IT'S OFFICIAL: We've Hit The Debt Ceiling, Geithner Implements Emergency Measures

Business Insider ^ | 05/16/2011

[SeekAndFind]

Just announced on the Treasury department blog...

Today, the United States has reached the statutory debt limit. Secretary Geithner sent the following letter to Congress this morning alerting them to actions that have be taken to create additional headroom under the debt limit so that Treasury can continue funding obligations made by Congresses past and present. The Secretary declared a "debt issuance suspension period" for the Civil Service Retirement and Disability Fund, permitting Treasury to redeem a portion of existing Treasury securities held by that fund as investments and suspend issuance of new Treasury securities to that fund as investments. He also suspended the daily reinvestment of Treasury securities held as investments by the Government Securities Investment Fund of the Federal Employees’ Retirement System Thrift Savings Plan. For more information on these measures, please read this FAQ.

Last Friday, Secretary Geithner also responded to an inquiry from Senator Bennet regarding the fiscal and economic consequences of failing to increase the debt limit. That letter can be found here.

Secretary Geithner continues to urge Congress to raise the debt limit in a timely manner in order to uphold the full faith and credit of the United States.

[CodeToad]

In other words: We’re going to cut police and fire services and cut pensions until you agree to imcrease the debt limit, holding people effectively hostage.

Me? I’d call their bluff. Go ahead, Obama, cut services. They need to be cut.