WASHINGTON (MNI) – As expected for days, President Obama Thursday
triggered the process by which the U.S. Treasury is virtually assured of
having its borrowing authority extended $1.2 trillion, into the spring
of 2013.
In a brief statement, Obama said, “I hereby certify that the debt
subject to limit is within $100 billion of the limit and that further
borrowing is required to meet existing commitments.”
The formal notification had been postponed a week to allow Congress
to vote on the debt hike request within the 15-day deadline that now
overlaps the return of Congress next Tuesday.
Nevertheless, the debt-hike agreement reached with Congress after
weeks of congressional paralysis — that triggered the first S&P
downgrade of the U.S. sovereign rating — provides for a presidential
veto of any joint resolution of disapproval.
Since the Democratic-controlled Senate can deny Republicans enough
votes to overturn any presidential veto, there seems to be very little
chance the debt hike can be denied.
A Treasury official earlier told reporters that the $1.2 trillion
is enough to keep government going until the end of the year, after the
presidential election, and the familiar extraordinary measures Treasury
can employ would take the next debate over the debt limit into the
spring of 2013.
** Market News International Washington Bureau: 202-371-2121 **
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