June 27, 2011
The purpose of this analysis is to shed light on the operation of the debt limit in case Congress does not raise the limit before the federal government runs short of cash and is no longer able to meet all of its obligations.
In particular, we have addressed three questions:
Please note that the analysis has been updated to reflect recent Treasury data. The daily outlook has been extended through the end of August and a new "layers of defense" slide has been added. Additional information about August securities has also been updated.
The federal government has an estimated $306.7 billion in payment obligations for August 2011 after the 2nd of the month. The U.S. will take in $172.4 billion in revenue from August 3 to 31, 2011. Check out the following tools to make the difficult choices that would prioritize programs and balance the books: