Debt-ceiling deadline might not really be Aug. 2
Report suggests the government would have enough cash on hand to continue paying bills until Aug. 10.
The August 2 debt-ceiling deadline might not be as firm a deadline as the White House has insisted it is.
The New York Times reports that the date after which the U.S. will be unable to pay its bills may in fact be August 10. How so?
Even though the Treasury will not be statutorily permitted to borrow more to pay its bills on August 2, the government would have enough cash on hand to pay debts until August 10, according to estimates from Wall Street banks and a Washington research organization, says the Times.
After August 10, the government would not be able to cut millions of checks. Still, the White House has insisted that August 2 is a firm deadline.
"That's not a guess. That's not a political opinion," said White House press secretary Jay Carney.
If the deadline can be moved by eight days, the extra time might buy the parties in Congress and the White House some breathing room to negotiate the raise after weeks of struggling to come to agreement. But it's unclear what effect further delay might have on the United States' credit rating.