Thursday, US Treasury Secretary Jacob Lew warned lawmakers that once again we are rapidly approaching the debt ceiling. Most involved in politics are not surprised that yet again the debt ceiling debate must take center stage. Most are, however, shocked that this critical event comes one month in advance of the predicted March timeline. An excerpt from a recent National Journal article helps to shed light on this conundrum –
“The $17 trillion debt ceiling, which was suspended in October as part of the agreement to reopen and fund the government following a 16-day shutdown, will be reached again on Feb. 7. The Treasury Department can then use special authority—so-called extraordinary measures—to prevent the nation from defaulting. These measures briefly allow the United States to continue to meet its obligations until a later date, often referred to as the ‘drop-dead’ deadline. At that point, the nation risks default.”
