Jorj, on February 28th, the public debt breached $6 Trillions for the first time in history (it has receded a little by some $14 B since, probably due to beginning of the month tax payments by corporations), but the important thing is that on 2/28, the debt subject to the statutory limit ($5.95 Trillion is the current debt ceiling) was only $16.8 B from the limit, and congress has not acted yet to increase the debt ceiling.... I wonder what back room shenanigans are going on to make sure the government can continue and operate. Last time, Rubin played with the various segments of the debt, "reclasifying some" as not subject to the limit, but there is only so much leeway the treasury has (maybe another $15 B or so, right now, about $70 B of the national debt is not subject to the statutory debt limit).
Any comment as to possible repercussions, if any, when the front page carries stories about the haggling going on relative to increasing the debt ceiling?
Zeev |
