U.S. Will Hit Debt Limit in Mid-October

The United States “is set to run out of borrowing authority in mid-October, leaving the government at a high risk of not being able to pay for Social Security checks, military salaries and other operations,” the Washington Post reports.

“Republicans are demanding significant new spending cuts in exchange for increasing the nation’s $16.7 trillion debt limit, with some GOP lawmakers insisting on a delay or the scrapping of President Obama’s signature health-care law. Obama, meanwhile, says he will not negotiate on the debt limit, the government’s legal cap on borrowing.”

“With the two sides far apart, there is no clear path to resolving the differences. Not raising the limit would ultimately lead to a default, undermining the nation’s credit.”