Strong revenue could push the X date out further, while numbers that trail expectations could bring it closer. One of the biggest factors will be the upcoming tax-filing season. Yet the net effect of higher inflation is likely to be mixed, as it has also led to larger pay raises for workers and therefore more government revenue. Though price spikes have begun to ease over the last few months, if that trend reverses it could amount to tens of billions of dollars in more debt on the books. Inflation could also have an impact, in part because of Treasury Inflation-Protected Securities, a type of government bond that has attracted new interest from investors in recent months because its value increases as prices rise.
NATIONAL DEBT CLOCK FULL
“I respectfully urge Congress to act promptly to protect the full faith and credit of the United States.” Student debt government months into the future,” Yellen told lawmakers in a letter Thursday. “The period of time that extraordinary measures may last is subject to considerable uncertainty, including the challenges of forecasting the payments and receipts of the U.S. To be sure, there is still ambiguity about the exact timing of the ultimate deadline this far out because of big policy and economic variables that are affecting the government’s finances. Treasury declined to comment for this story. Scott, a member of the Budget Committee, has co-sponsored legislation that would give priority to certain items - including interest payments on outstanding debt, Social Security and military funding - if the debt limit isn’t raised before Treasury runs out of cash to cover its obligations. “It would’ve given Congress time to deal with this issue earlier.” Rick Scott (R-Fla.) said in an interview Wednesday. “She should’ve told us way earlier than this,” Sen. That caught some lawmakers off guard, though the Treasury chief has historically given formal notice close to the deadline. would hit its borrowing limit on Thursday, earlier than private estimates had projected until just days before her letter. Treasury Secretary Janet Yellen informed Congress last week that the U.S. can’t pay for things like Social Security benefits and military salaries.ĭebt limit X date projections by groups like the Bipartisan Policy Center are critical to focusing Washington’s attention on the urgency of resolving the impasse. The Biden administration is insisting on a clean increase and refusing to negotiate.Ī debt limit breach carries enormous unknown stakes because of its potential impact on financial markets, where a government default on its bonds could cause chaos, and on the broader economy, if the U.S.
Conservative Republicans emboldened by their influence in the House speaker race are demanding steep budget cuts in exchange for letting the government take on more debt. ``And the way I hear politicians talking,″ he added, ``I’m afraid I do foresee having to turn the clock on again.A shorter time period would be just one of the pressure points that’s threatening to make the upcoming debt limit standoff one of the most contentious in history. ``We watched it getting higher every day for years and now we should be able to enjoy watching it get smaller.″Ī red, white and blue curtain was drawn over the sign, but the clock will remain in place ``in case things go awry and the debt once more soars,″ Durst said. ``It’s not fair,″ said Harvey Gerson of Livingston, N.J. ``The Debt Clock was a constant reminder of the enormous challenge we faced.″ ``Today, we reached a symbolic moment in the improvement of our nation’s fiscal situation,″ President Clinton said in a statement. The government has said that the entire $3.6 trillion of the national debt held by the public could be wiped out by 2013 under current projections for budget surpluses. The national debt has actually decreased since the beginning of the year, what with budget surpluses and the first buybacks of government debt in 70 years. On Thursday, the numbers moved slowly _ and downward. It was a little scary,″ said Jennifer Erday, a law firm employee who craned her neck to watch as the clock was turned off. ``I always used to look at it and watch the numbers churning forward. The clock had to be turned off for a few months in the mid-’90s when the debt was increasing so fast it crashed the computer that calculates it. Often, the debt climbed so fast that the last several digits were just a blur. The elder Durst put up the odometer-like sign in 1989. ``It was developed, erected and maintained by my father to focus attention on the soaring national debt,″ he said, ``and it has served its function.″
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