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U.S. to exhaust borrowing capacity by October 17: Treasury

October 4, 2013 9:23 am Published by

U.S. Treasury Secretary Jack Lew warned Congress on Wednesday that the United States would exhaust its borrowing capacity no later than October 17, at which point it would have only about $30 billion in cash on hand. The Republican-led House of Representatives insisted on delaying President Barack Obama’s healthcare reform – dubbed Obamacare – as a condition for passing a bill, leading to a US Government shut-down. More than 700,000 federal employees face unpaid leave with no guarantee of back pay once the deadlock is over. It is the first shutdown in 17 years and the dollar fell early on Tuesday.

Mr Obama will miss two summits, including the Asia-Pacific Economic Co-operation (Apec) meeting in Indonesia. The decision was made due to the “difficulty in moving forward with foreign travel in the face of a shutdown”, the White House said. The US government closed non-essential operations after the two houses of Congress failed to agree a new budget.

There is currently no end in sight until the next crisis hits Washington around October 17, where the US Government will run out of cash to pay its bills unless the debt ceiling is raised. The waiting game begins!

 

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This post was written by Kayleigh Driscoll

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