WASHINGTON Nov 20 The Obama administration
warned on Wednesday that it would likely begin defaulting on its
obligations within a month of Feb. 7 if Congress does not raise
a cap on government borrowing by then.
Obama signed into law a bill last month that suspended a
$16.7 trillion cap on the national debt until Feb. 7, when it
will reset to whatever level the debt has reached.
Absent a decision to raise it again, the Treasury Department
has tools known as "extraordinary measures" to manage its cash a
little longer before it starts missing payments.
"There's no indication right now that extraordinary measures
would last longer than a month," a Treasury official said.