U.S. at borrowing limit, moves to avoid default

U.S. Secretary of the Treasury Tim Geithner is interviewed by Bob Schieffer for the December 2nd edition of "Face the Nation."

WASHINGTON The U.S. government is running up against its $16.4 trillion borrowing limit and is taking steps to avoid default.

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Reaching the limit Monday sets up another dispute between the White House and Congress over taxes and spending in the new year.

Treasury Secretary Timothy Geithner says the government will take a series of accounting measures to avoid defaulting on its debt. On Monday, it suspended the issuance of new debt for two government retirement funds.

• Full coverage of the "fiscal cliff" negotiations

Last week, Geithner said the measures would save about $200 billion and avoid default for about two months.

Geithner said it is difficult to predict how long default can be avoided because of ongoing negotiations over tax and budget policies.

The debt limit is the amount the government can borrow to help finance its operations.

[vsmit]

Those suckling the teat of the government don't care. That is why the senate passed a tax increase of $600B over 10 years to address a $1.1T per year deficit. And kicked the can down the road on maybe possibly potentially spending cuts. And the media is cheering them on for this brave, bold action.

[magnumdr]

Just do like the rest of us do. If you can't afford it, don't buy it!

[empirebuilder]

Geitner was spouting spending for four years now he is in a panic... geez....no wonder he can't even use Turbo Tax programs... this guy is pathetic...a real SOT would have called out the downsides when the problems (Obamacare, Stimulus, etc) were being formulated, not after the fact. Ideology trumps real world issues.

[Weallhaveone]

16.4 Trillon dollars!!!!!!!! is all they can borrow? $16,400,000,000,000.00 Best part is zero down so the full weight of borrowing is felt. All that get paid from tax need a real pay cut.

[Ulgnud]

How many times do they need to be told. Cut the spending. If you spend less than you bring in the deficit will go down.

[venusvegasvada]

Thanks Congress!

Keep on doing nothing you losers while everyone else in the world has to jump out of their @ss to keep you morons in office.

Congress: DO YOUR @#$@ING JOB!!!!!!!!!

[MidRoadAlone]

Perhaps you forget that the president is responsible for submitting a budget to congress. Congress can amend it and authorizes the spending. The president needs to seriously cut his liberal agenda and cut spending - taxing the wealthy isn't the only answer.