By JOSH BOAK 

EXPLAINER: How ominous is the debt limit problem?

 

January 18, 2023



WASHINGTON (AP) — On the brink of hitting the nation's legal borrowing limit on Thursday, the government is resorting to "extraordinary measures" to avoid a default.

Sounds ominous, right?

But -- take a breath -- the phrase technically refers to a bunch of accounting workarounds. Yes, accounting.

Because the debt cap limits the issuance of government bonds — a way the U.S. borrows money — these workarounds shift money among accounts and should keep the government open through at least June, according to a letter last week by Treasury Secretary Janet Yellen.

In theory, President Joe Biden and C...



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