Study: US could default as early as Oct. 18
by Andrew Taylor, Associated Press
September 10, 2013 11:47 AM | 236 views | 0 0 comments | 4 4 recommendations | email to a friend | print
WASHINGTON (AP) — A new study predicts the United States could default on its obligations as early as Oct. 18 if Washington fails to agree on legislation to raise the government's borrowing cap.

The Bipartisan Policy Center analysis says the default date would come no later than Nov. 5 and that the government would quickly fall behind on its payments, including those for Social Security benefits and military pensions.

The think tank's estimate is in line with a warning last month by Treasury Secretary Jacob Lew that the government would exhaust its borrowing authority by Mid-October and be left with just $50 billion cash on hand.

The government has never defaulted on its obligations. Raising the $16.7 trillion borrowing cap promises to be a major struggle for House Republicans and President Barack Obama.



Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Comments
(0)
Comments-icon Post a Comment
No Comments Yet
*We welcome your comments on the stories and issues of the day and seek to provide a forum for the community to voice opinions. All comments are subject to moderator approval before being made visible on the website but are not edited. The use of profanity, obscene and vulgar language, hate speech, and racial slurs is strictly prohibited. Advertisements, promotions, spam, and links to outside websites will also be rejected. Please read our terms of service for full guides