Lew Warns Congress of Manufacturing Crisis if Debt Ceiling Not Raised

Congress risks “manufacturing crisis” by prevaricating over raising the debt ceiling, Treasury Secretary Jack Lew said in an opinion piece Monday in USA Today.

Unless the cap is raised beyond the current limit of $18.1 trillion, the Treasury is seen running out of money to pay bills in full and on time by Tuesday next week. It would then be left with only incoming taxes and fees to cover expenses, which will be insufficient.

“We are on track for further economic growth — yet with eight days, as of Monday, until Treasury runs out of borrowing authority on November 3, some in Congress are endangering this progress by once again manufacturing a crisis for our country. By waiting to the last minute to act on the debt limit, Congress could cause a terrible accident,” Lew wrote in USA Today.

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