By Peter Schroeder – The U.S. government officially hit the federal debt limit Monday (5/16/11), prompting the Treasury Department to invoke new measures to prevent a default.
Treasury Secretary Timothy Geithner tapped into two government employee pension funds to free up cash, and warned in a letter to congressional leaders of “catastrophic economic consequences” if the ceiling is not hiked.
“Keeping the debt ceiling at its current level would force Congress to prioritize spending, but it would not force a default on our debt,” said Rep. Jim Jordan (Ohio), chairman of the conservative Republican Study Committee (RSC). “The only thing forcing a default would be Treasury Secretary Geithner allowing such a catastrophe to take place.” more> http://twurl.nl/k3hsgo
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