US Treasury to Congress: We Will Hit the Debt Ceiling Soon

The United States expects to run out of tools to avoid a default between mid-February and early March, potentially causing lasting damage to the U.S. economy and its creditworthiness, the Treasury said on Monday.

In a letter to Congress, Treasury Secretary Timothy Geithner urged lawmakers to raise the $16.4 trillion legal limit on the nation’s debt or risk “irreparable” economic harm.

If the borrowing limit is not increased, the United States could default on its debt and not make the 80 million payments the U.S. government sends out every month, including Medicaid and Medicare payments, military and law enforcement salaries, the Treasury said.