BPC: Treasury Could Have Trouble Paying Bills on February 15, 2013, Will the Treasury Mint a Trillion Dollar Platinum Coin? (White House Press Briefing) - Updated

Source: BPC Debt Limit Analysis (see presentation slides below)
Uh oh, according to the Bipartisan Policy Center, the U.S. government "will be unable to pay all of its bills as early as February 15" (2013). The Treasury already hit the debt ceiling on December 31, 2012, so it is now running on fumes.

“Based on financial data from Treasury, we estimate that the government will be unable to pay all of its bills as early as February 15, also known as the X Date” said Steve Bell, Senior Director of the Economic Policy Project at BPC. “Our numbers show that we have less time to solve this problem than many realize. We estimate that Treasury will exhaust its borrowing authority and no longer have sufficient funds to meet its obligations in full and on time at some point between February 15 and March 1. It will be difficult for Treasury to get beyond the March 1 date in our judgment.”
"In addition to prioritization of payments, Treasury must also roll over roughly $500 billion in debt that matures in the February 15-March 15 period. Finally, BPC predicts that a debt limit increase of $1.1 trillion would be needed to fully fund the government through the end of 2013 and another $1 trillion through the end of 2014."

Hat tip Politico. So is the U.S. Treasury going to mint a trillion dollar platinum coin? Read what the former mint director who wrote the ‘trillion-dollar coin’ law had to say at Gawker. Below is BPC's 'Debt Limit Analysis' (pdf source: bipartisanpolicy.org) and the White House press briefing from earlier today on the debt ceiling and trillion dollar coin. Here are more opinions on the trillion dollar platinum coin idea from economist Paul Krugman, Joe Weisenthal of Business Insider, Zero Hedge, Steve Randy Waldman of Interfluidity, John Carney of CNBC, and Bank of America via Zero Hedge.





Comments

  1. The presentation actually says that the U.S. HAS hit the debt ceiling. The graph is showing that the Treasury will run out of money by March 1st (and it's going to have some tough decisions to make - this will be 2008 all over again).

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  2. True, the 'X Date' of the ceiling's extension. Probably should have titled it: U.S. could run out of cash on February 15.

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  3. This is better: Government Could Have a Tough Time Paying Bills on February 15, 2013

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  4. Sounds good. Obama has already positioned a Budget "expert" to deal with this mess. I read in a highly prolific blog that "the breaching of the debt ceiling" is no big deal, because "Greece, Spain, etc." have got through highly deficitary budgets for the past few years. They forgotto mention that the police has had to control the population.

    If the US can't realize what this has come to - the same deals that a lot of countries fought against, such as austerity and other monetary measures - it will be a very painful ordeal.

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  5. yes, the automatic spending cuts (the "sequester") on March 1, 2013 is austerity.

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