This past week, everything started getting really scary at the Treasury.
At the end of the month, the Federal Government will run out of money. Treasury Secretary Steven Mnuchin needs Congress to raise the debt ceiling to pay the Government’s bills.
If you are responsible for paying the bills of the United States Government, you need to have money.
Mnuchin was counting on, and planning for at least 18-month’s worth of extra cash for the bills. The Treasury Department was already figuring that into how they were going to get the checks out.
He wanted extra money to help cover an aid package for hurricane Harvey relief.
Mnuchin was already getting pushback from Congress on getting money to help with that. In fact, at this week’s conference on raising the debt ceiling GOP members mocked him.
Mnuchin doesn’t make the bills, he just pays them. Congress controls where the Government money gets spent.
Hurricane IRMA damage is estimated in the 100 billion dollar range. The U.S. Treasury has some very serious financial issues ahead.
Trump’s recent discussion with Democrats, is pinning a debt ceiling deal to just a 3 month extension.
That just turned the Treasury Department into a tailspin.
In the last debt ceiling crisis Jacob Lew the previous Treasury Secretary was quoted as using “extraordinary measures” to get the Government through.
Mnuchin is going to need super powers to get through this crisis.
If everything comes together as President Trump is negotiating for, it’s going to put Congress on the tip of the needle to get the budget and debt ceiling done.
Congress needs to raise the debt ceiling, or cut the pork. It needs to be done fast.
The Government runs out of money the end of September.