US hits borrowing limit, moves to avoid default

December 31, 2012 @ 8:34 pm

AP Economics Writer

WASHINGTON (AP) - The U.S. government is running up against its $16.4 trillion borrowing limit and is taking steps to avoid default.

Reaching the limit Monday sets up another dispute between the White House and Congress over taxes and spending in the new year.

Treasury Secretary Timothy Geithner says the government will take a series of accounting measures to avoid defaulting on its debt. On Monday, it suspended the issuance of new debt for two government retirement funds. That step won't impact current retirees.

Last week, Geithner said the measures would save about $200 billion. That would typically avoid default for about two months. But Geithner said it is difficult to predict how long default can be avoided this time because of ongoing budget talks.


(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
More National News
Top Stories

  • One
    Microsoft calls its new Xbox 'truly intelligent TV'

  • Otherworldly
    Amazon has new plans for huge biospheres on its new campus

  • Nature's Reality Check
    We can conquer terrorism, cure cancer, but a tornado can remind us of our insecurity
MyNorthwest.com - Purpose of Comments statement
Bonneville Media encourages site users to express their opinions by posting comments. Our goal is to maintain a civil dialogue in which readers feel comfortable. At times, the comments can descend to personal attacks. Please do not engage in such behavior. We encourage your thoughtful comments which: have a positive and constructive tone, are on topic, are respectful toward others and their opinions. Bonneville reserves the right to remove comments which do not conform to these criteria.

Comments