Treasury aide says U.S. might hit debt limit in '07

[Judi Lynn]

Source: Washington Post

Treasury aide says U.S. might hit debt limit in '07

By Ros Krasny
Reuters
Monday, June 4, 2007; 6:42 PM

CHICAGO (Reuters) - A senior U.S. Treasury official said on Monday that the United States could hit its statutory debt limit just before the 2007 fiscal year ends, depending on how tax receipts shape up in the next month or so.

"It's going to happen in the fall," Matthew Abbott, deputy assistant secretary for Federal finance at Treasury, told Reuters after a speech to a meeting of Illinois pension fund managers.

Renaldo D. Taylor attends a service yesterday at Union Temple Baptist Church, the sponsor of Unifest, which saw its 25th celebration cut short Saturday when a woman identified as Tonya Bell, 30, of Oxon Hill drove through the
The fiscal year ends on September 30, so the possible need to ask Congress to raise the debt limit from the current $8.965 billion "will be right on the cusp," Abbott said.
(snip)

Total U.S. debt stood at $8.7 trillion as of May 31. But meanwhile, tax receipts have been strong recently.



Read more: http://www.washingtonpost.com/wp-dyn/content/article/2007/06/04/AR2007060401389.html

[ckramer]

1. Why set a limit when you can print money yourself?

Sounds pretty stupid to me.

[saigon68]

10. They are firing up the printing presses

Kind of makes that 9 Billion in cash thrown on the streets of Baghdad by Bremer pale in comparison.

[roamer65]

14. Yup. You are correct...

and the Federal Reserve now has an even more inventive method of debt monetization. The Treasury floats new T-bills and the Fed just logs on to their computers and buys them out of the auctions via the Bank of England. No more wasted paper on currency notes. Just zing...zap and its done.

[saigon68]

19. Yes a paperless transaction

No need to print anything

[MichiganVote]

2. Well that's easy. Just switch to a new credit card. India maybe?

[KansDem]

3. So much for the "Party of Fiscal Responsibility"

That moniker goes into the toilet along with "Party of Family Values," "Party of Personal Responsibility," and "Party of Staying Away from Nation Building."

[MissWaverly]

4. weren't the tax cuts for rich great, Mr. Abbott?

[benld74]

5. MIGHT? hit the debt limit?

[Javaman]

6. as always, congress will give moron* a free pass and raise the debt ceiling...

I honestly don't believe that just because the dems are in power that things will change, we have seen that by them approving the recent iraq spending bill.

[radfringe]

12. why bother with a ceiling anyways

just take it off and the roof as well....

ceiling does no good when you can just raise it on a whim

[Javaman]

13. the sky is the limit!!! LOL nt

[WCGreen]

7. What's in your wallet....

[Rex]

8. Spending limits? Regulation?

Bawhahaha! McCongress and the BFEEWH are awash in love money! The lovefest for lobbyists shows no sign of ever letting up.

[sutz12]

9. It's an annual rite of passage....

The NBA Finals, the World Series, Football season, and Congress raises the debt ceiling.

All is right with the world. :sarcasm:

[Bodhi BloodWave]

11. only really one thing to say to this

Again? hasn't the US 'almost' reached its debt limit a mimimum of once a year the last few years?

[sandnsea]

15. They'll just raise it again

They've raised it dang near every year since Bush took office.

[lfairban]

16. That should be trillion with a T.

The fiscal year ends on September 30, so the possible need to ask Congress to raise the debt limit from the current $8.965 billion "will be right on the cusp," Abbott said.
(snip)

Total U.S. debt stood at $8.7 trillion as of May 31. But meanwhile, tax receipts have been strong recently.

I believe that should be, "current $8.965 trillion".

Easy to get confused with so many zeros.

[Massacure]

17. On the other hand, maybe they hit the period key instead of the comma.

:P

[mcscajun]

18. Uh-oh, Matthew. You told the truth. Watch your back.

Place your bets now on how long Mr. Abbott keeps his job; The * Administration doesn't like truth-tellers.