14. BUSHNOMICS - LET'S DEFAULT ON THE NATIONAL DEBT
Check this out: http://www.washingtonpost.com/wp-dyn/articles/A56227-2003Apr29.html
Treasury Says U.S. Could Face Default
By JEANNINE AVERSA The Associated Press Tuesday, April 29, 2003; 7:17 PM
WASHINGTON - The Treasury Department says the United States could face the prospect of not being able to pay its bills in late May unless Congress raises the government's borrowing authority, now capped at $6.4 trillion.
Treasury's debt managers have taken a number of steps since February to prevent the government from defaulting on the national debt, but "on current projections, the extraordinary measures taken since Feb. 20, 2003, will only be adequate to meet the government's needs until the latter half of May," said a statement released Tuesday.
After that - absent a boost in the government's borrowing authority by Congress - Treasury would breach the current $6.4 trillion ceiling on the national debt.
"The Treasury will continue to work with Congress to ensure the government's ability to finance its operations," Treasury said.
Treasury has asked Congress to boost the government's borrowing authority, although it has not suggested a specific amount. A proposal is pending on Capitol Hill that would raise the debt ceiling to $7.38 trillion.
Last year, Congress boosted the old debt limit by $450 billion, from $5.95 trillion to the current $6.4 trillion.
At that time Treasury warned that Congress would need to again increase the government's borrowing authority.
The government had to borrow a record $111 billion in the January-March quarter to cover the shortfall between expenses and tax revenue. It expects to borrow another $79 billion in the current quarter.
