The $US28.4 trillion debt limit was reinstated on August 1. Since then, Treasury Secretary Janet Yellen has been keeping the nation's finances afloat by using emergency accounting manoeuvres.
"At that point, we expect Treasury would be left with very limited resources that would be depleted quickly," Yellen wrote in a letter to Congress.That's an accelerated timing from previously, when Yellen said this would happen at some point in October. And given the stakes — Jamie Dimon has warned a default would cause a "cascading catastrophe of unbelievable proportions and damage America for 100 years" — it would be risky for Congress to get too close to the X-date, let alone beyond it.Of course, Treasury secretaries have a long history of giving themselves wiggle room when announcing an X-date — just in case Congress blows through that date.
However, the nonpartisan Congressional Budget Office issued a report Tuesday that suggests there may be additional time beyond October 18 for lawmakers to avoid a catastrophic default. "I wouldn't be surprised if it is a day or two later than the 18th," Zandi said. "I'm estimating the 20th."
Who to? Who does the US owe money to? (No one can answer that question) Easy! Just print up 500 trillion dollars and walk it over to the ? Bank!