An Increase To The Federal Government’s Borrowing Limit Probably Will Have To Wait Until Next Year To Be Addressed

Posted By on December 4, 2010

We fully expect that the ‘can will get kicked down the road’ on this matter……

WASHINGTON…..An increase to the federal government’s borrowing limit is being considered in talks on extending the Bush-era tax cuts.  But that issue would be politically very toxic.

The current federal government debt limit stands at $14.3 trillion, a mark that may be reached by April or May. The federal government’s current accumulated debt stands at roughly $13.8 trillion.

Before hitting the debt limit, Congress must agree to an increase to the borrowing ceiling. Otherwise, the U.S. could be forced to default on its debt obligations.

If an increase in the debt ceiling is not included in a compromise on the tax cuts, lawmakers face a contentious political fight next year.

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