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IPFS News Link • Government Debt & Financing

Will Trump Use Obama's "Secret Debt Ceiling Plan" To Avoid A U.S. Treasury Default?

• zerohedge.com by Tyler Durden

As proven time and again, despite sharing a common party, conservative and moderate republicans have very little else in common.

So, while many may think that a repeat of the 16-day government shutdown in 2013 is unlikely while a single a party controls all three branches of government in Washington D.C., we suspect it may not be quite as simple as that.  Without a budget in place that truly balances, conservative republicans will most likely be unwilling to approve debt ceiling increases no matter who is sitting in the White House.

While republicans have attempted to get ahead of the game by passing a debt ceiling increase well in advance of a breach, efforts so far have failed.  And while it may seem far away, the U.S. government will reach its statutory limit on borrowing some time in October.  So how will Mnuchin handle the Treasury Department if Republicans fail to act and Democrats refuse to play ball?  Turns out Obama had a plan for that.  Per Bloomberg:


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