by Tyler Durden
When Tim Geithner announced an hour ago that the US debt ceiling will officially be "
risen above"
on December 31, he stated that there are approximately two months in
which the Treasury can take emergency measures to delay the actual debt
ceiling breach, a moment in time which we believe will take place some
time in March. Upon further reflection, with the automatic spending cuts
and tax hikes that will take place on January 1, the irony is that the
debt ceiling extension may last materially longer due to a substantial
reduction in the US budget deficit, potentially pushing the final
threshold to as late April or even May which means the political theater
is going to last for even longer than we expected - something which
both parties now appear set to capitalize on as much as possible. So the
question now is what are the options before Tim Geithner and what are
the "emergency measures" the Treasury take to delay the inevitable
moment when one of three things happens: i) the US hikes its ceiling,
ii) the US begins living within its means, iii) the US defaults on its
debt.
http://www.zerohedge.com/news/2012-12-26/us-treasury-rises-above-debt-ceiling-now-what
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