The United States will reach its $16.4 trillion borrowing limit on Dec. 31 and undertake “extraordinary measures” to avoid default, the Treasury Department informed congressional leaders in a letter on Wednesday.
"Given the significant uncertainty that now exists with regard to unresolved tax and spending policies for 2013, it is not possible to predict the effective duration of these measures," Geithner wrote.
Geithner said said the government has $200 billion worth of “extraordinary” actions it can employ to prevent default, typically by shifting funds from various nonessential purposes to essential government functions.
Under normal conditions, that would buy policymakers about two months to haggle over the debt limit before an increase would be required, Geithner said.
It would be great for the American people if the U.S. government were forced to stop spending, but that won't happen. With the crew currently in Congress, the debt ceiling will be raised. It's one bad drama, worse than Birdemic: Shock and Terror.