Monday, May 16, 2011

US reaches $14 trillion debt ceiling and has now begun urgent move to cut spending to avoid breaching the limit: BREAKING NEWS

The US has reached its debt limit of $14.3 trillion (£8.6tn) and is taking measures to cut spending to avoid breaching it.

Treasury Secretary Timothy Geithner has said that he will suspend investing into two large government pension funds.

This delays any breaching of the limit to 2 August.

Congress is currently negotiating an increase to the limit, without which the US risks defaulting on its debt.

"I have written to Congress on previous occasions regarding the importance of timely action to increase the debt limit in order to protect the full faith and credit of the United States and avoid catastrophic economic consequences for citizens," Mr Geithner said in a letter to Congress.

"I again urge Congress to act to increase the statutory debt limit as soon as possible." (read more)