Merry Christmas! Geithner says US will hit debt ceiling on Monday

Tax-law-challenged Treasury Secretary Timothy Geithner sent a letter today to Harry Reid, Mitch McConnell, and all members of the U.S. House of Representatives to explain that we’re on track to hit the debt limit on New Year’s Eve.

Oh, a couple of months? Great. No need to worry, then.

Here is the full text of the letter:

I am writing to inform you that the statutory debt limit will be reached on December 31, 2012, and to notify you that the Treasury Department will shortly begin taking certain extraordinary measures authorized by law to temporarily postpone the date that the United States would otherwise default on its legal obligations.

These extraordinary measures, which are explained in detail in an appendix​ to this letter, can create approximately $200 billion in headroom under the debt limit.  Under normal circumstances, that amount of headroom would last approximately two months.  However, given the significant uncertainty that now exists with regard to unresolved tax and spending policies for 2013, it is not possible to predict the effective duration of these measures.  At this time, the extent to which the upcoming tax filing season will be delayed as a result of these unresolved policy questions is also uncertain.  If left unresolved, the expiring tax provisions and automatic spending cuts, as well as the attendant delays in filing of tax returns, would have the effect of adding some additional time to the duration of the extraordinary measures.  Treasury will provide more guidance regarding the expected duration of these measures when the policy outlook becomes clearer.


Timothy F. Geithner

“Extraordinary measures”? Like reducing spending, perhaps?

Nah. Perish the thought.

Why not, right?

Happy New Year, everyone!

  • Bob Cordon

    Let’s see – Obama’s on his way back and Treasury just happens to announce debt limit to be hit next week. “Extraordinary” actions taken. Oh, the pressure’s on! I find the timing a mite too coincidental; perhaps Timmy and Barry cooked up a scheme to pressure Repubs. Weak as leadership is, they’ll probably fall for it and give Big O whatever he asks for. Sigh…

  • BeyondPolls

    Bring on the government shutdown!

  • Spatial Awareness

    Every one of those Asshats in DC should be rounded up and put in Federal prison.

  • shirtsbyeric

    There is still time for Obama to cut the deficit in half by the end of his first term.

    • Jillane Kent

      In the Lost alternate, parallel universe (post wheel turn) that is entirely feasible.

  • Grumpa Grumpus

    Quick! Keep ALL sharp objects AWAY from Speaker Smeagol!

    Make CERTAIN The Emperor’s changed his undergarments!

    The 1st b/c we don’t want to find a knife handle growing between our shoulder blades.
    The 2nd b/c we don’t want Speaker Smeagol’s breath to be too bad!