Treasury Secretary Jack Lew told Congressional leaders on Tuesday night that without an increase in the debt limit, the Treasury Department will be using their last set of accounting moves to allow the government to keep paying bills.
Lew said unless the debt ceiling is raised by October 17, payments could be delayed to U.S. debt holders, government contractors and Social Security recipients. He also said the government shutdown would have very little impact on the deadline date.
“If we have insufficient cash on hand, it would be impossible for the United States of America to meet all of its obligations for the first time in our history,” he wrote. “For this reason, I respectfully urge Congress to act immediately to meet its responsibility by extending the nation’s borrowing authority.”
The Obama administration has said they will not negotiate over the debt ceiling on top of not negotiating over the government shutdown.
The U.S. Dollar has fallen to an 8-month low due to the government shutdown that has caused concern in major trading markets.
Analysts say the dollar index, which fell to 79.864, did not fall as far as it could have fallen because investors and traders had expected the shutdown. The dollar index tracks the Dollar against six major world currencies.
The dollar fell to an 8-month low against the Euro and an 18-month low against the Swiss franc.
The economic impact is being debated among economists and analysts. Goldman Sachs says a three-week government shutdown could end up lowering the country’s GDP by 0.9% this quarter.
Other analysts say the government’s lack of agreement on raising the “debt ceiling” is a bigger concern to world economic markets. The current debt ceiling is scheduled to be reached on October 17th.
Economists also say the shutdown will delay key reports from the Labor Department that assist in predicting financial outcomes and forecasts.
A budget proposal submitted to the Spanish Parliament Monday shows the country’s debt in 2014 will reach almost 100 percent of the country’s production output.
The debt-to-gross domestic product ratio will reach 99.8 percent by the end of 2014. This will rise from 94.2 percent by the end of 2013. Continue reading →
The veterans piled off the chartered buses in front of the World War II Memorial, some in wheelchairs, some using canes, all determined to pay homage to each other and their fallen comrades from more than half a century ago. Continue reading →
Second or third or fourth verse, same as the first. Continue reading →
The partial government shutdown that began Tuesday left many federal workers uncertain of their financial future, with many facing unpaid furloughs or delays in paychecks. Continue reading →
Let’s start with the obvious question: Will the government shut down this week? Most likely. Continue reading →
Stocks ended lower Monday as investors brace for a partial government shutdown as early as midnight. Continue reading →
The news of a government shutdown doesn’t always tell Americans what it means when the “shutdown” takes place. Continue reading →
Democrats in the U.S. Senate voted along party lines to kill a bill from the House of Representatives that would keep the government operating past midnight but would implement a one-year delay in Obamacare. Continue reading →