Report: Debt ceiling to be reached sooner than expected

Treasury Secretary Timothy Geithner's signature appears on a freshly printed $20 bill. / Mark Wilson/Getty Images

The U.S. has just over a month until its borrowing limit is maxed out, which could possibly prevent the government from paying some of its bills, according to a new report by the Bipartisan Policy Center.

The authors of the report say the debt limit could be reached as early as February 15 but can happen anywhere between that date and March 1. They took into consideration the announcement by Treasury Secretary Timothy Geithner late last month that the debt ceiling was reached on December 31 but that the Treasury Department implemented "extraordinary measures" to prolong the consequences by rearranging some money and funds. Geithner's actions freed up $201 billion of federal funds to keep the government from defaulting on its bills.

• Obama: Not raising debt ceiling could be "catastrophic"
• Obama won't battle with Congress over debt ceiling

The Bipartisan Policy Center notes that the federal government has a lot of expenditures in the month of February, including starting to pay out tax returns. The report also details what could happen if the debt ceiling was reached, stating the federal government would have to prioritize spending and default on some of its bills.

The report comes as the new Congress prepares to reconvene next week and the president gears up for his second inauguration. Both Mr. Obama and congressional Republicans are primed for a fight on how to solve the debt limit debate - the president said over the weekend he won't negotiate over raising the nation's debt limit, saying "one thing I will not compromise over is whether or not Congress should pay the tab for a bill they've already racked up."

Senate Minority Leader Mitch McConnell, R-Ky., meanwhile, said on NBC's "Meet the Press" Sunday, "We simply cannot increase the nation's borrowing limit without committing to long-overdue reforms to spending programs that are the very cause of our debt."

[TimeToEvolve]

We should cut spending but not on vital social programs which is what the idiot Republicons want to do.

Let's cut military spending which is tax money being used to do imperial takeovers of foreign nations for Wall Street.

The main issue is tax revenue which is a result of failed Republicon policies of corporate welfare since Reagan. So why should be negotiate with wackos on the right who make Reagan look like a Democrat? Honestly.

[habu_71]

Protect social programs, cut military spending, and failed ruling class "right wing" policies and spending.

Karl, this time you failed to mention Social utopia will come forth when the poor, captive proletariat who needs to rise up against the bourgeois land owners and corporate managers so the State can own and distribute everything "for each based on his needs, from each according to his work."

[hillzagain]

RepubliCon_Liar_RobMe replies:
By the way, the Republ-'cons' of that particular Senate of the 110th congress (January 2007 to January 2009) set an all time record for filibusters during those 2 years.
________________________________________

When you refuse to compromise and arrogantly try to push forward your agenda without trying to find common ground with your opposition, you will get filibustered if a filibuster is possible.

The way to overcome a filibuster is to compromise and get a filibuster proof bipartisan majority of 3/5th's of the Senate. Then yoiu put the bill to a vote.

Looks like the fault for all the filibusters lies with the Democrats for being arrogant and uncompromising.

[TimeToEvolve]

Boner: "we will negotiate but we won't compromise". How do you talk to someone like that?

The problem is that the Republicons have made it clear they only care about rich white men on Wall Street. So what makes you think anyone should even consider that idiocy?

[TimeToEvolve]

Great post below Republicon Liar Robme. The same half wit reactionary bozos complaining about the spending and the debt are the ones who did it in the first place.

This is my problem with Republicons. They think that anything is fine as long as they do it. And you need to listen to what they say not what they do. Amazing stuff.

[hillzagain]

From this post, one can only assume that you favor continued spendin? That must be OK since your justification is that people spent too much in the past, so it must be OK now and in the future.

What you know of the world time, you could only have read in a book, which is surprising since you never made it past the 3rd grade.

[TimeToEvolve]

We have a revenue problem that really started when Reagan did his tax cuts. Since Reagan the middle class in America had been disappearing replaced by very rich and a lot more poor.

[TJphoto]

Here's a simple solution. "Stop spending money you don't have". Oh, I'm sorry, I'm talking to the Government.

[TimeToEvolve]

That goes for the giant Wall Street corporations like the Banksters too. Oh wait they have all of our money already.

[pleaseletitbeso]

Shut it down.


One of the many definitions of insanity is repeating the same ignorant process over and over again ( raising the debt ceiling ) expecting a different outcome.

It is impossible to spend your way out of debt.

[tsigili]

Obama is spending faster than the money is even coming in.

[davidd5063]

24LOMAS is a typical, uninformed GOPer/Tea Partier with a great big ARITHMETIC problem - the result when these people try to "force their opinion" on the sane who are capable of arithmetic - catastrophy. Americans will regret giving the GOP even a majority in the House since they will continue to use that position to TERRORISE the economy, obstruct progress, and of course, blame it all on Obama. Setting everything up nicely to DELAY tax returns aren't they.

[chevyhotrod]

Progress is not creating more and more debt. You cannot spend your way to prosperity. The buck stops with the President and he will be responsible for all the debt collected during his terms in office, just like all past Presidents have been. In the next 4 years, President Obama will have collected more debt and deficits than ALL others President combined. You must be one of those people that bought a house they could not afford and then blame it on someone else when the bank foreclosed on you. American cannot afford more and more debt and what is TERRORISING our economy is debt & deficits.

[24lomas]

just cut federal spending; cut the salaries of federal worker; cut the salaries of all politicians; do not give money to countries and illegal aliens. we cannot afford debt ceiling increases each year. no more debt ceiling increases. cut government spending (salaries and programs).