Friday, December 30, 2005

Time to raise the debt ceiling

Snow urges Congress to raise debt limit:

WASHINGTON (Reuters) - U.S. Treasury Secretary
John Snow warned lawmakers on Thursday that a legally set limit on the government's ability to borrow will be hit in mid-February and urged Congress to raise it quickly.

Failure to do so potentially risks throwing the country into its first default in history, Snow warned in what has become virtually an annual rite as U.S. borrowing needs spiral.

"The administration now projects that the statutory debt limit, currently $8.184 trillion, will be reached in mid-February 2006," Snow said in a letter to 21 members of the U.S. House of Representatives and Senate released by Treasury after financial markets had closed.

Time to print more monopoly money. It's a good thing the Fed will stop reporting M3 next year.


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