Treasury could run out cash in early September, urges Congress to raise debt ceiling before recess
“‘Based on updated projections, there is a scenario in which we run out of cash in early September, before Congress reconvenes,’ Treasury Secretary Steven Mnuchin said in a letter to House Speaker Nancy Pelosi on Friday. ‘As such, I request that Congress increase the debt ceiling before Congress leaves for summer recess,’ Mnuchin said.”
USAGOLD note: This is not some budget analyst raising the red flag but the Secretary of the Treasury who is in a position to know first-hand just what the balance is in the national checkbook. Whenever we start talking about raising the debt ceiling worries immediately arise about another pitch political battle in Congress and an attendant threat to the national credit rating. At times in the past, the gold price has risen as the level of dysfunction in Washington became more readily apparent.