01-04-2013, 12:37 PM
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Choice is an Illusion
Industry Role:
Join Date: Feb 2005
Location: Land of Obama
Posts: 42,635
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When the two months expire, Treasury will no longer be able to pay the country's bills
Quote:
Last week, Treasury Secretary Tim Geithner made it official: Federal borrowing has reached the $16.394 trillion debt ceiling.
Treasury, which runs the government's debt-issuance operation, is busy creating about $200 billion of headroom by employing what it calls "extraordinary measures." That should cover about two months' worth of borrowing.
When the two months expire, Treasury will no longer be able to pay the country's bills -- that is, it won't be able to borrow more money to pay for spending already authorized by Congress.
If Congress does not act to raise the debt ceiling, the U.S. will default on its debts. Not good. But this is where the platinum coin comes in. Normally, the Federal Reserve is charged with issuing currency. But U.S. law, specifically 31 USC § 5112, also grants Treasury permission to "mint and issue platinum bullion coins and proof platinum coins."
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Enough Said. 
"Would you rather live like a king for a year or like a prince forever?"
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