U.S. Could Run Out of Cash by May

Investment Analysis Clubs Macro Economic Trends and Risks
1

This was a very small headline below many others in the N.Y. Times. Guess they think there isn’t much danger.

https://www.nytimes.com/2025/03/26/business/us-debt-limit.html

U.S. Could Run Out of Cash by May, Budget Office Predicts

The Congressional Budget Office said that the so-called X-date could occur as early as spring if Congress does not lift or suspend the nation’s debt limit.

By Alan Rappeport, The New York Times, March 26, 2025

…
The C.B.O. noted that its forecast is subject to uncertainty over how much tax revenue the federal government will collect this year. It expects that the United States will have sufficient funds to keep paying bills through August or September. However, it said that if borrowing needs exceed its projections, the U.S. could run out of cash by late May or sometime in June…

The so-called X-date is the moment when the United States is unable to pay its bills, including interest payments to investors who hold government debt. Failure to meet those obligations could result in the United States defaulting on its debt. The U.S. has never defaulted on its debt, which is considered one of the safest investments in the world, and brinkmanship over missed payments could be economically damaging.

The national debt is now approaching $37 trillion. Lawmakers agreed in June 2023 to suspend the $31.4 trillion debt limit until Jan. 1, 2025…

Before taking office this year, Mr. Trump called for abolishing the debt limit … [end quote]

It’s possible that President Trump will abolish the debt limit by executive order. Of course, that would be unconstitutional but that hasn’t stopped him yet.
Wendy

9 Likes
2

Et Tu, Wendy?

987654321

1 Like
3

I thought that budget bill in Congress addressed that issue? Or, maybe they are declaring a “CRISIS”, to jam it through Congress without any thought?

Steve

4

I think the issue of it not being “above the fold” is that the predictions of when are all over the place. I just did a quick google of “debt ceiling extended” and Yahoo has a story from today that it could happen by August, Politico has a story from two days ago that it will happen between July and October, and the NYPost states, from two days ago, it will happen by Mid-July.

Considering this is cough not yet happened cough, I am less worried about the risk of it until we have a more specific date from an official source.

Hawkwin
Who will remind readers that the current admin wants to completely do away with the debt ceiling limit until at least 2027.

2 Likes
5

It is going to happen within the next two months. Johnson and Trump do not want the Senators making decisions. Trump and Johnson want control of the Congress. Delays in the budget and tax cut bills gives up control.

2 Likes