GOP bill could delay debt showdown
The so-called "small goverment" Republican Party avoids taking any action or
cutting a single penny from the budget.
November could become the new deadline for a showdown between the White House and Congress over the debt ceiling.
The House is set to vote on a Republican debt prioritization bill next week that could, if adopted, extend the real debt deadline into November, experts said Friday.
Currently, the debt ceiling is set to come back into effect on May 19. After that, Treasury Secretary Jack Lew can take “extraordinary” measures to keep the debt at $16.4 trillion before the government has to start defaulting on payment obligations reports The Hill.
Bipartisan Policy Center analysts Shai Akabas and Brian Collins last week estimated that the extraordinary measures can likely extend the real debt deadline until between early September and October.
The Republican bill — the Full Faith and Credit Act — would add a month more, if adopted, they said Friday.
The bill would allow the Treasury department to incur new debts just to pay bondholders and Social Security trust fund payments.
Akabas and Collins said this would allow Treasury to make about $150 billion in bond payments after May 19 and before November, when it would not be possible to avoid missing other payments.
Republicans say their bill takes “default” off the table.
Dr. Michael Savage
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