US Takes New Accounting Extraordinary Measures To Avoid Debt Ceiling

Posted On 07 Mar 2015
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Tag: US adopt accounting extraordinary measures to prevent debt ceiling, US announce accounting extraordinary measures

The US Treasury Secretary, Jack Lew, announced the adoption of accounting “extraordinary measures” to prevent reached again the debt ceiling when the March 16 completed the extension granted in 2014 by Congress.

“Raising the debt ceiling does not authorize new spending commitments. It simply allows the government to pay for expenses that Congress has already approved, and thus protects the creditworthiness of the US,” Lew said in a letter to the president of the Chamber of Representatives, Republican John Boehner.

On March 16 the US again reach its debt limit, although the Treasury has warned that if leverages various accounting measures can tailor their accounts to have funds until October or early November.

Lew stressed the importance of raising the debt ceiling, currently at 18.1 billion dollars, “without controversy and partisanship”.

In February last year, Congress agreed, after a sharp dispute between Republicans and Democrats, stop spending ceiling provided that controls public accounts were applied to 2021 and pick up the March 16 at the level where you are .

Previously, the confrontation between the two parties on public finances caused in October 2013 the federal government is forced to partially close their operations for 16 days.

In the past, the Treasury had also resorted to these accounting strategies to keep the federal government funded.

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