Analysis shows that the US debt limit could reach Dec. 21.

According to bipartisan analysis , US could exceed its debt limit by Dec. 15, according

According to a Washington think tank analysis, the U.S. government may run out of cash in just a few short weeks if Congress does not raise the federal debt limit.

According to the Bipartisan Strategy Center, the “X Date”, which is the date when Treasury Secretary Janet Yellen exhausts all maneuvering room to stop the U.S. reaching the debt ceiling, will occur sometime between Dec. 21-28.

WHAT’S THE DEBT CEILING?

Shai Akabas (the center’s director for economic policy), stated in a statement that those who think the debt limit can be safely pushed to the backside of the December legislative pileup, are mistaken. If Congress leaves for the holiday recess, it would be in danger of financial disaster by failing to address the debt limit.

Although the U.S. has never defaulted upon its debt, it was close to doing so in 2011, when House Republicans refused a debt-ceiling hike. This led to Standard and Poor’s downgrading the U.S.’s debt rating by one notch.

The U.S. would have to temporarily default on its obligations if it fails to increase or suspend its debt limit. This could have severe and economic consequences. The interest rates would rise and the demand for Treasurys would fall. Even the threat of default, borrowing costs can increase.

According to the analysis, Treasury will be unable meet approximately 40% of the payments due over the next few weeks if the U.S. runs short of money.

Although the U.S. has never defaulted upon its debt, it was close to doing so in 2011, when House Republicans refused a debt-ceiling hike. This led to Standard and Poor’s downgrading the U.S.’s debt rating by one notch.

The U.S. would have to temporarily default on its obligations if it fails to increase or suspend its debt limit. This could have severe and economic consequences. The interest rates would rise and the demand for Treasurys would fall. Even the threat of default, borrowing costs can increase.

According to the analysis, Treasury will be unable meet approximately 40% of the payments due over the next few weeks if the U.S. runs short of money.

According to the Bipartisan Policy Centre, the timeline for the $118 billion Highway Trust Fund transfer that the Treasury Department confirmed would be completed by December 15th is based on the Bipartisan Policy Center’s estimates. This day is also the due date for quarterly corporate tax receipts. The think tank warned that if they are less than expected, the Treasury could be left with a “dangerously low” cash balance.

The analysis stated that “Failing the nation to extend its debt limit would represent an unprecedented event in American history that carries grave risk to American taxpayers.” “Failing to pay the nation’s bills on-time could have immediate ripple effects across the global economy, especially during times of economic recovery and increased uncertainty about a new COVID-19 version.”

One possibility on Capitol Hill is to add a clause addressing the debt limit to the final National Defense Authorization Act. This provision could be voted upon as soon or next week. However, there has been bipartisan opposition to the proposal. Both House Majority Leader Steny Hopyer and House Minority leader Kevin McCarthy warned that tethering NDAA’s debt limit could jeopardize its passage in the lower chamber.

Hoyer, D.Md., stated recently that “We’ve told Senate that.” That’s the truth. Those are the numbers.