White House Says Debt Deal Must Be Reached By July 22nd
Timothy Geithner has said that we have until August 2nd before the nation would officially be in danger of defaulting on its debt, but the White House now says that a deal has to be reached by July 22nd in order avoid a default:
WASHINGTON — The White House believes it must strike a budget deal with Congress by July 22 to avoid a risk of defaulting on the national debt, Democratic officials briefed on the negotiations said Thursday, as Senate leaders canceled a recess next week to try to break the deadlock with Republicans.
The July 22 date looms large, the officials said, because it will take lawmakers at least a week to draft a bill and get it through two houses before Aug. 2. That is the day when, officials say, the government will reach its debt ceiling and no longer be able to borrow what it needs to keep operating and repay existing debt.
That’s 21 days away. The August 2nd deadline, in the meantime, is 32 days away. Anyone think we’ll do anything other than wait until the last possible minute to reach an agreement?