1. Current Event Sixteen
Debt ceiling: Treasury soon to start juggling act
http://money.cnn.com/2013/05/16/news/economy/debt-ceiling/index.html?iid=HP_LN
! There is nothing new about the fact that the country is in debt. All countries are in
debt to a point. This article states: The debt ceiling clock is about to start running again.
The U.S. Treasury on Friday will begin using "extraordinary measures" to keep the
country from defaulting on its obligations. Once again the government is struggling to do
something about the debt. The treasury up until now has been allowed to continue to
borrow in order to pay the countryʼs bills. However, now the debt ceiling is about to
reset. The increase is an expected $265 billion dollars.
! Basically the country as of Sunday will be hitting itʼs debt limit. These measures
that are being taken are risky. No one knows how long they will make things work but
estimate they will have at least until Labor Day to come up with another plan of action.
The treasury will start by stopping the issuing of special securities to the states and local
governments. They also are redeeming existing investments in the retirement and
disability funds of civil service and postal workers. Between now and fall no one is quite
sure how Congress will handle the situation.
! I honestly donʼt know what will happen. I understand the debt in the country. I just
donʼt see why we keep raising the borrowing limit. We are already far enough in the
hole. But I know this isnʼt nearly that simple! The money has to come from somewhere.
So they are borrowing more because where else is the money going to come from. I just
hope they figure out a plan that will actually bring some improvement to this country.
Tara Pawlyk Friday, May 17, 2013 10:00:11 AM ET 04:0c:ce:d3:10:88