It turns out that the Obama’s administration’s self-imposed Aug. 2 deadline for reaching a debt-ceiling deal isn’t as drop-dead as we’ve been told. From the New York Times:
Thanks to an inflow of tax payments and maneuvering by the Treasury Department, the government can probably continue to pay all of its bills for several days after Aug. 2, providing potentially critical breathing room for Congress to raise the debt ceiling, according to estimates by several Wall Street banks and a Washington research organization.
The consensus is that the government will not run short of money until Aug. 10, when it would be unable to cut millions of Social Security checks without borrowing more money.
Note that, while some of us have observed in the past that the Treasury could continue making interest payments on the debt and meet its obligations on Social Security and essential defense even past Aug. 2, this report is talking about continuing to pay all the bills after Aug. 2.
Having a few extra days is no bad thing, given that House Republicans don’t want to pass Senate Majority Leader Harry Reid’s plan and that their own plan is is as much as 30 percent less effective than advertised.
It would be nice to have a GOP that is not just vocal about cutting spending but also competent at writing bills that, you know, cut spending. (Sigh.)
– By Kyle Wingfield