U.S. MAY DEFAULT ON DEBT AS SOON AS FEBRUARY 15
JANUARY 10, 2013
The U.S. government may default on its debt in 38 days or as soon as February 15th, half a month earlier than widely expected, according to a new analysis adding urgency to the debate over how to raise the federal debt ceiling.
The analysis came courtesy of the Bipartisan Policy Center (BPC), which released a revised “debt limit analysis.”
“If we reach the X Date and Treasury is forced to prioritize payments, handling payments for many important and popular programs will quickly become impossible, causing disruption to an already fragile economic recovery,” said Steve Bell, Senior Director of the Economic Policy Project at BPC. The Treasury has said that the accounting schemes, known as “extraordinary measures,” ordinarily would forestall default for about the first two months of the year, though officials were clear that they could not pinpoint a precise date because of an unusual amount of uncertainty around federal finances.
If Congress does not raise the debt ceiling by the deadline, the White House has said that the nation probably will default.