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“US Treasury to take steps to avoid hitting debt ceiling on Monday”

“The U.S. Treasury on Wednesday announced the first of a series of measures to delay hitting the government’s $16.4 trillion borrowing limit. Without those steps, the debt ceiling would be hit on Dec. 31.

The government is facing a crunch on the debt ceiling because the issue has become ensnarled in talks to avoid some $600 billion in tax hikes and spending cuts due to begin in early January. Failing to raise the debt ceiling could cause the government to default on its debt.

To cut government spending and delay bumping up against the debt ceiling, the Treasury will suspend issuance of state and local government series securities — known as “slugs” — beginning on Dec. 28.

Investments in a government employee pension fund will also be suspended, along with some other measures, although Treasury did not give dates for when these other measures will begin,” quoting NBC News.
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Posted by Steve on December 27, 2012 at 12:04 am | Permalink

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