Tim Geithner Will Let Us Borrow For A Little While Longer
Thanks to "extraordinary measures" and "tax receipts."
By taking “extraordinary measures,” the U.S. can keep borrowing until Aug. 2 after reaching its $14.29 trillion legal debt limit no later than May 16 unless Congress acts, Treasury Secretary Timothy F. Geithner said.
The Treasury Department will take steps starting this week to provide additional borrowing room, Geithner said in a letter today to Senate Majority Leader Harry Reid, a Nevada Democrat, and other congressional leaders. The Treasury pushed the August deadline back from July 8 “as a result of stronger-than- expected tax receipts,” Geithner said. The May 16 date is unchanged from an estimate he made last month. Geithner said the Treasury on May 6 will stop issuing State and Local Government Series securities. The bonds, known as SLGS, “fund a variety of expenditures, including infrastructure improvements across the country,” he said.
