The emergency measures, including suspending the sale of some Treasury securities, are expected to create “$200 billion in headroom” and win Washington an undetermined amount of time to raise the debt ceiling.

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BY / NEW YORK DAILY NEWS

WEDNESDAY, DECEMBER 26, 2012, 6:31 PM

JAY MALLIN/BLOOMBERG

Treasury Secretary Timothy Geithner described stop-gap remedies in a letter to Senate Majority Leader Harry Reid and other top lawmakers Wednesday.

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WASHINGTON — Treasury Secretary Timothy Geithner announced Wednesday the U.S. government will reach its debt limit on Monday, and that “extraordinary measures” will be taken to stave off default.

Geithner described the stop-gap remedies in a letter to Senate Majority Leader Harry Reid (D-Nev.) and other top lawmakers Wednesday, as President Obama and the Senate, absent a negotiating partner, returned to Washington for a last-ditch bid to avert the fiscal cliff.

The emergency steps to forestall the government from hitting its $16.4 trillion debt limit on Dec. 31, including suspending the sale of some Treasury securities, are expected to create “$200 billion in headroom,” and win Washington an undetermined amount of time to raise the debt ceiling, Geithner wrote.

The debt crisis ups the ante on the fiscal cliff negotiations, as Congress must pass a bill to allow more government borrowing, or Uncle Sam will eventually be in default.

Read more: http://www.nydailynews.com/news/national/geithner-announces-emergency-steps-pre-empt-default-article-1.1227807#ixzz2GO0fgcGg