PrintMay 10, 2011
Proposition Twenty
Americans are increasingly worried about the federal government's staggering burden of debt. The federal government's gross federal debt (debt held by the public plus intragovernmental obligations) will blow past $15 trillion by the end of September. That will just surpass 100% of projected GDP, a level seen in our history only at the end of World War II. With a government shutdown narrowly averted on April 8, members of Congress are gearing up for an even more ominous battle. In an April 4 letter to Senate leader Harry Reid, Treasury Secretary Tim Geithner explained that on May 16, the Treasury will reach its statutory debt limit. If Congress fails to raise the debt limit by that date, the Treasury can buy two more months by various extraordinary maneuvers. But by mid-July, with no agreement, the United States government cannot borrow money to meet its obligations, therefore becoming insolvent.At some point during this timeframe, there will be a...(Read Full Article)
