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The Water Cooler
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U.S. ratings downgrade imminent
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<blockquote data-quote="Spata" data-source="post: 2316931" data-attributes="member: 1455"><p>The government's spending pace in 2013 has been $13.3 billion a day while tax receipts have averaged $10.8 billion, according to Capital Economics. That leaves a daily shortfall of $2.5 billion. Treasury will have to start dipping into the nearly $36.5 billion in reserves it is holding to cover that shortfall, meaning the government can still run for about 14 more days. That, though, is probably too optimistic an outlook. "Because tax revenues fluctuate and spending obligations are not spread out evenly, the Treasury is likely to exhaust its reserves before then," Paul Dales, senior U.S. economist at Capital, said in a report. Looking at the government's schedule of upcoming payments, Dales sees the key dates coming as an Oct. 31 debt interest payment of $6 billion and a $57 billion payment the following day to cover Social Security, Medicare, military and income support payments. There's also a big $15 billion payment due Nov. 15 that Treasury has "no chance whatsoever of meeting," he said. </p><p></p><p><a href="http://www.cnbc.com/id/101113997" target="_blank">http://www.cnbc.com/id/101113997</a></p><p></p><p></p><p>could get interesting.</p></blockquote><p></p>
[QUOTE="Spata, post: 2316931, member: 1455"] The government's spending pace in 2013 has been $13.3 billion a day while tax receipts have averaged $10.8 billion, according to Capital Economics. That leaves a daily shortfall of $2.5 billion. Treasury will have to start dipping into the nearly $36.5 billion in reserves it is holding to cover that shortfall, meaning the government can still run for about 14 more days. That, though, is probably too optimistic an outlook. "Because tax revenues fluctuate and spending obligations are not spread out evenly, the Treasury is likely to exhaust its reserves before then," Paul Dales, senior U.S. economist at Capital, said in a report. Looking at the government's schedule of upcoming payments, Dales sees the key dates coming as an Oct. 31 debt interest payment of $6 billion and a $57 billion payment the following day to cover Social Security, Medicare, military and income support payments. There's also a big $15 billion payment due Nov. 15 that Treasury has "no chance whatsoever of meeting," he said. [url]http://www.cnbc.com/id/101113997[/url] could get interesting. [/QUOTE]
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