The New York Times reports that the Treasury has set Oct. 17 as the deadline for when money could run out and the U.S. would be forced to delay certain payments. The Treasury will only have $30 billion of cash by then and chances are that the money going out could end up being more than the amount of money coming in plus cash.
Financial analysts believe that if the U.S. runs out of money, the market could suffer greatly as a result. If this happens, federal borrowing costs will be more expensive, the recovery will slow down and markets around the world will be destabilized. The Treasury makes about 80 million payments every month and it’s expected that 30% of those payments will be delayed after Oct. 17 unless Congress raises the debt ceiling.
The opinions contained in this column are solely those of the writer.
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