Photo by: iStock.com iStock.com
Hide Caption

Study: US could default as early as Oct. 18

a a a a
Share this story

WASHINGTON — A new study predicts the United States could default on its obligations as early as Oct. 18 if Washington fails to agree on legislation to raise the government's borrowing cap.

The Bipartisan Policy Center analysis says the default date would come no later than Nov. 5 and that the government would quickly fall behind on its payments, including those for Social Security benefits and military pensions.

The think tank's estimate is in line with a warning last month by Treasury Secretary Jacob Lew that the government would exhaust its borrowing authority by Mid-October and be left with just $50 billion cash on hand.

The government has never defaulted on its obligations. Raising the $16.7 trillion borrowing cap promises to be a major struggle for House Republicans and President Barack Obama.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Print this article

Comments

Hmm... It looks like you’re not a WCPO Insider. or Subscribe now to contribute!

More National News
U.S. power grid vulnerable, experts warn
U.S. power grid vulnerable, experts warn

“The destruction of more than three transmission substations would cause long-term blackouts in many areas of the country,”…

Local runners make emotional return to Boston
Local runners make emotional return to Boston

Several local runners are heading to Boston this weekend to make a statement to the world.

Obama: Anti-Semitic Ukrainian leaflet sickening
Obama: Anti-Semitic Ukrainian leaflet sickening

President Barack Obama's national security adviser says anti-Semitic leaflets distributed in Ukraine were "utterly sickening"…

Ohio woman finds bird leg in Dole spinach bag
Ohio woman finds bird leg in Dole spinach bag

An Ohio woman, who eats a salad nearly every day and makes spinach smoothies, has lost her appetite for her favorite vegetable after making a…

Boston Marathon runner: 'Let's show these jerks'
Boston Marathon runner: 'Let's show these jerks'

After running more than 25 miles, exhaustion was setting in for Roswitha Goossens-Winter, but she was determined to complete the 2013 Boston…

Mich. judge to woman: 'I hope you die in prison'
Mich. judge to woman: 'I hope you die in prison'

If a judge could throw the book at a woman, he managed to do so Wednesday.

Confession: Dad kills son to play video games
Confession: Dad kills son to play video games

A 24-year-old Florida man confessed to killing his crying infant Thursday morning so he could continue playing Xbox games, according to the…

Baby squirrel gets cast for broken ankle
Baby squirrel gets cast for broken ankle

What a sweet little baby squirrel. 

Michaels confirms breach of up to 2.6M cards
Michaels confirms breach of up to 2.6M cards

Michaels Stores Inc. said Thursday that about 2.6 million cards, or about 7 percent of all debit and credit cards used at its namesake…

FDA may back off on new craft beer regulations
FDA may back off on new craft beer regulations

The FDA may be backing off from proposed changes that would have affected brewers and farmers across the nation.