U.S. GOVERNMENT ON THE BRINK OF BANKRUPTCY?
January 9, 2006
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 The U.S. government is about to reach the $8.18 trillion borrowing limit it set for itself by law. If Congress does not enact a new borrowing limit soon, the government could default on its financial obligations as early as March, a press release at PRNewswire said on Saturday. But a new borrowing limit just means the government will go deeper in debt. The Treasury Department has already warned Congress of the danger. In a Dec. 28, 2005, letter, Treasury Secretary John Snow stated, “the statutory debt limit, currently $8.184 trillion, will be reached in mid-February 2006… [U]nless the debt limit is raised or the Treasury Department takes authorized extraordinary actions, we will be unable to continue to finance government operations.” Read more
