Debt Ceiling Deadline

Reuters reports that the the likely target for a debt ceiling deal will be July, as opposed to this month:  Debt limit debate likely to stretch to July (as the current drop dead date, so to speak, appears to be August 2nd):

Treasury Secretary Timothy Geithner is preparing special funding maneuvers to avoid default and delay the hard deadline to August 2.

For now, Wall Street is betting on a deal, although analysts told Reuters that lawmakers may not reach an agreement until the 11th hour.

What is becoming increasingly clear is that a May agreement is highly unlikely. July is shaping up as the best window of opportunity for Congress to increase the debt limit to keep the government credit card valid through the November 2012 U.S. elections.

As such, it would appear that any drama on this issue will be postponed until the middle of the summer season.

FILED UNDER: Deficit and Debt, Quick Takes, US Politics
Steven L. Taylor
About Steven L. Taylor
Steven L. Taylor is a Professor of Political Science and a College of Arts and Sciences Dean. His main areas of expertise include parties, elections, and the institutional design of democracies. His most recent book is the co-authored A Different Democracy: American Government in a 31-Country Perspective. He earned his Ph.D. from the University of Texas and his BA from the University of California, Irvine. He has been blogging since 2003 (originally at the now defunct Poliblog). Follow Steven on Twitter

Comments

  1. Southern Hoosier says:

    As such, it would appear that any drama on this issue will be postponed until the middle of the summer season.

    Another kick the can down the road.

  2. markm says:

    I’m confused (which….isn’t out of the norm). But are there multiple similar but different things going on here?:

    Treasury Auctions To Take US Over Debt Ceiling On Monday

    http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201105111542dowjonesdjonline000477&title=treasury-auctions-to-take-us-over-debt-ceiling-on-monday

    Awhile back, the due date was late May. A week or two ago, Geithner said, due to some accounting trickeration, we had until August. Now, it appears to me that we are back at mid/late May.

    Have ya got a copy of Debt Ceiling for Dummies layin’ around???

  3. hey norm says:

    markm…call it creative accounting. shuffling money between funds (to the extent thats legal) and paying what needs to be paid while deffering what can be deffered.

    i’m so freakin’ excited that we can put this off for another few months. there’s nothing like a long hot summer of listening to the fiscal frauds on the republican side posture for their base.

  4. G.A.Phillips says:
  5. markm says:

    hey norm,

    I get the trickeration with the numbers….I just find it odd that not too long ago, the hubbub was that we were RAPIDLY approaching the debt ceiling which was mid/late May. The politico’s went into chatter mode…this was serious.

    Then it was announced that we would have more time than initially thought. We now had until August before this was an official crisis.

    NOW we are back to an official crisis come Monday.

    It just seems outside the norm of political oddities to me.

  6. And, yet again, someone (i.e., GA) conflates the debt ceiling with the debt.

  7. Hey Norm says:

    SLT…
    It’s not their fault…they follow their cult leaders and their cult leaders don’t know any better either. Check out Boehners speech from the other day – it was so full of economic fallacies and myths that the transcript should be labeled fiction. But you see these fiscal frauds repeat the same crap day in and day out as fact. It’s no wonder they turned a surplus into deficit. Their understanding of economics is child-like.

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