JKX 2006

nice one banj good of you have you a few pounds to give to the usa:-))[hd]


Snow warns US government running out of cash, asks for higher debt ceiling

WASHINGTON (AFX) - Treasury Secretary John Snow has warned that unless
Congress raises the national debt limit, the US government will run out of cash
to finance its daily work in two months.
In a letter to Senate leaders on Thursday, Snow said the statutory debt
limit imposed by Congress of 8.184 trln usd would be reached in mid-February and
the government would then lose its borrowing power.
"At that time, unless the debt limit is raised or the Treasury Department
takes authorized extraordinary actions, we will be unable to continue to finance
government operations," said the letter, seen by Agence France-Presse.
Snow warned that even if the Treasury took "all available prudent and legal
actions" to avoid breaching the ceiling, "we anticipate that we can finance
government operations no longer than mid-March".
"Accordingly, I am writing to request that Congress raise the statutory debt
limit as soon as possible."
The Republican-led Congress last voted to increase the debt limit in
mid-November 2004, despite opposition from Democrats who demanded the
free-spending federal government tighten its belt instead.
The US debt limit sparked bitter partisan battles in the mid-1990s between a
Republican-dominated Congress and the Democratic administration of president
Bill Clinton, leading to shutdowns of the federal government.
Once the US government hits the ceiling, it comes under threat of defaulting
on its debts and can lose the ability to raise future credit on the capital
markets.
Snow underlined that the "full faith and credit of the United States" was a
unique selling point on the markets.