The Republicans are proposing to "suspend" but not "raise" the debt ceiling until May 19. In other words, for the next 4 months, there will be NO LIMIT AT ALL on the debt ceiling. Now is your chance Krugman & Co., you can run wild. How much would you spend if you had a credit card with NO LIMIT on it?
"Under the proposal, the legal limit on government borrowing — now set at $16.4 trillion — would remain intact, but its enforcement would be suspended until May 18. In the meantime, the Treasury could continue borrowing to cover the cost of Social Security checks, the military payroll, interest payments to the nation’s creditors, and other obligations.
The approach — unprecedented since World War II — would let Republicans avoid a debt-ceiling fight, which could be politically and economically damaging, without endorsing a higher limit.
On May 19, the debt limit would automatically be reset at a higher level that reflected the additional borrowing. Treasury officials could then begin taking what they call “extraordinary measures” to continue paying the nation’s bills, probably pushing the new default deadline into late July or early August, independent analysts said."
--Washington Post
Oh, by the way, this also means the scheduled constitutional crisis with the quadrillion dollar platinum coin will be postponed.
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