{"id":24475,"date":"2017-03-17T06:17:48","date_gmt":"2017-03-17T06:17:48","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=24475"},"modified":"2017-03-17T06:17:48","modified_gmt":"2017-03-17T06:17:48","slug":"borrowing-authority-expires-treasury-stops-issuing-debt","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/news\/borrowing-authority-expires-treasury-stops-issuing-debt.html","title":{"rendered":"As borrowing authority expires, Treasury stops issuing debt"},"content":{"rendered":"

\n\tAs borrowing authority expires, Treasury stops issuing debt<\/span><\/span><\/strong><\/span>
\n<\/h2>\n

\n\tAs borrowing authority expires, Treasury stops issuing debt:- The Treasury Department took steps to stop borrowing money Thursday as its legal authority to raise the national debt expired.<\/span><\/span><\/span>\n<\/p>\n

\n\tTreasury Secretary Steven Mnuchin said he's taking "extraordinary measures" to keep from borrowing money, ending a 16-month congressional reprieve from the perennial debate about the debt ceiling. Among those measures: suspending investments in pension funds for federal and postal employees though July.<\/span><\/span><\/span>\n<\/p>\n

\n\tMnuchin previously suspended a bond financing program for state and local governments.<\/span><\/span><\/span>\n<\/p>\n

\n\t"I respectfully urge Congress to protect the full faith and credit of the United States by acting to increase the statutory debt limit as soon as possible," Mnuchin wrote in a letter to congressional leaders Thursday.<\/span><\/span><\/span>\n<\/p>\n

\n\tSenate Majority Leader Mitch McConnell, R-Ky., said this week that Congress will "obviously" raise the debt limit, but wouldn't say when. In the past, Congress has tied the raising of the debt limit to broader budget reforms.<\/span><\/span><\/span>\n<\/p>\n

\n\tOn Tuesday, the national debt went up $44.5 billion — the largest single-day increase so far this year.<\/span><\/span><\/span>\n<\/p>\n

\n\tWith the debt limit now frozen at Wednesday's level of about $19.9 trillion, the government must now subsist on whatever cash reserves it has on hand, plus tax revenue that comes in. The Bipartisan Policy Center, a think tank that tracks the debt limit, says the government can probably operate through October unless there are significant changes in taxes or spending before then.<\/span><\/span><\/span>\n<\/p>\n

\n\tThursday also happened to be the day President Trump sent a preliminary budget proposal to Congress — and an emergency spending request that would add $15 billion to the deficit this year.<\/span><\/span><\/span>\n<\/p>\n

\n\tBut Office of Management and Budget Director Mick Mulvaney said Thursday the president didn't yet have a long-term plan to reduce the budget deficit.<\/span><\/span><\/span>\n<\/p>\n

\n\t"It’s a good question. It's a fair question. I would just suggest to you that it’s not the right time for the question," he said. "The budget does not deal with the debt. It doesn’t even deal with the deficit.<\/span><\/span><\/span>\n<\/p>\n

\n\tSource:- http:\/\/www.usatoday.com\/story\/news\/politics\/2017\/03\/16\/borrowing-authority-expires-treasury-stops-issuing-debt\/99266342\/<\/span><\/span><\/span><\/p>\n

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