[Guest post by DRJ]
The U.S. national debt hit $12.135 trillion and now exceeds the legal Debt Limit of $12.104 trillion approved by Congress in February. But the Obama Administration’s Treasury Department knows how to get around it:
“A senior Treasury official told CBS News that the department has some “extraordinary accounting tools” it can use to give the government breathing room in the range of $150-billion when the Debt exceeds the Debt Ceiling.
Were it not for those “tools,” the U.S. Government would not have the statutory authority to borrow any more money. It might block issuance of Social Security checks and require a shutdown of some parts of the federal government.”
The government’s solution is to increase the Debt Limit by another $290B. They wanted more than that, but Republicans and conservative Democrats blocked a move “to pass a $1.8 trillion dollar increase in the Debt Limit so the Democratic majority would not have to face the embarrassment of raising the Debt Limit yet again before next November’s midterm elections.”