Question Details
Will the US debt ceiling be hit again before the presidential elections, November 6?
kruijs in
Business
» Economics
Settled on 11/06/2012 20:25 Settled by
kruijsWith extraordinary measures, the government will not default on the nation’s debt obligations until early in 2013, the department said. The debt ceiling is now $16.4 trillion.
http://articles.marketwatch.com/2012-10-31/markets/34826815_1_debt-limit-auctions-fiscal-cliff
Predictions
Background
The latest $1.2 trillion increase in the U.S. debt limit may not last through November's election and could provide fresh ammunition for Republicans to attack President Barack Obama on what they see as a particularly vulnerable point - spending.
Based on current deficit rates and borrowing estimates, some analysts say the United States could reach the debt ceiling again before the November 6 vote. This would force the U.S. Treasury to turn once more to accounting maneuvers to avoid the unthinkable: asking Congress for another increase as the presidential election campaign reaches its crescendo.
But any moves by the Treasury would likely not stop the issue from becoming fodder for Republican attack ads.
Estimates on when the United States will reach its debt limit vary, but they leave little room for the Treasury to cope with an economic shock, such as a global slowdown triggered by a worsening of Europe's debt crisis, which could shrink U.S. revenues and boost spending on unemployment aid.
http://www.reuters.com/article/2012/01/20/us-usa-congress-debtlimit-idUSTRE80J1AQ20120120
Comments
Get Widget!What's This!?
-
This is a user submitted question. Players make predictions on what they expect to be the actual outcome.
-
Register for free and get 1,000 KtN$
in virtual cash to start predicting! -
Limited offer: Sign up today and recieve double cash!
Advertisement
Comment on this question: