U.S. Debt Problem only Beginning

The day after tomorrow represents the beginning of Washington’s debt-crisis end game, not the end of it.

The Treasury Department expects to exhaust its borrowing authority no later than Oct. 17, leaving the federal government with no more than $30 billion on hand. Depending upon daily tax receipts and incoming bills, the U.S. government could be forced to default on its obligations at any date thereafter — to bond holders and millions of Social Security recipients.

President Barack Obama said yesterday the U.S. now faces “a good chance of defaulting,” a development that would have a “devastating effect” on the economy. Though that would roil financial markets and risk triggering a global recession, the full effect will take time to unfold. Oct. 18’s dawn may seem little changed from that of the day before.


Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.