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 Bi...