You just knew this was coming:

Although failing to raise the debt ceiling by the early August deadline would plunge the United States into a sea of uncertainty, the government might be able to pay the bills and avoid a default on obligations for longer than expected, economic analysts said.

As lawmakers and President Obama rush to craft an agreement to increase the $14.3 trillion debt ceiling, the Treasury Department is standing by its estimate that the government will need to borrow more money after Aug. 2 to pay for all its obligations.

But several new reports — from UBS, Barclays and Wells Fargo — have cast doubt on that estimate. Analysts have said that daily tax receipts have been higher than anticipated and that the Treasury has quite a bit of cash on hand.

As of Friday, according to the Treasury, the government had $85 billion in cash.

UBS estimates the government would run out of money to pay all bills no sooner than August 8.

And have you noticed that usually there’s not a problem in the world that the Treasury can’t solve by firing up the printing press, but in this case Turbo Tim & Company are acting entirely hamstrung by the situation?

Whatever happens, I’ll bet a hundred bucks that they manage to find enough money to pay two things: Congress and the IRS.

Comments

5 Responses to “Economists: Hey, Maybe the US Won’t Default on August 3rd”

  1. cdl on July 26th, 2011 1:43 pm

    Maybe there's a 30 day grace period too.

    I wish I was expert enough to say one thing and then the exact opposite, and still be taken seriously.

  2. Marshall_Will on July 26th, 2011 2:06 pm

    Funny!

    This is becoming like the tv show "Lost". There's this code someone has to enter into the computer every… 128 minutes or… the world as we know it will cease to exist! So poor Desmond is locked away in this bunker wondering what could possibly happen if he just says the hell with it?

    You'll recall in the show, magnetic fields began to collapse and all hell DID break loose. One of the most dramatic moments of the show. Since much of it was theology-based, it was meant to exhibit WHY we have conventions and norms. WHY certain articles of faith are adhered to without question.

    But as with all things Obama, if he's portraying this as a similar mag. field collapse ( you know it's BS )

  3. SignPainterGuy on July 26th, 2011 2:39 pm

    Did the boy who cried, "WOLF !" actually and finally get eaten by the wolf ?

    It`s time for the R leadership in the house and senate too to do nothing other than CALL ZERO`S BLUFF !

  4. Marshall_Will on July 26th, 2011 5:03 pm

    Obie ( as usual ) is turning this into another media sensation by treating uh… the future of the Country w/ the same level of class as a divorcing couple that no longer wish to keep their Park Ave. apartment?

    They both know it's going back to the bank. The only squabble is, ( who's going to take the hit on their credit report? ) In an UP market they fight over who gets to KEEP it! In a down market it's musical millstones.

    The GOP is trying… to negotiate in earnest and all they're dealing with is Zsa Zsa Teh One Gabor. How is it possible NPR, PP and a thousand other agencies and Dept's aren't ALREADY on the chopping block? Prized poodles?

  5. SignPainterGuy on July 26th, 2011 6:52 pm

    I be lovin` yer analogies; they`re gettin` better and better ! Good form !

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