US Treasury Secretary Warns Republicans Government Cash Will Run Out October 17

Treasury Secretary Jack Lew said Republicans aren’t working fast enough to extend the debt limit—and the consequences of inaction are dire.

“If you look at the calm out there, which I think is a bit greater than it should be, there’s a sense that 2011 was a terrible experience and nobody would do that again,” Lew said Tuesday at the Bloomberg Markets 50 conference in New York. “People have to take seriously the fact that Congress has a lot of work to do in a short period of time and the consequences of their failure are very substantial.”

Lew also said the U.S. is almost out of money, and said in a letter to Congress Wednesday that Oct. 17 is the likely deadline when “extraordinary measures” will run out.

“It will be the middle of October when we are left with just cash–no more ability to go out and borrow unless Congress acts,” Lew said at the conference.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza