On Tuesday and Wednesday, the Treasury Department auctioned $56 billion in new debt. When these notes settle on Monday, they will take the United States over its debt ceiling.
According to NASDAQ.com, Treasury officials previously said May 16 would be the day that the U.S. would cross the current debt threshold. This move by the Treasury will likely change the date for U.S. default — currently set on August 2.
The Treasury’s auctions come at a time when the debate over whether to raise the debt ceiling is starting to scare the market. Liberal and supposedly conservative doomsday prophets (among them, House Speaker John Boehner) argue that not raising the ceiling will cause complete economic collapse.
CATO Institute Senior Fellow Dan Mitchell told FoxNews.com, “The Treasury Secretary is being deceitful; the Fed chairman is being very misleading on the issue as well.”
“Default is not the issue; the issue is whether we get government spending under control. The debt and deficit are the symptoms. (There is an) underlying problem of a government that is too big.”