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Apr-05-2011Treasury working on corporate tax plan: Geithner(topic overview)
CONTENTS:
- If the United States does not exhaust the $165 billion before June 30, 2011, the law governing the CSRDF permits Treasury to take one more action on June 30, which would create an additional $67 billion in headroom on that date. (More...)
- Mr. Geithner said the projection was based on "the expected level of tax receipts, the timing of our commitments and obligations over the next several weeks, and our judgment concerning the level of cash balances we need to operate." (More...)
- Geithner opens his letter with a plain statement: the situation is so serious that the "statutory debt limit will be reached." (More...)
- Treasury officials said several weeks ago the U.S. could hit the ceiling as soon as April 15 and have urged Congress to raise the limit. (More...)
- Some House Republicans believe the debt ceiling would not have to be lifted at all if Congress would approve $100 billion or more in immediate federal program cuts. (More...)
- Sure there is an alternative Tim, stop borrowing money and cut spending. (More...)
- Failing to do so would lead to a default on U.S. debt, and immediate cuts or tax hikes would fail to bring in the short-term cash needed to meet existing obligations. (More...)
- Declaring a debt issuance suspension period is a limited measure that relates only to the CSRDF; it has no impact on any other investments or any other portion of the debt.'' (More...)
- The national tax take (and any commercial income the country may have) is far short of the commitments that are made for the purpose - often - of buying votes. (More...)
- The House voted last week to end the program, also known as HAMP, with Republican lawmakers arguing that it has failed to ease the foreclosure crisis. (More...)
- Geithner's letter is the latest warning to lawmakers, though many remain resistant to raising the limit unless it is tied to an overhaul of national finances. (More...)
- "If Congress does not act by May 16, I will take all measures available to me to give Congress additional time to act and to protect the creditworthiness of the country. (More...)
- The directors agree to increase the amount of credit available under the revolving facility. (More...)
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If the United States does not exhaust the $165 billion before June 30, 2011, the law governing the CSRDF permits Treasury to take one more action on June 30, which would create an additional $67 billion in headroom on that date. In its last update on March 1, the Treasury had estimated it would hit the debt limit between April 15, 2011 and May 31, 2011, but Geithner said his department "can now make that projection with more precision." "Although these projections could change, we do not believe they are likely to change in a way that would give Congress more time to act," Geithner warned in the letter. Repeating his warnings about the catastrophic effect that a failure to increase the debt ceiling would have on the U.S. -- a financial crisis "potentially more severe" than that of 2008 -- Geithner also shot down many proposals suggested by members of Congress as alternatives to raising the debt limit. Selling the Treasury's financial assets "is not a viable option," he said, warning that to attempt a "fire sale" of financial assets "would be damaging to financial markets and the economy and would undermine confidence in the United States." [1] Treasury Secretary Timothy Geithner warned congressional leaders that he now expects U.S. debt level to hit the country's debt ceiling, of $14.294 trillion, "no later than May 16." If the debt ceiling is not raised by the time that the debt limit is reached, the Treasury Dept, Geithner said, would employ a series of measures to prevent the United States from defaulting on its debt obligations. In his letter to Congress, however, Geithner said that those steps would only delay the inevitable by about eight weeks. [2] The last time a U.S. treasury secretary spoke before Congress in regards to a monetary emergency it was when then-Secretary Hank Paulson said that unless we bail out the banks, the entire monetary system would collapse. In writing to Senator Reid, Secretary Geithner specified that the debt celing will be reached no later than May 16, and if it is not addressed by that time, then his intervention would be requred to alleviate the potential international crisis that may occur should the U.S. credit rating be placed in jeopardy. If the debt limit is not increased by May 16, the Treasury Department has authority to take certain extraordinary measures, described in detail in the appendix, to temporarily postpone the date that the United States would otherwise default on its obligations. These actions, which have been employed during previous debt limit impasses, would be exhausted after approximately eight weeks, meaning no headroom to borrow within the limit would be available after about July 8, 2011. At that point the Treasury would have no remaining borrowing authority, and the available cash balances would be inadequate for us to operate with a sufficient margin to meet our commitments securely. [3] The Treasury Department now projects that the debt limit will be reached no later than May 16, 2011. This is a projection based on the expected level of tax receipts, the timing of our commitments and obligations over the next several weeks, and our judgment concerning the level of cash balances we need to operate. Although these projections could change, we do not believe they are likely to change in a way that would give Congress more time in which to act. Treasury will provide an update of this projection in early May. If the debt limit is not increased by May 16, the Treasury Department has authority to take certain extraordinary measures, described in detail in the appendix, to temporarily postpone the date that the United States would otherwise default on its obligations. These actions, which have been employed during previous debt limit impasses, would be exhausted after approximately eight weeks, meaning no headroom to borrow within the limit would be available after about July 8, 2011. At that point the Treasury would have no remaining borrowing authority, and the available cash balances would be inadequate for us to operate with a sufficient margin to meet our commitments securely. As Secretary of the Treasury, I would prefer to avoid resorting to these extraordinary measures. [4]
Geithner warned, The longer Congress fails to act, the more we risk that investors here and around the world will lose confidence in our ability to meet our commitments and our obligations. The Treasury secretary said he will use all measures available to him to protect the countrys creditworthiness if Congress does not raise the ceiling by May 16. He added, If Congress failed to increase the debt limit, a broad range of government payments would have to be stopped, limited or delayed, including military salaries and retirement benefits, Social Security and Medicare payments, interest on the debt, unemployment benefits and tax refunds. This would cause severe hardship to American families and raise questions about our ability to defend our national security interests. [5] The nation has never failed to increase the limit, Geithner said. Republican congressional leaders, including House Speaker John Boehner, and at least one Democrat, Sen. Joe Manchin III of West Virginia, have said they won't vote to increase the debt limit unless the move is accompanied by action to address the soaring budget deficit. "Speaker Boehner has been perfectly clear: The American people will not tolerate an increase in the debt ceiling without serious spending cuts and real reforms to make sure we keep cutting spending," Boehner spokesman Michael Steel said. As the date approaches, Geithner warned Congress in a letter Monday that it is risking "unthinkable" consequences if the U.S. no longer can borrow to pay its bills. "If Congress failed to increase the debt limit, a broad range of government payments would have to be stopped, limited or delayed, including military salaries and retirement benefits, Social Security and Medicare payments, interest on the debt, unemployment benefits and tax refunds," he wrote. "This would cause severe hardship to American families and raise questions about our ability to defend our national security interests," he said. [6]
Republicans are attempting to use the bill to put into place deep spending cuts. Lawmakers are concentrating on a proposal to trim this year's budget by $33 billion. Geithner has called any failure to raise the debt ceiling "catastrophic" and warns that higher interest rates as a result of this failure could start "a financial crisis potentially more severe than the crisis from which we are only starting to recover." The Treasury has a series of emergency measures in place to postpone the date that the U.S. would default on its obligations, but these are essentially a stall-their efficacy would be ''exhausted after about eight weeks. Geithner has also rejected the sale of assets such as the government's portfolio of student loans or the country's gold reserves. [7] Geithner said a failure to raise the debt ceiling in a timely way would push interest rates higher and spark "a financial crisis potentially more severe than the crisis from which we are only starting to recover." Both Geithner and Federal Reserve Chairman Ben Bernanke have said a failure to raise the ceiling could have "catastrophic consequences." As the government nears the debt ceiling, the Treasury has authority to take certain extraordinary measures to postpone the date the United States would default on its obligations. Those actions would be exhausted after about eight weeks and there would be "no headroom" to borrow after July 8, Geithner said. Some lawmakers have called for legislation to force the Treasury to first pay interest on U.S. bonds before other obligations, such as unemployment benefits and Social Security and Medicare payments, as a way to stave off a debt default. They have also asked Treasury whether financial assets such as the country's gold reserves or the government's portfolio of student loans could be sold to avoid raising the debt ceiling. [8]
Earlier, the Treasury had estimated that the limit would be reached between April 15 and May 31. If Congress doesnt raise the debt limit by May 16, the Treasury would employ a range of extraordinary measures to prevent the United States from defaulting on its obligations. Geithner estimated that those measures could only buy roughly eight weeks. Some Republicans say they will oppose raising the debt ceiling unless there are accompanying reforms intended to address long-term spending and national debt issues.'' Democrats have countered that such a move would amount to a default on paying some debt with dire economic consequences. [9]
Because of the size of past commitments made by Congress, immediate cuts or tax hikes would not prevent the government from hitting the limit, and making commitments to spend less in the future would not deal with the limit in the immediate short term, with the limit looming large. Geithner dismissed the argument that the Treasury could sell financial assets such as gold to avert hitting the debt limit. Holding such a "fire sale" would rattle markets and subject taxpayers to losses as the Treasury unloaded its holdings, he argued. "This is not a viable option," he said. Geithner asked congressional leaders to "help us impress upon all members the gravity of this issue and the imperative of timely action." He also pointed out that increasing the debt limit does not increase the amount of spending the government can take on, but simply ensures it can meet previously vowed obligations. "Increasing the limit does not increase the obligations we have as a nation; it simply permits the Treasury to fund those obligations that Congress has already established," he wrote. He called on lawmakers to increase the $14.3 trillion limit sooner rather than later, as a prolonged debate on the limit could shake investor confidence in the stability of U.S. debt obligations. Geithner noted that the Treasury could take some steps to avert a default if the limit is reached, but they would be exhausted by July 8. [10] '''We need to use the debt limit itself as the way to ensure that America'''s debt limit begins to decline, not always go up,''' Rubio said in a March 29 television interview with Fox News. Geithner said in his letter that spending cuts can'''t provide the cash needed now, and he warned that the Treasury'''s projections won'''t change in a way that would give Congress extra time. He also said it would not be '''viable''' for the U.S. to sell gold, financial investments or student loans. Increasing the limit '''does not increase the obligations we have as a nation; it simply permits the Treasury to fund those obligations that Congress has already established,''' Geithner said. [11]
As of March 31, the total U.S. debt subject to the limit stood at $14.218 trillion, or $76 billion below the ceiling. Congress has routinely raised the debt limit every year since 2002, but Republicans want to tie any hike this time to commitments by the Obama administration and Democrats to deeper spending cuts. The Treasury has already drawn down a $200 billion Federal Reserve emergency lending account to $5 billion as part of its efforts to stay under the limit. Geithner said he would take all measures to protect U.S. credit-worthiness if Congress does not act by May 16. Following is a rundown of the additional tools that he could deploy to stay under the debt limit. [12] If Congress does not act by May 16, I will take all measures available to me to give Congress additional time to act and to protect the creditworthiness of the country. One question that Americans must wonder here is why did the treasury secretary write this letter to the senate majority leader, and not to the speaker of the house? All appropriations bills must originate in Congress, not from the Senate, and the issue of the debt ceiling is already in debate on the House floor at this time. In 2008, the treasury secretary used strong tactics to make a plea to Congress to allow him to take emergency measures to deal with the credit crisis that was unfolding in the banking system. This led to more than $10 trillion in monies given or loaned to not just U.S. banks, but to foreign banks, bond firms and private businesses. Congress is not as easily deceived this time by the pleas of Secretary Geithner, and it is probably the main reason why the treasury secretary went to the Senate for help, instead of the House of Representatives. [3] Treasury Secretary Timothy F. Geithner told lawmakers that a failure to raise the debt limit would bring '''severe hardship''' for Americans as the government is forced to suspend services such as Social Security payments. Geithner, in a letter to members of Congress, said the U.S. will reach the $14.29 trillion limit on its ability to borrow no later than May 16 if Congress doesn'''t act. [11] Treasury Secretary Timothy F. Geithner said the U.S. will hit the limit on its borrowing capacity by May 16 and could start defaulting on some of its debts about seven weeks later unless Congress acts soon to raise the debt ceiling. The Treasury Department had estimated that the nation would reach its $14.29-trillion debt limit between April 5 and May 31. [6] The federal government will hit the statutory debt limit by May 16 if Congress does not act, according to the Treasury Department. In a letter sent Monday to Senate Majority Leader Harry Reid (D-Nev.), Treasury Secretary Timothy Geithner ratcheted up his warnings on the debt limit, arguing that nothing short of an increase to the borrowing limit will prevent incredible hardship for Americans. [10] The government will hit the debt limit ''' the maximum amount that it can borrow ''' "no later than May 16," the letter said; after that, "extraordinary measures" can create roughly eight weeks of wiggle room. "The longer Congress fails to act, the more we risk that investors here and around the world will lose confidence in our ability to meet our commitments and obligations," Treasury Secretary Timothy F. Geithner wrote in the letter, sent to leaders of both parties in the House and the Senate. [13] WASHINGTON (MNI) - Treasury Secretary Tim Geithner announced Monday that Treasury expects to hit the debt limit "no later" than May 16, and after that has only about eight weeks of flexibility to avoid default. In a letter to Senate Majority Leader Harry Reid, as well as other leaders from both parties on the Hill, Geithner said if Congress fails to increase the debt limit by May 16, the Treasury has the authority to take "certain extraordinary measures" to temporarily postpone a default. These actions, however, would be exhausted after approximately eight weeks, "meaning no headroom to borrow within the limit would be available after about July 8, 2011." At that point the Treasury would have no remaining borrowing authority, and the available cash balances would be inadequate, the Treasury Secretary said. "As Secretary of the Treasury, I would prefer to avoid resorting to these extraordinary measures," Geithner said. These measures "only provide a limited degree of flexibility." [1]
Secretary of the Treasury Timothy Geithner's letter of April 4, 2011 estimates that the Federal Government will not reach the statutory debt limit before May 16, 2011 and that the Treasury can use special measures to extend that date to about July 8, 2011.'' It remains clear that Congress has sufficient time to proceed carefully and deliberately in deciding how to best take advantage of the debt limit situation to help bring Federal spending and borrowing under control. [14] In order to avoid an increase in the debt limit, Congress would need to eliminate annual deficits immediately." He quoted the Congressional Research Service as reporting that, "if the debt limit is reached and Treasury is no longer able to issue federal debt, federal spending would have to be decreased or federal revenues would have to be increased by a corresponding amount to cover the gap in what cannot be borrowed. To put this into context, the federal government would have to eliminate all spending on discretionary programmes, cut nearly 70% of outlays for mandatory programmes, increase tax revenue collection by nearly two-thirds, or take some combination of those actions in the second half of the 2011 fiscal year." Geithner reiterated that President Obama is "strongly committed to working with both parties to restore fiscal responsibility, and he looks forward to working with Congress to achieve that critically important objective. [15] If Congress has the brass balls to do it "to avoid an increase in the debt limit, Congress would need to eliminate annual deficits immediately." That, clearly, is never going to happen. Congress need look no further than its own reports. The Congressional Research Service, on 11 February 2011, said "the federal government would have to eliminate all spending on discretionary programs, cut nearly 70% of outlays for mandatory programmes, increase revenue collection by nearly two-thirds, or take some combination of those actions in the second half of FY2011 (1 April to 30 September, 2011) in order to avoid increasing the debt limit." Those are the vote-winning policies that members of both Houses of Congress parade back home when election time comes, as it is to do soon. So, Geithner makes plain: in the absence of agreement over a federal budget - which is no nearer because of the complex and divisive system by which it is voted - the country needs to increase its overdraft limit. Think of it like a board of directors: they can't decide how and on what this year's budget should be spent, nor than they decide how much it should be: each department wants to spend on its own projects and empire building - and even though the company is in trouble, no department wants to cut its costs. The company has no money anyway except its current income (which does not meet its liabilities) and a revolving credit facility. That revolving credit facility is not about to expire but the limit under it is about to be reached and, when it does, the company will not be able to pay its bills. [16] '''If the debt limit is reached and Treasury is no longer able to issue federal debt, federal spending would have to be decreased or federal revenues would have to be increased by a corresponding amount to cover the gap in what cannot be borrowed. To put this into context, the federal government would have to eliminate all spending on discretionary programs, cut nearly 70% of outlays for mandatory programs, increase revenue collection by nearly two-thirds, or take some combination of those actions in the second half of FY2011 (April through September 30, 2011) in order to avoid increasing the debt limit. [4]
If the debt limit is not raised, '''unemployment would rise dramatically, thousands if not hundreds of thousands of businesses would fail, and of course you would shake the confidence of the world in U.S. financial assets and Treasuries,''' Geithner said. The Treasury chief also urged lawmakers to avoid a government shutdown, which could happen if Congress does not this week pass spending authority for the current fiscal year. He said that the economy would suffer if government funding is uncertain from week to week. [17] I find it inconceivable that the Congress would not act to increase the limit.''' '''If we take no additional actions, we run out of room on May 16,''' he noted. '''There are a series of measures that my predecessors have used in the past that Congress has authorized that would give Congress a little more time, but those measures don'''t buy us nearly as much time as they did in the past because our debt and deficits are so large now. Those would buy us an additional few weeks if Congress doesn'''t act. Now of course even resorting to those measures does create some risk of adding to uncertainty in markets so you'''d rather not do that, but we will do everything we can to make sure that we meet our obligations and of course encourage Congress to act in a timely manner.''' The Treasury boss emphasized that if lawmakers do not raise the debt ceiling, it would be '''deeply irresponsible''' and cause a number of '''inconceivable''' consequences such as a dramatic rise in unemployment. '''It would be catastrophic. I mean, if you call into question the willingness of the government of the United States to meet its obligations, you will shake the basic foundation of the entire global financial system,''' he warned. '''It is inconceivable that America would do that. [18] A government shutdown looms at the end of this week if Congress cannot reach a funding agreement, but lawmakers face an even bigger challenge next month: raising the country'''s debt ceiling. The Obama administration has warned lawmakers that they must raise the country'''s current debt limit of $14.29 trillion before May 16 or risk '''catastrophic''' consequences, according to Treasury Secretary Tim Geithner. [18] Originally posted on Washington Wire. Treasury Secretary Timothy Geithner wasn't mincing words on Tuesday when he warned what would happen if Congress didn't soon raise the debt ceiling about its current level of $14.294 trillion. He said the 'consequences of that would be catastrophic for the United States. [19] U.S. Treasury Secretary Timothy Geithner told congressional leaders Monday that he now expects the United States to hit its $14.294 trillion debt ceiling no later than May 16. [9]
WASHINGTON (Reuters) - The United States will hit the legal limit on its ability to borrow no later than May 16, Treasury Secretary Timothy Geithner said on Monday, ramping up pressure on Congress to act to avoid a debt default. [8] Treasury Secretary Timothy Geithner said that if Congress fails to increase the debt limit, military salaries and retirement benefits are among the services that would have to be stopped, limited or delayed. [20] Treasury Secretary Timothy F. Geithner said the U.S. would face a crisis worse than the one it just experienced if Congress fails to raise the debt limit promptly. [17]
WASHINGTON (MNI) - U.S. Treasury Secretary Timothy Geithner Tuesday said the government's move to shore up banks during the financial crisis will reap a "substantial positive return" of nearly $20 billion for the taxpayer. He warned, however, that if Congress trimmed the Treasury's budget for the 2012 fiscal year, it would limit the department's ability to support reforms that are "critical" for the economic recovery. [21] Treasury Secretary Timothy F. Geithner warned of a financial crisis if Congress doesn't raise the debt ceiling. [22] The warning came in a nine-page letter from Treasury Secretary Timothy Geithner that marked the administration's most detailed plea to Congress to raise the $14.294 trillion debt ceiling. [23] In February, Treasury Secretary Timothy Geithner urged Congress to raise the debt ceiling by March 31, but Congress so far hasn't agreed on how to tackle the issue. [24]
A debt ceiling crisis is coming in May, Treasury Secretary Timothy Geithner wrote in a letter to House and Senate leaders. [20] In a letter on April 4 to Senate Majority Leader Harry Reid, Treasury Secretary Geithner spelled out that if the debt celing is not raised soon, then the Treasury Department would have to take emergency measures to deal with government spending. [3]
The housing market continues to struggle and '''it is going to take several more years, under the best of circumstances''' to heal, Geithner said. He said mortgage servicers have done '''a really terrible job''' of helping struggling homeowners and said the administration would continue to press for improvements. Geithner reiterated his support for longer-term budget changes to rein in deficits. For now, investors have '''enormous confidence''' in the U.S., and the country needs to make tax and spending changes over time that will support the economy and preserve that confidence, he said. The Treasury Department has made budget cuts in some areas to support expansion in others, Geithner said, citing a plan to eliminate one third of its data centers by 2015 and a staffing reduction of 20 percent at the Bureau of Public Debt over the past five years. He urged lawmakers not to trim the Internal Revenue Service or other essential operations. [17] SLGS are special purpose Treasury securities issued to state and local government entities. ''''In ordinary times, the Treasury Department issues SLGS to state and local governments to assist these governments in complying with Federal tax laws when they have cash proceeds to invest from their issuance of tax exempt bonds.'' When Treasury issues these securities, they count against the debt limit. There is no statutory or other requirement for the Treasury Department to issue SLGS; they are issued in order to assist state and local governments, and Treasury may suspend SLGS sales during or in anticipation of a debt limit impasse. This action does not free up headroom under the debt limit.'' [4] If the United States does not exhaust the $165 billion before June 30, 2011, the law governing the CSRDF permits Treasury to take one more action on June 30, which would create an additional $67 billion in headroom on that date. Under Treasury'''s current projections, these extraordinary measures would be exhausted after approximately eight weeks, meaning no headroom to borrow within the limit would be available after about July 8, 2011.'' This estimate is dependent on a number of factors, such as the total amount of tax receipts, which cannot be known with certainty until they actually come in during the second half of April, and the fact that large payments like Social Security and interest payments on Treasury securities are made at certain times of the month. It should also be noted that these extraordinary measures are less useful than in previous debt limit impasses.'' [4] The extraordinary measures currently available are:'' (1) suspending sales of State and Local Government Series (SLGS) Treasury securities; (2) determining that a '''debt issuance suspension period''' exists, which would permit the redemption of existing, and the suspension of new, investments of the Civil Service Retirement and Disability Fund (CSRDF); (3) suspending reinvestment of the Government Securities Investment Fund (G Fund); and (4) suspending reinvestment of the Exchange Stabilization Fund (ESF).'' These measures are described in more detail below. These measures, all of which have been employed during previous debt limit impasses, have the effect of creating or conserving headroom beneath the debt limit.'' Importantly, these extraordinary measures'''even taken together'''are of limited use.'' [4] The extraordinary measures currently available are: suspending sales of State and Local Government Series Treasury securities; determining that a "debt issuance suspension period" exists, which would permit the redemption of existing, and the suspension of new, investments of the Civil Service Retirement and Disability Fund; suspending reinvestment of the Government Securities Investment Fund; and suspending reinvestment of the Exchange Stabilization Fund. The Treasury's projection is based on the expected level of tax receipts, the timing of its commitments and obligations over the next several weeks, and its judgement concerning the level of cash balances needed to operate. [1]
Mr. Geithner said the projection was based on "the expected level of tax receipts, the timing of our commitments and obligations over the next several weeks, and our judgment concerning the level of cash balances we need to operate." He said Treasury will update its debt limit projection in early May. The debt ceiling - the government's legal limit on how much it can borrow to pay for its operations - was last raised to $14.294 trillion in February 2010. [22] WASHINGTON — The United States is likely to hit its $14.29 trillion debt limit sooner than thought, the Treasury Department said Monday, pressuring lawmakers to raise the ceiling or face a possible government default. [25] If the debt limit is not increased by May 16, the Treasury Department has authority to take certain extraordinary measures, Geithner wrote. He added to temporarily postpone the date that the United States would otherwise default on its obligations. [5]
Treasury Secretary Tim Geithner sent a letter to U.S. Sen. Harry Reid Monday warning the lawmaker that severe economic hardship could impact the United States when the nation reaches its debt limit on May 16. [5] Treasury secretary Tim Geithner is warning that the United States will hit its $14.29 trillion debt limit by May 16th. [26]
While Secretary Geithner's letter makes clear that Congress has more time, the letter also raised once again the bogeyman of a default on the Federal debt.'' As Dr. Foster's paper demonstrated, there will not be a default on the Federal debt when the Treasury reaches the statutory limit on its borrowing of $14.294 trillion.'' [14] Geithner told Congress yesterday that the $14.29 trillion debt limit is projected to be breached no later than May 16, with Treasury having emergency measures to gain an additional eight weeks of borrowing room after that. [17] Geithner tells congressional leaders in a letter that the country will reach the current debt limit of $14.3 trillion no later than May 16. He says he has a few options that would delay a government default on its debt. He warns that the most time he could buy is another eight weeks, or until around July 8. [27] In a letter to Congress, Geithner repeated that the Treasury could take extraordinary measures to postpone a potential default on government obligations. He warned that these measures would only last about eight weeks. He said the Treasury would exhaust all "headroom" to borrow under the limit after about July 8, at which time it would not have enough cash on hand to securely meet U.S. obligations. [12] If Congress does not act by May 16, I will take all measures available to me to give Congress additional time to act and to protect the creditworthiness of the country. These measures, however, only provide a limited degree of flexibility'''much less flexibility than when our deficits were smaller. As the leaders of both parties in both houses of Congress have recognized, increasing the limit is necessary to allow the United States to meet obligations that have been previously authorized and appropriated by Congress. Increasing the limit does not increase the obligations we have as a Nation; it simply permits the Treasury to fund those obligations that Congress has already established. [4] By the fact that Congress has voted expenditure but not the money to meet it. Geithner speaks plainly: "As the leaders of both parties in both houses of Congress have recognised, increasing the limit is necessary to allow the United States to meet obligations that have been previously authorised and appropriated by Congress. Increasing the limit does not increase the obligations we have as a Nation; it simply permits the Treasury to fund those obligations that Congress has already established. [16]
Increasing the debt limit wouldn't increase the government's financial obligations. It would would allow Treasury to fund obligations Congress already has established. [22]
Of course, the hope is that conservatives in Congress will be able to persuade a majority of the Senate and President Obama to enact a law that takes strong steps to curb spending and borrowing and starts to get the debt under control, but there is no guarantee that the''Senate majority''and the President will not force a debt limit crisis instead. If the Obama Administration is serious about getting spending under control and about maintaining orderly financial markets,''Secretary Geithner''needs to help guide his colleagues at the Office of the Management and Budget and in the''White House''toward near-term substantial reductions in Federal spending, including for''entitlement programs, and long-term solutions to ensure that the Federal Government never spends itself again so deeply into debt that it cannot effectively manage its way out. [14] To attempt a '''fire sale''' of financial assets in an effort to buy time for Congress to act would be damaging to financial markets and the economy and would undermine confidence in the United States. Selling the Nation'''s gold, for example, would undercut confidence in the United States both here and abroad. A rush to sell other financial assets, such as the remaining financial investments from the Emergency Economic Stabilization Act programs, would impose losses on American taxpayers and risk damaging the value of similar assets held by private investors without generating sufficient revenue to make an appreciable difference in when the debt limit must be raised. For both legal and practical reasons, it is not feasible to sell the government'''s portfolio of student loans. Nor is it possible to avoid raising the debt limit by cutting spending or raising taxes. [4] Selling the nation's gold would also undermine confidence, Geithner continued, while a rush to sell other assets would not only impose losses on the taxpayer, but damage the value of similar assets held by private investors. All this "without generating sufficient revenue to make an appreciable difference in when the debt limit must be raised," he said. It would also not be possible to avoid raising the debt limit by cutting spending or raising taxes, he said, noting that because of past commitments by Congress, immediate cuts in spending or tax increases cannot make the necessary cash available. [1] "If Congress failed to increase the debt limit, a broad range of government payments would have to be stopped, limited or delayed, including military salaries and retirement benefits, Social Security and Medicare payments, interest on the debt, unemployment benefits and tax refunds," Geithner wrote. He also said there is no getting around it: Congress cannot skirt raising the debt limit, even by raising taxes or cutting spending because of the "magnitude" of congressional spending commitments, citing a February Congressional Research Service report. [28] "If Congress failed to increase the debt limit, a broad range of government payments would have to be stopped, limited or delayed, including military salaries and retirement benefits, Social Security and Medicare payments, interest on the debt, unemployment benefits and tax refunds," Geithner said. "This would cause severe hardship to American families and raise questions about our ability to defend our national security interests." [20] If Congress failed to increase the debt limit, a broad range of government payments would have to be stopped, limited or delayed, including military salaries and retirement benefits, Social Security and Medicare payments, interest on the debt, unemployment benefits and tax refunds." This is where the politicking comes in: The White House - of which Geithner is part - is going to get the blame no matter what happens. [16] If Congress failed to increase the debt limit, a broad range of government payments would have to be stopped, limited or delayed, including military salaries and retirement benefits, Social Security and Medicare payments, interest on the debt, unemployment benefits and tax refunds. This would cause severe hardship to American families and raise questions about our ability to defend our national security interests. [4]
In the letter, Geithner said failure to raise the limit would force the government to stop paying Social Security and Medicare benefits, tax refunds and military salaries. He said defaulting on the debt would provoke an economic crisis that could exceed the Great Recession. "For these reasons," he wrote, "default by the United States is unthinkable." [29] Geithner said without a raise to the debt ceiling prior to that date, the Treasury Department will have to employ drastic measures to protect the economic viability of the United States. [5] In a separate appendix provided by the Treasury, the department noted that while on average, the public debt of the United States increases by approximately $125 billion per month, in total, the extraordinary measures free up approximately $165 billion in headroom under the limit before June 30, 2011. [1] Previous Secretaries of the Treasury, in both Republican and Democratic administrations, have taken extraordinary measures in order to prevent the United States from defaulting on its obligations as Congress deliberated on increasing the statutory debt limit. Four of these extraordinary measures are available this year.'' Other measures taken by previous Treasury Secretaries, however, are either unavailable or of limited use. [4]
"In addition, defaulting on legal obligations of the United States would lead to sharply higher interest rates and borrowing costs, declining home values and reduced retirement savings for Americans," Geithner continued. "Default would cause a financial crisis potentially more severe than the crisis from which we are only now starting to recover," he said. The Treasury Department has the ability to maneuver some of its payments to buy some time, he said. Such "extraordinary measures" would push the deadline only to about July 8. [6] "Default would cause a financial crisis potentially more severe than the crisis from which we are only now starting to recover." Geithner said the Treasury Department has the ability to maneuver some of its payments to buy some time. Those "extraordinary measures" would push the deadline only to about July 8. "At that point, the Treasury would have no remaining borrowing authority, and the available cash balances would be inadequate for us to operate with a sufficient margin to meet our commitments securely," Geithner wrote. [30]
Geithner opens his letter with a plain statement: the situation is so serious that the "statutory debt limit will be reached." Unlike most Americans in their use of language, Geithner is often given to understatement: but he does not mean "breached" - that would involve insolvency and that may trigger domestic and global financial meltdown - ratings companies have so far not downgraded U.S. debt but might be expected to do so if the limit is burst. He outlines steps at the disposal of the Treasury Department to "delay that date (when the breach will happen) temporarily." [16] The Treasury Department predicts the U.S. will reach the debt limit no later than May 16. [31] "The Treasury Department now projects that the debt limit will be reached no later than May 16, 2011," the Treasury said. [25]
The Treasury Department had estimated that the nation would reach its $14.29-trillion debt limit between April 5 and May 31. [30] I am writing to update you on the Treasury Department '''s projections regarding when the statutory debt limit will be reached and to inform you about the limits of the available measures at our disposal to delay that date temporarily. [4] There is no requirement that the Treasury Department invest the ESF, so Treasury may discontinue investing the dollar-balance of the ESF during a debt limit impasse. [4]
Treasury Secretary Tim Geithner told congressional leaders Monday that the nation's debt limit will be reached by May 16 and that failure to act before then could lead to dire consequences, like a failure to pay the military or make Social Security payments. [28] The Treasury secretary says that unless Congress votes to increase the debt limit, there will be 'unthinkable' consequences when the U.S. can no longer borrow to pay its bills. [6] Congress has given Treasury statutory authority to take certain actions in the event of a debt limit impasse. ''Specifically, the statute authorizes the Secretary of the Treasury to determine that a '''debt issuance suspension period''' exists and, once he has done so, Treasury can (1) redeem certain existing investments in the CSRDF, and (2)''suspend new investment. [4] Congress passed legislation that temporarily excluded from being counted against the debt limit the new Treasury securities that Treasury issued to federal trust funds in March 1996 to invest new trust fund receipts and to reinvest the proceeds of maturing trust fund investments.'' Those exclusions from the debt limit expired on March 30, 1996. [4] Once the debt limit has been reached, Treasury may also suspend the daily reinvestment of the Treasury securities held by the Government Securities Investment Fund (G Fund) of the Federal Employees''' Retirement System Thrift Savings Plan. [4] The Treasury could suspend sales of State and Local Government Series securities, known as "slugs," which are special low-interest-bearing Treasury securities offered to local governments and other tax-exempt entities for the investment of municipal bond issue proceeds. Slugs, which count against the debt limit, were last halted in September 2007 to avoid hitting the ceiling then. [12]
Under the statute that governs the CSRDF, the term '''debt issuance suspension period''' means the period of time that the Treasury Secretary determines that Treasury securities cannot be issued without exceeding the debt limit.'' The determination of the length of the period must be based on the facts as they exist at the time. [4] The fund is invested in special-issue Treasury securities, which count against the debt limit.'' [4]
In January, Treasury announced that it would allow the outstanding $200 billion in Treasury bills issued under the Supplementary Financing Program (which count against the debt limit) to mature in an orderly fashion without being refunded by new bills.'' By taking this action, Treasury has reduced the debt by $200 billion, so as to postpone the date the debt limit is reached.'' This action has already been completed and the resulting reduction in debt has already been factored into Treasury'''s projections; it cannot further postpone the date the debt limit is reached. [4] Previously, the Treasury had forecast that the $14.3 trillion statutory debt limit would be reached between April 15 and May 31. [8] Previously, the Treasury had warned that the country could hit the $14.294 trillion statutory debt limit between April 15 and May 31. [32]
The Treasury had previously said that the nation would hit its $14.294 tril debt limit between April 15 and May 31. [33]
The system - which is just part of the stupidity surrounding the budget - does allow the executive, in the form of The Treasury - to act if the elected representatives do not. "These actions, which have been employed during previous debt limit impasses, would be exhausted after approximately eight weeks, meaning no headroom to borrow within the limit would be available after about 8 July, 2011. At that point the Treasury would have no remaining borrowing authority, and the available cash balances would be inadequate for us to operate with a sufficient margin to meet our commitments securely [16] The other measures that previous Treasury Secretaries have used in past debt limit impasses in order to postpone the date by which the debt limit needed to be increased are either not available or of limited use. [4]
Geithner's letter underscores the potential political explosiveness on any vote to raise the country's spending limit. Conservative Republicans, from Utah senator Mike Lee to Rep. Michele Bachmann of Minnesota, already have said they will not support increasing the nation's credit line. As talks on even a temporary spending measure have proven over these past few weeks, Boehner has a tough task ahead in corralling his caucus together on issues of spending. Many lawmakers have said they would support a debt limit vote only if it came paired with further spending cuts. A bipartisan group, called the"Gang of Six," in the Senate has talked about the debt limit vote date as their goal to come out with a package based on this winter's Bowles-Simpson deficit commission findings. [28] Some Republican lawmakers have sought to use the need to raise the debt limit as a lever to pressure the Obama administration into agreeing on large-scale budget cuts. [8]
Some congressional Republicans are threatening to oppose an increase in the debt limit unless the government makes meaningful budget cuts to reduce the amount of red ink. [29] Additional spending cuts and/or revenue increases would be required, under current policy, in FY2012 and beyond to avoid increasing the debt limit.''' None of those budget policy choices is feasible or responsible. [4]
The debt-limit fight will be shaped by how voters and markets react to the debate over the extension of spending authority, said Stanley Collender, managing director of Qorvis Communications and a former congressional budget analyst. '''If there'''s a shutdown and Republicans take it on the chin politically, their appetite for holding the debt ceiling hostage may go down,''' Collender said in a telephone interview. '''If Democrats take it on the chin or the White House, their appetite for holding the debt ceiling hostage may go up.''' The Treasury will conduct its regular schedule of securities auctions in the event of a government shutdown, an official told Bloomberg News yesterday. [11] Treasury Secretary Geithner is not happy the Republicans have held the debt ceiling hostage to budget negotiations. [34] The Treasury secretary also warned that failure to raise the debt ceiling would be "catastrophic" and shake global confidence in the U.S. financial system. [35]
Geithner, the Secretary of the Treasury, is escalating pressure on Congress to raise the debt ]] debt ceiling to avoid defaulting on the US's debt. [7] As Secretary Geithner pleads with Senator Harry Reid for help in raising the upcoming debt ceiling, the executive branch is once again using strong tactics and the threat of emergency measures to try to get Congress to raise the debt ceiling by May 16. [3]
Geithner has embarked on a fear mongering campaign via a Debt Limit Letter to Congress promising financial Armageddon if the debt ceiling is not raised. [34] WASHINGTON (Dow Jones)--The Obama administration said Monday that the U.S. will reach its debt limit no later than May 16, and urged Congress to raise the ceiling to avoid a government default. [36] Congress is considering whether and how much to extend the debt limit again. Many Republicans say they won't agree to raise the ceiling unless it's accompanied by big changes to the way the government taxes and spends. [22]
As a consequence, given that Congress has imposed on itself the requirement for periodic increases, there is no alternative to enactment of an increase in the debt limit. I am encouraged that the leaders of both parties in both houses of Congress have clearly stated in public over the last few weeks and months that we cannot default on our obligations as a nation and therefore have to increase the debt limit. Because the date by which we need to increase the limit is growing nearer, I hope that the leadership in both houses will help us impress upon all Members the gravity of this issue and the imperative of timely action. President Obama is strongly committed to working with both parties to restore fiscal responsibility, and he looks forward to working with Congress to achieve that critically important objective. [4] The Obama administration is pushing Congress to increase the debt limit for the 76th time since 1962. [6]
"In order to avoid an increase in the debt limit, Congress would need to eliminate annual deficits immediately," Geithner said. [1] In the meantime, it is critical that Congress act to increase the debt limit so that the full faith and credit of the United States is protected. I hope this information is helpful as you plan the legislative schedule for the coming weeks. [4] If Congress does not act by May 16, I will take all measures available to me to give Congress additional time to act and to protect the creditworthiness of the country. These measures, however, only provide a limited degree of flexibility'''much less flexibility than when our deficits were smaller. As the leaders of both parties in both houses of Congress have recognized, increasing the limit is necessary to allow the United States to meet obligations that have been previously authorized and appropriated by Congress. [34] As the limit gets closer, Treasury can provide "more precision" as to when the limit will be reached. That precision is startling in that it does not say when the money will run out but provides a long stop. But the long stop is closer than is comfortable: "no later than 16th May 2011." Geithner is courteous when he delivers a public rebuke - and a threat. "This is a projection based on the expected level of tax receipts, the timing of our commitments and obligations over the next several weeks, and our judgment concerning the level of cash balances we need to operate. Although these projections could change, we do not believe they are likely to change in a way that would give Congress more time in which to act." [16]
If Congress fails to raise the limit, Treasury Sec'y Timothy Geithner said steps can be taken to postpone a gov't default for about 8 weeks. He said, there would be "no headroom" to borrow after July 8. [33] WASHINGTON, April 5 (Reuters) - U.S. Treasury Secretary Timothy Geithner said on Tuesday that if Congress cuts any of Treasury's budget it could endanger a U.S. economic recovery. [37] U.S. Treasury Department Secretary Timothy Geithner said last month that despite improvements financial challenges will remain for smaller businesses. With the Treasury hosting a conference on "Access to Capital," Geithner said in his opening remarks, "It's still a tough financing environment out there for small companies." Finding funds remains a challenge despite new federal programs, he said. [38] In prepared testimony before the Senate Appropriations Committee, Geithner defended President Barack Obama's FY 2012 budget requests for the Treasury Department, pointing out that it identifies nearly $1 billion in savings -- including $336 million in direct cost savings and $630 million in offsets. Summarizing what he described as "the core economic and financial priorities that shape this budget request," Geithner said the Treasury's programs to help strengthen and support the financial system "have made very substantial progress," although there are still some challenges ahead. "Ultimately, we expect TARP's bank programs to produce a lifetime profit of nearly $20 billion," he said. [21] In prepared testimony to a Senate Appropriations subcommittee, Geithner listed efficiencies in Treasury's spending performance and said the Internal Revenue Service was bringing in more and more revenue to Treasury's coffers. In fiscal 2010, which ended last Sept 30, IRS enforcement squeezed $57.6 billion more in additional tax revenues, reflecting investment in new computers and other upgrades, he said. [37]
Geithner also noted some positive signs with regards to the conservatorship of government-sponsored enterprises Fannie Mae and Freddie Mac. "In each of the last two quarters, the net cost of the government's investment in Fannie Mae and Freddie Mac has declined, because those firms have paid back more in dividends than they have requested in new funding," he told lawmakers. On the much-discussed subject of corporate tax reform, all Geithner would say is that he looked forward to working with Congress and the business community "to design a comprehensive, revenue neutral reform of the corporate tax system that would lower rates, eliminate special tax breaks, and encourage investment in the United States." The Treasury has also come under widespread criticism for the slow progress of its housing initiatives, with the House of Representatives voting last week to end the administration's flagship Home Affordable Modification Program. [21]
Geithner'''s warning came as lawmakers debated budget legislation needed to avert a government shutdown on April 8, when existing spending authority expires. While the Treasury can continue to sell debt during a shutdown caused by lack of spending authority, it has no such leeway if it runs out of borrowing room. [11] Treasury Secretary Timothy Geithner tells lawmakers that the country is weeks away from reaching the limit on the amount of money the government can borrow. [39] "Default would cause a financial crisis potentially more severe than the crisis from which we are only now starting to recover," Treasury Secretary Timothy Geithner said in a letter to lawmakers. [36] WASHINGTON, April 5 (Reuters) - U.S. Treasury Secretary Timothy Geithner said on Tuesday mortgage servicers have done a poor job of helping borrowers through the housing crisis. [40] WASHINGTON (Reuters) - The Obama administration is working on a comprehensive proposal for corporate tax reform, U.S. Treasury Secretary Timothy Geithner said on Tuesday. [41]
WASHINGTON, April 5 (Reuters) - Treasury Secretary Timothy Geithner said on Tuesday that forcing the government to live ON week-by-week funding will undermine confidence in the United States. [42] WASHINGTON -(Dow Jones)- Treasury Secretary Timothy Geithner said Tuesday that forcing the government to operate on week-to-week funding measures risks undermining the economic recovery. [35]
WASHINGTON -(Dow Jones)- Treasury Secretary Timothy Geithner on Tuesday defended the Obama administration's foreclosure prevention efforts, saying its signature program had driven improvements across the industry. [43] Treasury Secretary Timothy Geithner speaks during the Financial Stability Oversight Council held a meeting to discuss mo. [7]
"Increasing the limit is necessary to allow the United States to meet obligations that have been previously authorized and appropriated by Congress," Secretary Timothy Geithner said in a letter to lawmakers. He warned that military pay, social assistance payments and tax refunds could be among the first things to be blocked. [25] If Congress does not raise the limit in time, the U.S. would need to cut critical payments and would see a surge in interest rates, Geithner said today. [17] Congress needs to raise the limit to maintain vital services and avoid '''questions about our ability to defend our national security interests,''' Geithner said. The U.S. would face sharply higher interest rates and would have to stop or delay payments to the military, retirees and others, he said. [11]
Treasury officials said several weeks ago the U.S. could hit the ceiling as soon as April 15 and have urged Congress to raise the limit. [24] If the U.S. were to hit the limit, and if lawmakers do not raise it, the Treasury Department would be prohibited from borrowing more money. That could cripple a broad range of government services. [2] The Treasury Department warned congressional leaders Monday that military pay and retirement benefits are in jeopardy unless lawmakers agree to increase the federal debt ceiling. [20] The Treasury Department previously had projected it would reach the debt ceiling sometime between April 15 and May 30. [12]
Some House Republicans believe the debt ceiling would not have to be lifted at all if Congress would approve $100 billion or more in immediate federal program cuts. [20] Of course you would shake the confidence of the world in U.S. financial assets and Treasuries. It would be a deeply irresponsible act, again inconceivable.''' 23 Republican senators have said they will not vote to raise the country'''s debt ceiling unless the White House agrees to tackle entitlement programs in the ongoing budget talks. [18] The debt ceiling became a hot-button issue after Republicans took control of the U.S. House of Representatives in early January, leaving Obama's Democrats only in control of the Senate. [25]
Total U.S. debt hit an all-time high of $14.27011 trillion on Thursday and is nearing the federal debt ceiling as Washington intensifies the debate over debt and government spending. [24] Because not all U.S. debt counts towards the ceiling, total debt subject to the ceiling was $14.21786 trillion as of Thursday, according to the most recent government data available. That gives the U.S. less than $80 billion in headroom before it hits the ceiling. [24]
As described above, the four extraordinary measures can free up approximately $230 billion in headroom.'' This would postpone the date by which the debt limit needs to be increased by approximately 8 weeks, or until about July 8, 2011. [4] The entire balance matures daily and is ordinarily reinvested.'' Using this measure immediately frees up headroom under the debt limit. Because the G''Fund balance is approximately $130 billion, using this measure can immediately create up to approximately $130 billion in headroom. [4]
Declaring a 12-month debt issuance suspension period, for example, would only free up approximately $72 billion in additional headroom. In other words, because the debt increases on average by approximately $125 billion per month, a 12-month debt issuance suspension period (which frees up roughly $72 billion in headroom) would postpone the date by which the debt limit must be increased by only a matter of weeks. [4] Suspending the daily reinvestment of the dollar-balance of the ESF immediately frees up headroom under the debt limit.'' Because the dollar-balance of the ESF is approximately $23 billion, this would create up to approximately $23 billion in headroom. [4]
A 12'''month debt issuance suspension period would allow Treasury to redeem approximately $6 billion 12 times, or approximately $72 billion, of the Treasury securities held by the CSRDF, freeing up approximately $72 billion in headroom.'''' [4] Treasury makes approximately $6 billion in civil service benefit payments from the CSRDF each month.'' Therefore, declaring a two-month debt issuance suspension period would allow Treasury to redeem approximately $12 billion of the Treasury securities held by the CSRDF, freeing up approximately $12 billion in headroom.'' [4]
Suspending the reinvestment would free up approximately $67 billion in headroom. It should be understood that this suspension of reinvestment that frees up headroom is a one-time measure:'' it is only available on June 30. The benefit of this additional headroom, moreover, is offset in part by the fact that on that same day Treasury is required to make $12 billion in interest payments on certain of its securities held by the public. [4] Because the statute governing the CSRDF authorizes Treasury to suspend new investments, Treasury may suspend the investment of ''this interest payment, which would conserve approximately $18 billion of headroom. [4]
If the United States has not exhausted the measures before June 30, the statute governing the CSRDF provides an additional one-time measure on that date that frees up headroom. The same statute that authorizes Treasury to redeem existing investments during a debt issuance suspension period also authorizes Treasury to suspend new investments by the CSRDF during such a period.'' [4] During a debt issuance suspension period, civil service benefit payments would continue to be made as long as the United States has not yet exhausted the extraordinary measures.'' Once the extraordinary measures have been exhausted, however, the U.S. Government will be limited in its ability to make payments across the government.'' [4]
Policymakers and independent experts have warned of catastrophic consequences if Congress fails to act. The ability of the United States government to repay its debts is the perhaps the single most important bedrock of certainty underlying global finance. [13] '''Default would cause a financial crisis potentially more severe than the crisis from which we are only now starting to recover. For these reasons, default by the United States is unthinkable.''' Earlier, Alan Simpson and Erskine Bowles appeared on CNN, talking about real deficit and debt reduction; their report was non-partisan and focused on the reluctance of Congress to focus on the "big ticket items." That interview is available below. [2] Calling a default "unthinkable," Geithner warned that inaction on the debt limit could lead to a situation that would dwarf the turmoil that gripped markets in 2008. "Default would cause a financial crisis potentially more severe than the crisis from which we are only now starting to recover," he wrote. [10]
Mr. Geithner. feed us a lot of baloney about the sky falling if the debt limit is not raised. How about we start by repealing Obamacare? And then shut down all duplicative programs run by the Federal Government? And while you are at it, get the Federal Govt. to also step out of running programs that is not within its constitutional mandate. [28] Without congressional action, the federal government will hit its legal borrowing limit no later than May 16 and could default on its debt by July 8, the Obama administration said Tuesday. [23]
Geithner's letter predicts the debt limit will be reached no later than May 16, and it is more likely to be earlier than later. [20] Treasury has been asked whether it would be possible for the Treasury to sell financial assets as a way to avoid or delay congressional action to raise the debt limit. This is not a viable option. [4] Once the debt limit has been reached, Treasury has authority to take actions regarding investments under the Civil Service Retirement and Disability Fund (CSRDF).'' [4]
The debt of the United States'' consists of two components:'' (1) debt held by the public ( e.g., the Treasury securities that are periodically auctioned by Treasury); and (2) debt held by U.S. Government accounts.'' This second category includes, for example, the investments by the Social Security trust fund and other trust funds, and consists of special Treasury securities that are issued directly to those trust fund accounts.'' [4] And, as noted below, some extraordinary measures that were used in the past are no longer available or of limited use today. The Treasury Department has authority to suspend its issuance of State and Local Government Series Treasury securities (SLGS).'' This, however, is a limited measure that does not free up borrowing authority. [4] The federal government will exhaust its ability to borrow money under current law during the second week of July, the Treasury Department said in a letter sent Monday to members of Congress. [13]
Geithner said that the Treasury could take some "extraordinary measures," but that would only buy Congress eight more weeks to act, he said in his letter to Senate Majority Leader Harry Reid (D-Nev.), Speaker John Boehner (R-Ohio) and Minority Leaders Mitch McConnell (R-Ky.) and Nancy Pelosi (D-Calif.). [28] '''The longer Congress fails to act, the more we risk that investors here and around the world will lose confidence in our ability to meet our commitments and our obligations,''' Geithner said yesterday in a letter addressed to Senate Majority Leader Harry Reid. [11]
"The longer Congress fails to act, the more we risk that investors here and around the world will lose confidence in our ability to meet our commitments and our obligations. If Congress does not act by May 16, I will take all measures available to me to give Congress additional time to act and to protect the creditworthiness of the country" he writes. [16]
In each case, FFB used the Treasury securities that it received from the CSRDF to pay down its borrowings from Treasury.'' When Treasury received from FFB the Treasury securities, they were extinguished, creating the headroom.'' The potential to use such an exchange transaction is of limited use at this time because FFB has a limited amount of obligations available to exchange. That option is no longer available because Treasury discontinued keeping those '''compensating balances''' after Congress appropriated funding to Treasury in 2004 to pay directly for fiscal services. [4]
Overall, it is important that Congress meets the President's funding requests for the Treasury, with Geithner warning that not only would cuts to the IRS budget hurt revenue collection and service to taxpayers, but cuts to Treasury's remaining responsibilities "would weaken out ability to support reforms that are critical to economic recovery and repair of the financial system." [21] '''Cuts to the remaining Treasury responsibilities would weaken our ability to support reforms that are critical to economic recovery and repair of the financial system.''' Geithner said the Obama administration would press ahead with its efforts to overhaul housing finance and wind down Fannie Mae and Freddie Mac. [17]
Geithner said the federal government has responded with tax cuts for small businesses, grants for clean energy initiatives, and special credit programs. The latest credit program, the State Small Business Credit Initiative, launched in California, Michigan and North Carolina, last week has already announced its first loan, which went to J&S; Reel Logging in Raleigh, N.C., Geithner said. [38]
The USA's debt remains horribly enmeshed with the rescues made during the financial system-originated crisis - which despite some headline successes is still a long way from over. Even though some of the recipients of state aid have repaid it - some with handsome interest and some by the sale of shares or other securities at a profit - those recoveries are far away from the total amount that the government invested in preventing total meltdown. Geithner is exasperated with the system that allows the country's finances to be held to ransom by those jostling for individual interests at the expense of those of the nation. He implies that someone, somewhere, has to say "this is stupid. [16] Good, I hope the government doesnt raise the debt ceiling, the government needs to spend within its means. As for Geithner saying that the banks have done a poor job at refinancing loans, they haven't done a bad job. Why have they not done a bad job, cause not only did they fleece the government in TARP bailouts that im sure Geithner profited from, but now the consortiums of investors with cash are picking up the table scraps from foreclosed properties. In so doing the banks have had the foreclosed properties off their balance sheets, wiped the slat clean, the CEO's and board members of all the banks profit, everyone wins in the upper echlon of corporate hierarchy. [18] Geithner argues that lawmakers have no choice but to raise the debt ceiling. [10] Unthinkable that in the past decade, Congress has voted to raise the debt ceiling ten times. It has done it 76 times since 1962. Lawmakers are finally threatening to get serious about tackling the budget deficit, but it seems pretty clear how this is going to end: badly. [26] The warning came as U.S. lawmakers battle over how to cut spending and trim the budget deficit. Although the issues of extending the debt ceiling and balancing the budget are not linked, they have become enmeshed thanks to Washington's political deal-making. [25] The White House and congressional leaders are trying to negotiate a deal to extend funding, either through another temporary appropriations bill or a larger and more permanent bill, but no agreement has been reached. Spending cuts are at the root of the debate involving both the debt ceiling and 2011 appropriations bills. [20]
The White House and many Democrats have said the debt deliberations must be handled separately from any larger debate about federal spending, largely because U.S. debt includes interest on money the government has already spent. [7]
In a statement, the President himself made it clear that he understood the need to cut government spending. He reinforced his opposition to cuts that will "undermine our economic growth, job creation, and our ability to win the future." In reply, as if to emphasize the entrenchment of positions on both sides, John Boehner, the Republican Speaker of the House of Representatives, stated that his party was waiting for the Senate, which has a Democrat majority, "to pass, or even produce, a credible plan of their own to make real spending cuts and keep the government open." "It's become sadly evident to me that the White House and Senate Democrats are just not serious yet about enacting real spending cuts," he said. [15] The debt-limit showdown comes as Congress struggles to complete a spending package that would keep the government operating beyond Friday. Republicans are seeking to use that bill to enact deep spending cuts and lawmakers are focusing on a proposal to trim this year's budget by $33 billion, a relatively small amount compared with a projected $1.4 trillion deficit. [8] The U.S. is within $95 billion of reaching the $14.3 trillion borrowing cap, which, when reached, could force the government to use cash reserves and drastically cut spending. [20]
Let's see they are having a hard time to cut $33 billion when we are having a $1.5 trillion deficit. Has anyone in Congress ever been taught math? A $33 billion dollar cut is not going to be enough with a $1.5 trillion deficit. Let's do the math 33 billion goes into 1.5 trillion lets see carry the oh yeah 45.46 times. They are going to have to cut a lot deeper than they are trying to. The deficit does not even have the $600 billion in interest payments we need to make so the deficit is really $2.1 trillion they need to cut about 100 times more to make a dent in the deficit. Cutting $3.3 trillion off a year will pay off the deficit in about 7 years folks. [8]
The federal debt ceiling is set by Congress and was last raised to $14.29 trillion. [24] Geithner sent a letter to lawmakers Monday saying the U.S. would hit the debt ceiling by May 16. [35]
The debit ceiling has been raised 65 times since 1962. Has there ever been a time when raising our debt limit was voted down? Does Timmy have any historical data to back up his doom and gloom scenario showing what happened, if it had ever been voted down? Or is this the same line they pull out of their doom and gloom box when ever a vote comes up to raise the debt limit? I would think that raising it yet again, would be a confirmation to countries that hold our debt, that the U.S is incapable of being fiscally responsible. [6] As Heritage expert J.D. Foster, Ph.D. noted in his January 2011 paper " Congress Has Time and Options on Debt Limit ", Congress had time to discuss how it wants to proceed on the debt limit.'''' [14] In our previous communications to Congress, we provided regular estimates of the likely time period in which the debt limit could be reached. [4]
In order to avoid an increase in the debt limit, Congress would need to eliminate annual deficits immediately. [4] "As a consequence, given that Congress has imposed on itself the requirement for periodic increases, there is no alternative to enactment of an increase in the debt limit." [1]
"There is no alternative to enactment of an increase in the debt limit." He argued it is simply not possible to avoid raising the limit by cutting spending or raising taxes. [10] In the 1995-1996 debt limit impasse, for example, the monthly increase in debt was not as large, and the extraordinary measures were therefore able to postpone the date by which the debt limit needed to be increased for several months.'''' The same was true during the 1985 and 2003 debt limit impasses.'' [4]
If ever there was a stupid way to run a country's finances, the USA has found it - and then made it worse. Now, not only have endless delays in the process of securing the budget meant that the country is still running on borrowed time (literally - see below) but on the 8th April, not only that borrowed time will run out (no big deal - they'll just borrow some more) but the country will be close to breaching the debt limits it has set. [16] I really enjoy that those opposed to raising the debt limit (and thereby crashing the U.S. and global economies) out of some misguided sense of principle respond to any explications of the horrible effects of failing to raise the debt limit with bald, fact-free denials. [28] Failing to raise the debt limit destroys that confidence, and with it the confidence of the world's markets in the value of U.S. currency. [28]
Suspending the issuance of U.S. savings bonds would not free up any headroom under the debt limit.'' [4]
After a debt limit impasse, the interest lost by the ESF is not restored:'' there is no existing authority to reimburse the ESF for lost interest during the period that the dollar-balance is not invested. [4] According to a FoxNews story on their website this morning, the debt limit will be reached around April 15th. [10]
Sure there is an alternative Tim, stop borrowing money and cut spending. Haven't you seen the debt clock Tim? It is obscene. Why aren't you letting the POTUS know this since you work for him and why isn't he letting the Senate know this so they can tighten the belts of the nation along the line of what the Presidential commission or Paul Ryan have purposed. As president how did he let the last Congress out of town without a budget for 2011? Poor leadership at it's best. [10] Congress has committed far more money than it can fund. Therefore "immediate cuts in spending or tax increases cannot make the necessary cash available. [16] "Because of the magnitude of past commitments by Congress, immediate cuts in spending or tax increases cannot make the necessary cash available. [15]
Failing to do so would lead to a default on U.S. debt, and immediate cuts or tax hikes would fail to bring in the short-term cash needed to meet existing obligations. [10] The Treasury could cut issuance of longer-term government debt and rely more heavily on short-term cash management bills to gain more day-to-day control over debt outstanding. [12] Cash management bills are typically issued for days instead of normal Treasury bill maturities of four weeks to one year. This is unlikely to buy much time and officials are wary of making any major shifts in the Treasury's debt issuance calendar, which could upset markets. [12]
The Treasury would still pay debts that come due, putting off temporarily payment of less important obligations as necessary to pay the maturing debt.'' [14] The statute also authorizes Treasury to suspend new investments by the CSRDF during a debt issuance suspension period.'' [4] The Secretary of the Treasury does not have unlimited discretion to declare a debt issuance suspension period.'' [4]
"Default by the United States is unthinkable," Geithner said in a letter. "This is not a new or partisan judgment; it is a conclusion that has been shared by every Secretary of the Treasury, regardless of political party, in the modern era." [28] Default would cause a financial crisis potentially more severe than the crisis from which we are only now starting to recover. For these reasons, default by the United States is unthinkable. This is not a new or partisan judgment; it is a conclusion that has been shared by every Secretary of the Treasury, regardless of political party, in the modern era. [4]
'''Default would cause a financial crisis potentially more severe than the crisis from which we are only now starting to recover,''' Geithner said. '''For these reasons, default by the United States is unthinkable.''' [11] Geithner said Tuesday, the consequences of default would make the recent financial crisis appear '''modest in comparison.''' [18]
Well then, if Geithner is so sure about a pending Financial Crisis then I'm positive he and Bama can get the Demos to go along with the 100 Billion in cuts and avoid the problem. That is unless they are looking forward to another crisis to get some more Nanny State Socialism passed. [18] Created during the Great Depression of the 1930s, the fund was last used as a backstop to guarantee money market mutual funds during the worst part of the financial crisis from September 2008 to September 2009. The GAO study estimated that this could increase borrowing capacity by $20.4 billion. [12]
As it has in the past, the Treasury could suspend payments to the Civil Service Retirement and Disability Fund, a government employee pension fund. The government has recently been contributing an average of $5.8 billion to this fund per month. It would be required to replace any missed contributions and lost earnings. Based on a study of data from August 31, the Government Accountability Office estimates that these moves could add up to $7.7 billion in borrowing capacity. The Treasury could dip into this seldom-used $50 billion fund earmarked to stabilize currency rates. [12] The Treasury chief appeared before a Senate Appropriations Committee panel as House and Senate negotiators, joined by the White House, are considering plans to reduce the budget by about $33 billion. [17]
The Treasury Department last month forecast the U.S. would reach the $14.294 trillion limit between April 15 and May 31. "This is a. [44] WASHINGTON, April 4 (Reuters) - The United States will hit the legal limit on its ability to borrow no later than May 16, the Treasury Department said on Monday. [32]
Timothy Geithner warned Monday that the United States will hit the legal limit on its ability to borrow by May 16. [7] "In addition, defaulting on legal obligations of the United States would lead to sharply higher interest rates and borrowing costs, declining home values and reduced retirement savings for Americans," Geithner continued. [30]
If Maine Gov. Paul LePage doesn't wish to display a mural depicting the state's labor history, then the U.S. Department of Labor wants the federal money used to create it returned. The department said Monday that LePage violated the terms of a federal grant that paid for most of the mural's $60,000 cost when he removed it from state offices in March. A nation that prides itself on fighting the abuse of power has an obligation to prevent sexual violence in schools and on college campuses, Vice President Joe Biden said Monday as he kicked off a nationwide awareness campaign on schools' responsibilities and victims' rights. [39] The new warning about U.S. borrowing power comes as lawmakers are still trying to avoid a Friday government shutdown in a battle over the 2011 federal budget. A shutdown would require U.S. service members to report to work without knowing if the Defense Department will be able to pay them on April 15, the next military payday. [20] With four days left until the federal government's spending authority runs out, the talk grew somewhat more pessimistic on Monday. A new Pew Research Center poll finds that Democrats and independents are more likely than Republicans to want lawmakers whose views they share to compromise on the fight over the federal budget. [13]
As of Friday, however, borrowing stood only $95 billion shy of the ceiling. Republican lawmakers have been using this situation as leverage to pressure the Obama administration into agreeing to large-scale budget ]] budget cuts. [7] The two government-backed mortgage companies have been in conservatorship since 2008 and have received more than $150 billion in government support. He also defended the Obama administration'''s foreclosure- prevention plans, including the Home Affordable Modification Program. HAMP has helped more than 630,000 families stay in their homes and '''driven industry improvements that have resulted in 2 million additional modifications outside the program,''' Geithner said. [17] Geithner touted the effort as a low cost-high impact program that uses federal dollars to leverage additional funds. "It can leverage every $1 of public investment into 10 dollars of new lending. Our $1.5 billion funding commitment nationwide is expected to spur $15 billion or more in additional small business lending," he said. [38]
The CSRDF receives approximately $2 billion in new employer and employee contributions each month.'' Therefore, during each month of a debt issuance suspension period, approximately $2 billion in headroom that would otherwise be used is conserved. [4] On average, the public debt of the United States increases by approximately $125 billion per month (although there are significant variations from month to month).'' [4] Here are the facts: The dollar is the world's reserve currency. It continues to be the world's reserve currency because, all hyperbolic assertions of the Republican leadership that "we're broke" notwithstanding, the countries of the world have confidence in the ability of the United States to pay its debts. [28]
'''Unless we do something important about the debt, I don'''t believe there will be a single Republican senator voting to raise the debt ceiling,''' the top GOP senator Mitch McConnell told the Wall Street Journal last month. Even one Democrat senator ''' West Virginia'''s Joe Manchin ''' said he will vote against raising the debt ceiling unless his vote is linked to a plan to fix the nation'''s soaring deficits. [18] By contrast, the government will have little leeway if the debt ceiling isn'''t raised by May 16. [11] I will vote against raising the debt ceiling unless the vote is linked to a real budget plan that begins to fix our fiscal mess.''' [18] The dates in the letter represent the most precise estimate the administration has offered for hitting the debt ceiling. [13] The debt ceiling has been raised at least once a year for at least the last half century. [18]
Declaring a debt issuance suspension period is a limited measure that relates only to the CSRDF; it has no impact on any other investments or any other portion of the debt.'' It only provides limited additional time.'' Even if the Secretary were to declare a much longer debt issuance suspension period, this would provide only limited additional headroom.'' [4] In that case, the Treasury will turn to a toolkit of emergency measures that can provide as many as eight weeks of additional borrowing room, Geithner said. That extra time would end about July 8, the Treasury chief said. [11] "To attempt a fire sale of financial assets in an effort to buy time for Congress to act would be damaging to financial markets and the economy and would undermine confidence in the United States," Geithner said. [7] More than half of the homeowners have dropped out. Only about 540,000 were enrolled in permanent loan modifications and were making their payments on time at the end of January. Tuesday Geithner said the program had helped 630,000 families stay in their homes. The administration also is making efforts to "refine and strengthen" the program, he said. [43] Geithner also touted HAMP as a driver of industry standards, saying the program has developed a framework for other homeowner assistance providers to use across the country. By setting affordability standards and providing a framework for homeowner assistance that the private sector can follow, HAMP has also driven industry improvements that have resulted in 2 million additional modifications outside the program, he said. Geithners defense of HAMP comes at a time when the program is facing enormous pressure from lawmakers who say the program has failed in its goal of modifying millions of mortgages and is taxing to an already debt-laden budget. [45] Republicans argue that the program is costly to taxpayers at a time when budget cuts are needed to get the U.S. economy back on track. [43] House Republicans will unveil a 2012 budget on Tuesday that wagers voters are ready to accept tough changes and trillions in cuts to some of the nation's sacrosanct social programs. [13] A substantial number of House Republicans are demanding that cuts in federal programs be part of any final agreement. [20]
House Republicans late Monday readied contingency plans in the event that Congress fails to reach an agreement to keep the government funded beyond Friday, when an interim measure expires. [35] As the Republicans have gained power in Congress, the White House spending projects are viewed as excessive. [16]
Congress is currently attempting to complete a spending package that would keep the government operational. [7]
Congress sets a maximum amount that the government can borrow, which currently stands at $14.29 trillion. [13] The debt held by U.S. Government accounts is approximately $4.6 trillion'''in other words, it constitutes roughly a third of the debt. [4] GW Bush added $4 trillion to the national debt in 8 years. Obama has done this in 2 years. [24]
Total Department of Defense spending is under $700 billion per year; total deficit is $1.5 trillion. In the long term, its absolutely dwarfed by unfunded liabilities. [26] In total, the extraordinary measures free up approximately $165 billion in headroom under the limit before June 30, 2011, as described below.'' [4] On June 30, there is an interest payment of approximately $18 billion scheduled to be made to the fund.'' If this interest were invested, it would use up headroom.'' [4]
As of Friday, Treasury borrowing stood just $95 billion from the ceiling. [8] In fiscal 2011, which began on October 1, the Treasury has sold $45.7 billion in slugs to muni bond issuers. [12]
In February the federal government racked up an all-time record of red ink: $222.5 billion in a single month. [18]
The national tax take (and any commercial income the country may have) is far short of the commitments that are made for the purpose - often - of buying votes. States vie for nationally funded projects, they plead for national assistance for their own budget deficits, they stand - hands out - trying to make a case that their voters are more deserving of federal money than those in some other state. And, because the hands in the cookie jar are the same hands that decide how many cookies to put in - or how many cookies they will take out even after the jar is empty, and those hands are distorting the national finances - and able to delay the setting of a budget unless their individual interests are served. That is exactly what is happening. It is exactly why the USA is living on borrowed time, running its finances under a succession of agreements redating the expiry of the previous budget, and running up against a borrowing limit that was once thought to be excessive. That's stupid. [16] Geithner told a Senate Appropriations subcommittee that the proposal will be pro-investment and "revenue neutral," so that a cut in the corporate tax rate would have to be offset by new revenue. He did not say whether the administration will introduce the plan in the form of a legislative proposal or when it would be unveiled. [41] In a letter to congressional leaders, Geithner said new calculations based on projections of income tax receipts showed that the date will be no later than May 16. [6]
'''The consequences of that would be catastrophic to the United States,''' Geithner said. '''It would make the crisis we went through look modest in comparison.''' [17] Geithner said that a default by the United States would be globally, not just nationally, disastrous. [2]
The money quote: "Default would cause a financial crisis potentially more severe than the crisis from which we are only now starting to recover''' Default by the United States is unthinkable." [26] Failure to act could trigger "a financial crisis potentially more severe than the crisis from which we are only now starting to recover," said Mr. Geithner. [23]
The uneasy stand-off between the main players was a repetition of February'''s meeting of''G20 finance ministers and central bank governors. Described privately by those taking part as one of the least constructive G20 gatherings since the crisis, the delegates found it difficult to agree on the right way to measure global trade imbalances, preventing the grouping from discussing policies that might lead to their resolution. China has cooled to the idea of moving too quickly towards inclusion of the renminbi in the SDR basket and Mr Geithner, who holds a veto on any such move, laid out conditions that would be unacceptable to the Chinese. Mr Geithner said currencies should only be included in the SDR basket if their countries had flexible exchange rates, independent central banks and allowed free movement of capital flows. China does not meet any of those criteria. [46]
'''Any substantial cut to the IRS budget will hurt revenue collection and service to taxpayers,''' Geithner said. [17] "Any substantial cut to the IRS budget will hurt revenue collection and service to taxpayers, resulting in unanswered phone calls and letters," Geithner warned. [37]
Newly elected Republican lawmakers have been resisting a debt-limit increase while calling for extensive budget cuts. Florida'''s Rubio has said he won'''t approve a debt-limit increase without a range of tax-and-spending reforms. [11] Republican lawmakers, including Senator Marco Rubio of Florida, have been resisting a debt-limit increase while calling for extensive budget cuts. [11]
The House voted last week to end the program, also known as HAMP, with Republican lawmakers arguing that it has failed to ease the foreclosure crisis. [43]
Furthermore Libbies, the last time I looked, the House isn't the only player here, and the Senate can stop anything as to cuts it dares to. [28] The expression "hoist by their own petard" comes to mind. The GOP has for so long claimed that government is the problem that they only know how to make that manifest when they control any part of it be it by a majority in the House or a virtual veto in the Senate. [28]
"If we force government to live week by week, you will risk undermining the recovery now underway," Geithner told a Senate appropriations subcommittee. [42] "By setting affordability standards and providing a framework for homeowner assistance that the private sector can follow, has also driven industry improvements that have resulted in 2 million additional modifications outside the program," Geithner said in remarks prepared for a Senate Appropriations subcommittee hearing. [43] "Confidence is very important to economic recoveries," Geithner said at a Senate Appropriations subcommittee hearing. [35]
'''You will shake the basic foundations of the entire global financial system,''' Geithner told a Senate subcommittee today. [17]
Geithner's letter is the latest warning to lawmakers, though many remain resistant to raising the limit unless it is tied to an overhaul of national finances. [36] 'Default by the United States is unthinkable,' Tim Geithner writes in a letter. [28] The department previously estimated it would hit the ceiling by May 31. If it is not raised, the United States would only have weeks before it runs out of cash to pay its bills, according to government estimates. [25]
"If Congress does not act by May 16, I will take all measures available to me to give Congress additional time to act and to protect the creditworthiness of the country. These measures, however, only provide a limited degree of flexibility--much less flexibility than when our deficits were smaller." [28] '''I'''m totally confident that Congress will act to avoid that.''' It would be '''inconceivable''' that lawmakers will not act in time, he said. [17]
"The longer Congress fails to act, the more we risk that investors here and around the world will lose confidence in our ability to meet our commitments and our obligations," Geithner wrote. [28]
In a speech here, Mr. Geithner never mentioned China'''s currency,the renminbi. He made clear that Beijing'''s strict control over the value of its currency was at odds with flexible exchange rates in other major economies. He said the issue had become '''the most important problem to solve in the international monetary system today.''' '''It does not require a new treaty, or a new institution,''' he said. '''It can be achieved by national actions to follow through on the work we have already begun in the''G-20 to promote more balanced growth and address excessive imbalances.''' Chinese policy makers are concerned with American calls for monetary reform, though, because they feel that the U.S. has been irresponsible with its own monetary policy. [46] Obama has talked about trimming the top marginal corporate rate, which at 35 percent is among the steepest in the industrialized world. Geithner has told lawmakers that his goal would be to get the corporate rate closer to that of major U.S. trading partners, around the high 20-percent level. [41]
According to estimates from the International Monetary Fund, U.S. debt adjusted for the size of the economy is higher than in France, Canada and Germany, but less than in Italy and Japan. [7] Treasury may also suspend the daily reinvestment of Treasury securities held by the Exchange Stabilization Fund (ESF). [4] Find a better way." What he actually says is "This is not a new or partisan judgment; it is a conclusion that has been shared by every Secretary of the Treasury, regardless of political party, in the modern era [16] The Secretary of the Treasury has been relegated to carrying water for Obama's reelection. I no longer believe anybody from this criminal enterprise, er administration. [28]
The directors agree to increase the amount of credit available under the revolving facility. There are two problems: if they don't settle down and agree then the new limit will - at some point - prove insufficient. [16] Assuming the date of May 16 is solid, that would mean "no headroom to borrow within the limit would be available after about July 8, 2011." [2]
SOURCES
1. Update: USs Geithner:To Hit Debt Limit No Later Than May 16 | iMarketNews.com
2. Geithner Warns of Possible U.S. Default
3. Secretary Geithner to Senate: Emergency measures if debt ceiling not raised - National Finance Examiner | Examiner.com
4. Secretary Geithner Sends Debt Limit Letter to Congress | LoanSafe.org
5. Geithner warns of economic hardship unless U.S. debt ceiling is raised « HousingWire
6. Debt, Geithner: U.S. will hit debt limit by May 16, Geithner warns - latimes.com
7. Timothy Geithner Warns US to Hit Debt Ceiling | ThirdAge
8. Geithner warns U.S. to hit debt ceiling by May 16 | Reuters
9. Geithner: U.S. will reach debt limit by May 16 This Just In - CNN.com Blogs
10. Treasury: US to hit debt limit in mid-May - The Hill's On The Money
11. Geithner Sees '''Severe Hardships''' If Debt Limit Isn'''t Raised - Bloomberg
12. Factbox: Treasury's tools to delay hitting debt limit | Reuters
13. U.S. Government Will Exhaust Ability To Borrow in July - NYTimes.com
14. Congress Still Has Time Before It Must Deal with the Debt Limit Issue | The Foundry: Conservative Policy News.
15. Geithner Warns Of US Government 'Shutdown'
16. The Risk Professional: US govenment has less than 72 hours to save its finances / Risk Professional / Management / The Chief Officers' Network - your business advantage - The Chief Offficers' Network
17. Geithner Says Failure to Raise Debt Limit Risks Causing `Severe Hardship' - Bloomberg
18. Geithner Says Failure to Raise Debt Limit Would Make Recent Financial Crisis Look "Modest In Comparison" - Political Punch
19. Geithner: Debt Default Would Make Financial Crisis Look Tame - Real Time Economics - WSJ
20. Army Times Mobile
21. USs Geithner: Expect Nearly $20b Profit From Bank Bailouts | iMarketNews.com
22. Geithner: U.S. to hit debt ceiling by May 16 - Washington Times
23. Geithner Pushes Congress to Raise Debt Limit - WSJ.com
24. U.S Debt Nears Ceiling, Hits Record $14.21786 Trillion - Real Time Economics - WSJ
25. AFP: US to reach debt limit by May 16: Treasury
26. Debt nation, take 76 - Econowatch - Macleans.ca
27. Geithner: 'The economy is healing'
28. Tim Geithner: Military pay jeopardized - Meredith Shiner - POLITICO.com
29. Geithner: U.S. to hit debt limit by May 16 - The Oval: Tracking the Obama presidency
30. U.S. will hit debt ceiling by May 16, Geithner warns Congress | Money & Company | Los Angeles Times
31. Gold Bullion Sale Ruled Out By US Treasury | Gold News
32. U.S. to reach debt limit by May 16 - Treasury 21:15 Hours ago
33. U.S. to hit debt limit May 16 - Investors.com
34. Dear Treasury Secretary Geithner, With All Due Respect Please "Go To Hell" | FavStocks
35. Geithner: Forcing Government To Live Week-To-Week A Risk To Recovery
36. UPDATE: Treasury Says US Will Reach Debt Limit By Mid-May - WSJ.com
37. U.S.'s Geithner: Treasury cuts a risk to recovery | Reuters
38. Small Business Loans Tough to Come By, Says Timothy Geithner
39. National briefs for April 5 | Richmond Times-Dispatch
40. US mortgage servicers have done poor job -Geithner | Reuters
41. Treasury working on corporate tax plan: Geithner | Reuters
42. Temporary funding hurts confidence in US -Geithner 01:24 Hours ago
43. Geithner Says Foreclosure Prevention Program Has Helped 2 Million
44. Treasury Says US Will Reach Debt Limit By Mid-May - WSJ.com
45. Geithner sees HAMP as a helpful aid in repairing housing « HousingWire
46. Geithner Says Strict Policy on Currency Hurts China | China Digital Times (CDT)
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