U.S. Taps Exchange, Pension Funds as Debt Limit Looms

[Bush_Eats_Beef]

March 6 (Bloomberg) -- The U.S. Treasury today took steps to avoid slamming into the government's legal borrowing limit and to make sure the sale of a 10-year note goes ahead this week.

Treasury Secretary John Snow authorized the government to use the $15 billion available in the exchange stabilization fund on March 3 and issued a ``debt issuance suspension period'' to temporarily stop investments in the Civil Service Retirement and Disability Fund. The Treasury also redeemed some of the fund's current investments.

Today's actions by the Treasury provide ``only a few days of additional borrowing capacity, which we expect will be exhausted by mid-March,'' Snow said in a letter to House Speaker Dennis Hastert. ``Treasury has now taken all prudent and legal actions to avoid reaching the statutory debt limit.''

The moves were the second Treasury has taken in the last month to stay below the debt ceiling. They will ensure the Treasury can auction and settle the 10-year-notes scheduled to be sold this week and allow government operations to continue through mid-March. The Treasury said today it will auction $8 billion in 9 year-11 month 4 1/2 percent notes on March 9, and $18 billion in four-week bills at tomorrow's sale of the securities.

http://www.bloomberg.com/apps/news?pid=10000103&sid=amz.HoNLRL_0&refer=us



The US government, through a letter written by US Treasury Secretary John Snow, pictured in February 2006, issued an urgent warning to Congress to raise the national debt limit by mid-March or face a shutdown of federal operations(AFP/File/Denis Sinyakov)

[dchill]

1. "Debt Limit Looms"

OOH. And it's only the beginning of March. Talk about sound conservative fiscal policy. They're the "responsible adults."

[Bluebear]

2. The "conservatives". Not like us, tax and spend liberals.

:crazy:

[liberal N proud]

3. And the republicans continue to call themselves fiscally responsible?

BAH HUMBUG!

[Neil Lisst]

4. "Borrow and Spend" Republicans!!

I just want to say to all the so-called conservatives who have told me over the decades that Republicans would rein in spending and balance the budget ...

LIARS!!!!