures to stave off default, such as suspending investments of a retirement fund.

Income tax receipts increasing around the April 15 tax-filing deadline may provide enough revenue to meet scheduled payments as late as June, the CBO said.

“Given the volume of the government’s daily cash flows and the uncertainty about the magnitude of key transactions during those months, the Treasury could exhaust its extraordinary measures and authority to borrow as early as March or as late as May or June,” the CBO report said today.

Read more: http://www.bloomberg.com/news/2013-11-20/debt-limit-rise-may-not-be-needed-until-june-cbo-says.html

[Warpy]

1. The closer to the election, the better

I can't see the Republicans being stupid enough to shut the government down--again!--just before election season goes into full prevarication and just when families are planning vacations to national parks that will be closed.

[Major Hogwash]

6. Good point.

People won't forget a government shutdown just 5 months before an election.

And your comment about the national parks is very astute!!

[Scuba]

7. Bingo, but I suspect they can indeed be that stupid.

[ReRe]

2. K&R

Youza! I definitely file that in the good news category. I was so dreading yet another fight over the debt ceiling in Jan/Feb. Thanks, alp227!

[LonePirate]

3. This will be a non-issue in June as most primaries are over by then.

Only a few states have primaries after June so the Rethugs do not need to be worried about their right flank's screams. The debt limit increase bill will pass quietly.

[Dawson Leery]

4. The closer the next potential shutdown is to November 4, 2014 the better.

[oldandhappy]

5. I agree with the later, the better, crowd.

Seems as if another gov shutdown will not be popular with candidates when they are spot in the public eye.