By Alan Fram
ASSOCIATED PRESS

March 18, 2002

WASHINGTON - Treasury Secretary Paul O'Neill told Congress on Monday that he will do whatever is needed to prevent a federal default if lawmakers fail to increase the government's borrowing limit soon.

Federal borrowing will approach the current $5.95 trillion legal ceiling on March 25 and will surpass it no later than April 1, O'Neill said in a letter to congressional leaders.

"In the absence of other actions, I will take the necessary steps to ensure the protection of the full faith and credit of the United States government," O'Neill wrote.

Because the debt limit is ensnared in a political fight over the budget, it is all but certain Congress won't raise the ceiling before beginning a two-week recess at week's end. President Bush wants lawmakers to raise the limit by $750 billion, which the administration believes would carry the government into 2004.

A federal default, which has never happened, is considered unthinkable because it would raise the government's borrowing costs and ripple through the world economy.

Last week, congressional aides and lobbyists said they expect O'Neill to avoid a default by shifting funds in a retirement account the government manages for civil servants. The maneuver would put tens of billions of dollars into an account that is not counted toward the legal debt limit, freeing up room for more federal borrowing.

O'Neill's letter did not specify what steps he would take.

But O'Neill will use the tools that President Clinton's Treasury secretary, Robert Rubin, used in 1995 and 1996 during a budget fight with the Republican-led Congress, said a Treasury official on condition of anonymity. Rubin's techniques included shifting the retirement funds.

Meanwhile, Senate Majority Leader Tom Daschle, D-S.D., is considering trying to push a debt limit increase through the Senate this week that would last until next March, said aides from both parties.

The move would let Democrats say they were not injecting politics into the debt limit debate and put pressure on GOP leaders in the House, where Republicans have a 222-211 majority with two independents.

Senate Republicans favor quick passage this week. But some Democrats want a shorter increase that would force another vote on the issue before the elections, giving them a chance to blame the borrowing on last year's GOP-authored tax cut.

House GOP leaders believe they cannot pass a debt limit increase unless it is attached to more attractive legislation like a forthcoming bill financing the war on terrorism.

Significant numbers of House Republicans oppose boosting federal borrowing, while virtually all Democrats are ready to oppose it because they say it is being forced by the Bush tax cut.



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paar sehr gewichtige Argumente - so aus der Luft - was die Gläubiger veranlassen wird die Schuldenlast auf unbestimmte Last zu strecken.

In Deutschland wird der Amerikacent eingeführt usw.

Außerdem auf Schröder ist Verlaß. Bisher hat er immer die Bereitschaft
gezeigt alles zu retten, was auf der Kippe stand.
Holzmann, Kirch, Intershop und Bankgesellschaft Berlin.

Also Amerika darf hoffen.

Das ist die erste Variante. Die zweite Variante ist - die Regierung USA
bietet für alle Gläubiger Schutz vor Terroristen als garantierte
Sicherheitleistung, gegen Schuldenerlaß versteht sich. Dann wird es
keine terroristische Attentaten mehr geben.

Aber in Wahrheit: nichts wird passieren. Vor Gericht werden Gläubiger
als schuldig befunden.

Gruß.

So ist das mit der Politik.

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Wenn die Verschuldungsgrenze wirklich erhoeht wird, dann fragt man sich doch langsam, warum solche Grenzen ueberhaupt eingefuehrt wurden. Beides, die Zahlungsunfaehigkeit ebenso wie das Erhoehen der Obergrenze sollte zu einem tiefen Vertrauensverlust gegenueber den USA fuehren.
Hatte Clinton nicht immer geprahlt, die USA seien bereits 2015 (?) schuldenfrei:-) *LOL*

pecunia

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